Content Acquisition vs. Creation- How LMS Providers Navigate Licensing and In-House Development

Do LMS companies license the content or build it themselves? This question is often at the forefront of discussions when it comes to selecting a Learning Management System (LMS) for an organization. The answer to this question can significantly impact the effectiveness and efficiency of an eLearning program. In this article, we will explore the different approaches that LMS companies take to content development and licensing, and the implications of each approach for businesses seeking to implement an eLearning solution.

LMS companies typically adopt one of two strategies when it comes to content: licensing or building it in-house. Licensing content involves purchasing or leasing existing courses from third-party content providers. On the other hand, building content in-house means that the LMS company develops its own courses using its own resources and expertise.

Licensing Content: Pros and Cons

Licensing content can be a quick and cost-effective way for LMS companies to offer a wide range of courses to their clients. By partnering with established content providers, LMS companies can ensure that their clients have access to high-quality, industry-standard courses. Some of the advantages of licensing content include:

1. Access to a wide variety of courses: Licensing content allows LMS companies to offer a diverse range of courses that cater to different learning needs and interests.
2. Cost savings: Licensing content can be more affordable than developing courses in-house, especially for smaller LMS companies with limited resources.
3. Reduced time to market: By licensing existing courses, LMS companies can quickly roll out a comprehensive eLearning program without the need for extensive development time.

However, there are also some drawbacks to licensing content:

1. Limited customization: Licensed courses may not always align perfectly with an organization’s specific training needs, leading to a need for additional customization.
2. Dependency on third-party providers: Licensing content means that LMS companies are at the mercy of third-party providers, which can lead to issues such as content updates and compatibility.
3. Limited intellectual property: By licensing content, LMS companies may not have full control over the intellectual property rights of the courses they offer.

Building Content In-House: Pros and Cons

Building content in-house gives LMS companies complete control over the development process, allowing them to tailor courses to their clients’ specific needs. Some of the advantages of building content in-house include:

1. Customization: In-house content development allows LMS companies to create courses that are perfectly aligned with their clients’ training goals and objectives.
2. Intellectual property: By developing content in-house, LMS companies can retain full ownership of the intellectual property rights, which can be valuable for branding and marketing purposes.
3. Quality control: In-house development teams can ensure that the courses meet the highest standards of quality and consistency.

However, there are also some challenges associated with building content in-house:

1. Time and resource-intensive: Developing courses in-house requires significant time and resources, which can be a barrier for smaller LMS companies.
2. Expertise and experience: Building high-quality eLearning courses requires a team of skilled professionals with experience in instructional design, multimedia development, and subject matter expertise.
3. Limited course offerings: LMS companies that build content in-house may have a more limited range of courses compared to those that license content from third-party providers.

Conclusion

The choice between licensing content and building it in-house depends on various factors, including the LMS company’s resources, expertise, and the specific needs of its clients. Both approaches have their advantages and disadvantages, and the best solution will vary from one organization to another. Ultimately, LMS companies must carefully consider their strategic goals, budget, and the quality of the eLearning experience they aim to provide when deciding whether to license content or build it themselves.