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IT Training Market Report 2002


Description: The UK market for IT training was worth £717m in 2001, having declined by 7.1% from the previous year. In 2002, the market is expected to contract again with sales falling to £650m. The decline in the market for IT contractors and IT professionals and the scaling back of IT investment by companies have severely impacted on the market, which fell sharply towards the end of 2001 and in the beginning of 2002. The IT training market consists of two sectors: instructor-led training (ILT) and e-learning (EL) or technology-based training. EL was a major growth sector of the market between 1998 and 2002, as it has grown in maturity and sophistication. The slowdown in the IT training market in 2001 and 2002 led to a series of corporate changes among training providers, including a greater emphasis on cost saving and operational efficiency, as well as a retreat from certain parts of the market, some mergers and acquisitions and corporate failures. Some commentators are now claiming the reduction in IT demand has all but ended the IT skills shortage in the UK. While Key Note disagrees with this extreme view, there is no doubt that demand for IT-trained staff declined during 2001 and the beginning of 2002. Key Note believes that the IT training market has some fundamental strengths that will result in restored fortunes from 2003 onwards. These include the continued rise in the number of employees in IT occupations or in occupations using IT skills, the need to train in order to ensure employee productivity, the generic growth in outsourcing of IT operations and the increased depth and sophistication of vendor offerings. Despite the current market position, it is still fundamentally true that IT has become strategically important for most businesses, so having adequately trained IT staff is central to business strategy. The IT training market is increasingly merging with other areas of the IT services industry, especially with regard to offering consultancy and outsourcing. Increasingly, clients want, and are given, value-added services, such as training consultancy and end-to-end training solutions, as well as basic courses. Clients also require blended training programmes, incorporating both ILT and EL elements. This is opening the general management training market to IT training vendors and the IT market to general management training companies. Over the next 5 years, Key Note predicts a strong recovery in the IT training market, particularly in 2003. Key growth areas will be training associated with high-growth software markets (e.g. XML), training for IT-related activities (such as call-centre training) and the training of IT professionals to access general business skills.




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