Learning is one of the most critical tools that helps build value within an
organization. It not only leads to a better understanding of new technologies,
higher productivity and an increase in revenue, but also helps in improving
customer relationships.
These were some of the thoughts that flowed free at the country’s first
e-learning users’ conference hosted by Tata Infotech at Mumbai and Bangalore
in February. While a majority of the 100-odd participants, including the 10
speakers, agreed on the growing importance of training the workforce, they also
suggested that India Inc is yet to capitalize on the benefits of the Internet as
the delivery mechanism for education and training. The conclusion: Training
departments today are merely using the Internet to increase the rate at which
they ‘spray’ train employees–for them the Internet is simply a bigger hose
with which to deliver training. So why the need for an e-learning user
conference in a market where the concept is still to be understood by many?
One stone, two birds
"Having been in this business, we wanted to share our experiences with
the market place," says Rahul Thapan, head–education services division,
Tata Infotech. "While our competitors are still looking for alliances or
have recently announced some, we have three years of experience to
showcase," he says. According to him, the tieup with SmartForce has helped
the company offer a wide range of e-learning services in India, Bangladesh and
Sri Lanka.
Thapan wants to make sure that in the next two to three years 15-20% of the
company’s education services revenue comes from e-learning. The revenue from
e-learning is currently 5%. No wonder Tata Infotech plans to join hands with
premier academic institutes to integrate e-learning as a part of their
curriculum as well as work with governments to bring some part of this offering
to schools. It is also working towards providing such services through ASPs and
customized courseware for industry verticals.
But is there a market in India?
A recent IDC study of the market suggests that the use of the Internet as a
delivery method is gaining prominence in the entire Asia-Pacific region. While
identifying the trends in this area, the market research agency forecast says
that the IT training market for Asia-Pacific excluding Japan is expected to
cross $2.5 billion by 2004. During the same period, the report says, the
computer based training (CBT) segment of this market is expected to grow at a
compound annual growth rate (CAGR) of 93.7% to touch $235 million. According to
the report, while the region is witnessing an increasing demand for IT
certification, there is also need for rapid deployment of localized content. The
other indicators, IDC suggests, are the increasing tendency to bundle IT
training as part of system integration contracts and the increasing importance
of Web-based training.
According to the report, India currently represents 21% (or $216 million) of
the total spending on IT training in the region and is expected to be the
leading contributor in the region throughout the forecast period, reaching
revenues of $695 million by 2004. This is because, driven by a worldwide demand
for software development exports, India currently accounts for 60% of the total
Asia-Pacific demand for IT professionals. There will be a significant shift in
‘training channels’ to market seen during this period. Currently instructor
led training (ILT) accounts for 87% of the total delivery media in the region.
By 2004 IDC expects this to have dropped to only 74% as ILT is challenged by
e-learning and CD-ROMs as alternative mediums of delivery.
While most of the speakers agreed with the IDC forecast, they feel that a lot
needs to be done on the awareness front in the country. A majority of the
participants’ felt that e-learning in India is more of a mind-set issue rather
than a technology one and that is exactly where initiatives like the user
conference fit in. There was, however, unanimous agreement on the benefits of
e-learning as a tool to pre-skill their employees and to keep pace with the
changes in the business world. Most participants also agreed that despite
e-learning gaining prominence in the years to come, ILT would never be
eliminated. Instead, the concept of blended learning will lead the way where
e-learning will complement ILT. Speakers at both Mumbai and Bangalore also
indicated that in-house learning of knowledge management would get integrated
into the e-learning deployment in times to come, thereby making it a truly
dynamic learning system.
SHUBHENDU PARTH In Mumbai/Bangalore