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?

Answer rating: 100% (QA)

ANSWER It is generally more costeffective to provide induction training inhouse This is because you ... View the full answer