e-learning outsourcing 2009 : advantage india
DESCRIPTION
A part of the presentation made at ValueNotes' e-learning outsourcing executive briefing held in August 2009 at Mumbai.TRANSCRIPT
© ValueNotes 2009 1
Executive BriefingMumbai, 7 August 2009
e-learning Outsourcing 2009: Advantage India
© ValueNotes 2009 2
Scope & methodology of the study conducted
Indian service providers
Offshored e-learning work
Market size
Competitive environment
Scope of the study
Desk research - advanced search techniques
Extensive primary research – providers, buyers, PE firms, others
Market size estimated through a bottom up approach
Methodology of the study
Scope
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© ValueNotes 2009 3
The scope for e-learning
Definitions:
e-learning refers to any kind of learning that takes place through technological means.
e-learning is: “technology-based learning - delivery of content via all electronic media, including the Internet, intranets, extranets, satellite broadcast,
audio/video tape, interactive TV, and CD-ROM.” - Washington State Department of Personnel
Components: Content Technology Services (consulting &
support services)
User segments: Corporate Academic (educational institutes,
publishers, continuing education) Government (department training,
public education)
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© ValueNotes 2009 4
Which are the main buyer markets?
Varied maturity across buyer markets
Global market sizing difficult
Loose definitions
Varied estimates/forecasts
US most mature market
UK, rest of Europe and Australia expanding rapidly
Japan and Singapore lead the Asian region, followed by nascent markets like India and China
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Source: ValueNotes Research
© ValueNotes 2009 5
Advantage India???
Favorable conditions keeping India just ahead of competition
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Source: ValueNotes Research
L
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China
Resources CostAdvantage
Scalability
India
Singapore
South Africa
Brazil
Maturity Overall
Ireland
© ValueNotes 2009 6
Industry structure and size
ValueNotes estimates the revenues from offshored e-learning services to India at $341 million in CY2008
Employee count in the industry is approx. 14,200 at the end of 2008
Offshore delivery centers of
International providers
Indian service providers
Indian e-learning outsourcing industry
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© ValueNotes 2009 7
What kind of companies rule the industry?
Contenders poised to grow the fastestwww.sourcingnotes.com
Source: ValueNotes Research
Sample companies Typical characteristics
Group 1: The Pioneers
NIIT, Tata Interactive Systems Services / client mix: comprehensive e-learning services across all user segmentsEmployees: > 500Market share: 33%Number of companies: 2
Group 2: The Challengers
Aptara, Aptech, Brainvisa, Genpact Services / client mix: comprehensive services to multiple segments internationallyEmployees: 200-500Market share: 50%Number of companies: 15-20
Group 3: The Contenders
Hurix Systems, MPS eServices, TutorVista, Upside Learning
Services / client mix: most services to select international clients; some domestic businessEmployees: 100-200Market share: 13%Number of companies: Upto 30
Group 4: The Specialists
24X7 Learning, C2 Workshop, E.I. Design, ZMQ Software Systems
Services / client mix: niche services to domestic providers and clients; very few international clientsEmployees: up to 100Market share: 4%Number of companies: > 100
© ValueNotes 2009 8
Market size and forecast
Steady growth in revenues till 2012
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Revenues ~ $341 million in CY 2008
Growing at a CAGR of 15% between
2008 and 2012, to reach $603m in
CY2012
Employee count ~ 14,200 at the end of 2008
To touch 22,400 at the end of 2012, at a
CAGR of 12%
341
603
CY08 CY12
$ m
illio
n
10-15%
20-30%
Source: ValueNotes Research
© ValueNotes 2009 9
The way forward…
Industry consolidation will drive future growth
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Growth by strategic alliances
Towards becoming comprehensive learning providers
Domestic and international tie ups
Growth by strategic acquisitions:
Primarily in US and UK
Towards stronger onshore presence
Advanced, specialized tech. companies
Growth by strategic investments:
Investor interest in education
© ValueNotes 2009 10
Please note that this is an abridged version of the presentation made at our executive briefing in Mumbai.
For more information on how to download the entire presentation, or to find out more about ValueNotes e-learning research, please contact:
Rakhi Vig +91 20 66231 717
[email protected] visit www.sourcingnotes.com/content/view/486/1/
The complete version additionally addresses:E-learning offshoring maturity per component
Indian providers’ service expertiseTrends in billing rates and margins
Key market presenceIndustry challenges and opportunities for growth