South Asia Training 2009 Austrade Presentation

8/8/2019 South Asia Training 2009 Austrade Presentation

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Opportunities in Corporate Training South Asia

Workshop for opportunities for Trainers and Consultants

13th October 2009


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The Market: India

India


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The Market: India

How attractive is the market?

Economic Outlook for India (2009-10)

Growth rate between 6-7% Strong economic fundamentals

Well regulated banking system

Bulk of the investments in India are financed by

domestic savings (35% of GDP)

Domestic consumption growth is non-leveraged

India to record the highest inflow of remittances

more than US$ 45 billion

Rural demand is robust due to good agriculture

performance in the last 4 years Government is taking adequate fiscal and

monetary steps to get the economy back on track


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TRILLION

DOLLAR

ECONOMY

RISING FOREIGN

EXCHANGE

RESERVES

IMPORT

DUTY

RATIONALISATION

ECONOMIC

& SOCIAL

REFORMS

RELAXED

FDI

REGULATIONS

The Market: India


Large and growing

Domestic market

300-million strong

consuming class and

growing at 6% p.a.

Among largest pool

of English Speaking

Population

Low Labour Cost

Low inflation rate


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The Market: IndiaHow attractive is the market?

Vocational Education in India - Education with Occupational emphasis

Current skill development programs offered under various government schemes

Only 2% of Indian population hasundergone skill training, one of thelowest in the world

Ministry of HRD

Ministry of Labour &Employment

Ministry of Women &

Child Development

Ministry of Agriculture

Ministry of micro, small& medium enterprise

Others

4 million

Skill Developmenttarget (2022)

500 million


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The Market: India

How attractive is the Corporate training market?

Industry is huge but largely fragmented

Dominated by Individuals and private consultants Corporate training industry size estimated to be A$ 2.5 billion

Traditional Indian companies training expenditure: 0.5% - 2.0% of

the turnover (Progressive companies: around 4%)

Companies outsource 50% of their training needs

Large presence of MNCs in the country

Hybrid delivery models becoming popular VSAT/e-learning/Online

Mentoring

The fast growing economy has skill gaps

(Source: Mafoi Consultants)


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The Market: India


Retail, 50%

Corporate,

25%

Government,

20%

Education,

5%

Large players

Middle Segment

Small

players

Demand Supply


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The Market: India

Where are the opportunities?

Retail/ Fast Moving Consumer Goods

A booming sector in India

Only 5-6 % of industry is organized Education system does not address industry needs

Banking/Insurance

Still a key sector

Rural penetration driving training

Technology a key enabler

Hospitality

Growth Rate: approximately 8%

Shortage of skilled employees; High attrition levels

Training Areas (business etiquettes, communication, people management,business insights, succession planning & resource development)


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The Market: India


Automobile

Growing at about 16% p.a.

Second fastest growing automobile market in the world 10 million employees

Unorganized sector - 67% ; Organized sector - 33%

Toyota has recently opened Toyota Technical Training Institute (TTTI)near Bangalore

Telecom

One of the fastest growing sectors at 20%-30% p.a.

The requirement for mobile analysts, software engineers, and hardwareengineers for mobile handsets has increased sharply

Training market estimated to be A$ 100 million

Many top players are investing in training and development


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The Market: India


Information Technology

2.3 million jobs by 2010

HBR says there is a direct link between training investment of thecompanies and the market capitalization.

3-5% of revenue set aside for training programs

Technical training and managerial skills development

Accenture, Infosys, Microsoft, TCS have their own training centers

Information Technology Enabled Services

Growing at 14%

Communication Skills Essential

Training has become a major tool to retain employees Constant change in processes and technologies mean constant need for

training the employees


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The Market: India

What are the challenges?

Geography Scattered opportunity pockets

Bureaucracy

Lack of Transparency

Long gestation period

Relationship driven market

Industry marked by slowdown (GDP growth rate down from 9% tounder 6%)

Patience with dedicated investment of time, money & energy

Culture and Language (Even though English widely used in business)


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The Market: Sri Lanka


GDP growth rate: 6% (2008)

93% of the population is literate

Service sector is the largest component of GDP at around 60% Work force accounts for 35% of the total population

English is widely spoken in the country, main language used in business


Public & private sector companies are active in initiating & meeting training needs

Leading industry associations, training agencies, consultants & professionals takepart in delivering training

Training as a medium to reorient, improve, expand the knowledge of workforce

Delivery: Through in-house trainers, through training agencies, consultants The cost of training for supervisory and middle level executives/staff - between LkrRs. 10,000 30,000 per day/per event


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The Market: Sri Lanka


Textile & Garments

Hospitality Hotel, Tourism, Food and beverage

ICT / IT

BPO/Call Centre

Finance & Insurance

Retail

Office Management / Human Resources


Market demands degree of customisation - training courses need to be designed/

tailor made to suit the individual companies


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The Market: Pakistan

Pakis

tan


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The 26th largest economy in the world in terms of purchasing power parity

47th largest in absolute dollar terms

Main sectors: textiles, chemicals, food processing, agriculture Pakistan Economy ranked top in South Asia for ease of Doing Business

Training and advisory businesses are rising because of large-scale restructuring of public &private enterprises


3% of corporate budget allocated to training, development and restructuring of organisation

Majority of the training are currently delivered by local companies

A level of individual development, cultural issues

MNCs & foreign presence in consumer, pharmaceutical, energy, oil & gas sectors

Favourable public sector policies and government funding available

Cost conscious market



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Programs:

Financial Planning andManagement

Project Management

Corporate Governance

Customer Relationships

Risk Management

Leadership andDevelopment

Human ResourceManagement

Occupational Health andSafety

Train the Trainers (teachers

training, mentor, coach) Information Management

Sectors:

Information Communication &Telecommunication (ICT)

Energy, Mineral, Oil & Gas

Financial & Services

Pharmaceuticals & Agribusiness

Small and Medium Enterprises & SocialSector

Public and Civil Administrations


Strong education links to UK & USA


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The Market: Bangladesh

Bangladesh


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Extremely attractive. Growing professionalism

Steady GDP growth of 6 percent

Scarcity of managers with the required professional skills

Low inflation rate

Import based economy US$10 billion+

Australian goods and services highly valued

No import restrictions Less competition from local supplies

Liberal investment policies

Stable economy and politics


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The Market: BangladeshHow attractive is the Corporate training market?

The size of the training market is huge.

Estimated amount for training & development per year is about Taka 200 crore(US $ 300million)

Almost all sectors of the economy (public & private) have general and specifictraining needs

Existence of large non-governmental organisation requires formal as well as nonformal training

Cost conscious market

Quality training is required

All training has to be market driven

Most funds generated from own sources and from governmental agencies anddonor agencies


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Public sector

AgricultureHealth (nursing,

paramedics, labtechnicians)

Port management

Transport (Railway,Roads and highways)

Water Management

Private sector

Financial servicesHealth

Textile

Tourism & Hospitality

IT

Building & Construction

Electrical & ElectronicsHospital management

NGO

AgricultureWater Management

Rural development

Health

Nutrition

Soft Skills /Nontechnical

Leadership courses, communication, stress management, time management,business English, decision making, delegation, change management, empowerment


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Identification of sectors where immediate assistance in the form of training or

seminars are required and a subsequent follow up made

Identification of opportunities in the medium and long term

Identifying the subject matter experts in the country who can deliver marketdriven solutions


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The Markets: India, Sri Lanka, Pakistan, Bangladesh

Engagement models/ Entry strategies/ Business tips

Long term relationship driven approach

- Direct user/customer

- Joint ventures/ partnerships

- Reseller / distributor models- Franchise

- Representative Office

- Wholly owned subsidiary -

Delivery

- Onshore, offshore, Hybrid models, Train the trainer

- Vocational training (PPP model)

- Employability training (campuses)

Unique point of differentiation

- Leading edge content

- Professional promotional collateral and website

- Strong track record and testimonials


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The Markets: India, Sri Lanka, Pakistan, Bangladesh

Engagement models/ Entry strategies/ Business tips

Majority of South Asia markets are price sensitive

Finding the key decision maker building rapport & relationship building

Maintaining your pipeline of potential customers

Protect your intellectual property as appropriate

Government linked projects can be risky long lead time, cancellation due tochange in Governments, receivable delays

Stay focused & strategic in export development 1 OR 2 markets at a time

Build a brand right price Build scale, scope and depth


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Austrade Initiatives: Past, Present and Future

Inaugural HR-Corporate Training mission to India (May 09)

Clients on the mission

AAMC Pty LtdClients on the mission

o AAMC Training Group

o Asia PacificInternational College

o DeakinPrime

o Dta Worldwide

o Dynamiq Pty. Ltd.

o EPSI Learning

o Excelerator Pty. Ltd

o Facilities ManagementTraining Partners PtyLtd

o Hyco Pty Ltdo Sunshine Coast

Institute of TAFE


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Links & Relationships

Australia New Zealand Business Association in India (ANZBAI)

Relationship with associations

- National Human Resource Network (NHRD)

- National Institute of personnel Management (NIPM)

- Indian Management Association (IMA)

- The Institute of Management Consultants of India (IMCI)

- Confederation of Indian Industry (CII)

Relationship with Partners/local firms

- Mafoi, Everonn, Franklin Covey

Doing Business with Australia Seminars in tier 2 & 3 cities


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PR/ Media Support

Customised solutions to suit your

needs Market research & information

partner search & businessmatching

Seminars

Support to Australian industryassociations via market visits

Forthcoming mission to India 19-24 April 2010


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Success Stories & testimonials

Australian training companies in India & growing

Corporate Training Mission to India

40% clients achieved success in the market -

AAMC Training Group, Sunshine Coast TAFE, dtaWORLDWIDE, Fmedge

FmedgeCaliper

HR Workbench

dtaWORLDWIDE

SiiA

Deakin Prime

Bsmartonline

eBilities

AAMC Training Group

Accord Consulting

Chisholm

DBL

MRWED

BTS Australia


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Success stories & testimonials

Indian customers promotingAustralian companies


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Key contacts in AustraliaNSW

Vivien Lim

Senior Export Advisor

T: 02 9390 2329

[email protected]

QLDVince Kelly


T: 07 3364 7705

[email protected]

SALinda Marchesan

Export Advisor

T: 08 8202 7809

[email protected]

VICGreen Yang


T: 03 9648 3261

[email protected]

ACT

Chris Horsburgh


T: 02 6201 7572

[email protected]

NTBernadette Eggington

Export Advisor

T: 08 8982 4505

[email protected]

WAMadeleine Stringer


T: 08 9261 7943

[email protected]


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Offshore key contacts

IndiaVijay Subramanian

Business Development Manager

T: +91 44 4297 0003

[email protected]

PakistanAzhar Shah


T: +92 51 8355 373

[email protected]

BangladeshMostafizur Rahman


T: +880 2 88 13101

[email protected]

Sri LankaDavid Samuel


T: +94 11 246 3253

[email protected]


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The way forward

South Asia the Next Big Region

Are you ready?

Documents

South Asia Training 2009 Austrade Presentation