IDC predicts IT education market to hit US$ 28.6 billion

Despite a rough year in the IT and business skills training market, IDC is still optimistic about long term market prospects.

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By  Greg Wilson Published  October 1, 2002

Although previous revenue opportunities for IT and business skills training vendors may not live up to expectations, IDC is still optimistic about the long term market outlook.

The analyst house estimates the IT education and training market will reach US$28.6 billion by 2006, increasing at a compound annual growth rate (CAGR) of 7.1%.

Also by 2006, the corporate business skills training market will grow at 13.3% CAGR, reaching US$18.3 billion.

E-learning content will be the high point of market growth. Corporate e-learning content in the US will grow at a nearly 37% CAGR for the period between 2001 and 2006. Organisations will continue to both replace and augment traditional forms of training with e-learning for reasons of efficiency, convenience and more instructionally sound use of the delivery medium.

“The worst is over for the worldwide IT training market and the overall value of training remains,” says Cushing Anderson, program director of IDC’s Learning Services research.

“However, to traverse the rocky road to come, vendors must focus on linking training efforts to business results, present an image of stability and reliability, and address issues of suitability of e-learning,” adds the analyst.

According to Michael Brennan, manager of IDC’s Corporate Learning & Performance research, “the corporate business skills training market has also fallen victim to the weak U.S. economy and the slower-than-expected pace of recovery. However, we believe growth will resume with an upturn in the economy, corporate profits, and discretionary spending.”

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