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IT Training - Market Report

Published by: Key Note Publications Ltd

Published: Sep. 1, 2004 - 88 Pages


Table of Contents


1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Instructor-Based Training

E-Learning

Problems of Calculation

MARKET TRENDS

Computerisation Drives Demand

IT Budgets: The Pressure Eases

The First Signs of Recovery

E-Business a Driver of Demand

IT Training Becomes More Diverse

ECONOMIC TRENDS

Inflation

Table 1: UK Rate of Inflation (%), 1999-2003

Unemployment

Table 2: Actual Number of Unemployed Persons (million), 1999-2003

Population

Table 3: UK Resident Population Estimates by Sex (000), Mid-Years 1999-2003

MARKET POSITION

Table 4: IT Training as a Share of the UK Computer Market† (%), 2000-2004

2. Market Size

THE TOTAL MARKET

Table 5: The Total UK IT Training Market by Value at Current Prices (£m), 2000-2004

Table 6: Staff Receiving Training in the Previous 13 Weeks by Type of Company(%), Q4 2003

Brand Shares

Table 7: The Top 20 IT Training Providers by Market Share by Value (%), 2003

3. Industry Background

INTRODUCTION

Recent History

NUMBER OF COMPANIES

Table 8: The Number of UK Companies Engaged in the IT Training Market by Size (£m and %), 2003

HOW ROBUST IS THE MARKET?

KEY TRADE ASSOCIATIONS

British Computer Society

British Educational Communications and Technology Agency

British Learning Association

Chartered Institute of Personnel and Development

The E-Learning Network

E-skills UK Ltd

European Institute for E-Learning

European Computer Driving Licence Foundation

Intellect

Institute of IT Training

The Learning and Skills Council (LSC)

The Sector Skills Development Agency

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

IBM Education Service Ltd

Company Structure

Current and Future Developments

Financial Results

InterQuad Learning Ltd

Company Structure

Current and Future Developments

Financial Results

Learning Tree International Ltd

Company Structure

Current and Future Developments

Financial Results

Oracle University

Company Structure

Current and Future Developments

Financial Results

Parity Training Ltd

Company Structure

Current and Future Developments

Financial Results

QA PLC

Company Structure

Current and Future Developments

Financial Results

SAP UK Education

Company Structure

Current and Future Developments

Financial Results

SkillSoft PLC

Company Structure

Current and Future Developments

Financial Results

Spring IT Training Ltd

Company Structure

Current and Future Developments

Financial Results

Thomson NETg Ltd

Company Structure

Current and Future Developments

Financial Results

Others

OUTSIDE SUPPLIERS

Hardware and Software Vendors

Other Suppliers

MARKETING ACTIVITY

Table 9: Main Media Advertising Expenditure by Type of IT Training Companies (£000), Year Ending March, 2004

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHs

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

THE TRAINING AUDIENCE

Table 10: Number of Employed People in ICT Industries and ICT Occupations (000), Q3 2003-Q4 2003

Table 11: Breakdown of Employees in ICT Industries by Type of Company (000), Q4 2003

Table 12: Breakdown of ICT Occupations by Type of Company (000), Q4 2003

Table 13: Employees in ICT Industries by Sex, Age, Region and Occupation (%), Q2 2002-Q3 2003

Skill Shortages Persist

Lack of IT Skills is a Tactical Issue

Training Characteristics of the ICT Industry

Table 14: Training Trends in the ICT Industry (%), 2003

Table 15: The Types of Off-the-Job Training Provided by ICT Companies in England - those which provided training only, 2003

Skill Shortages by Occupation

Table 16: Vacancies That Are Hard to Fill‡ in England by General Occupation (000), 2002

Table 17: Skill Shortage Vacancies‡ by General Occupation in England (000), 2002

Table 18: Skill Characteristics of the Occupation Skills Gap in England (number and %) 2002

Choice Drivers

7. Current Issues

COMPANY FAILURES AND TAKEOVERS

FREE TRAINING FOR SMALL FIRMS

NEW BUSINESS STRATEGIES

8. The Global Market

Introduction

9. Forecasts

INTRODUCTION

FORECASTs 2004 to 2008

Table 19: Forecasts Total UK IT Training Market by Value at Current Prices (£m), 2004-2008

Future trends

Table 20: Projections of Employment in the UK Computer Market and Related Industries (000), 2002, 2007 and 2012

Table 21: Employment in the Computer and Related Industries by Occupational Group (000), 2002, 2007 and 2012

10. Company Profiles

Learning Tree International Ltd

Parity Training Ltd

Qa Plc

Thomson Netg Ltd

11. Further Sources

Associations

General Sources

Government Publications

Bonnier Information Sources

Abstract

Key Note estimates that the UK IT (Information Technology) training market was worth £545m in 2003. The market has declined significantly from £772m in 2000. The global contraction in IT budgets and the cancellation of new IT projects have adversely impacted on the market. However, the final quarter of 2003 saw the first signs that a recovery in the IT industry has started and this is expected to feed through into the IT training market in the second half of 2004. In 2004, Key Note expects the market to grow by 2.8%, the first year of growth since 2000.

The IT training market consists of two broad sectors: instructor-led training (ILT) and e-learning (or technology-based training). E-Learning has been the major growth sector of the market in recent years as it has grown in maturity and sophistication. However, it is increasingly difficult to distinguish between these two sectors given the growing trend towards blended learning. That is, courses featuring both instructor-led and computer-based components.

Companies like Parity and QA which have moved strongly into e-learning generally outperformed the market in 2002/2003, while those such as Learning Tree which continue to offer only ILT courses, have lost market share. In 2003, Parity Training was the largest training provider in the market, followed by Learning Tree International and then QA and Thomson Netg. The training arms of major vendors like SAP, IBM and Oracle are also important players in the market.

Clients are looking to cut their training budgets and are demanding a wide range of delivery media for their training, including classroom-based instruction, mentoring and Web-based training. In other words, the capital investment required in training businesses is increasing, which is squeezing out the smaller operators.

While the industry is showing the first signs of recovery, the end of 2003 and beginning of 2004 witnessed some high profile company failures - e.g. Informatics Group, KnowledgePool and DACG - although some of these have been rescued by buyers and continue to trade.

Major players in the market are embarking on strategic actions to improve their ability to compete in the 2004 to 2009 period. This has resulted in companies changing their service offerings to clients and changing their own internal operations. When facing clients, training providers are offering a wider range of training services - i.e. offering business and professional skills to IT staff and offering outsourcing and managed training services and targeting more aggressively the public sector, whose IT budgets are expanding strongly. Internally, they are bearing down on costs by moving into e-learning and turning fixed costs into variable costs i.e. increasingly buying in training resources from third parties on a needs basis, renting training rooms which only need to be paid for when actually used and using more freelance trainers rather than permanent staff, which cuts their overheads.

A strong recovery in IT training spending is anticipated for the period 2004 to 2009 and the above strategic moves are designed to exploit the key growth areas in the training market over that period. These will be managed services, or outsourcing and out-tasking, professional and general business skills aimed at IT professionals, blended training, multilingual, globally delivered courses (aimed at large, international companies) and training in the public sector.

Key Note Market Reports
Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision-making.



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