Education - IT Market Study
India
ØMarket size for the year 2008-2010 as Rs.4000 crore and underlying hardware as Rs.7000 crore
Ø1.20 million Schools spread over 609 districts across 35 states and union territories of India
ØColleges : 16,885 Universities nearly 350
ØCurrently, only 5% of the institutes in India have an ERP system in place
ØThousands of private organizations, which constitute nearly 15% of the total number of schools in India
ØMarket Expansion expected to be approximately 3% per year
ØThe domestic IT market is expected to cross $23 billion in the current fiscal year to March 2008.
References:
•2007,A Tool for Quality Enhancement by Educate Institute Automation
•ERP Software Market 2007-2010 by IIIM,Bangalore
•Information Technology in Educational Institutions by Market Research Report, Feb 2008
United States
ØTotal Number of K-12 Schools : 133,362
ØTotal number of colleges and universities: 4,140
ØThe annual growth rate is expected to reach over 30%.
ØCalifornia schools alone spending 417,391,924 USD for their management software facilities in schools
ØPiper Jaffrey has projected even larger market growth indicators for education; according to Jaffrey this industry is expected to spend. 95 billion dollars in 2009
References:
•Nov 2007 Press releases by Directorate of Institutional Systems ,United States
•Jan 2008 Press releases by John Burdict ,Director of Visions
•Datamonitor 2007
•Feb 2007 Survey by Focus marketing ,US
Europe
Ø4000 educational institutions in European Union Countries
ØNearly 500 Educational institutions alone in English speaking countries like United Kingdom and Ireland
ØBecause of the low growth rate in population, expected industry size growth is 1.2%
ØRecently European Parliament recommended implementing system facilities for all educational institutions in Europe for Administration, Finance and Course management before 2010.
ØCountries like United Kingdom, France, Germany, Spain and Ireland has a total number of 2, 30,000 K-12 schools.
ØGrowth rate expected to be 6.3% in European Union countries due to lack of schools.
References:
1.EU Market Survey 2007 by Centre for the Promotion of Import
2.prnewswire.co.uk press releases in Jan 16 ,2008
Asia Pacific
ØThere are 9630 schools in Australia and 41 universities and more than 1500 colleges which includes professional education institutes
ØMarket growth expected to be more than 30% in Australia due to international standards and competitions from Europe.
ØTargeted market will be Australia, Japan, Singapore, Malaysia and Thailand.
Middle East
ØIn Saudi Arabia alone there are 23000 schools, 20 universities.
ØIn UAE there are nearly 470 private schools and 13 universities
ØPoor management system facilities and lack of knowledge about systems.
References:
ERP Market Survey 2007 by CXO Today.com
Market Trends in Education Industry
Colleges and universities today must continually increase the quality of education while keeping operational expenses within budget. To increase efficiency they must find ways to:
ØProvide easy access to data, curriculums and tools to meet the demands of the “always connected” generation
ØEfficiently process applications
ØAttract the most promising candidates
ØAdapt to changing curriculum standards
Organization need
ØTo create a portal that would bring together disparate hardware and software used by different departments and allow them to share information and communicate effectively
ØTo improve e-services and allow access anytime, anywhere
An Education Week readership study, conducted by Research USA, Inc., also cites 61% of principals as key influencers.
ØThe total IT spending by the government and education sector in India was US$1,734.4 million in 2006 and is expected to increase at a compound annual growth rate (CAGR) of 16.8% throughout the forecast period to US$3,770.8 million by 2011. The major contribution will come from hardware, which is forecast to increase at a CAGR of 19.5% from US$898.7 million in 2006 to US$2,188.9 million by 2011.
ØThe other growth drivers include the packaged software and service segments, which are forecast to increase at CAGRs of 21.2% and 16.3%, respectively. The India government embarked on egovernance initiatives and will keenly focus on some of the more immediate need-based projects such as establishing statewide area networks, state datacenters, common information centers; promoting eprocurement; building capacities; computerizing land records and regional transport offices; and establishing agriculture portals.
Ø Educational institutions in India with the support and dedicated efforts of the Ministry of Human Resource (HR) Development are looking to build their basic IT infrastructures up and develop networking with various branches spread across the country. The major education IT market segments include the PC, storage, networking equipment, software, and service segments," says Arpan Gupta, analyst, Verticals Research, IDC India
Disadvantages
ØCultural affinity
ØGeographical distance
ØLanguage capabilities
ØBusiness domain knowledge with historical foundation
ØUniversities and institutions are participating in outsourcing as well as branding their respective countries.
Advantages
ØLower overall process maturity level
ØCost effective
ØDomain expertise
Key factors for decision
ØAvailability of skilled professionals
ØCost savings
ØPersonal connection
ØProject management skills and quality certification
ØLanguage & culture
ØBusiness practices
ØTelecommunication infrastructure
ØIntellectual property rights protection
ØPolitical stability & diversification
ØTime zone difference
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