2O18 TRAINING
INDUSTRY REPORT

  ABOU T THI S STUD Y 

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, the

Industrial Classiﬁcations
Respondent proﬁle by industry (weighted per Dun & Bradstreet)
Other 1% Manufacturing 10%

study was conducted by an outside research ﬁrm May-July 2018, when members 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 of industries and company sizes.

Public Administration 1% Educational Services/ Academic Institution 8%
Construction 2%
Hospitality 4%

Health/Medical Services 17%

Finance/ Banking 11%
Transportation/ Utilities 6%

Wholesale/ Distribution 4%
Communications 2%
Business Services 6%
Government/ Military 7%
Consulting 1%
Safety/ Security 2%
Real Estate/ Insurance 6%

Retail 5%
Technology/ Software 7%

SURVEY RESPONDENTS		
Small companies
(100-999 employees)	36%	
Midsize
(1,000-9,999 employees)	41%	
Large	23%	
(10,000 or more employees)		
Total respondents	271	

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

About Survey Respondents:
t 61% BSF NBOBHFST PS BCPWF JO UIF PSHBOJ[BUJPO t 17% BSF EFWFMPQFST PS JOTUSVDUJPOBM EFTJHOFST
t 22% BSF NJE- UP MPX-MFWFM (CBTFE PO UJUMF TFMFDUJPO) BTTPDJBUFT t 64% EFUFSNJOF UIF OFFE GPS QVSDIBTJOH QSPEVDUT BOE TFSWJDFT t 30% TFU UIF CVEHFU
t 31% NBOBHF SFRVFTUT GPS QSPQPTBMT/CJET t 70% SFDPNNFOE UIF QVSDIBTF
t 28% IBWF UIF mOBM QVSDIBTF EFDJTJPO

  TRAININ G EXPENDITURE S 

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 rose from $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 by projecting the average training budget to a weighted universe of 127,095 companies, using a Dun & Bradstreet database

100

80

60

40

20

0

Training Expenditures 2013-2018

93.6

87.6

70.6 70.6

61.8

55.4

Q 2013
Q 2014
Q 2015
Q 2016
Q 2017
Q 2018

39.9 42.4

33.9 37.0

47.0
41.6

5.7 6.1 8.0

7.5 7.5 11.0

In $ Billions

available 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 for training expenditures.

Total Training Expenditures

Training Staff Payroll

Spending on Outside Products & Services

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 and consultants, including all products, services, technologies, off-the-shelf and custom content, and consulting services.

Average of Total Annual Budget
Organization Type	Large	Midsize	Small	Average	
Education	$3,587,500	$300,833	$354,886	$888,878	
Government/Military	$17,600,000	$2,758,375	$666,364	$5,137,176	
Manufacturer/Distributor	$14,549,108	$2,557,373	$450,000	$4,202,210	
Nonproﬁt	$32,669,800	$3,731,250	$233,333	$7,839,960	
Association	N/A	N/A	$150,000	$150,000	
Retail/Wholesale	$39,500,000	$849,375	$348,333	$9,271,389	
Services	$18,983,185	$2,142,047	$253,736	$4,752,179	
Avg. Across Sizes	$19,681,075	$2,107,790	$355,751	$4,963,673	

  TRAININ G EXPENDITURES 

Types of Training Products and Services Intended to Purchase Next Year

Assessment & Analysis Testing					22%			
Audience Response Systems		6%			
Audio and Web Conferencing Products & Systems			18%		
Authoring Tools/Systems			27%			
Business Skills			13%				
Certiﬁcation				26%			
Classroom Tools & Systems									32%	
Consulting					21%					
Content Development									31%	
Courseware Design					18%		
Customer Relationship Management				13%			
Enterprise Learning Systems			9%				
Games & Simulations					21%		
Knowledge Management Tools/Systems				15%		

Learning  Management Systems
Mobile Learning Online Learning Tools & Systems
Support/On-Demand Learning Tools & Systems
Presentation Software & Tools Talent Management Tools & Systems Training  Management Administration
Translation & Localization
Web 2.0
Other

33%

24%

41%

17%

21%
21%

9%
9%

2%

5%

0	10	20	30	40	50

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, down from 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-quarter as much as midsize ones. The average payroll ﬁgure for large
companies was $6.2 million; for midsize organizations, it was

$1.1 million; for small companies, it was $289,752.
For those who reported an increase in their training staff, the average 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 this year to $29.6 billion from $44.5 billion in 2017. Such expenditures can include travel, training facilities, in- house 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 and technologies. Large services organizations had the largest budgets for learning tools ($1.3 million). Midsize government/ military organizations had the largest tool budget in their

Training Expenditures per Learner 2016-2018
$814

Q 2016

All Companies

Small (100 to 999
employees)

Midsize (1,000 to
9,999 employees)

Large (10,000 or

$379

$1,075
$986
$1,052
$1,886
$1,096
$870
$941
$858

Q 2017
Q 2018

more employees)

$399
$1,046
0	500	1000	1500	2000

Hours of Training per Employee 2017-2018

47.6
46.7
43.2

61.2

32.0

54.3

42.2
49.3

All Companies

Small (100 to 999
employees)
Midsize (1,000 to
9,999 employees)
Large (10,000 or more employees)

Q 2017
Q 2018

0	10	20	30	40	50	60	70	80

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 anticipated purchases are online learning tools and systems (41 percent vs. 40 percent last year), learning management systems (33 percent vs. 39 percent last year), and classroom tools and systems (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 and localization, and Web 2.0.

Overall, on average, companies spent $986 per learner this year 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) and small ($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 the most 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).

  TRAININ G EXPENDITURES 

Training Expenditure Allocations—

40	Who Gets Trained?
30	24%	27%
20
10	10%

39%

Staff per 1,000 Learners
Midsize Companies
25	24.7
20	19.3
15

5

10	5.2

0	Executives	Managers,
Exempt

Non- Managers, Exempt

Non- Exempt Employees

0
Overall for Midsize Companies

1,000 to
4,999

5,000 to
9,999

Staff per 1,000 Learners
Large Companies

56.4

33.8

10.4

13.5

60
50
40
30
20
10

Staff per 1,000 Learners

58.4

33.4

31.4

13.5

Small Companies
60
50
40
30
20
10

0		Overall for Large Companies

10,000 to
24,999

25,000 to
49,999

50,000 or
more

0
Overall for Small Companies

100 to
249

250 to
499

500 to
999

The average training budget for large companies was
$19.7 million, while midsize companies allocated an average of
$2.1 million, and small companies dedicated an average of $355,721.

Is the Number of Training-Related Staff Higher
or Lower Than Last Year?

12%

Lower

Higher
36%

52%

Same

  TRAININ G BUDGET 

Budget status remained much the same as last year, with 37 percent saying their training budget increased and 48 percent saying it remained the same.
Some 15 percent reported a decrease in 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 and 51 percent, respectively) than decreases (14 and 11 percent, respectively) than midsize and large companies, where
the numbers were more balanced (23 percent for each).
Most of the budget increases were modest—less than 16 percent. Some 42 percent saw increases in the 6 to 15 percent range, while 30 percent of organizations reported increases in the 1 to 5 percent range. Most respondents who reported an increase in their training budgets attributed it to the following reasons:

.BOVGBDUVSFS/%JTUSJCVUPS

Services

What Happened to Your Training Budget This Year?

Decreased

15%

Increased

37%

Remained

the same

48%

Budget Change by Industry
10%
39%
51%
20%

Q Decrease Q Increase Q Same

t *ODSFBTF JO UIF TDPQF PG UIFJS
training programs (65 percent vs. 67 percent last year)
t "EEFE USBJOJOH TUBGG (48 QFSDFOU WT.
54 percent last year)
t *ODSFBTFE OVNCFS PG MFBSOFST TFSWFE
(48 percent vs. 49 percent last year)
t 1VSDIBTFE OFX UFDIOPMPHJFT/
equipment (34 percent vs. 38 percent last year)

This year, more respondents (36 percent) 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,

3FUBJM/8IPMFTBMF

(PWFSONFOU/.JMJUBSZ

Education

"TTPDJBUJPO

Nonproﬁt

43%
37%
16%	42%
42%
14%
32%

12%
12%

0%
0%

8%
38%

54%

54%

76 %

100%

citing “added more blended learning opportunities and reduced the need to travel,” “potential corporate merger,” and “state budget reduced.”

0	20	40	60	80	100

  TRAININ G BUDGET S 

This was followed by:
t #VEHFU BEKVTUFE UP SFnFDU MPXFS DPTUT (OFBSMZ 30 QFSDFOU WT. 39 QFSDFOU MBTU ZFBS)
t 3FEVDFE USBJOJOH TUBGG (26 QFSDFOU WT. 25 QFSDFOU MBTU ZFBS)
t %FDSFBTFE PVUTJEF USBJOFS/DPOTVMUBOU JOWFTUNFOU (21 QFSDFOU WT. 18 QFSDFOU)
t %FDSFBTFE TDPQF PG USBJOJOH (13 QFSDFOU WT. 18 QFSDFOU)

-JLF UIF MBTU TJY ZFBST, UIF IJHIFTU QFSDFOUBHF PG PSHBOJ[BUJPOT (30 QFSDFOU) TBJE

How Much Did Your Training Budget Increase?
All Companies

22%	
	6%	
	42%	
	30%	

More Than 25%
16% to 25%
6% to 15%
1% to 5%

0	10	20	30	40	50
Small Companies

27%	
	6%	
	
	27%	

More Than 25%
16% to 25%

NBOBHFNFOU/TVQFSWJTPSZ USBJOJOH XJMM SFDFJWF NPSF GVOEJOH UIBO UIF ZFBS CFGPSF. 0O BWFSBHF, PSHBOJ[BUJPOT QMBO UP BMMPDBUF
UIF NPTU GVOEJOH UP NBOEBUPSZ DPNQMJBODF USBJOJOH BU $3.2 NJMMJPO; EFTLUPQ BQQMJDBUJPO USBJOJOH BU $1.3 NJMMJPO; QSPGFTTJPO/JOEVTUSZ- TQFDJmD USBJOJOH BU $1.2 NJMMJPO; POCPBSEJOH BU $915,454; BOE NBOBHFNFOU/TVQFSWJTPSZ USBJOJOH BU $850,696.
5IF IJHIFTU QSJPSJUJFT GPS USBJOJOH JO UFSNT PG BMMPDBUJOH SFTPVSDFT JO 2019 BSF: JODSFBTJOH UIF FGGFDUJWFOFTT PG USBJOJOH QSPHSBNT (34

6% to 15%
1% to 5%

More Than 25%
16% to 25%
6% to 15%
1% to 5%

0	10	20	30	40

Midsize Companies
17%
9%

26%

40%

48%

QFSDFOU WT. 37 QFSDFOU MBTU ZFBS), GPMMPXFE CZ NFBTVSJOH UIF JNQBDU PG USBJOJOH QSPHSBNT BOE SFEVDJOH DPTUT/JNQSPWJOH FGmDJFODZ
(19 QFSDFOU GPS CPUI JO 2018 WT. 16 BOE 13 QFSDFOU, SFTQFDUJWFMZ, MBTU ZFBS), BOE JODSFBTJOH MFBSOFS VTBHF PG USBJOJOH QSPHSBNT (13 QFSDFOU UIJT ZFBS WT. 12 QFSDFOU MBTU ZFBS). -FBSOJOH JOGSBTUSVDUVSF JT B MPX QSJPSJUZ BU 3 QFSDFOU, BOE OPOF PG UIF SFTQPOEFOUT TBJE UIFZ BSF QMBOOJOH UP PCUBJO SFWFOVF

More Than 25%
16% to 25%
6% to 15%
1% to 5%

0	10	20	30	40	50

15%
0%	
	31%	
	54	

Large Companies

%

UISPVHI FYUFSOBM USBJOJOH.

0	10	20	30	40	50	60

Why Did Your Budget Increase?

	48%
48%	
		
65%	
	20%
19%	
		
	34%	
	20%	
2%	

"EEFE 5SBJOJOH  4UBGG
*ODSFBTFE /VNCFS PG -FBSOFST 4FSWFE
*ODSFBTFE 4DPQF PG 5SBJOJOH

"UUFOEFE .PSF  0VUTJEF  -FBSOJOH  &WFOUT (DPOGFSFODFT/TFNJOBST)
*ODSFBTFE 0VUTJEF 5SBJOFS/$POTVMUBOU *OWFTUNFOU 1VSDIBTFE /FX 5FDIOPMPHJFT/&RVJQNFOU #VEHFU "EKVTUFE UP 3FnFDU )JHIFS $PTUT
0UIFS

0	10	20	30	40	50	60	70	80

How Much Did Your Training Budget Decrease?
All Companies

More Than 25%
16% to 25%
6% to 15%
1% to 5%

10%

21%

36%
33%

More Than 25%
16% to 25%
6% to 15%
1% to 5%

More Than 25%
16% to 25%
6% to 15%
1% to 5%

More Than 25%
16% to 25%
6% to 15%
1% to 5%

0	10	20	30	40

	18%	
	36%	
46
0%	

Small Companies

%

0	10	20	30	40	50

Midsize Companies

13%
13%

41%

33%

0	10	20	30	40	50

Large Companies

0%	
	15%	
	23%	
62%	
0	10	20	30	40	50	60	70	80

Why Did Your Budget Decrease?

Reduced Training Staff						26%		
Decreased Number of Learners Served		5%						
Decreased Scope of Training				13%				
Attended Fewer Outside Learning Events (conferences/seminars)			8%					
Decreased Outside Trainer/Consultant Investment					21%			
Budget Adjusted to Reﬂect Lower Costs							29%	
Other	

 		
		32%	
0	5	10	15	20	25	30	35

  TRAININ G BUDGETS 

Projected Funding for Learning Areas Next Year

56%

30%

58%

14%

Executive Development Management/Supervisory    Training

67%

13%

64%

20%

Interpersonal Skills (e.g., communication, teamwork) IT/Systems Training (e.g., enterprise software)

58%

22%

66%

8%

Desktop Application Training Customer Service Training

74%

17%

4%

41%

20%

Sales Training Mandatory or Compliance Training

64%

12%

Profession/Industry-Speciﬁc   (engineering,   accounting,  etc.)

61%

24%

Onboarding

6%

9%

5%

35%

8%

22%

9%

7%

5%

9%

9%

11%
17%
15%

7%

4%

16%

5%

8%

0	20	40	60	80	100
Q More Than Last Year Q About the Same as Last Year Q Less Than Last Year Q N/A
 TRAININ G DELIVER Y 

Some 69.3 percent of hours were delivered with blended learning techniques, up signiﬁcantly from 34.7 percent last year.

t 4PNF 35.5 QFSDFOU PG USBJOJOH IPVST XFSF EFMJWFSFE CZ B
stand-and-deliver instructor in a classroom setting—down from the 42 percent reported last year.
t 25.6 QFSDFOU PG IPVST XFSF EFMJWFSFE TPMFMZ WJB POMJOF PS
computer-based technologies, down from 28.6 percent last year. Virtual classroom/Webcast accounted for 10.2 percent of hours delivered, down a bit from 14 percent last year.
t 1.7 QFSDFOU PG USBJOJOH IPVST XFSF EFMJWFSFE WJB NPCJMF

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 BSF VTJOH JU UP TPNF FYUFOU, EPXO GSPN 25 QFSDFOU MBTU ZFBS.

Instructor-led classroom training is used exclusively or mostly (90 to 100 percent of the time) by 9 percent of the organizations. More companies (34 percent) use it for 10 to 29 percent of their training. Small and midsize companies rely on blended delivery methods for a sizable amount of their training (79 and 86 percent of hours, respectively) vs. 43 percent for large companies.

0.5% / 0

28%	3% / 0

1% / 0

24%

14%

31%

43%

10%

35%

86%

24%

8%

39%

79%

Training Delivery Methods by Company Size 2018

Small (100 to 999 employees)

Midsize (1,000 to 9,999 employees)

Large (10,000 or more employees)

0	50	100	150	200
Q Blended Learning (a combination of methods listed below)
Q Instructor-Led Classroom Only
Q Virtual Classroom/Webcast Only (instructor from remote location)
Q Online or Computer-Based Methods Only (no instructor)
Q Mobile Only (cell phones, iPods, tablets, PDAs)
Q Social Learning Only

  TRAININ G DELIVER Y 

Mandatory or compliance training continued to be done mostly online, with 82 percent of organizations doing at least some
of 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 by management/supervisory training, interpersonal skills training, and customer service training, all at 56 percent. Online training was least used for onboarding and executive development (49 percent and 48 percent, respectively).
Technology use overall was slightly lower than last year. Of the learning technologies presented, the most often used included:
t -FBSOJOH NBOBHFNFOU TZTUFNT (-.4T) BU 81 QFSDFOU,
down from 86 percent last year, followed by virtual

classroom/Webcasting/video broadcasting at 69 percent, down from 73 percent last year
t 3BQJE F-MFBSOJOH UPPMT (45 QFSDFOU, EPXO GSPN 48 QFSDFOU
last year)
t "QQMJDBUJPO TJNVMBUJPO UPPMT (34 QFSDFOU, EPXO GSPN 38
percent last year)

The delivery methods least often used for training remained the same as last year:
t 1PEDBTUJOH BU 14 QFSDFOU (VQ GSPN 13 QFSDFOU MBTU ZFBS) t 0OMJOF QFSGPSNBODF TVQQPSU (&144) PS LOPXMFEHF
NBOBHFNFOU TZTUFN BU 21 QFSDFOU (EPXO GSPN 23 QFSDFOU) t .PCJMF BQQMJDBUJPOT BOE MFBSOJOH DPOUFOU NBOBHFNFOU
TZTUFNT (-$.4T), CPUI BU 30 QFSDFOU (EPXO GSPN 32
percent and 35 percent, respectively)

Online Method Use for Types of Training

28%

9%

30%

24%

32%

13%

38%

26%

20%

36%

15%

11%

10%

9%

40%

28%

20%

10%

36%

31%

21%

20%

31%

23%

17%

23%

35%

21%

14%

15%

34%

27%

21%

10%

39%

32%

18%

8%

23%

33%

33%

&YFDVUJWF %FWFMPQNFOU	3%
.BOBHFNFOU/4VQFSWJTPSZ 5SBJOJOH	1%
*OUFSQFSTPOBM 4LJMMT (F.H., DPNNVOJDBUJPO)	3%
*5/4ZTUFNT 5SBJOJOH (F.H., FOUFSQSJTF TPGUXBSF)	7%
%FTLUPQ "QQMJDBUJPO 5SBJOJOH	9%
$VTUPNFS 4FSWJDF 5SBJOJOH	2%
4BMFT 5SBJOJOH	3%
.BOEBUPSZ PS $PNQMJBODF 5SBJOJOH
1SPGFTTJPO/*OEVTUSZ-4QFDJmD  (F.H.,  FOHJOFFSJOH)	3%
Onboarding	5%

0	20	40	60	80	100
Q No Online Q A Few Online Programs Q Some Online Q Mostly Online Q All Online
Some 69 percent of training hours were
GHOLYHUHG YLD EOHQGHG OHDUQLQJ. 7KDW ÀJXUH LV
double the percentage reported last year. Instructor-led training accounted for 35.5 per- cent of hours, down from 42 percent in 2017.

  TRAININ G DELIVER Y 

Learning Technologies Current Usage All Companies

10%
8%

%

28%

66%

30%

17%

82%

65%

30%

3

69%

60%

34%

47%

45%

69%

21%

79%

14%

Podcasting	7%

Online Performance Support or Knowledge Management System Rapid E-Learning Tool (PowerPoint conversion tool)
Application Simulation Tool Virtual Classroom/Webcasting/Video Broadcasting Learning Content Management System (LCMS) Learning Management System (LMS)
Mobile  Applications

Podcasting                                                                           Online Performance Support or Knowledge Management System Rapid E-Learning Tool (PowerPoint conversion tool)
Application Simulation Tool Virtual Classroom/Webcasting/Video Broadcasting Learning Content Management System (LCMS) Learning Management System (LMS)
Mobile  Applications

Podcasting                                                                           Online Performance Support or Knowledge Management System Rapid E-Learning Tool (PowerPoint conversion tool)
Application Simulation Tool Virtual Classroom/Webcasting/Video Broadcasting Learning Content Management System (LCMS) Learning Management System (LMS)
Mobile  Applications

Podcasting                                                                           Online Performance Support or Knowledge Management System Rapid E-Learning Tool (PowerPoint conversion tool)
Application Simulation Tool Virtual Classroom/Webcasting/Video Broadcasting Learning Content Management System (LCMS) Learning Management System (LMS)
Mobile  Applications

6%

5%
1%
4%
0	20	40	60	80	100
Q Use currently Q Do not use Q Not sure

7%
8%
7%

32%

73%

25%

27%

72%

67%

24%

5%

63%

67%

28%

62%

31%

76%

16%

86%

7%

9%

Small Companies

5%

1%
2%
0	20	40	60	80	100
Q Use currently Q Do not use Q Not sure
Midsize Companies

10%
10%

%

29%

67%

28%

9%

90%

69%

29%

1

70%

64%

30%

36%

54%

69%

21%

81%

13%

6%

6%

2%
1%
5%
0	20	40	60	80	100
Q Use currently Q Do not use Q Not sure

64%

9%
8%
7%
9%
%	19%

%

52%

43%

17

81%

52%

43%

2

79%

39%

52%

42%

51%

59%

33%

27%

Large Companies

5%
2%
5%
0	20	40	60	80	100
Q Use currently Q Do not use Q Not sure

 TRAININ G OUTSOURCIN G 

2018 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 for midsize companies and $78,184 for small ones. An average of 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 (46 percent) and outsourced (54 percent). Across all the topic areas, large companies outsourced only slightly more than midsize ones, and midsize organizations outsourced more than small companies. This effect was most striking for

custom 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 steady in 2019—some 82 percent of organizations said they expect to stay the same in the outsourcing area. The percentage of companies expecting to decrease outsourcing (11 percent)
is higher than those expecting to use outsourcing more (7 percent). 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 outsourcing changes by company size, small companies indicated they will outsource slightly less across the board than large or midsize companies.

2018 saw an increase in the average expenditure for training outsourcing:
$422,321, up from $219,265 in 2017.
An average of 14 percent of the total training budget was spent on outsourcing. The level of outsourcing is expected to stay relatively steady in 2019.

Extent of Outsourcing All Companies

52%

42%

53%

22%

77%

24%

50%

20%

77%

46%

26%

Instruction/Facilitation	2%
LMS Administration (registration, upload data)	3%
LMS Operations/Hosting
Learner Support	1%
Custom Content Development	5%
0	20	40	60	80	100
Q No Outsourcing Q Some Outsourcing Q Mostly or Completely Outsourced

  TRAININ G OUTSOURCIN G 

Extent of Outsourcing 6PDOO &RPSDQLHV

16%

32%

66%

18%

81%

16%

52%

82%

52%

44%

32%

Instruction/Facilitation	4%
LMS Administration (registration, upload data)	2%
LMS Operations/Hosting
Learner Support	1%
Custom Content Development	2%
0	20	40	60	80	100
Q 1R 2XWVRXUFLQJ Q 6RPH 2XWVRXUFLQJ Q 0RVWO\ RU &RPSOHWHO\ 2XWVRXUFHG

Instruction/Facilitation                             LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development

0LGVL]H &RPSDQLHV

48%

47%

81%

23%

50%

17%

81%

54%

45%

19%

27%

1%
2%

0%
5%

0	20	40	60	80	100
Q 1R 2XWVRXUFLQJ Q 6RPH 2XWVRXUFLQJ Q 0RVWO\ RU &RPSOHWHO\ 2XWVRXUFHG

Instruction/Facilitation                             LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development

/DUJH &RPSDQLHV

51%	49%	
62%	34%		
46%	39%	15%	
65%	33%	
40%	49%	11%	

0%
4%

2%

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 2019 RXWVRXUFLQJ E\ FRPSDQ\ VL]H, VPDOO FRPSDQLHV LQGLFDWHG WKH\ ZLOO RXWVRXUFH VOLJKWO\ OHVV DFURVV WKH ERDUG WKDQ ODUJH RU PLGVL]H RUJDQL]DWLRQV.

Projected Use of Outsourcing All Companies

35%

30%

37%

13%

36%

14%

9%

36%

%

4

10%

54%

6%

11%

38%

%

3

12%

44%

9%

51%

48%

Instruction/Facilitation                                                          LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development
0	20	40	60	80	100
Q More Outsourcing Q The Same Q Less Outsourcing
Q :H 'RQ·W/:RQ·W 2XWVRXUFH 7KLV )XQFWLRQ

Instruction/Facilitation                                                          LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development

Instruction/Facilitation                             LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development

Instruction/Facilitation                             LMS Administration (registration, upload data)
LMS Operations/Hosting
Learner Support Custom Content Development

Small Companies

35%

49%

25%

51%

44%

9%

36%

11%

6%

40%

%

3

8%

59%

8%

9%

38%

%

4

13%

44%

8%

0	20	40	60	80	100
Q More Outsourcing Q The Same Q Less Outsourcing
Q :H 'RQ·W/:RQ·W 2XWVRXUFH 7KLV )XQFWLRQ
Midsize Companies

30%

52%

31%

53%

34%

16%

32%

18%

10%

31%

6%

9%

54%

6%

10%

35%

%

3

9%

49%

12%

0	20	40	60	80	100
Q More Outsourcing Q The Same Q Less Outsourcing
Q :H 'RQ·W/:RQ·W 2XWVRXUFH 7KLV )XQFWLRQ

Large Companies

41%
40%
32%

28%

15%

46%

11%

13%

37%

%

2

15%

46%

7%

15%

43%

%

2

20%

35%

%

4

48%

0	20	40	60	80	100
Q More Outsourcing Q The Same Q Less Outsourcing
Q :H 'RQ·W/:RQ·W 2XWVRXUFH 7KLV )XQFWLRQ