INSOURCING THE TRAINING PROCESS AT SAUDI CORPORATIONS

Abstract

Most successful companies in Kingdom of Saudi Arabia use outsourcing to conduct their training and development requirements for their employees which can prove to be very costly as it reach tens of millions for some companies on annual bases. This study tries to investigate whether insourcing the training process at Saudi corporations would be a better decision compared with the current practice of outsourcing training activities with external vendors and institutes. In order to achieve the objectives of this study, required data were collected using a questionnaire survey which was designed and developed based on literature review.  Data for this study have been collected from a survey filled by (244) participants as well as statistical data extracted from SABIC database of training activities for the year of  2009/2010. 

The results showed that: (1) some training factors such transportation, security, communication, speed to market, control and employee morale and loyalty will also improve with insourcing. Although other factors such as innovation and customer satisfaction didn’t show conclusive results.  (2) the significance of F was significant with two factors only: training frequency each year and training area by which company staff can provide better.  Finally, this study recommends researchers to conduct future researches.