The UK market for IT training was estimated to have increased in value
in 2008, continuing a trend of positive growth. Between 2004 and 2008, the
value of the market is estimated to have risen by around 38%. Instructor-led
training (ILT) comprises the largest sector of the market, although e-learning
teaching — which includes blended learning — was the faster growing sector
between 2004 and 2008.
In line with all other sectors of the UK economy, the recession has affected
demand for IT training. Following buoyant market conditions in 2007 and the
first half of 2008, the economic downturn started to have an impact in the
second half of the year, and by the fourth quarter of 2008 growth had turned
negative. To counter these falls, many of the IT training companies have
introduced cost-saving initiatives and adjusted their operations to be
consistent with their current levels of business.
The IT training market is fragmented and diverse. Consolidation and merger
activity is ongoing, however, and this has resulted in one company, QA Ltd,
emerging as a major force in the market. A dozen of the largest IT training
companies are now estimated to account for more than half of market sales,
with further sector consolidation likely to extend the influence of the large
companies in the future.
According to the ICT Inquiry Survey conducted in the first quarter of 2009
by e-skills UK — a not-for-profit, employer-led organisation licensed by the
Government as the Sector Skills Council for Business and Information
Technology — almost 25% of companies with IT and telecommunications
staff stated that they have experienced information and communication
technologies- (ICT) related skills gaps, and around one in six firms considered
the IT user skills of non-IT staff to be below the necessary standard. Around
one in six of the IT and telecommunications recruiters that took part in the
survey of more than 2,000 UK businesses also found that they were struggling
to recruit staff with the right skills, qualifications or experience. The most
common problem was the applicants’ lack of business skills needed to
communicate and align IT investments and strategy to the business.
The IT training market is expected to remain difficult in 2009. Large customers
in sectors such as banking and finance, which have been badly affected by the
recession, may not renew their training programmes and other companies are
reported to have delayed their course bookings. Companies are also buying
courses in smaller volumes, and demand for the more expensive types of
training programmes has been affected. It may be 2010 before any noticeable
recovery in demand for IT training is witnessed.
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