The Evolution of the The Evolution of the European Training European Training

Market Market By Sheila McGovern By Sheila McGovern

IT eLearning Compared to Total IT eLearning Compared to Total IT TrainingIT Training

Year

$m

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1999 2000 2001 2002 2003 2004

eLearning (ITContent)

Total IT Training(excl eLearning)

Growth Rates: Growth Rates: eLearning and Other Methods eLearning and Other Methods

CAGR1999-2004

eLearning (IT) 83%

Total ITTraining

11%

eLearning: IDC Definition eLearning: IDC Definition

"Training that is delivered over the Internet,Corporate Intranets or Extranets,

either Synchronously or Asynchronously".

Types of eLearning Types of eLearning

Interactive Lessons

Synchronous

Self Paced

Asychronous

Performance Support

Individual Learning

Collaborative Learning

Drivers Drivers

• Convenience Convenience

• Cost Savings Cost Savings

• Skills Shortage Skills Shortage

• Advances in Technology Advances in Technology

• Internet and eCommerce Internet and eCommerce

Unisys Unisys

Outsourcing of technical training to Outsourcing of technical training to SmartForceSmartForce

• 36% reduction in training costs 36% reduction in training costs • Greater Staff Satisfaction Greater Staff Satisfaction

Logica Logica

Intranet and CD-ROM Delivery Using NETg Intranet and CD-ROM Delivery Using NETg

• Staff Develop Skills at Home Staff Develop Skills at Home • New Improved Attitude to TrainingNew Improved Attitude to Training

SAC SAC

Internet Delivered Courses: Knowledgepool Internet Delivered Courses: Knowledgepool

• User friendly learning experiences for User friendly learning experiences for students and farmers students and farmers

• Cost effective Cost effective

The Players The Players

Positioning of eLearning Players Positioning of eLearning Players

Smartforce,NETg, IBM,

Knowledgepool,HP, Digitalthink,

Blueu

Sun,Oracle,Cisco,3comM2S

Content DeliverySolutions

Services

WBTSystems,Centra,SABA

Cap Gemini/Ernst &YoungDeloitte Consulting,

KPMG

Click2learn

Lotus

PwC

eLearning Segments eLearning Segments

$m

0

500

1000

1500

2000

2500

1999 2000 2001 2002 2003 2004

ContentServices Delivery Solutions

Will You Switch to Using eLearning in the Will You Switch to Using eLearning in the Next 18mths? Next 18mths?

yes 17%

no 52%

maybe 31%

Switchers Switchers

• Sweden, UK and SpainSweden, UK and Spain• Transport, Local Government, Media and Transport, Local Government, Media and

Communications Sectors Communications Sectors • 1000+ employees 1000+ employees

Current eLearning UsersCurrent eLearning Users

48%IT Desktop Training

23%Proprietory Training

9%Business Skills

20%IT Technical Training

73% Self Paced

27% Live Online

Trends Trends

• Blended Solutions Blended Solutions • Consolidation Consolidation • Application Service Provider (ASP) and Application Service Provider (ASP) and

Hosted Services Hosted Services • eLearning for Marketing Use eLearning for Marketing Use

Conclusion Conclusion

$4bn by 2004

Blended Solutions

Delivery Solutions

Consolidation Around the Corner

Hosted Solutions

Benefits to BuyersMarket Drivers

Content is KingPartnerships Are Key

High Growth

Sweden Takes the Lead

Spain on the Verge

Conclusion Conclusion

Benefits to Buyers Consolidation Around

the Corner

$4bn by 2004High Growth