Professional Documents
Culture Documents
March 2009
Executive Summary
Private sector
Estimated worth USD 1.6 bn in 2008
Market
Growth of 25% p.a. to reach USD 4 bn by 2012
English language training is the largest segment followed by Financial Services, Retail and IT
Government encouraging private sector participation although latter are not regulated
Drivers: Demand for skilled labour in service and IT/ITeS industries; inefficient public education
Drivers &
system; competitive business environment
Challenges Challenges: Poor perception and lack of support from financial institutions
A highly competitive market with players focusing on specific areas and expanding across India
Major players:
Competition English Financial Services Retail Information Technology Aviation/Hospitality
VETA ICA IIRT NIIT Frankfinn
English Center IFBI K10 Aptech Air Hostess Academy
Multimedia
Public Private Public Private in schools Books
and colleges
National Council for Vocational Training (NCVT) and Central Apprenticeship Council (CAC) are advisory bodies and create policies for
development and also maintain training standards at the institutes
Source: India Edunemws “Streamlining vocational training for skill development”, Sep 2008; “Creating Skills for 2008”; Sep 2008
Drivers
Demand for skilled workforce Challenges
increasing with the growth in services
sector Individuals perception
10
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
• Growing employment levels and the need for high efficiency will demand adequate training
Employment
Sector CAGR (%)
2008 2011e
Airlines 60000 269528 65
Hotels 70000 192090 40
Retail 880000 3953070 65
Financial Services - Direct 220000 541283 35
Financial Services - Agents 600000 1476225 35
Source: IMF, CLSA
• The number of non-IT graduates employed in the IT sector has been growing faster than the
number of IT graduates.
• This creates an opportunity for private players offering computer courses including hardware
and software training, computer networking and multimedia
• Demand for English language courses also increasing with the growth in IT Enabled Services
(ITES) and Business Process Outsourcing (BPO) sector
ITES and BPO sector constitute 67% of the total IT industry and witnessed growth of 33 % from 2004-08
• Individuals prefer to invest in traditional forms of learning in order to attain employment rather
than using vocational training as a route
• Individuals are not keen on vocational training courses as a diploma course in India is not
comparable to a degree course at the time of employment
Source: CLSA
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