Datamine

Though the IT education sector
failed to touch the zenith of Rs 2,594 crore, FY 2005-06 maintained last
year’s growth momentum. From FY 2001-2002 till FY 2003-04, the training
sector revenues consistently went down. Subsequently, there was a
turnaround last year with the industry recording growth.

Training: The
Top Players

Revenue (Rs
crore)

Growth
(%)

2004-05

2005-06

NIIT

398

450

13

Aptech

115

121

5

Tata Interactive
Systems

98

98

0

Jetking Infotrain

47

63

34

Siemens

13

34

162

CMS Computers

21

15

-29

SQL Star

10

16

60

MAAC

2

5

150

Source:
DQ estimates CyberMedia Research

The top 3 players were no
surprise as they maintained their last year’s rankings. However, they
failed to match the growth momentum of their competitors (with the
exception of CMS Computers, which witnessed negative growth) lower down
the line
As corporate training picked
up, companies launched new packages and activity tied-up with business and
state government
The rise in fresher
recruitments was driven by multiple factors: Companies prefer to train and
create specialized talent pool from scratch. It is also economical to tap
into the huge resource available, to meet the manpower crunch in the
industry. And it operates as a powerful metric to reduce average age and
salary cost
While overall training exports
earnings went up 56%, corporate training grew 50% and retail consumer
training revenue went up 84%. Companies expanded their operations in West
Asia, South-east Asia and Eastern Europe.


India-based
Service Provider Landscape
Category No
of players
Share
of India’s total
IT/BPO export revenues
Performance
Tier
I Players
3-4 45%
of IT Services 4-5% of BPO
Revenues
greater than $1 bn
Tier
II IT Players
7-10 25%
of IT Services 4-5% of BPO
Revenues
$100 mn-$1 bn
Offshore
operations of Global IT majors
20-30 10-15%
of IT Services
10-15% of BPO
Revenues
$10 mn-$500 mn
Pure
play BPO providers
40-50 20%
of BPO
Revenues
$10 mn-$200 mn
(Excluding top provider with $500 mn)
Captive
BPO units
150 50%
of BPO
Revenues
$25 mn-$150 mn (top 10 units)
Emerging
players
>3000 10-15%
of IT Services
5% of BPO
Revenues
less than $100 mn (IT)
Revenues less than $10 mn (BPO)
*Based
on last comparable Annual Report
**Earnings before interest, tax, and depreciation and amortization margins
(last reported)
***Including captive centres for Independent Software Vendors (eg
Microsoft, Oracle)
Source: NASSCOM McKinsey Report 2005

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