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KN80008 KEY NOTE IT TRAINING SEPTEMBER 1998

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ISBN 1-85765-856-6

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EXECUTIVE SUMMARY

Key Note estimates that the information technology (IT) training market was worth £527m in 1997, following a revision of the 1996 figure to £434m. The rate of growth achieved by companies in the market rose dramatically in 1994/1995 to around 60 percent, with the introduction of Windows 95. Since then, it has settled back to around 22 percent. IT training continues to increase its share of the total training market, which has risen from 1.9 percent in 1993 to 33 percent in 1997.

The market is segmented into three sectors: do-it-yourself (DIY) training, which uses videos and computer-based training (CBT) methods, such as multimedia CD-ROMs; formal training courses, which are classroom-based and combine instruction with hands-on experience; and tailored or bespoke courses, which are generally run on the customers' own premises. This report does not cover courses offered by educational establishments, or DIY support materials such as help sections of software packages and specialist book titles.

The majority of IT training courses involve the application of PC operating systems and software products in a business environment. These range from courses aimed at IT professionals to introductory courses for clerical staff. However, the fast-changing nature of the IT market affects both the consumer and business environments. The rapid rise in the use of both the Internet and CD-ROM drives, makes it difficult to predict future market sizes accurately. Furthermore, the market is affected by one-off events, such as the introduction of Microsoft 32-bit operating systems (Windows 95 and Windows NT 4) and the concerns about the possible impact on computer systems of dates in 2000.

The continued growth of the Intel-powered PC server in the business market, together with the spread of networks in smaller businesses, is fuelling a large proportion of professional courses. Data management within organisations is now seen as vital and there has been a rapid rise in the use of Internet technology to create internal Internets. Windows NT 4 and Linux, a non-proprietary UNIX for PCs, are the two fastest-growing products for the PC market, and will stimulate IT training in this area.

Key Note forecasts that growth in the IT training market will be affected by the approach of 2000, and year-on-year growth will fall after the first quarter in 2000. The market value for IT training is expected to reach £1.25bn by 2002.

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TABLE OF CONTENTS

Executive Summary
Market Definition
INTRODUCTION
MARKET SECTORS
MARKET POSITION
MARKET TRENDS
Table 1: Current IT Training Areas Within the Top 250 UK Companies ( percent), 1997
Market Size
THE TOTAL MARKET
MARKET SHARE
MARKET SECTORS
EXPORTS AND IMPORTS
Table 2: Total UK IT Training Market by Value (£m), 1993-1997
Table 3: The UK IT Training Market by Sector by Value (£m), 1993-l997
Table 4: The IT Training Market by Sector ( percent), 1993-1997
Table 5: Turnover Growth Rates for IT Training Providers ( percent), 1993/1994-1995/1996
Table 6: Typical Product Prices in the DIY Training Sector (£), 1998
Table 7: Typical Course Prices for PC Training (days and £ per student), 1998
Table 8: Typical Course Prices for Technical Training (days and £ per student), 1998
Table 9: Daily Rates for Six Delegates Trained at Customer Premises (£), 1998
Industry Background
HISTORICAL BACKGROUND
INDUSTRY FRAGMENTATION
TRADE ASSOCIATIONS
Table 10: Companies Offering Courses Within a Category ( percent), 1998
Table 11: Companies Offering Particular Training Methods ( percent), 1998
Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
ADVERTISING AND PROMOTION
Table 12: Financial Results of Principal Companies with Major Interests in the IT Training Market (£m and £000), 1995/1997
Table 13: Financial Results of Selected Principal Companies with Peripheral Interests in the IT Training Market (£m), 1995/1997
Table 14: Main Media Advertising Expenditure on Leading Computer Software Products (£000), Year to March 1997 and 1998
Strengths, Weaknesses, Opportunities and Threats (SWOT)
THE TOTAL MARKET
DIY TRAINING
FORMAL COURSES
TAILORED COURSES
Buying Behaviour
CONSUMER PENETRATION
Table 15: Perceived Importance of Supplier Selection Criteria(rating and percent), 1995
Table 16: Training Sold for Selected UK IT Training Firms, 1997
Outside Suppliers to the Industry
PUBLISHERS
SOFTWARE PRODUCERS
Table 17: Typical Prices for IT Training Books, 1998
Current Issues
CORPORATE ACTIVITY
TECHNOLOGY
GOVERNMENT
IT ISSUES
Forecasts
GENERAL TRENDS
DIY TRAINING
TAILORED COURSES
FORMAL COURSES
FORECASTS 1998 TO 2002
Table 18: Forecasts for the UK IT Training Market (£m), 1998-2002
Company Profiles
INTRODUCTION
DEFINITIONS
FURTHER INFORMATION
Further Sources
ASSOCIATIONS
PERIODICALS
DIRECTORIES
GENERAL SOURCES
HBI UK INFORMATION SOURCES
GOVERNMENT PUBLICATIONS
OTHER SOURCES

Text © 1998 Key Note

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