Key Findings: Learning and Development Services Market

This procurement intelligence report on the learning and development services market offers a comprehensive analysis of the US supply market and helps buyers identify cost-saving opportunities. Additional information includes an analysis of the regional spend potential, negotiation strategies, and supplier selection criteria.

The learning and development services market is expected to witness category spend growth of more than USD 139 billion between 2018-2023, with spend momentum accelerating at a CAGR of 7.45% during the forecast period. This increase in the procurement of these services is primarily attributed to the growing demand from the IT, BFSI, and construction sectors with the IT sector accounting for about 20% of the overall learning and development market size share. The rapid adoption of advanced technologies such as Blockchain, AI, and Big Data Analytics makes it imperative for the IT enterprises to train their employees to sharpen their skills related to the development, application, design, and implementation of these technologies. Highly vulnerable to risks like money-laundering, financial crimes, technological glitches, and enterprise-wide risks, the BFSI sector is exhibiting a high demand for learning and development services pertaining to anti-money-laundering measures, sales, budget management, and cash flow management. Motivated by the growing demand, service providers are implementing innovation into the services to facilitate buyers with value and cost-saving opportunities. They are developing cloud-based learning and development services that offer centralized learning delivery to buyers. Their provision of enterprise talent management platforms helps to streamline learning management, automate the training and evaluation of employees, and integrate performance and compensation systems with the L&D solutions. Such innovations are also playing key roles in boosting the spend growth of the learning and development services market on a global scale.

North America and Europe are accounting for a cumulative spend of more than 60% in the learning and development services market and will continue dominating the global market during the forecast period. Innovations made in the learning and development services model are attracting almost 40% of the learning and development budget. These innovations include adaptive learning and the adoption of VR in the L&D process for buyers' employees. Moreover, the BFSI, healthcare, and manufacturing sectors in the US are facing serious workforce shortages that is creating the requirement to train existing employees and increase their work efficiency. This is favoring the demand growth of the learning and development services market in the region to a great extent. Employment opportunities in the SMEs and SMBs in Europe will create substantial demand for learning and development services in Europe. Similarly, the growing number of businesses in APAC will increase the demand for technical and vocational skills, which will consequently supplement the spend growth of the learning and development services market.

Insights Delivered

This procurement market intelligence report offers a comprehensive overview of the learning and development services market buyer and supplier insights and identifies the best procurement models to help enterprises procure learning and development services at cost-effective rates. The report also provides information on the spend opportunity for suppliers and allows buyers to estimate the total cost of ownership.

Our portfolio of reports on the corporate services category help buyers understand:

• Global and regional spend potential for learning and development services for the period of 2018-2023
• Top suppliers and their cost structure
• Current relocation industry trends
• Incumbent supplier evaluation metrics

Learning and Development Services Market Pricing Trends

This procurement intelligence report contains in-depth pricing insights for the procurement of learning and development services. These pricing insights provide an overview and comparison of pricing models, supply chain margins, and the volume and cost drivers impacting pricing:

• Provision of innovative learning and development services is expected to render the category price expensive during the forecast period. This is a way of the service providers to compensate for the significantly high costs that they incur while adopting sophisticated technologies such as AI and Big Data Analytics.
• Service providers are also incurring high development costs on online L&D courses, microlearning programs, mobile-based applications for L&D, and blended L&D programs. This will increase the procurement price in the learning and development market.
• Service providers spend a considerable part of their budgets on providing functional, technical, industry, and managerial and leadership skill development and training to employees through internal resources to offer improved services to buyers. This is resulting in increasing employee expenses borne by suppliers which have an inflationary impact on the procurement price in the learning and development services market.

Optimize Category Spend for the Learning and Development Services Market

Buyers can achieve cost savings from 90% to almost 35% of their total learning budget by procuring services that can centralize earning processes through cloud-based platforms. SaaS is one such service that provides a unified platform for learning where both the instructor and the learner can interact from remote locations and share information. This saves time and significant costs for buyers.

To help category managers optimize spend on learning and development services, this report also offers:

• Learning and development services category management strategies and objectives
• Supplier and buyer KPIs
• Outsourcing category management activities
• Risk management
• Cost-saving opportunities

Build Strategies for Effective Supplier Selection

It is advised that buyers engage with service providers that have an extensive product portfolio which will reduce the complexities associated with engaging with multiple service providers for learning and development services. The portfolio of services must include digital learning strategies and solutions, managed learning services, content design and development, learning technology administration and support, and tuition program management.

This learning and development services market procurement intelligence report identifies the major costs incurred by suppliers and provides additional information on:

• Cost-benefit analysis of pricing models
• Supplier relationship management practices
• Technology-facilitated procurement metrics

Devise Effective Category Management Strategies for Learning and Development services

Supply base rationalization is also an important category management objective as buyers can consolidate their supply base by collaborating with a few global service providers in the regions that buyers operate. Additionally, it can help buyers avail significant volume discounts based on the number of learning and development services availed.

Key insights offered in this procurement intelligence report on the learning and development services market will help the buyers identify:

• Supplier margins and selection criteria
• Buyer ecosystem and factors influencing the procurement process
• Strategic sourcing and category management strategies

Information on the top learning and development services suppliers are highlighted in this procurement intelligence report on the learning and development services market.