2O18 TRAINING

INDUSTRYREPORT
ABOUT THIS STUDY

Now in its 37th year, The Industry Report
is recognized as the training industry’s
most trusted source of data on budgets,
stafﬁng, and programs. This year, thestudy was conducted by an outside
research ﬁrm May-July 2018, whenmembers from the Training magazine
database were e-mailed an invitation
to participate in an online survey. Only
U.S.-based corporations and educational
institutions with 100 or more employees
were included in the analysis.
The data represents a cross-section ofindustries and company sizes.

Industrial Classiﬁcations
Respondent proﬁle by industry (weighted per Dun & Bradstreet);#'L,%(f%-#'(7L-4!$(#'%#(Lj%*
V!-%#(% '<-*=#'#(L
4-%!$- (###(LD$$(-%#(L
D(#'-#(LS('<- L
P#%#&L
B<'($(#*,#%'&JL
P%#*,!-%
'<-JL

D(#(7L%f#&*-'#&L
Q%V#%#*('%(- L

SURVEY RESPONDENTS
Small companies

36%(100-999 employees)

Midsize41%(1,000-9,999 employees)

Large+(%(-*
S%(?(7LQ#%L

N'%('#%#(*## L

N-(7&*
f#@%'JL

23%

(10,000 or more employees)

Total respondents

271

Note that the ﬁgures in this report
are weighted by company size andindustry according to a Dun & Bradstreet
database available through Hoovers of
U.S. companies. Since small companies
dominate the U.S. market, in terms ofsheer numbers, these organizations receivea heavier weighting, so that the data
accurately reﬂects the U.S. market.

18 | NOVEMBER/DECEMBER 2018 training

About Survey Respondents:tBSFNBOBHFSTPSBCPWFJOUIFPSHBOJ[BUJPO
tBSFEFWFMPQFSTPSJOTUSVDUJPOBMEFTJHOFSTtBSFNJEUPMPXMFWFM CBTFEPOUJUMFTFMFDUJPO BTTPDJBUFT
tEFUFSNJOFUIFOFFEGPSQVSDIBTJOHQSPEVDUTBOETFSWJDFTtTFUUIFCVEHFUtNBOBHFSFRVFTUTGPSQSPQPTBMTCJETtSFDPNNFOEUIFQVSDIBTF
tIBWFUIFmOBMQVSDIBTFEFDJTJPO

www.trainingmag.com

TRAINING EXPENDITURES

Total 2018 U.S. training
expenditures—including payroll
and spending on external products
and services—declined 6.4 percent
to $87.6 billion. Spending on
outside products and services rosefrom $7.5 billion to $11 billion,
while other training expenditures(i.e., travel, facilities, equipment)
decreased to $29.6 billion from$44.5 billion. Meanwhile, training
payroll increased nearly 13 percent
to $47 billion.
The training expenditure
ﬁgures were calculated byprojecting the average training
budget to a weighted universeof 127,095 companies, usinga Dun & Bradstreet databaseavailable through Hoovers of U.S.
organizations with more than 100
employees.
Note: Although small companies
have the smallest annual budgets,there are so many of them(112,507), that they account for
one-quarter of the total budget fortraining expenditures.

Training Expenditures 2013-2018(IS(
100

E

80

60

QE
Q
Q
Q
QJ
QJJ  J


E

40


EE

 J
 
EJ

20

J

  J J



0

N#%N'%((7V"(!#'

N'%((7 #%ff%&'

(!(7(;#!
'!-#k '<-

DEFINITIONS
 Total training spending: All training-related expenditures for the year,
including training budgets, technology spending, and staff salaries.
 Training staff payroll: The annual payroll for all staff personnel assigned
to the training function.
 Outside products and services: Annual spending on external vendors andconsultants, including all products, services, technologies, off-the-shelfand custom content, and consulting services.

Average of Total Annual Budget
Organization Type

Education
Government/Military
Manufacturer/Distributor
Nonproﬁt
Association
Retail/Wholesale
Services
Avg. Across Sizes

www.trainingmag.com

Large

Midsize

Small

Average$3,587,500$17,600,000$14,549,108$32,669,800
N/A$39,500,000$18,983,185$19,681,075$300,833$2,758,375$2,557,373$3,731,250
N/A$849,375$2,142,047$2,107,790$354,886$666,364$450,000$233,333$150,000$348,333$253,736$355,751$888,878$5,137,176$4,202,210$7,839,960$150,000$9,271,389$4,752,179$4,963,673

training NOVEMBER/DECEMBER 2018 | 192018 TRAINING INDUSTRY REPORTTRAINING EXPENDITURES

Types of Training Products and Services
Intended to Purchase Next Year
22%

Assessment & Analysis Testing

6%

Audience Response Systems

18%

Audio and Web Conferencing Products & Systems

27%

Authoring Tools/Systems

13%

Business Skills

26%

Certiﬁcation

32%

Classroom Tools & Systems

21%

Consulting

31%

Content Development

18%

Courseware Design

13%

Customer Relationship Management

9%Enterprise Learning Systems

21%

Games & Simulations

15%

Knowledge Management Tools/Systems

33%

Learning Management Systems

24%

Mobile Learning

41%

Online Learning Tools & Systems

17%

Support/On-Demand Learning Tools & Systems
Presentation Software & Tools

21%

Talent Management Tools & Systems

21%

Training Management Administration

9%

Translation & Localization

9%

Web 2.0

2%

Other

5%
0

10

Average training expenditures for large companies increased
from $17 million in 2017 to $19.7 million in 2018. The
number for midsize companies rose $600,000 to $2.1 million
in 2018. But small companies decreased from $1 million to$355,731 (back to slightly below the 2016 level).
Some 36 percent of organizations said they increased staff
from the year before (up from 28 percent in 2017), while
52 percent said the level remained the same (down from 56
percent in 2017). Some 12 percent said it was lower, downfrom 16 percent in 2017. Large and midsize government/
military organizations had the largest personnel costs. This
year, midsize companies spent about a ﬁfth as much as large
companies, while small companies spent about one-quarteras much as midsize ones. The average payroll ﬁgure for large
companies was $6.2 million; for midsize organizations, it was

20 | NOVEMBER/DECEMBER 2018 training

20

30

40

50

$1.1 million; for small companies, it was $289,752.
For those who reported an increase in their training staff, theaverage increase was six people, three more than in 2017. For
those who reported a decrease in their staff, the average decrease
was 24 people—up from six last year, but two large companies
reported a reduction of 300-plus trainers, skewing the average.
Other training expenditures decreased signiﬁcantly thisyear to $29.6 billion from $44.5 billion in 2017. Suchexpenditures can include travel, training facilities, inhouse training development, and equipment. On average,organizations spent 11 percent of their budget or $235,077(up from $135,837 last year) on learning tools andtechnologies. Large services organizations had the largest
budgets for learning tools ($1.3 million). Midsize government/
military organizations had the largest tool budget in their

www.trainingmag.com

Training Expenditures per Learner 2016-2018
$814

Q
QJ
Q

$1,075$986

All Companies$1,052

Small (100 to 999
employees)$1,886$1,096
$870
$941
$858

Midsize (1,000 to
9,999 employees)
$379
$399

Large (10,000 or
more employees)$1,046

500

0

1000

1500

2000

Hours of Training per Employee 2017-2018
47.6
46.7

All Companies

QJ
Q

43.2

Small (100 to 999

61.2

employees)

54.3

Midsize (1,000 to
9,999 employees)

32.0
42.2
49.3

Large (10,000 or
more employees)
0

10

20

30

40

50

60

70

size range ($230,758). Large retailers spent the smallest
percentage of their training budgets on tools and technologies(1 percent). Looking ahead, the most frequently anticipatedpurchases are online learning tools and systems (41 percent
vs. 40 percent last year), learning management systems (33percent vs. 39 percent last year), and classroom tools andsystems (which leaped into No. 3 with 32 percent vs. 28
percent last year). This is followed by content development
at 31 percent and authoring tools/systems at 27 percent (vs.
28 percent last year), certiﬁcation (26 percent vs. 29 percent
last year), and mobile learning (24 percent vs. 23 percent
last year). Several items received 10 percent or less of hits,
including audience response systems, enterprise learning
systems, talent management administration, translation andlocalization, and Web 2.0.

www.trainingmag.com

80

Overall, on average, companies spent $986 per learner thisyear compared with $1,075 per learner in 2017. Government/
military organizations spent the most per learner this year($1,433), followed by nonproﬁt organizations ($1,360).
Midsize companies spent less ($858) than large ($1,046) andsmall ($1,096) companies.
While spending slightly less per learner, companies provided
almost the same number of hours of training as last year. On
average, employees received 46.7 hours of training per year,
compared to 47.6 hours last year. Small companies provided themost hours of training this year (61.2). Small services companies
had the highest average number of hours overall (81.8).
Companies continued to devote the bulk of their training
expenditures to training non-exempt employees (39 percent
vs. 42 percent last year).

training NOVEMBER/DECEMBER 2018 | 21

2018 TRAINING INDUSTRY REPORTTRAINING EXPENDITURES

Training Expenditure Allocations—
Who Gets Trained? 39%
40
30

24%

,!wD$%(

27%

25
20

20
10
0

10%

5.2

5
0
V"-#<,%(%7'
V"$#

(,%(%7'
V"$#

(V"$#
V$&#;<'%
f',!w
D$%(#

Staff per 1,000 Learners

Staff per 1,000 Learners>%'7D$%($%D$%(

56.4

58.4

60
50

50

40

33.8

33.4

31.4

30

30
20

10.4

10
0

24.7
19.3

15
10

60

40

Staff per 1,000 Learners;<'%
f'>%'7
D$%(#

#

13.5

13.5

10
'$'

N%<'%7#'%((7!7#f'%'7-$%(@%
IJ$(@
$!w-$%(
%-%#!%(%<'%7fI$(%(!$%
-$%(!!-%#!%(%<'%7fIEJ
22 | NOVEMBER/DECEMBER 2018 training

20

0;<'%f'$%D$%(#


#


#
Is the Number ofTraining-Related Staff Higher
or Lower Than Last Year?
/RZHU+LJKHU




6DPH



www.trainingmag.com

TRAINING BUDGET

Budget status remained much the sameas last year, with 37 percent saying
their training budget increased and 48
percent saying it remained the same.
Some 15 percent reported a decreasein budget. Last year, 36 percent said
their budget went up; 49 percent said
it remained the same; and 15 percent
said it went down. Services companies
showed the greatest tendency for budget
cuts, while retailers showed a greater
tendency for gains. Increases were not
evenly distributed across organization
sizes. More small and midsize
companies showed increases (32 and51 percent, respectively) than decreases(14 and 11 percent, respectively) than
midsize and large companies, where
the numbers were more balanced (23percent for each).
Most of the budget increases weremodest—less than 16 percent. Some
42 percent saw increases in the 6 to
15 percent range, while 30 percent oforganizations reported increases in the
1 to 5 percent range. Most respondents
who reported an increase in theirtraining budgets attributed it to thefollowing reasons:

What Happened to Your
Training Budget This Year?
'HFUHDVHG





5HPDLQHG
WKHVDPH

Budget Change by Industry
10%.BOVGBDUVSFS%JTUSJCVUPS

This year, more respondents (36percent) reported budget decreases
between 6 and 15 percent vs. 33
percent for 1 to 5 percent decreases
and 31 percent for more than 16
percent decreases. Some 32 percent(vs. 36 percent last year) chose“other” as the reason for the decrease,citing “added more blended learning
opportunities and reduced the need totravel,” “potential corporate merger,”and “state budget reduced.”

www.trainingmag.com

39%
20%

Servicest*ODSFBTFJOUIFTDPQFPGUIFJS
training programs (65 percent vs.
67 percent last year)t"EEFEUSBJOJOHTUBGG QFSDFOUWT
54 percent last year)t*ODSFBTFEOVNCFSPGMFBSOFSTTFSWFE
(48 percent vs. 49 percent last year)t1VSDIBTFEOFXUFDIOPMPHJFT
equipment (34 percent vs. 38
percent last year),QFUHDVHG

14%(PWFSONFOU.JMJUBSZ

51%

43%
37%

16%

3FUBJM8IPMFTBMF

42%
42%
32%

54%

12%
12%

EducationQ=-'%
Q (-'%Q %$

76 %

0%
0%

"TTPDJBUJPO

100%
8%

Nonproﬁt

0

38%
20

40

54%
60

80

100

training NOVEMBER/DECEMBER 2018 | 23

2018 TRAINING INDUSTRY REPORTTRAINING BUDGETS

How Much Did Your Training Budget Increase?
This was followed by:t#VEHFUBEKVTUFEUPSFnFDUMPXFSDPTUTOFBSMZQFSDFOUWTQFSDFOUMBTU
ZFBSt3FEVDFEUSBJOJOHTUBGG QFSDFOUWTQFSDFOUMBTUZFBS
t%FDSFBTFEPVUTJEFUSBJOFSDPOTVMUBOUJOWFTUNFOU QFSDFOUWTQFSDFOU
t%FDSFBTFETDPQFPGUSBJOJOH QFSDFOU
WTQFSDFOU-JLFUIFMBTUTJYZFBST UIFIJHIFTUQFSDFOUBHFPGPSHBOJ[BUJPOT QFSDFOU TBJE
NBOBHFNFOUTVQFSWJTPSZUSBJOJOHXJMMSFDFJWF
NPSFGVOEJOHUIBOUIFZFBSCFGPSF0O
BWFSBHF PSHBOJ[BUJPOTQMBOUPBMMPDBUF
UIFNPTUGVOEJOHUPNBOEBUPSZDPNQMJBODF
USBJOJOHBUNJMMJPOEFTLUPQBQQMJDBUJPOUSBJOJOHBUNJMMJPOQSPGFTTJPOJOEVTUSZTQFDJmDUSBJOJOHBUNJMMJPOPOCPBSEJOH
BU BOENBOBHFNFOUTVQFSWJTPSZUSBJOJOHBU 5IFIJHIFTUQSJPSJUJFTGPSUSBJOJOHJOUFSNTPG
BMMPDBUJOHSFTPVSDFTJOBSFJODSFBTJOH
UIFFGGFDUJWFOFTTPGUSBJOJOHQSPHSBNT 
QFSDFOUWTQFSDFOUMBTUZFBS GPMMPXFECZNFBTVSJOHUIFJNQBDUPGUSBJOJOHQSPHSBNTBOESFEVDJOHDPTUTJNQSPWJOHFGmDJFODZQFSDFOUGPSCPUIJOWTBOEQFSDFOU SFTQFDUJWFMZ MBTUZFBS BOE
JODSFBTJOHMFBSOFSVTBHFPGUSBJOJOHQSPHSBNTQFSDFOUUIJTZFBSWTQFSDFOUMBTU
ZFBS -FBSOJOHJOGSBTUSVDUVSFJTBMPXQSJPSJUZBUQFSDFOU BOEOPOFPGUIFSFTQPOEFOUTTBJEUIFZBSFQMBOOJOHUPPCUBJOSFWFOVFUISPVHIFYUFSOBMUSBJOJOH

4D$%(,'N%(LL

 L#L LL#LL

L#LEL












$%D$%(,'N%(L JL
 L#L  L
L#L L
L#L JL










,!wD$%(,'N%(L JL
 L#L L
L#L L
L#L  L












>%'7D$%(,'N%(L L
 L#L L
L#L ELL#L L














Why Did Your Budget Increase?
L"EEFE5SBJOJOH4UBGG*ODSFBTFE/VNCFSPG-FBSOFST4FSWFE*ODSFBTFE4DPQFPG5SBJOJOH"UUFOEFE.PSF0VUTJEF-FBSOJOH&WFOUT DPOGFSFODFTTFNJOBST*ODSFBTFE0VUTJEF5SBJOFS$POTVMUBOU*OWFTUNFOU
1VSDIBTFE/FX5FDIOPMPHJFT&RVJQNFOU#VEHFU"EKVTUFEUP3FnFDU)JHIFS$PTUT
0UIFS

L LLLELLL

24 | NOVEMBER/DECEMBER 2018 training















www.trainingmag.com

How Much Did Your Training Budget Decrease?
4D$%(10%,'N%(L21%

 L#L

36%

L#L

33%

L#L
0

10

20

30

40

$%D$%(,'N%(L18%

 L#L

36%

L#L46%

L#L

0%
0

10

20

30

40

50

,!wD$%(,'N%(L13%

 L#L

13%
41%

L#L

33%

L#L
0

10

20

30

40

50

>%'7D$%(0%,'N%(L

15%

 L#L

23%

L#L

62%

L#L
0

10

20

30

40

50

60

70

80

Why Did Your Budget Decrease?
26%

Reduced Training Staff
Decreased Number of Learners Served
Decreased Scope of Training
Attended Fewer Outside Learning Events (conferences/seminars)
Decreased Outside Trainer/Consultant Investment
Budget Adjusted to Reﬂect Lower Costs
Other

5%
13%
8%
21%
29%
32%
0

www.trainingmag.com

5

10

15

20

25

30

35

training NOVEMBER/DECEMBER 2018 | 25

2018 TRAINING INDUSTRY REPORTTRAINING BUDGETS

Projected Funding for Learning Areas Next Year
Executive Development
Management/Supervisory Training
Interpersonal Skills (e.g., communication, teamwork)
IT/Systems Training (e.g., enterprise software)
Desktop Application Training
Customer Service Training
Sales Training
Mandatory or Compliance Training
Profession/Industry-Speciﬁc (engineering, accounting, etc.)
OnboardingLL LLEL LLLL LJLLEL JLLLL

LLJLLLLLLLLELJLJLLLL LL LL LJLL
0

20

40

60

80

100

Q,'N%(>%#U%'Q4## %$%>%#U%'Q>N%(>%#U%'Q *4
TRAINING DELIVERY
devices, down from 3.6 percent in 2017. None of the
respondents used social learning only to delivery learning,
the same as last year. And only 10.6 percent of companies
BSFVTJOHJUUPTPNFFYUFOU EPXOGSPNQFSDFOUMBTUZFBS

Some 69.3 percent of hours were delivered with blended
learning techniques, up signiﬁcantly from 34.7 percent
last year.
t4PNFQFSDFOUPGUSBJOJOHIPVSTXFSFEFMJWFSFECZB
stand-and-deliver instructor in a classroom setting—down
from the 42 percent reported last year.
tQFSDFOUPGIPVSTXFSFEFMJWFSFETPMFMZWJBPOMJOFPS
computer-based technologies, down from 28.6 percent lastyear. Virtual classroom/Webcast accounted for 10.2 percent
of hours delivered, down a bit from 14 percent last year.
tQFSDFOUPGUSBJOJOHIPVSTXFSFEFMJWFSFEWJBNPCJMF

Instructor-led classroom training is used exclusively or
mostly (90 to 100 percent of the time) by 9 percent of theorganizations. More companies (34 percent) use it for 10 to29 percent of their training. Small and midsize companies
rely on blended delivery methods for a sizable amount of theirtraining (79 and 86 percent of hours, respectively) vs. 43
percent for large companies.

Training Delivery Methods by Company Size 2018JLELLLL*Small (100 to 999 employees)
Midsize (1,000 to 9,999 employees) LELLLEL*

Large (10,000 or more employees)ELELLLL*
0

50

100

150

200

QS(!!>%'((7 %-$(%#(f$#!#!@Q (#'-#'>!D%'$;(&Q'#%D%'$*j-%#;(& (#'-#'f'$'$#-%#(Q ;(('D$#'S%!,#!;(& ((#'-#'
Q,;(& -(!#%#=4
Q -%>%'((7;(&26 | NOVEMBER/DECEMBER 2018 training

www.trainingmag.com

TRAINING DELIVERY

classroom/Webcasting/video broadcasting at 69 percent,down from 73 percent last yeart3BQJEFMFBSOJOHUPPMT QFSDFOU EPXOGSPNQFSDFOU
last year)t"QQMJDBUJPOTJNVMBUJPOUPPMT QFSDFOU EPXOGSPN
percent last year)

Mandatory or compliance training continued to be done mostly
online, with 82 percent of organizations doing at least someof it online and 28 percent entirely online (up from 27 percent
last year). Online training also often is used for sales training(82 percent), IT systems training (73 percent), and desktop
application training (70 percent). Online delivery for profession/industry-speciﬁc training was at 68 percent, followed bymanagement/supervisory training, interpersonal skills training,and customer service training, all at 56 percent. Online training
was least used for onboarding and executive development (49percent and 48 percent, respectively).
Technology use overall was slightly lower than last year. Of thelearning technologies presented, the most often used included:t-FBSOJOHNBOBHFNFOUTZTUFNT -.4T BUQFSDFOU 
down from 86 percent last year, followed by virtual

The delivery methods least often used for training remained
the same as last year:t1PEDBTUJOHBUQFSDFOU VQGSPNQFSDFOUMBTUZFBS
t0OMJOFQFSGPSNBODFTVQQPSU &144 PSLOPXMFEHF
NBOBHFNFOUTZTUFNBUQFSDFOU EPXOGSPNQFSDFOU t.PCJMFBQQMJDBUJPOTBOEMFBSOJOHDPOUFOUNBOBHFNFOU
TZTUFNT -$.4T CPUIBUQFSDFOU EPXOGSPN
percent and 35 percent, respectively)

Online Method Use for Types of Training&YFDVUJWF%FWFMPQNFOU EELEELELLEL.BOBHFNFOU4VQFSWJTPSZ5SBJOJOH LELELLL*OUFSQFSTPOBM4LJMMT FH DPNNVOJDBUJPO LJLELLEL*54ZTUFNT5SBJOJOH FH FOUFSQSJTFTPGUXBSF

LLELELJL%FTLUPQ"QQMJDBUJPO5SBJOJOH

JLELELLL$VTUPNFS4FSWJDF5SBJOJOH

LELE LLL

4BMFT5SBJOJOH

LLLLEL.BOEBUPSZPS$PNQMJBODF5SBJOJOH

LLLE LL

1SPGFTTJPO*OEVTUSZ4QFDJmD FH FOHJOFFSJOH

L LELEL EL

OnboardingELLELLL
0

20

40

60

80

100

Q ;((Q4+@;(('7'%$Q $;((Q,#&;((Q4;(($ '-(#f#'%((7'@'
GHOLYHUHGYLDEOHQGHGOHDUQLQJ7KDWÀJXUHLV!#'-(#%7''#!%#&%'
(#'-#'!#'%((7%--(#!f'E'-(#f'!@(f'$'-(#(J

www.trainingmag.com

training NOVEMBER/DECEMBER 2018 | 27

2018 TRAINING INDUSTRY REPORTTRAINING DELIVERY
1

Learning Technologies Current Usage4D$%(Podcasting L JLJL
Online Performance Support or Knowledge Management System L LL
Rapid E-Learning Tool (PowerPoint conversion tool) LJLL
Application Simulation Tool EL  L L
Virtual Classroom/Webcasting/Video Broadcasting  L ELL
Learning Content Management System (LCMS) EL LL
Learning Management System (LMS) LJLL
Mobile Applications EL LL
0

20

40

60

Q-''(#&Q=(#Q #'

80

100

$%D$%(Podcasting JL LJL
Online Performance Support or Knowledge Management System  LJ LL
Rapid E-Learning Tool (PowerPoint conversion tool) EL LJL
Application Simulation Tool L JLL
Virtual Classroom/Webcasting/Video Broadcasting  ELLEL
Learning Content Management System (LCMS) L JLL
Learning Management System (LMS) JLJLL
Mobile Applications LJELL
0

20

40

60

Q-''(#&Q=(#Q #'

80

100

,!wD$%(Podcasting ELL L
Online Performance Support or Knowledge Management System L LL
Rapid E-Learning Tool (PowerPoint conversion tool) LE LL
Application Simulation Tool EL L L
Virtual Classroom/Webcasting/Video Broadcasting JLLL
Learning Content Management System (LCMS) L LL
Learning Management System (LMS) LL  L
Mobile Applications L JLL
0

20

40

60

Q-''(#&Q=(#Q #'

80

100

>%'7D$%(Podcasting JL LL
Online Performance Support or Knowledge Management System EELLL
Rapid E-Learning Tool (PowerPoint conversion tool) LLJL
Application Simulation Tool LELL
Virtual Classroom/Webcasting/Video Broadcasting JLLL
Learning Content Management System (LCMS) ELLL
Learning Management System (LMS) LJLL
Mobile Applications ELLL
0

20

40

60

Q-''(#&Q=(#Q #'

28 | NOVEMBER/DECEMBER 2018 training

80

100

www.trainingmag.com

TRAINING OUTSOURCING2018 saw an increase in the average expenditure for training
outsourcing: $422,321, up from $219,265 in 2017. Large
companies on average spent $1.3 million vs. $216,657 formidsize companies and $78,184 for small ones. An averageof 14 percent of the total training budget was spent on
outsourcing in 2018, doubling the 2017 percentage.
On average, 26 percent of companies mostly or completely
outsourced LMS operations/hosting (down from 34 percent
last year), while LMS administration and learner support
largely were handled in-house (77 percent).
Instruction/facilitation was handled equally in-house (46percent) and outsourced (54 percent). Across all the topic
areas, large companies outsourced only slightly more than
midsize ones, and midsize organizations outsourced morethan small companies. This effect was most striking forcustom content development (60 percent some or completely
outsourced for large companies; 53 percent for midsize ones;
and 34 percent for small organizations).
The level of outsourcing is expected to stay relatively steadyin 2019—some 82 percent of organizations said they expect
to stay the same in the outsourcing area. The percentage ofcompanies expecting to decrease outsourcing (11 percent)is higher than those expecting to use outsourcing more (7percent). Roughly half of respondents said they don’t plan
to outsource learner support or LMS administration in the next
12 months.
While there aren’t many differences between the outsourcingchanges by company size, small companies indicated they will
outsource slightly less across the board than large or midsize
companies.

%@%((-'%(#%<'%7"(!#'f'#'%((7#'-(7H
IEf'$I (J4(%<'%7f'-(#f###%
#'%((7!7#@%(#(#'-(7N<f#'-(7"-#!##%&'%#<&#%!&(
Extent of Outsourcing4D$%(Instruction/FacilitationLMS Administration (registration, upload data)LMS Operations/Hosting
Learner Support
Custom Content Development LLLJJLLEL
LL LJJLLLELLL
0

20

40

60

80

100

Q ;#'-(7Q $;#'-(7Q,#&'D$#&;#'-!

www.trainingmag.com

training NOVEMBER/DECEMBER 2018 | 292018 TRAINING INDUSTRY REPORTTRAINING OUTSOURCING

Extent of Outsourcing6PDOO&RPSDQLHV
Instruction/Facilitation LLLMS Administration (registration, upload data) LMS Operations/Hosting 
Learner Support 
Custom Content Development 
0

20

40

60

80

100

Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG

0LGVL]H&RPSDQLHV
LL

Instruction/FacilitationLMS Administration (registration, upload data)LMS Operations/Hosting
Learner Support
Custom Content Development


LL
0

20

40

60

80

100

Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG/DUJH&RPSDQLHV
Instruction/FacilitationLMS Administration (registration, upload data)LMS Operations/Hosting
Learner Support
Custom Content Development
L


0

20

40

60

80

100

Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG:KLOHWKHUHDUHQ·WPDQ\GLIIHUHQFHVEHWZHHQ
SODQQHGFKDQJHVLQRXWVRXUFLQJE\FRPSDQ\VL]HVPDOOFRPSDQLHVLQGLFDWHGWKH\ZLOORXWVRXUFHVOLJKWO\OHVVDFURVVWKHERDUGWKDQODUJHRUPLGVL]HRUJDQL]DWLRQV
30 | NOVEMBER/DECEMBER 2018 training

www.trainingmag.com

Projected Use of Outsourcing4D$%(Instruction/Facilitation LLLEL
LMS Administration (registration, upload data) ELELLLLMS Operations/Hosting LLLEL
Learner Support LE LLL
Custom Content Development LE LELEJL
0

20

40

60

80

100

Q,';#'-(7QN %$Q>;#'-(7Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ$%D$%(Instruction/Facilitation LLELEL
LMS Administration (registration, upload data) LELLLLMS Operations/Hosting LLLL
Learner Support ELL LL
Custom Content Development LE LLL
0

20

40

60

80

100

Q,';#'-(7QN %$Q>;#'-(7Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ,!wD$%(Instruction/Facilitation LLLEL
LMS Administration (registration, upload data) ELEL LLLMS Operations/Hosting LLLEL
Learner Support LELLEL
Custom Content Development LEL LEL
0

20

40

60

80

100

Q,';#'-(7QN %$Q>;#'-(7Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ>%'7D$%(Instruction/Facilitation LELLLLMS Administration (registration, upload data) LELLLLMS Operations/Hosting JL LLEL
Learner Support LEJLELL
Custom Content Development L LLL
0

20

40

60

80

100

Q,';#'-(7QN %$Q>;#'-(7Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ

www.trainingmag.com

training NOVEMBER/DECEMBER 2018 | 31