Companies, especially multi-nationals are outsourcing employee training to retain focus on strategy and achieve tangible business outcomes apart from the definite cost savings. This according to a new Everest Research Institute study. Among offshore delivery options, India is emerging as the most common delivery location.

The new study titled ‘Learning services outsourcing (LSO): Accelerating the learning curve’, examines a “quietly” growing but strong market in which companies adopting LSO typically gain more than 15% direct cost savings and, in some cases, savings in excess of 30%.

Even more significant, companies are using LSO to produce tangible business results, such as quicker time to market. The study includes analyses of the LSO market and key business drivers, buyer trends, transaction characteristics and buyer case studies. An analysis of the supplier landscape is also available.

“Multi-national companies are a driving force behind LSO adoption as they look to standardize the learning function across geographies while remaining sensitive to local cultures and requirements,” said Monica Barron, VP of research.

The majority of LSO buyers are companies with more than 15,000 employees with multi-country presence; therefore, about 60% of LSO transactions cover multiple countries. To date, more than two-thirds of LSO deals have originated in North America; however, demand from Europe and Asia-Pacific-based companies is rising.

The LSO market is moving beyond the pioneer stage as evidenced by established suppliers expanding capabilities to include or expand LSO offerings. According to Barron, the market will expand further as buyers become more aware of the benefits of learning outsourcing.