south asia training 2009 austrade presentation
TRANSCRIPT
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Opportunities in Corporate Training South Asia
Workshop for opportunities for Trainers and Consultants
13th October 2009
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The Market: India
India
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The Market: India
How attractive is the market?
Economic Outlook for India (2009-10)
Growth rate between 6-7% Strong economic fundamentals
Well regulated banking system
Bulk of the investments in India are financed by
domestic savings (35% of GDP)
Domestic consumption growth is non-leveraged
India to record the highest inflow of remittances
more than US$ 45 billion
Rural demand is robust due to good agriculture
performance in the last 4 years Government is taking adequate fiscal and
monetary steps to get the economy back on track
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TRILLION
DOLLAR
ECONOMY
RISING FOREIGN
EXCHANGE
RESERVES
IMPORT
DUTY
RATIONALISATION
ECONOMIC
& SOCIAL
REFORMS
RELAXED
FDI
REGULATIONS
The Market: India
How attractive is the market?
Large and growing
Domestic market
300-million strong
consuming class and
growing at 6% p.a.
Among largest pool
of English Speaking
Population
Low Labour Cost
Low inflation rate
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The Market: IndiaHow attractive is the market?
Vocational Education in India - Education with Occupational emphasis
Current skill development programs offered under various government schemes
Only 2% of Indian population hasundergone skill training, one of thelowest in the world
Ministry of HRD
Ministry of Labour &Employment
Ministry of Women &
Child Development
Ministry of Agriculture
Ministry of micro, small& medium enterprise
Others
4 million
Skill Developmenttarget (2022)
500 million
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The Market: India
How attractive is the Corporate training market?
Industry is huge but largely fragmented
Dominated by Individuals and private consultants Corporate training industry size estimated to be A$ 2.5 billion
Traditional Indian companies training expenditure: 0.5% - 2.0% of
the turnover (Progressive companies: around 4%)
Companies outsource 50% of their training needs
Large presence of MNCs in the country
Hybrid delivery models becoming popular VSAT/e-learning/Online
Mentoring
The fast growing economy has skill gaps
(Source: Mafoi Consultants)
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The Market: India
How attractive is the Corporate training market?
Retail, 50%
Corporate,
25%
Government,
20%
Education,
5%
Large players
Middle Segment
Small
players
Demand Supply
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The Market: India
Where are the opportunities?
Retail/ Fast Moving Consumer Goods
A booming sector in India
Only 5-6 % of industry is organized Education system does not address industry needs
Banking/Insurance
Still a key sector
Rural penetration driving training
Technology a key enabler
Hospitality
Growth Rate: approximately 8%
Shortage of skilled employees; High attrition levels
Training Areas (business etiquettes, communication, people management,business insights, succession planning & resource development)
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The Market: India
Where are the opportunities?
Automobile
Growing at about 16% p.a.
Second fastest growing automobile market in the world 10 million employees
Unorganized sector - 67% ; Organized sector - 33%
Toyota has recently opened Toyota Technical Training Institute (TTTI)near Bangalore
Telecom
One of the fastest growing sectors at 20%-30% p.a.
The requirement for mobile analysts, software engineers, and hardwareengineers for mobile handsets has increased sharply
Training market estimated to be A$ 100 million
Many top players are investing in training and development
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The Market: India
Where are the opportunities?
Information Technology
2.3 million jobs by 2010
HBR says there is a direct link between training investment of thecompanies and the market capitalization.
3-5% of revenue set aside for training programs
Technical training and managerial skills development
Accenture, Infosys, Microsoft, TCS have their own training centers
Information Technology Enabled Services
Growing at 14%
Communication Skills Essential
Training has become a major tool to retain employees Constant change in processes and technologies mean constant need for
training the employees
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The Market: India
What are the challenges?
Geography Scattered opportunity pockets
Bureaucracy
Lack of Transparency
Long gestation period
Relationship driven market
Industry marked by slowdown (GDP growth rate down from 9% tounder 6%)
Patience with dedicated investment of time, money & energy
Culture and Language (Even though English widely used in business)
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The Market: Sri Lanka
How attractive is the market?
GDP growth rate: 6% (2008)
93% of the population is literate
Service sector is the largest component of GDP at around 60% Work force accounts for 35% of the total population
English is widely spoken in the country, main language used in business
How attractive is the Corporate training market?
Public & private sector companies are active in initiating & meeting training needs
Leading industry associations, training agencies, consultants & professionals takepart in delivering training
Training as a medium to reorient, improve, expand the knowledge of workforce
Delivery: Through in-house trainers, through training agencies, consultants The cost of training for supervisory and middle level executives/staff - between LkrRs. 10,000 30,000 per day/per event
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The Market: Sri Lanka
Where are the opportunities?
Textile & Garments
Hospitality Hotel, Tourism, Food and beverage
ICT / IT
BPO/Call Centre
Finance & Insurance
Retail
Office Management / Human Resources
What are the challenges?
Market demands degree of customisation - training courses need to be designed/
tailor made to suit the individual companies
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The Market: Pakistan
Pakis
tan
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How attractive is the market?
The 26th largest economy in the world in terms of purchasing power parity
47th largest in absolute dollar terms
Main sectors: textiles, chemicals, food processing, agriculture Pakistan Economy ranked top in South Asia for ease of Doing Business
Training and advisory businesses are rising because of large-scale restructuring of public &private enterprises
How attractive is the Corporate training market?
3% of corporate budget allocated to training, development and restructuring of organisation
Majority of the training are currently delivered by local companies
A level of individual development, cultural issues
MNCs & foreign presence in consumer, pharmaceutical, energy, oil & gas sectors
Favourable public sector policies and government funding available
Cost conscious market
The Market: Pakistan
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The Market: Pakistan
Where are the opportunities?
Programs:
Financial Planning andManagement
Project Management
Corporate Governance
Customer Relationships
Risk Management
Leadership andDevelopment
Human ResourceManagement
Occupational Health andSafety
Train the Trainers (teachers
training, mentor, coach) Information Management
Sectors:
Information Communication &Telecommunication (ICT)
Energy, Mineral, Oil & Gas
Financial & Services
Pharmaceuticals & Agribusiness
Small and Medium Enterprises & SocialSector
Public and Civil Administrations
What are the challenges?
Strong education links to UK & USA
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The Market: Bangladesh
Bangladesh
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The Market: Bangladesh
How attractive is the market?
Extremely attractive. Growing professionalism
Steady GDP growth of 6 percent
Scarcity of managers with the required professional skills
Low inflation rate
Import based economy US$10 billion+
Australian goods and services highly valued
No import restrictions Less competition from local supplies
Liberal investment policies
Stable economy and politics
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The Market: BangladeshHow attractive is the Corporate training market?
The size of the training market is huge.
Estimated amount for training & development per year is about Taka 200 crore(US $ 300million)
Almost all sectors of the economy (public & private) have general and specifictraining needs
Existence of large non-governmental organisation requires formal as well as nonformal training
Cost conscious market
Quality training is required
All training has to be market driven
Most funds generated from own sources and from governmental agencies anddonor agencies
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The Market: Bangladesh
Where are the opportunities?
Public sector
AgricultureHealth (nursing,
paramedics, labtechnicians)
Port management
Transport (Railway,Roads and highways)
Water Management
Private sector
Financial servicesHealth
Textile
Tourism & Hospitality
IT
Building & Construction
Electrical & ElectronicsHospital management
NGO
AgricultureWater Management
Rural development
Health
Nutrition
Soft Skills /Nontechnical
Leadership courses, communication, stress management, time management,business English, decision making, delegation, change management, empowerment
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The Market: Bangladesh
What are the challenges?
Identification of sectors where immediate assistance in the form of training or
seminars are required and a subsequent follow up made
Identification of opportunities in the medium and long term
Identifying the subject matter experts in the country who can deliver marketdriven solutions
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The Markets: India, Sri Lanka, Pakistan, Bangladesh
Engagement models/ Entry strategies/ Business tips
Long term relationship driven approach
- Direct user/customer
- Joint ventures/ partnerships
- Reseller / distributor models- Franchise
- Representative Office
- Wholly owned subsidiary -
Delivery
- Onshore, offshore, Hybrid models, Train the trainer
- Vocational training (PPP model)
- Employability training (campuses)
Unique point of differentiation
- Leading edge content
- Professional promotional collateral and website
- Strong track record and testimonials
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The Markets: India, Sri Lanka, Pakistan, Bangladesh
Engagement models/ Entry strategies/ Business tips
Majority of South Asia markets are price sensitive
Finding the key decision maker building rapport & relationship building
Maintaining your pipeline of potential customers
Protect your intellectual property as appropriate
Government linked projects can be risky long lead time, cancellation due tochange in Governments, receivable delays
Stay focused & strategic in export development 1 OR 2 markets at a time
Build a brand right price Build scale, scope and depth
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Austrade Initiatives: Past, Present and Future
Inaugural HR-Corporate Training mission to India (May 09)
Clients on the mission
AAMC Pty LtdClients on the mission
o AAMC Training Group
o Asia PacificInternational College
o DeakinPrime
o Dta Worldwide
o Dynamiq Pty. Ltd.
o EPSI Learning
o Excelerator Pty. Ltd
o Facilities ManagementTraining Partners PtyLtd
o Hyco Pty Ltdo Sunshine Coast
Institute of TAFE
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Austrade Initiatives: Past, Present and Future
Links & Relationships
Australia New Zealand Business Association in India (ANZBAI)
Relationship with associations
- National Human Resource Network (NHRD)
- National Institute of personnel Management (NIPM)
- Indian Management Association (IMA)
- The Institute of Management Consultants of India (IMCI)
- Confederation of Indian Industry (CII)
Relationship with Partners/local firms
- Mafoi, Everonn, Franklin Covey
Doing Business with Australia Seminars in tier 2 & 3 cities
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Austrade Initiatives: Past, Present and Future
PR/ Media Support
Customised solutions to suit your
needs Market research & information
partner search & businessmatching
Seminars
Support to Australian industryassociations via market visits
Forthcoming mission to India 19-24 April 2010
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Success Stories & testimonials
Australian training companies in India & growing
Corporate Training Mission to India
40% clients achieved success in the market -
AAMC Training Group, Sunshine Coast TAFE, dtaWORLDWIDE, Fmedge
FmedgeCaliper
HR Workbench
dtaWORLDWIDE
SiiA
Deakin Prime
Bsmartonline
eBilities
AAMC Training Group
Accord Consulting
Chisholm
DBL
MRWED
BTS Australia
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Success stories & testimonials
Indian customers promotingAustralian companies
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Key contacts in AustraliaNSW
Vivien Lim
Senior Export Advisor
T: 02 9390 2329
QLDVince Kelly
Senior Export Advisor
T: 07 3364 7705
SALinda Marchesan
Export Advisor
T: 08 8202 7809
VICGreen Yang
Senior Export Advisor
T: 03 9648 3261
ACT
Chris Horsburgh
Senior Export Advisor
T: 02 6201 7572
NTBernadette Eggington
Export Advisor
T: 08 8982 4505
WAMadeleine Stringer
Senior Export Advisor
T: 08 9261 7943
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Offshore key contacts
IndiaVijay Subramanian
Business Development Manager
T: +91 44 4297 0003
PakistanAzhar Shah
Business Development Manager
T: +92 51 8355 373
BangladeshMostafizur Rahman
Business Development Manager
T: +880 2 88 13101
Sri LankaDavid Samuel
Business Development Manager
T: +94 11 246 3253
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The way forward
South Asia the Next Big Region
Are you ready?