The changing focus of managed learning
As outlined in a previous section, resource efficiency, integration, flexibility, provider expertise and relationship management were front and centre of managed learning agreements in 2018.
In 2024, there are important similarities. Being cost-effective, having access to a wide array of learning services, programmes and content (in multiple formats: virtual, in-person, hybrid), and managing vendors are viewed as the bare minimum of what an impactful managed learning provider offers.
On top of this, there is a high demand for an expert strategic learning partner who is ‘part of the team’. Businesses want providers to advise on strategy, be extraordinary at two-way communication and help the learning function continually evolve and transform. This might be to help evaluate where learning needs to go next, what best-in-class digital learning might look like, or how to grow in-demand soft skills via engaging learning. It also might be to help parse where learning interacts with, and impacts, the talent strategy as well as how to help other agendas (sustainability, social mobility, meeting new regulatory frameworks).
As such, L&D teams want providers who can build the right competencies and help them better align with their businesses. With learning functions better understanding that they are in a constant state of evolution, they are looking for flexible providers who can do it all. Yet, L&D functions are savvy to the challenges this can create and they want outsourcing partners who can effectively, and at pace, advise on how best to outsource, how to manage the complexity that outsourcing brings, and how to effectively manage multiple vendors.
What this shows is a mature market where there is an appetite for a highly complex, well-managed, constantly evolving multi-part partnership where both providers and employers understand the role of learning in delivering engagement, inclusivity, and future-ready skills in a way that has a sustainable business impact.
How are managed learning providers chosen?
Five years ago, businesses differentiated between providers based on their ability to integrate and align with the learning function as well as how much trust was at the centre of the relationship. A crucial part of this was the creation of a well-defined service-level agreement. Although they needed to be carefully created, businesses widely understand that these shouldn’t remain static in nature; rather, they should evolve as the organisation’s needs change.
In 2024, our study found that a provider's ability to integrate was the most important factor when choosing to enter a managed learning service agreement. Alongside this, flexibility, dynamism and innovation were seen as important. As was the ability to anticipate learning needs at speed, manage multiple individual projects, and adapt service levels as the business requires, offering a wide range of services. Many businesses also want a provider who has a global reach.
Additionally, with uncertain economic headwinds, many employers value cost-effectiveness and want managed learning providers who offer an economy of scale.
The essential questions you need to ask before choosing to outsource:
- Does the provider share the values of your organisation?
- Can you see yourself working with them closely?
- Are they willing to understand the needs of your business and what makes you different?
- Do they understand the learning and business challenges in your organisation?
- Will they be responsive to your needs?
- Do they have the breadth of expertise to be able to deliver on a variety of needs?
- Have they got a track record of adapting to clients’ changing needs?
- Have they got a broad scope of expertise and services?
- How core is managed learning to their offering?
- In which countries can they operate and do they have global scope?
- Do you trust them to want to deeply integrate into your business?
- How well do they know the market?
- Have they got experience in adapting strategies and delivery methods based on employer and employee needs?
Three principal drivers
In 2024, there are three principal drivers for managed learning:
Resource effectiveness
As learning and HR leaders wrestle with internal and external pressures, employers are interested in outsourcing partnerships that enable the ability to do more with less, where they can scale up and down the use of outsourcing as needed. They need partners which drive real business impact.
Indeed, there are examples of organisations turning to outsourcers for insight into how to transform to be more effective whilst most are interested in ensuring that any learning investment drives business results. Some participants explained that cost, within reason, isn’t an issue as long as spend on learning outsourcing drives business competitiveness.
Expertise
With new modes of learning delivery, and new skills to deliver, employers increasingly want an expert partner who has deep knowledge of, or access to, a wide variety of learning specialisms. This can range from how to transform in the face of changing market vogues or assisting in the rollout of learning for in-demand skills via a new programme or access to a content library.
Employers also like their learning partners to be able to do this in an ‘all-in-one’ approach whereby market insight, strategy creation, programme design and delivery can all be accessed via the same partner.
As such, managed learning providers are also expected to be experts in their client’s learning culture and business needs. Guiding this will be a clear service specification, supported by a well-defined service level agreement so the client knows exactly what they are getting.
Scale, capacity and global scope
With functions often facing up to resource streamlining, L&D leaders know they have to be impactful and creative with the headcount they do have. As such, many partner with managed service providers to scale up and down delivery as needed. With integrated partnerships the preferred relationship, this can be done at speed and with access to a wide range of services.
This isn’t just about simple capacity-building. Organisations increasingly want their outsourced partner to be able to deliver at a global scale and to operate lean in-house teams without impacting quality or access to expertise.
