Edward Trolley, co-author of Running Training Like a Business (1) and now VP of outsourcing for Knowledge Planet, believes that training shares the following characteristics with other successful BPO opportunities:

• The scope of training is easily defined, yet it is fragmented and dispersed in most companies.
  
  
• Training represents a large fixed cost for many companies. In most cases, training departments are unable to achieve economies of scale and leverage on these costs -- a great characteristic for BPO.
  
  
• Training departments require a significant capital investment to stay current. Because training is not part of the main business product or service the company provides, it is difficult for training managers to secure the capital necessary to provide the best training. "Training is the last to get the budget and first to get cut. Why? Because there's a big disconnect between cost and value."
  
  
• Training can benefit from scale and aggregation. Nearly every training department needs vendors and administrators. "If you can manage these processes from a single 'process center' model, you can reduce headcount because you can leverage resources."
  
  
• Training can benefit from highly defined systems and processes that reduce response time, cycle time, and improve quality. Paul Harris explains how organizations and supplier are reaping the benefits of outsourcing in Outsourced Learning: a New Market Emerges (2). Organizations can reduce fixed costs by taking advantage of vendor service centers, such as the Accenture Learning Content Development Center and others. Operations like this can provide training -- "including blended learning opportunities and strategic alliances with e-learning firms -- to fulfill an organization's training requirements."

Ultimately, training is not part of the primary business product or service of most companies, and therefore it is a good prospect for outsourcing.

(1) David van Adelsberg and Edward A. Trolley, Running Training Like a Business, Delivering Unmistakable Value (Berrett-Koehler Publishers, 1999)
(2) Paul Harris, Outsourced Learning: A New Market Emerges, T&D (American Society for Training and Development, Sept. 2003)