Technology and innovations are advancing at an exponential rate, affecting processes across industries, increasing the competition in the market. To stay up-to-date with the latest information, corporate training has become more important than ever, serving to better equip employees to work with the latest technology, bridge any skills gap, and boost the overall performance of the company.
According to corporate training market analysis, the overall learning and development market is expected to grow at a CAGR of 4-5 percent till 2020, to reach a value of $446.1 billion, with the corporate training segment expected to grow at a CAGR of 11.41 percent in the same period. At a regional level North America, Western Europe, Singapore, Australia, and Japan have a high market maturity. Other regions of APAC and selected areas of Latin America are expected to have high growth driving markets.
The key growth driver for the corporate training market is the immense competition that can be witnessed in nearly every field, requiring companies to be up-to-date and perform to the best of capabilities to retain customers. To bridge the inevitable skill gap, corporate training steps in to educate and train employees across all levels of seniority, based on the required skills for the concerned level.
Corporate training has a direct impact on the revenue and growth of a company, due to which companies are making significant investments in training and development. Better trained employees can work more efficiently and even bring in more business. Effective corporate training programs are a win-win situation for companies and employees; while companies get more trained employees without hiring new ones, employees gain enhanced skills set without leaving their job.
Increased demand for corporate training has led to a mushrooming of courses and training programs, not all of which are relevant and effective. The influx of training programs has made it more imperative that companies select their desired training services conscientiously to receive maximum benefits in the least amount of time. As a result, many companies are setting up in-house corporate training departments instead of outsourcing the services.
Another significant challenge for the field of corporate training is remaining relevant in the concerned field. The rapid pace of development that is taking place across industries requires service providers to constantly update their programs so that they can offer companies training programs that will be relevant. Budget restrictions also impose a challenge to the corporate training market, influencing the ability of the program to integrate technology-based teaching aids.
There are several trends affecting the corporate training business, which vary based on developed and developing nations, as the technology and knowledge needs tend to be different in each.
In-House Vs Outsourcing: Corporate training is available both as an in-house department in a company and also as outsourced services. In small to medium-sized companies, the in-house department model is more popular, even available in the form of a ‘business within a business’ providing training as a service for outside customers in addition to training employees. The outsourcing model is more popular for larger companies, especially with those having multiple branches regionally or globally. By outsourcing the corporate training process, companies can streamline the performance and skill set of employees across their various branches.
E-Learning: The concept of e-learning is gaining rapid popularity across the world, through group learning and self-paced e-learning modes. The capabilities of technology and the internet have made it possible for learning to take place in a more flexible model, without having to be in the same place as the instructor. The e-learning concept provides learners with videos, MOOCs, mobile learning options and other study options that learners can pursue with colleagues at specific session times or even independently as desired. In addition, e-learning is cost effective for companies, as the study material and programs can be accessed through standard computers/smartphones without the need for specialized equipment.
Tech-Enabled Training Solutions: The new frontier in corporate training is the use of tech-enabled training solutions, such as Gamification, Virtual Reality (VR), Augmented Reality (AR) and Artificial Intelligence (AI). Tech-enabled training solutions allow detailed personalization of the training program and can be designed specifically to fit the needs of a particular company. Such technology increases the pace of learning as well as the level of expertise that employees gain since VR and AR are immersive in format.
The corporate training market is becoming an important part of businesses, responsible for maintaining the knowledge and skill base of employees. Regardless of seniority level, training is always helpful, whether it is to learn new technology skills or any form of soft skill. An abundance of information is now available at the fingertips through self-paced e-learning. Led by increasing demand, corporate training is also evolving into the form of business within an industry. The demand for the corporate training market is set to increase further, even as companies consider building in-house operations for training or outsourcing the requirements.