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Intermediary organizations in apprenticeships are those which act on behalf of, link, or mediate between the main parties - apprentices and employers. An intermediary organization in apprenticeship systems is thus one that undertakes one or more of the following activities: employs apprentices as a third-party employer; trains apprentices as part of a specific arrangement with groups of employers; or undertakes other apprentice support activities on behalf of an employer or a specified group of employers. This discussion paper highlights different ways of classifying intermediary organizations, provides examples of different types of intermediary organisations and examines the different roles they can play to support the effective operation of apprenticeship systems. In particular, the report includes brief case studies of intermediary organisations in Australia, India, England.

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In apprenticeship systems, intermediary organisations typically assist with recruitment and/or management of apprentices. This paper compares and contrasts the two major intermediary organisation types in apprenticeship systems in England and Australia. It focuses particularly on the way in which the organisations are funded, and the effects of funding on their operations. There has been very little research on intermediary organisations, and no prior international comparison. The encouragement of third party agencies has been a feature of governments wishing to expand apprenticeship systems; hence there is a need for evidence to inform governments' decision-making. The paper is drawn from data gathered for a recent research project funded by the International Labour Organization [report available in VOCEDplus at TD/TNC 138.649], undertaken by desk review of documents including government-commissioned evaluation reports, analysis of intermediary organisations' web sites, and conversations with government personnel, peak bodies and other experts in the two countries, some of whom also assisted with validation. The paper draws out and analyses data specifically on Australia and England: in Australia, Group Training Organisations and Australian Apprenticeship Service Network [AASN] providers; and in England, Group Training Associations and Apprenticeship Training Agencies.

It was clear that there were considerable differences in approach and ethos, both among and within the intermediary organisation types. Some had evolved organically, often in specific industry or geographical areas, but some had sprung into being to access financial opportunities, whether funded by government or, to a lesser extent, through fee-for-service opportunities afforded by government endorsement. Such evaluations as exist have highlighted some problems associated with profit-driven intermediaries, and the research has uncovered more such problems. The Australian 'AASN' providers, for example, are particularly profit-driven. The paper presents a framework for understanding intermediary organisations based on funding sources, and warns against 'contracting out' basic functions of apprenticeship to private providers.

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In 2012, the G20 Labor and Employment Ministers gave significant attention to apprenticeships and called for sharing of experience in the design and implementation of apprenticeship programs. This high level international interest was also reflected in discussions of tripartite constituents at the 2012 International Labour Conference's committee on youth employment, which called for the promotion of quality apprenticeships, including in developing countries. In this context, the ILO and World Bank in 2012 jointly conducted a study to review international experience in apprenticeships and identify good practice principles based on the cross-country analysis. This report contains case studies on 11 countries' apprenticeship systems, a cross-case analysis and the development of a framework for a model apprenticeship system. Show less