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[Infographic] The Costs of In-House Training Real Estate and Resources


The fixed costs of operating a training-specific facility doesn't necessarily compute to profitability for many organizations and their training project implementation.

And the single greatest cost comes from leasing commercial real estate–costs absorbed by outsourcing training services providers. Considering the surging demand for office space and national average rent per-square-foot rising to $43.79, a company can easily invest over $100,000 alone in upfront leasing costs.

MicroTek research finds that the annual costs of operating a typical in-house training facility will require an even greater fixed investment to the tune of at least $260,000 for many companies.

Here is where your money typically goes:

Training Room Real Estate Costs Training Facility Rental Hands On Learning Project Implementation

According to Flagship Solutions Group,  reducing capital investment is among the major advantages of partnering with a managed services provider for your training delivery. One of the greatest cost-savings comes from lower infrastructure costs. Often a company will over-invest in hardware, software, training space real estate and staffing rather than outsource in order to achieve a greater ROI. 


RESOURCE: View our infographic comparing the costs of in-house vs. outsourced training facilities.


Every organization must undertake its own needs analysis and after weighing the pluses and minuses make a decision on whether investing in in-house space and resources makes business sense. A major training industry trend is to create hands-on learning environments, with flexible class configurations and virtual training technology that allows for a more expansive, hands-on learning experience. Not all organizations are equipped to keep up with the demands of the ever-evolving "next-generation classroom", further making the case to outsource this function to a third-party that provides the options and features needed to keep pace.

Part of the appeal many executives cite in using managed services providers is that fixed costs are minimized since most managed service providers offer predictable, monthly fixed rates with no unexpected upgrades or add-ons for a training event. Many of these providers even offer a flexible, pay-as-you-go payment model that also reduces initial capital costs.

To learn more expert advice on how managed services training delivery can improve your corporate training program, download our 14-page white paper research report on "Transforming Corporate Training Execution."


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