In an earlier post, I wrote about why companies use outsourcing (or right-sourcing) to accomplish certain functions that they don’t have the internal resources to accomplish. We look at four primary reasons why a company would outsource.
Now, let’s look at some typical scenarios – particularly in pharmaceutical sales training – where outsourcing is (or should be) employed.
- Development of training materials – this is the most common practice. Very few, if any, pharmaceutical companies have the research, writing, editing, graphical design, instructional design, and production expertise in-house to produce in-depth learning systems. Larger companies will often have sufficient internal resources to produce smaller-scale nuggets of training, but major programs are regularly outsourced.
- Technology solutions – often, large pharma companies will have the internal IT and administrative resources to support an installation of major learning technology programs, but it is becoming increasingly common to outsource these platforms – not only the hosting of them, but sometimes even administration (“running” the system). Learning management systems, assessment management systems, webcasting programs, etc….these solutions are now often available in a turnkey approach that is far more affordable, and less of a drain on internal employees.
- Strategic expertise – another word for consulting. Because many of those in sales training are on a “rotation” and are not deeply immersed in training design, it can be quite valuable to bring in outside resources who can provide a broader and more strategic approach. Many departments get invariably caught in the vortex of tactical thinking, due to day-to-day demands, and there is not enough time or knowledge to take a longer-range view.
- Facilitation of programs – while most companies seek to develop trainers that can facilitate live training, often there is simply not enough headcount, or no expertise in particular areas of knowledge/practice. Some very good companies (and some not-so-good companies) make their living providing this service.
There are other situations where outsourcing makes sense, but these are some of the typical ones. Part of my role as a consultant is to help my clients make optimal decisions about right-sourcing – what should be sourced to external vendor/partners, and which ones are best. That is where broad knowledge and an extensive network makes the difference.
I’d add one more. That’s the generational timebomb. With a generation of 76 million being replaced by a generation of 55 million, the math doesn’t work. Especially with a growth in job creation.
I think there’s also a lot of unwarranted fear. Here are some interesting stats from the Bureau of Labor Statistics. There are roughly 140 million jobs in the U.S. 90% of those jobs are location fixed. They can’t be moved even if you wanted to. Are you going to send you kids to India for daycare? How about your next dentists appointment? Can you ship your teeth to China for a cleaning. Of the remaining 10%, only about 3% have left the country. This has been more than offset by increased purchase of U.S. goods such as Dell computers and Cisco routers for call centers.
Many people think we’ve shipped out or lost a lot of manufacturing jobs. If you go to a factory sometime, you’ll notice that there may only be one or two people running a big plant. That’s because technology has change manufacturing. The machines have become very sophisticated and there aren’t a lot of manual operations any more.