ABSTRACT

Of the $59.8 billion that U.S. employers spend annually on training and development, 22%, or $13 billion, goes to outside providers in a supplier network of consultants, colleges, vocational schools, government agencies, professional associations, trade unions, conference providers, packaged training suppliers, and other organizations.1 Collectively, they represent an important tool for cost-effective training and development. The link between internal training and development departments and training suppliers is strong because few in-house HRD departments can meet their corporate training needs. Employers usually contract with outside providers when internal training functions lack the expertise, time, facilities, or staff to create necessary training services. Outside services range from needs analysis and instructional design guidance to off-the-shelf or customized packaged programs.