Should the training be outsourced and why?
You are the training manager for a manufacturing company which is opening a new
branch in a distant location. You need to arrange induction training for all new
employees in this location. You can either provide this training in house, or outsource
it to a third party.
You have received a quote from a sub-contractor for £108,000 to provide the training
and been given the following information about the cost of providing the training in
house:
Internal team requirements:
Team leader salary 45,000
2 x team staff with expected salary each of 25,000
Additional overhead costs per person 1,200
Share of central overheads allocated to training dept 2,500
In addition you will need to hire temporary staff at £600 per week to cover staff holidays.
Staff are entitled to four weeks holiday each per year. If you cannot find suitable staff
internally, you may have to incur recruitment fees of £1,500 per person.
Should the training be outsourced and why?
What other considerations should be taken into account when making this
decision?
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