May 2009: ValueNotes Outsourcing Practice sets up a new industry focus with the publication of its report on the Indian e-learning outsourcing service provider landscape. The study reveals that revenues from the Indian e-learning offshoring industry stand at approximately USD 341 million at the end of calendar year 2008. While the economic recession will impact the growth in the industry for the next 6-8 quarters, the market will recoup and grow much faster, until 2012. Taking these factors into account, our estimates suggest that the e-learning offshoring industry will grow at a CAGR of 15% till 2012, though growth will be more subdued till 2010. ValueNotes estimates the market size to touch $603 million by the end of calendar year 2012.
According to Arun Jethmalani, CEO, ValueNotes, “With the global economic slowdown impacting corporate spending, companies are forced to make their training dollar last longer. Outsourcing their e-learning operations to countries such as India may be an ideal solution. More companies, realizing the cost advantages and service expertise in the country, are moving from dealing with international e-learning service providers to directly approaching Indian ones.”
Today, the Indian e-learning outsourcing industry consists of both, third-party providers and offshore delivery centers of international e-learning providers and consulting firms. Apart from pure-play e-learning firms, companies from fields such as IT, BPO, publishing and domestic retail education have made a foray into the market, mostly in the last decade. Given the fragmented nature of the Indian industry, ValueNotes estimates that there are no more than 35 e-learning providers who have more than 100 employees. There are well over a hundred other smaller providers in this space.
“While Indian e-learning providers have traditionally concentrated on low end outsourced work for international providers and end clients, they are now leveraging their position on the ‘e’-learning curve,” says Reetika Joshi, analyst at ValueNotes. She adds, “Providers are building their capabilities to rival international standards in emerging technologies – with Web 2.0 applications, high tech learning environments, and tools to develop better, faster and economical learning. Small niche providers are also developing specialized applications along these lines, such as mobile learning rapid tools.”
The report, titled e-learning Outsourcing 2009: Advantage India, presents the competitive landscape of providers in the e-learning space in the country. It features in-depth insights and analysis including the competitive standing of India as an outsourcing destination, the services being outsourced, the client markets, and providers and their strategies for the future. Key market trends are also discussed, in light of certain opportunities and challenges – including the implications of the global economic slowdown on the industry.
ValueNotes is a leading provider of business intelligence and research, with expertise across selected domains and types of customer needs. Working with clients across the globe, we have significant understanding of international markets. www.valuenotes.biz
The ValueNotes Sourcing Practice is one of the largest information providers on the outsourcing industry. The Practice uses a comprehensive, analytical framework providing fresh insights into the fast emerging and yet, complex outsourcing space. We extensively track the space through regular analysis of news and events, continuous primary research and contact with the industry.