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Employee training plays a crucial role in the success of most organizations. Due to its developmental aspect, training is closely linked to core competencies and strategic focus. However, it is also one of the most widely outsourced [Human Resource] HR functions in most Western economies. This article attempts to illustrate and propose a decision model for the factors that shape the expected benefits and subsequently the extent of outsourcing training functions. A distinction is made among generic training (for the development of competencies) and job- or company- specific training (for example, induction training, job specialization, etc.). Two decision models are extracted with structural equation modelling. Asset specificity, market availability, in-house development of training and firm size are discussed. The factors shaping the decision to outsource, as well as the perceived benefits from outsourcing employee training, are different for each of the two types of training (generic and specific). The reasons underlying those differences are discussed. For both types of training service it is proposed that the expected quality benefits, not cost ones, induce companies to outsource training. Thus, this study attempts to offer a useful insight into the factors shaping the extent and the expected benefits from outsourcing training services. The outcomes can further assist [human resource management] HRM professionals (managers and providers of HRM services), as well as academics to gain a better understanding of the nature of HRM outsourcing decisions in general, and a 'basic' HRM outsourcing practice - training - in particular.

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This study focuses on the relationship between training and development and performance. It expands existing research on the subject by combining national and organizational factors through a hierarchical linear model to explore the training and development and performance relationship in 14 European countries. The main findings point out the importance of cultural, institutional and organizational factors in analysing the relationship between training and development and performance.

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