Slowing Economy Spurs IT Education and Training Spending, IDC Says

FRAMINGHAM, MA – JUNE 4, 2001 – The slowing economy is putting a charge into the demand for IT education and training. According to IDC, worldwide IT training revenue will increase at a compound annual growth rate (CAGR) of 13%, from $22 billion in 2000 to nearly $41 billion in 2005. Growth will vary greatly by region.


"It might sound counterintuitive, but as global economic growth slows, companies will be inclined to spend more on IT to cut costs from their bottom lines," said Michael Brennan, senior analyst for IDC’s Corporate eLearning and IT Education and Training Services research programs. "Having professionals properly trained on the latest technologies is critical to companies that are reinventing their business models, executing Internet strategies, streamlining their supply chains, and trying to alleviate what is often the cause of their IT department’s biggest bottleneck – the shortage of skilled labor."

According to IDC, the United States and Western Europe — where continued strong spending on software and services bodes well for IT training vendors — will remain the largest IT training markets. Together, these two regions will account for nearly 80% of IT training revenue in 2005.

In the United States, elearning will overtake classroom-based instructor-led training as the primary delivery method in terms of vendor revenue by 2004. IDC believes elearning will drive most of the growth in the IT training market as suppliers develop higher-quality offerings and more end users have sufficient access. "eLearning removes barriers of time and distance, making it possible for end users to effectively learn when and where they otherwise could not. It offers international opportunities for vendors that possess flexible training solutions and can adapt to regional requirements," said Cushing Anderson, program manager for IDC’s Learning Services research.

IDC’s report Worldwide and U.S. Corporate IT Education and Training Services Market Forecast and Analysis, 2000-2005 (IDC #B24651) examines the trends, challenges, and opportunities facing IT training vendors. Worldwide IT training revenue is forecast by region through 2005. U.S. IT training revenue is forecast by delivery method through 2005. Survey results from buyers and sellers of IT training in the United States are provided.

To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at