IT Training - Market Report

Published by: Key Note Publications Ltd

Published: Jun. 1, 2007 - 104 Pages

Table of Contents

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Instructor-Led Training

E-Learning

Problems of Calculation

MARKET TRENDS

IT Skills Continue to be An Important Business Driver

A Flourishing IT Market

Table 1: The Number of Annual IT Vacancies Notified to Job Centres, March 2005-March 2007

Figure 1: The Number of Annual IT Vacancies Notified to Job Centres, March 2005-March 2007

Buyers Continue to Have Firm Control Over IT Budgets

Focus on Training to Increase Job Satisfaction and Retain Staff

E-Business Continues to Drive Demand

ECONOMIC TRENDS

Population

Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006

Gross Domestic Product

Table 3: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006

Inflation

Table 4: UK Rate of Inflation (%), 2002-2006

Unemployment

Table 5: Actual Number of Unemployed Persons in the UK (million), 2002-2006

MARKET POSITION

The UK

Table 6: The IT Training Market Share of the Total UK Computer Market† (%) 2003-2007

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK IT Training Market by Value at Current Prices (£m), 2003-2007

Figure 2: The Total UK IT Training Market by Value at Current Prices (£m), 2003-2007

BY MARKET SECTOR

Table 8: The Total UK IT Training Market by Sector by Value at Current Prices (£m), 2005-2007

Figure 3: The Total UK IT Training Market by Sector by Value at Current Prices (%), 2005-2007

MARKET SHARES

Table 9: The Leading 15 IT Training Providers by Estimated Market Share by Value (%), 2006

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 10: Breakdown of Companies Operating in the UK IT Training Market by Size (% and £m), 2006

REGIONAL VARIATIONS IN THE MARKETPLACE

HOW ROBUST IS THE MARKET?

Economic Influences

Technological Influences

KEY TRADE ASSOCIATIONS

The British Computer Society

Becta

The British Institute for Learning and Development

Chartered Institute of Personnel and Development

The eLearning Network

e-skills UK

European Computer Driving Licence Foundation

European Institute for E-Learning

Institute of IT Training

Learning and Skills Council

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

IBM Education Services

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

PPI Learning Services

Company Structure

Current and Future Developments

Financial Results

QA-IQ

Company Structure

Current and Future Developments

Financial Results

SAP Education

Company Structure

Current and Future Developments

Financial Results

SkillSoft PLC

Company Structure

Current and Future Developments

Financial Results

SkillSoft NETg Ltd

Company Structure

Current and Future Developments

Financial Results

Other Companies

Azlan

Global Knowledge

HP Education Services

KnowledgePool

LogicaCMG

The Matchett Group

New Horizons

Remarc Group

Sun Educational Services

Xpertise Training

OUTSIDE SUPPLIERS

Hardware and Software Vendors

Other Suppliers

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 11: Main Media Advertising Expenditure by IT Training Companies (£000), Year Ending December 2006

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

SKILLS GAPS REMAIN A KEY DETERMINANT OF TRAINING

Table 12: Main Areas in Which IT User Skills are Considered Lacking (%), Third Quarter 2006

INCREASED DEMAND FOR PROFESSIONAL SKILLS DEVELOPMENT

DECLINING DEMAND FOR TECHNICAL TRAINING

DEMAND FOR CUSTOMISED TRAINING IS ON THE RISE

THE TRAINING AUDIENCE

CHOICE DRIVERS

7. Current Issues

IT TRAINING AND STAFF RETENTION

GROWTH IN STRUCTURED TRAINING

SKILLS SHORTAGE AT 2-YEAR LOW, BUT IT PROFESSIONALS INCREASINGLY NEED BUSINESS SKILLS AS WELL AS TECHNICAL TRAINING

IT EXPERIENCE GAINED IN THE WORKPLACE VERSUS IT DEGREES

OLDER PEOPLE MISSING OUT ON IT TRAINING

STAFF PREFER INFORMAL TRAINING

IN A FLOODED MARKET SELECTING COURSES CAN BE A PROBLEM

BLENDED LEARNING

CUSTOMISED TRAINING

E-LEARNING

VIRTUAL CLASSROOMS

OUTSOURCED TRAINING

8. The Global Market

OVERVIEW

GLOBAL MARKET SIZE ESTIMATES

9. Forecasts

INTRODUCTION

The Economy

Population

Table 13: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011

Gross Domestic Product

Table 14: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011

Inflation

Table 15: Forecast UK Rate of Inflation (%), 2007-2011

Unemployment

Table 16: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011

FORECASTS 2008 TO 2012

Table 17: The Forecast Total UK IT Training Market by Value at Current Prices (£m), 2008-2012

Figure 4: The Forecast Total UK IT Training Market by Value at Current Prices (£m), 2008-2012

MARKET GROWTH

Figure 5: Growth in the Total UK IT Training Market by Value at Current Prices (£m), 2003-2012

FUTURE TRENDS

Continued Need for Improved IT Skills

The Growth of E-Learning

Growth in Just-in-Time Training

Mobile Learning Continues to Take a Greater Share of the Training Mix

Growth in Demand for Blended Learning

Continued Growth in Demand for On-the-Job Training and Customised Training

Continued Growth of Managed Services, or Outsourcing and Out-Tasking

The Market Will Continue to Consolidate

Increased Competition from Universities

10. Company Profiles

Learning Tree International Ltd

Parity Training Ltd

QA-IQ Group Ltd

Skillsoft Uk Ltd

Skillsoft Netg Ltd

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Improves

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Willingness to Borrow Slips Slightly

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007

SPENDING FROM SAVINGS

Slight Increase in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Bisnode Sources

Abstract

The UK market for IT training reached £661m at current prices in 2006. There has been a shift in emphasis from technical training to IT-user training, which has fuelled growth. Key Note estimates that, in 2007, the market will increase by a further 8%.

A growing trend towards blended learning has started to lessen the gap that was previously identified between instructor-led and technology-based training, since both of these elements are now often requested in a training package. Other trends include the growing demand for one-to-one, tailored, on-premise training courses, and just-in-time, online training modules.

The decision-making for IT training continues to become more centralised in company training departments. This, in turn, is continuing to lead to major companies consolidating their purchasing among a small number of training vendors. Larger vendors clearly have an advantage when bidding for such large contracts, particularly as major companies also seek to outsource all, or part, of their training management to vendors.

Although the market remains fragmented, the leading 15 providers share almost 50% of the market by value. There are signs of consolidation in the industry in the form of acquisitions and partnerships, as players position themselves strategically in order to cater for the demands required by customers looking for a blended learning solution, and/or to outsource the management of their training.

Between 2008 and 2012, steady growth is forecast to continue, with the market increasing by between 7.4% and 8.2% year-on-year. The major growth sectors of the market will be blended learning and managed services/outsourcing. At the same time, an increased drive by the Government to see the higher education sector play a greater role in the provision of advanced-level IT skills could start to change the dynamics of competition in the IT training market.

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