The workforce today comprises of varied age, qualifications, and interest areas. Traditional career models are becoming obsolete day-by-day as continuous upskilling and relevant training are making headway in launching career growth paths. The Corporate Training Industry in the US is a huge market whereas the Indian corporate training market is less than one-tenth of the US corporate training market size. One of the major factors contributing to the growth of online learning market is the growth of software in education and training market. More than 80% of the overall training institutes in India are estimated to be unorganized, but larger share of revenue is contributed by the organized training institutions in India. The government backed institutions are mostly vocational training institutions such as ITIs which help individuals in skill learning for technicians and other industrial works. The government run ITIs constitute around 17% of overall revenue from ITIs. The central government has plans to set up more number of vocational training institutions in India and support the employability of working individuals.
Online –The training providers, majorly the top brands invest heavily on the traditional marketing in print media. However, the investment in online and digital media is growing and the emerging training institutions are spending considerable amount in digital marketing and advertising to pull more enrolments. The large training providers spend in the range of 7 – 12% of their revenue in marketing, however the mid-sized and emerging institutions are spending in the range of 25 – 50% of their revenue in marketing. Most of the training institutes use digital marketing tools such as google analytics, Marketo, LeadSquared, and others.
Traditional – The training institutes use mostly printing media for marketing such as newspaper, magazines, hoarding, among others. Few top brands also invest in TV commercials which helps them gain visibility and help expansion in different cities. Along with word of mouth marketing, traditional marketing approaches are much beneficial to certain training institutions which target competitive examination aspirants to enrolled in their training institutes.
Solutions impacting Training
E-learning – The online education in India is growing with organizations offering primary and secondary education supplements, test preparation materials, certification courses, correspondence higher education, language training, among others. Online education has witnessed moderate growth in tier 2 cities including Guwahati, Patna, and others. Smartphone and 4G penetration are key drivers attributed to the growth of internet using subscriber base and online education market.
CRM – The CRM software market is expected to make headway in the training industry however lack of interest to spend on CRM solutions and concerns over ROI is hindering the growth of this market. Though there are numerous CRM providers worldwide, direct presence of CRM vendors in India is comparatively low. Many training institutes are not aware of benefits and capabilities of CRM solutions for their businesses.
– Swarup Bhowal,
Research Analyst – ICT,