Cost
Effectiveness Drives Corporate E-learning Market at 82.7% AGR
CLOVERDALE, CA
- November 13, 2002
- The e-learning market will grow from $2-bil in 2001 to over $12.2-bil in 2004.
Corporations will spend approximately the same proportion of revenues on
education and training—but increasingly a greater part will go to e-learning
over traditional teacher-, video-, and satellite-based training.

E-learning uses Web-enhanced material deployed over the Internet, employing a
diverse range of tools such as animation, PowerPoint, streaming audio and video,
hotlinks…. It is important to understand the various aspects of the e-learning
environment in order to appreciate the rapid growth in the e-learning market
over the next few years.
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Cost savings: Offsite
learning is expensive considering travel, lodging and lost work time. The cost
savings of e-learning go to the bottom line, resulting in better trained
employees at lower costs.
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Onsite: Onsite learning is
considerably less expensive, and more productive and timely than classroom
learning. Onsite learning gives the employee an opportunity to immediately
apply recently acquired knowledge to corporate issues.
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Continuing education:
Corporations aren’t really interested in “sending” their employees off to
school to earn bachelors and advanced degrees. By spending days away from
their desks and sitting in classrooms, work time is lost, productivity drops
to zero, and when offsite for long periods of time, employees tend to consider
other employment options. Learning onsite, employees stay involved in
corporate concerns.
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Training: The mainstay of
onsite training has been general course work such as supervisory skills, human
resource development, and broad-brush technical courses on accounting and
quality control. The trend will be towards technical coursework which applies
specifically to in-house corporate needs. Ultimately, onsite e-learning will
use corporate databases and training on issues which have immediate
application.
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Outsourcing: Demands on
e-learning are high maintenance: bandwidth, storage, server space, data
management, upgrading materials…. Consequently, all or some e-learning is
often outsourced: hosting, delivery, scheduling and assessment. As onsite
learning becomes more corporate-specific, training will likely revert from
outsourcing to corporate management and control.
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All things: E-learning
cannot teach all things to all people. Instructor-led learning will never be
fully replaced and will in fact remain the best method for group-related
projects (e.g., team building) and for teaching complex technical issues.
E-learning is becoming a strategic and tactical tool, and seen as a prudent
commitment and investment in human capital. Increasingly, the lines between
training and everyday work activities will blur as e-learning goals address
specific corporate needs and materials integrate with corporate decision
processes.
The
information in this
In-Depth Analysis is based on a review of the InfoTech Trends
database of market research statistics, as well as additional sources. For more
market data on the information technology industry, go to
Free Data.
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