50.59 (+0.76) 
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How Raytheon got into the training outsourcing business.
When most people hear of Raytheon, they think of the company’s well honed aerospace and defense capabilities. But RPS’s history of seven decades as a training provider demonstrates a well developed acumen for learning solutions. Today we are the integration of training businesses from organizations that Raytheon has acquired over the years.
- In the 1930s, through one of Raytheon’s predecessor companies, we leveraged the invention of the Link simulator to evolve into the pre-eminent builder of flight simulators in the U.S.
- In the 1960s, we applied our simulation expertise to Gemini and Apollo programs, and later to Skylab, Space Shuttle and Space Station programs.
- In the 1980s, we launched new system-based curriculum design and training administration services to respond to the U.S. Department of Defense’s shift from buying simulators to buying trained pilots.
- In the 1990s, we expanded into commercial training programs, primarily within the automotive industry, initially in North America, and then into Europe and Asia Pacific. Two of our programs are among the largest training outsourcing contracts ever awarded in the commercial sector.
- Today, we are part of Raytheon’s technical services business, which generates more than US$2 billion in services sales annually. We continue to invest in new learning technologies and practices as we expand into new industries and regions globally. In 2004, we opened a shared services center in Barcelona, followed by another in Detroit in 2006. We established a presence in Russia in 2005 and in Mexico in 2006. Our growth strategy is founded on leadership in learning innovation and global scale, especially in emerging markets.
Analyst commentary
“In today’s global knowledge economy, adoption of the training outsourcing model is being driven by the recognition of training’s potential transformational impact across the enterprise... A company can develop training efficiency organically over time, or it can outsource the training function to a ‘training expert’ and achieve this efficiency more quickly.”
Peter McStravick
IDC
