Learning and Development Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

In the evaluation of rate benchmarking for learning and development, key factors such as the expertise and experience of trainers, the nature of services offered, and the geographical location of the firm play a pivotal role. The U.S., China, India, and Japan emerge as optimal destinations for service providers, owing to their well-established corporate sectors, developed work cultures, and substantial workforce.

The determination of trainers' salaries varies significantly across these regions. In the U.S., where the cost of living and labor rates are comparatively higher, the annual salary range for learning and development trainers typically falls between USD 55,000 and USD 80,000. In contrast, China and India, with lower labor costs, a more economical standard of living, and abundant manpower, witness a lower salary range for similar roles. Learning and development trainers in India, for example, earn between USD 3,000 and USD 10,000 annually, while their counterparts in China may receive an annual salary ranging from USD 7,000 to USD 21,000.

Similarly, in Japan, the annual compensation for a Learning and Development trainer spans from USD 30,000 to USD 40,000 per year. These salary differentials can be attributed to various factors, including regional economic conditions, the availability of skilled manpower, and the level of expertise and experience held by trainers in each respective market.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the trainers at Wildsparq and Dale Carnegie receive a 3% - 4% higher base salary compared to the salary received by the trainers working in companies such as AllenComm and Cognician. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the learning and development category over the last two years:

In December 2022, 360Training acquired AdvanceOnline, an online and in-person training solution provider. The acquisition would help 360Training to expand its OSHA online outreach program and grow its library of courses through DOT transportation safety training courses.

In May 2022, The American Fork, a learning content and design services provider, acquired CoreAxis, a design, training, and development provider. Following the acquisition, the company was rebranded as ELB Learning. The acquisition will add more training services to ELB Learning’s custom-based content and learning development services-based portfolios.

In February 2022, Deakin University's division dedicated to corporate learning and development, DeakinCo., partnered with Tata Consultancy Services (TCS). The deal is expected to address the digital skills gap in Australia and collaboratively create a corporate learning program tailored for business leaders, senior management, and executives. The focus areas of learning include emerging technologies such as AI, ML, data analytics, and robotics.