Organizations across industries are facing a constant challenge to upskill employees, introduce new tools, and adapt to evolving technologies and business practices. To bridge skill gaps effectively, many companies must make a critical decision: should they build their training programs in-house, or buy third-party solutions? While both approaches offer unique advantages and challenges, understanding the specific needs of your organization can make this decision more manageable and strategic.
This article will explore the factors that influence the build vs. buy decision for training programs, the pros and cons of each approach, and some best practices to help guide your choice.
1. Assessing Organizational Needs and Goals
Before diving into the build vs. buy debate, it’s essential to understand your organization's specific needs. Conducting a needs assessment will help determine the skill gaps, training objectives, and level of customization required. Some key questions to consider are:
What are the skills gaps or performance issues that need to be addressed?
How quickly does the organization need to implement this training?
Are there unique organizational processes, tools, or practices that the training must cover?
What are the budget constraints, both for development and ongoing maintenance?
Is there internal expertise that can be leveraged to develop training content?
The answers to these questions will illuminate whether building an in-house training program is feasible or if a third-party solution can meet these needs.
2. Advantages of Building In-House Training Solutions
Building an in-house training solution allows organizations to create a program that aligns closely with their unique culture, processes, and objectives. Here are some of the core benefits:
a. Customization and Flexibility
In-house training solutions can be fully customized to fit specific requirements. From developing industry-specific scenarios to using company data in case studies, in-house programs can target exact skill gaps and incorporate unique workflows. This is particularly beneficial for highly specialized industries, like manufacturing, healthcare, or finance, where off-the-shelf solutions may not adequately address specific needs.
b. Better Alignment with Company Culture
Training is a vital part of shaping company culture. By creating a training program in-house, organizations can ensure that the messaging, values, and practices emphasized are aligned with the company's culture. This can foster stronger employee buy-in and engagement, as employees see the relevance of the training to their day-to-day tasks and the organization’s overall mission.
c. Control Over Content and Updates
In-house training allows complete control over content development and updates. As new tools or processes are introduced, the training team can quickly integrate these changes into the program without waiting for an external vendor. This flexibility is particularly advantageous in industries experiencing rapid change, where employees need regular updates to stay compliant and informed.
d. Intellectual Property Ownership
When a company builds its own training solutions, it retains full ownership of the intellectual property, including materials, frameworks, and methodologies. This control can be beneficial if the organization wishes to repurpose training materials, build upon them over time, or even create proprietary methodologies that set it apart from competitors.
3. Challenges of Building In-House Training Solutions
While in-house training has its advantages, it also presents significant challenges that may impact its feasibility.
a. Resource Intensiveness
Building an effective training program requires time, money, and expertise. Companies need instructional designers, subject matter experts, graphic designers, and sometimes software developers to create a robust training platform. These costs can add up, and organizations must be prepared to allocate budget and time to development and maintenance.
b. Scalability Issues
Scaling an in-house training program can be challenging, particularly in large organizations or those with a distributed workforce. As the company grows, maintaining and delivering training programs consistently across locations or teams can require additional resources and technology solutions, further increasing costs.
c. Limited Expertise and Innovation
For organizations without a dedicated learning and development (L&D) team, creating a training solution from scratch may stretch internal resources. Additionally, in-house teams may lack exposure to the latest training trends and technology innovations that third-party providers specialize in. This can result in training solutions that may not fully engage learners or leverage the latest instructional design principles.
4. Advantages of Buying Third-Party Training Solutions
Purchasing a third-party training solution can often be more efficient, especially for general skills or widely applicable topics, such as management training, software skills, or compliance.
a. Faster Implementation and Time Savings
One of the most significant advantages of buying training solutions is the speed of implementation. Since third-party vendors provide ready-made content, organizations can roll out training quickly, ensuring employees receive essential skills and knowledge without the time-consuming development phase.
b. Access to Industry Expertise
Third-party training providers often have extensive expertise in instructional design and may specialize in particular industries or skill areas. By purchasing training solutions, organizations gain access to high-quality content that has been refined and validated across multiple clients. This can ensure that the training aligns with industry standards and best practices.
c. Scalability and Consistency
Third-party solutions, especially those delivered via digital platforms, offer seamless scalability, allowing organizations to train large workforces consistently across locations. Most vendors provide solutions that can accommodate remote or geographically dispersed teams, making them ideal for companies with a diverse employee base.
d. Ongoing Support and Updates
Third-party providers typically offer ongoing support and regular updates to ensure the content remains relevant and current. For instance, in industries with frequent regulatory changes, compliance training from third-party providers is routinely updated, ensuring that employees receive the latest information without the organization having to make the updates.
5. Challenges of Buying Third-Party Training Solutions
Although third-party solutions provide convenience and scalability, they also have drawbacks that may affect their suitability.
a. Limited Customization
Third-party training solutions are designed to meet broad needs, so they may not fully align with an organization’s unique processes or requirements. Customizing these solutions can sometimes be costly or limited by the vendor’s capabilities, which may result in training that feels less relevant to employees.
b. Less Control Over Content and Quality
When an organization outsources its training, it has less control over the content’s quality and relevance. While many vendors offer high-quality materials, the organization may not have the same control over customization, updates, or localization. Additionally, if the vendor’s quality standards shift, the organization may need to renegotiate or change providers.
c. Dependency on the Vendor
Outsourcing training creates a dependency on the vendor, particularly if the training requires regular updates or technical support. In cases where the vendor experiences financial or operational difficulties, the organization may face interruptions in training availability, leading to potential disruptions in employee development.
6. Factors to Consider When Deciding Between Build and Buy
When deciding whether to build or buy a training solution, organizations should consider several key factors to ensure they choose the best option.
a. Budget and Resources
If the organization has a limited budget or cannot justify a significant investment in training infrastructure, a third-party solution might be more feasible. Conversely, if there is a long-term commitment to a particular skill area, an in-house program might offer better value over time.
b. Time Constraints
For training needs that require immediate implementation, third-party solutions generally provide faster deployment. In contrast, in-house development might be viable if time constraints are flexible, and the training requires high customization.
c. Training Scope and Complexity
For highly specialized training that addresses unique processes or proprietary information, building in-house is often the best option. However, for standard skills, such as leadership or compliance, third-party solutions usually suffice.
d. Company Size and Scalability Needs
Larger organizations with distributed workforces may benefit from the scalability and standardization of third-party solutions. Smaller organizations with centralized teams might find it easier to manage in-house training with limited resources.
e. Frequency of Updates and Maintenance
If the training content requires frequent updates—such as compliance training—third-party solutions may relieve the burden of constant maintenance. However, for relatively static training needs, an in-house solution may prove more cost-effective in the long run.
7. Hybrid Approach: Combining In-House and Third-Party Solutions
Many organizations find that a hybrid approach provides the best of both worlds. In this model, companies develop critical or highly customized training in-house, while third-party solutions handle broader or standardized topics. For example:
Onboarding Programs: Many organizations use in-house content for specific onboarding related to company culture, systems, and proprietary tools, while third-party solutions address universal onboarding topics, like general compliance.
Compliance Training: In industries with stringent regulatory requirements, companies may purchase off-the-shelf compliance courses that meet regulatory standards and supplement them with in-house content that addresses internal protocols.
Leadership Development: Organizations can develop custom modules that reflect their unique leadership values and competencies and augment them with third-party content that addresses universal leadership skills.
8. Conclusion: Making the Right Choice for Your Organization
Ultimately, the decision to build or buy training solutions hinges on the organization’s unique needs, resources, and strategic priorities. By evaluating the advantages, challenges, and implications of each option, organizations can make an informed decision that supports their growth and skill development goals.
In general:
Build in-house when the training requires deep customization, aligns closely with proprietary practices, or is a strategic long-term investment.
Buy third-party when the training needs to be delivered quickly, requires little customization, or is a general requirement that doesn’t necessitate unique approaches.
For many organizations, a hybrid approach offers flexibility, cost-efficiency, and targeted training outcomes, blending the strengths of both in-house and third-party solutions to create a comprehensive and adaptive learning ecosystem. By considering these factors, companies can design training programs that not only meet immediate needs but also scale and evolve with the organization.
About LMS Portals
At LMS Portals, we provide our clients and partners with a mobile-responsive, SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant rapid course development software that provides a drag and drop engine to enable most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make LMS Portals the ideal SaaS-based eLearning platform for our clients and our Reseller partners.
Contact us today to get started or visit our Partner Program pages
Commentaires