Technical And Subject Matter Training Category Procurement Intelligence Report

Business practices within Technical And Subject Matter Training market are heavily influenced by changing trends across the category as well as within the broader Development and Training market. Several important sectors of the global economy, such as BFSI, Healthcare and Manufacturing are facing serious shortage of adequately skilled workforce. Companies are trying to fill this gap by re-skilling their existing employees in new skills. Similarly, rapid penetration of new technologies across industries (e.g. big data, AI, blockchain, or even data analytics tools) is necessitating re-skilling of employees so that they understand and leverage these technologies to work more efficiently. These factors have improved the demand outlook for L&D services in developed economies and will soon impact the developing economies as well.

Although companies are providing more learning opportunities and resources to employees, actual percentage of employees who have seriously completed such learning activities in still very low. Some of the reasons responsible for this trend are a 'one training fits all' approach, lack of personalization, engagement and demonstration of benefits in an employee's current work profile. Companies as well as L&D suppliers have realized these challenges and are coming up with solutions such as gamification and L&D delivery through multiple platforms.

Labor cost constitutes a key component of L&D providers' OPEX. Factors such as rise in the cost of living, increase in the local wage policies across geographies, and rise in wages and remuneration packages will propel service providers' OPEX and therefore use of automation and other tools will further increase to offset some of the rise in cost of operations.

As a result, category managers need to closely monitor the Technical And Subject Matter Training procurement trends and identify changes required in their procurement environment for the category.

The report discusses in detail the best practices that have served well the category managers responsible for Technical And Subject Matter Training procurement.

For example, Buyers need to adopt renegotiation strategies with existing service providers to receive better quotes and discounts. Negotiation can take place based on the supplier's previous performance, performance of employees after the completion of L&D program or technology adoption by suppliers.

Category managers should evaluate the RFQ's from service providers against the industry benchmarks as this helps buyers to gain a better understanding of the market prices and save costs.

Buyers should prefer to collaborate with service providers that offer one-stop solutions for L&D to avail significant cost savings through L&D consolidation. This includes learning planning and curriculum design, custom content design and development, user and administration training, and content management services.

Technical And Subject Matter Training procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Technical And Subject Matter Training procurement. Some examples include: