Measuring the Total Cost of e-learning

When I read that e-learning saves money, I wondered how, because it looked costly to set up softwares, and other technology equipments. Although e-learning cost more than we expect it is, it definitely saves money when compared to traditional learning type with instructor for larger institutions and corporations. Kruse (2004) calculated and compared the total cost of ILT (Instructor-led Training) and TBT (Technology Based Learning) and came up with the difference of $600,000. ILT was more costly than TBT when number of students is big. His study was conducted for three years with 800 learners. The number of students is proportionate to the cost of ILT. So, it may be less expensive to run a course with an instructor. However, the total cost of TBT is fixed regardless of number of students. This implies that the greater number of students enrolled, the more money saved with TBT. Once computers and softwares are set up, it is there for next users or learners but instructor compensation fee is paid every course. \ For larger corporation, in a long run, TBT saves money and time that is also equivalent to money.


Reference:
http://www.e-learningguru.com/articles/art5_2.htm