Page 37 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Training and Development System

Notes 2.5 Outsourcing Training

Outsourcing in training could be total or in part. In total outsourcing, the company has to do just
two things namely nominating the trainers and paying the training fees. Partial outsourcing
becomes inevitable when the organization has some training resources but doesn’t have all the
required resources. If it is decided to outsource the training programme, then finalizing the
outsourcing organization would be an important decision. Following are the major factors to be
taken into account for choosing an outsourcing organization for training:

 Who are their present clients?
 What is the core competency of this training organization?
 What are the advantages in cost savings, meeting time deadlines, and suitability to our
business needs?

 Post-training support available if any
 Any other reasons to be recorded in writing.
Negotiating and finalizing an outsourcing deal requires answering several issues. Find out the
qualification and professional accreditation of the organization and its promoters. Ensure that
they have obtained all the statutory clearances like service tax etc. Enter into a lawful agreement
for outsourcing. Terms of payment should be in installment, based on the work done, or payable
at the end by obtaining satisfactory work done statement. The agreement should specify the
work to be done both in qualitative and quantitative terms. In other words, the agreement
should speak of the work to be done, the place and time of performance, the standards of
performance, the persons who should perform the work and the conditions under which the
agreed task has to be done.

Self Assessment

Fill in the blanks:
13. In total outsourcing, the company has to do just two things namely nominating the trainers
and …………………….
14. ………….. outsourcing becomes inevitable when the organization has some training
resources but doesn’t have all the required resources.

15. The agreement of outsourcing should specify the work to be done both in ………….. and
…………….. terms.



Caselet Bharat Heavy Engineering Company

harat Heavy Engineering Company is a public sector enterprise established in
1969. BHEC manufactures boilers, cryogenic engines, etc., for process industry. The
Bfirst three decades went off well with sizable profits. However, with the change of
Chairman and some directors on the board, BHEC started losing business and its downward
trend set in. In spite of reducing its original manpower of 4,500 to 2,700 by VRS, the
financial position did not improve. The government disinvested its equity due to which a
private management took over BHEC. Now BHEC as privately owned enterprise decided
to expand its activity by technology upgradation. For this BHEC has re-train the existing
manpower to meet the new requirements.

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