Worldwide IT Training Market to Approach $34 Billion by 2004, IDC Forecasts

FRAMINGHAM, MA – May 30, 2000 – The IT training market is basking in the recent attention employee training is receiving. IDC forecasts worldwide revenues will increase at a compound annual growth rate of 12% from $19.4 billion in 1999 to almost $34 billion in 2004.

"The IT training market will benefit from companies' focus on new technology implementations, their search for effective Internet strategies, and competition for talent in a tight IT labor pool," said Cushing Anderson, program manager with IDC's Learning Services research program.

Together the IT education and training market's top 15 vendors accounted for only 20% of worldwide revenues in 1999, and no vendor had market share over 3%. IBM Global Services was the top vendor in 1999 with revenues of $560 million and a market share of 2.9%.

"The rather low combined market share of the top 15 vendors indicates the market is fragmented and there are opportunities for vendors to grow their revenues and increase their market share," Anderson said.

Indeed, four of the top 15 significantly outpaced the market's growth. NETg, Sun Educational Services, Smartforce, and New Horizons all grew more than 20%, compared with the overall market's 13% rate and the top 15's 10.5% average. NETg was the market's growth leader with a 33% jump.

"The success of NETg and Smartforce can be attributed to their elearning strategy," Anderson said. IDC expects elearning — learning delivered over the Internet — to surge in popularity. In the United States, elearning will account for 45% of all IT training by 2004, up from 3% in 1999.

"Training vendors that embrace the Internet as a delivery vehicle and a sales channel will remain vital players into the new millennium," Anderson said.

The United States is and will continue to be the largest market for IT education and training. In 2004, it will account for almost half of worldwide revenues. The fastest-growing region will be Asia/Pacific (excluding Japan), which will increase its revenues at a compound annual growth rate of almost 20% from 1999 to 2004.

According to IDC, turbulent content areas represent lucrative opportunities. Currently, these turbulent areas include customer relationship management, enterprise resource management, and security training. "Vendors shouldn't hesitate to commit to turbulent content areas," Anderson said. "While these areas may shift as new technologies emerge, they will be a constant source of growth for nimble vendors."

IDC recently published two reports on the worldwide IT training market. Worldwide and U.S. Corporate IT Education and Training Services: Forecast and Analysis, 1999-2004 (IDC #B22154) sizes the worldwide market, segmented by seven regions (the United States, Western Europe, Japan, Latin America, Canada, Asia/Pacific, and ROW). The U.S. market is further segmented by training for various software markets and applications. The report compares instructor-led and self-paced training in the United States and discusses trends, challenges, and opportunities in the training market. The Top 15 Worldwide IT Training Providers (IDC #B22262) looks at the leading vendors in IT training and examines the characteristics that have made them dominant. The report compares their 1998 and 1999 revenues and market shares and points out players who changed their market share positioning in the last year. It also examines the relationship between vendors' revenues and growth rates. To order these reports, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com.

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 500 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 http://www.idc.com.

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