There has been little growth in the IT training and education service sector, according to research house BMI-TechKnowledge`s latest South Africa IT Services Market Report, 1999-2006.
"Training enhances general knowledge and extends capabilities to use IT, while education can include theories, concepts and data that are used as a foundation for practical applications. Training involves learning new behaviours, skills or actions that can be used to begin performing job-specific tasks or improve performance. It is an important sector to consider, specifically in relation to the skills shortage experienced in SA due to the brain drain and other contributing factors," explains Herman de Kock, manager of enterprise solutions research at BMI-TechKnowledge.
"In 2000, the IT training and education service category did not show significant growth (only 6%), while the total value of the IT training and education service category rose from R131 million in 1999 to R139 million in 2000. This figure represents a 1% share of the total IT services market," says De Kock.
The report also states that this category represents training spending that is not delivered in IS outsourcing, systems integration, desktop management or network management contracts.
Research shows that in 2000, the top five IT training service providers were CS Holdings, Cisco, Ariel, Executrain and Oracle. This list represents revenues earned by corporate IT services companies and excludes tertiary education providers.
"It is interesting to note the presence of six South African companies in the top ten listing of IT training and education providers," notes De Kock.
The research house also reports that 2000 saw an increase in the funds available for IT training and education services.
BMI forecasts a limited CAGR of 4% for this segment through 2006, with the following factors fuelling growth:
. IT software and hardware spending is a direct driver of the IT training market.
. The overall economic environment is an indirect driver.
. The purchase and implementation of new equipment, software, or technologies is associated with technical and user training, necessary to ensure a smooth transition.
. Internet-based learning tools will gradually make inroads into the IT training market.
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