Bryan Chapman from the Chapman Alliance informed me this morning about the completion of a study they started last month to collect data about the time and cost of custom elearning development. The report is available here. I had participated in the study and find the results align well with our own data.
The study categorizes custom elearning into 3 levels as below:
|Level 1 eLearning (Basic)
||Content pages, text, graphics, perhaps simple audio, perhaps simple video, test questions.
NOTE: PowerPoint-to-eLearning often falls into this category. Basically pages with assessment.
|Level 2 eLearning (Interactive)
||Level 1 plus 25% (or more) interactive exercises (allowing learners to perform virtual “try it” exercises), liberal use of multimedia (audio, video, animations)
|Level 3 eLearning (Advanced)
||Highly interactive, possibly simulation or serious game based, use of avatars, custom interactions, award winning caliber courseware
They had asked about the time it takes to develop content at each of these levels.
Here are the results:
These two slides suggest the per hour resource rate is greater than $100.
That sounds fairly high and it seems like many of the organizations participating in this study are not outsourcing their custom elearning development work. I do believe there is room for them to explore a cost saving of 25-50%
Another interesting slide is the most frequently used components in a blended solution. Clearly classroom, virtual classroom, self paced elearning make up the bulk of the blend.
Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com