Opportunities in Corporate Training – South Asia

Workshop for opportunities for Trainers and Consultants

13th October 2009

What we will cover?

• The Markets:
India, Sri Lanka, Pakistan and Bangladesh

- How attractive is the market?

- Where are the Opportunities?
- What are the Challenges?

• Engagement models/ Market Entry Strategies/ Business tips

• Austrade Initiatives – Past, Present and Future

• Succuss Stories and Testimonials

• The Way Forward

The Market: India

India
The Market: India
How attractive is the market?

Economic Outlook for India (2009-10)

• Growth rate between 6-7%

• Strong economic fundamentals
• Well regulated banking system
• Bulk of the investments in India are financed by
domestic savings (35% of GDP)
• Domestic consumption growth is non-leveraged
• India to record the highest inflow of remittances –
more than US$ 45 billion
• Rural demand is robust due to good agriculture
performance in the last 4 years
• Government is taking adequate fiscal and
monetary steps to get the economy back on track
The Market: India
How attractive is the market?

› Large and growing › Among largest pool › Low inflation rate › One of the fastest
Domestic market of English Speaking <1% and increasing growing market for
› 300-million strong Population savings rate Infrastructure
consuming class and › Low Labour Cost › Steady economic › Large mineral
growing at 6% p.a. reform regime reserves

IMPORT RISING FOREIGN TRILLION RELAXED ECONOMIC

DUTY EXCHANGE DOLLAR FDI & SOCIAL
RATIONALISATION RESERVES ECONOMY REGULATIONS REFORMS
 The Market: India
How attractive is the market?

Vocational Education in India - Education with ‘Occupational emphasis’

Current skill development programs offered under various government schemes

Ministry of HRD Only 2% of Indian population has

undergone skill training, one of the
lowest in the world
Ministry of Labour &
Employment

Ministry of Women &

4 million Child Development
500 million
Skill Development
Ministry of Agriculture target (2022)
Ministry of micro, small
& medium enterprise

Others
The Market: India
How attractive is the ‘Corporate training’ market?

• Industry is huge but largely fragmented

• Dominated by Individuals and private consultants
• Corporate training industry size estimated to be A$ 2.5 billion
• Traditional Indian companies training expenditure: 0.5% - 2.0% of
the turnover (Progressive companies: around 4%)
• Companies outsource 50% of their training needs
• Large presence of MNCs in the country
• Hybrid delivery models becoming popular – VSAT/e-learning/Online
Mentoring
• The fast growing economy has skill gaps

(Source: Mafoi Consultants)

The Market: India
How attractive is the ‘Corporate training’ market?

Education,
5%
Government,
20%
Large players

Retail, 50%

Middle Segment
Corporate,
25%
Small
players

Demand Supply
The Market: India
Where are the opportunities?
Retail/ Fast Moving Consumer Goods

• A booming sector in India

• Only 5-6 % of industry is organized
• Education system does not address industry needs

Banking/Insurance

• Still a key sector

• Rural penetration driving training
• Technology a key enabler

Hospitality
• Growth Rate: approximately 8%
• Shortage of skilled employees; High attrition levels
• Training Areas (business etiquettes, communication, people management,
business insights, succession planning & resource development)
The Market: India
Where are the opportunities?
Automobile

• Growing at about 16% p.a.

• Second fastest growing automobile market in the world
• 10 million employees
• Unorganized sector - 67% ; Organized sector - 33%
• Toyota has recently opened Toyota Technical Training Institute (TTTI)
near Bangalore

Telecom
• One of the fastest growing sectors at 20%-30% p.a.
• The requirement for mobile analysts, software engineers, and hardware
engineers for mobile handsets has increased sharply
• Training market estimated to be A$ 100 million
• Many top players are investing in training and development
The Market: India
Where are the opportunities?
Information Technology

• 2.3 million jobs by 2010

• HBR says there is a direct link between training investment of the
companies and the market capitalization.
• 3-5% of revenue set aside for training programs
• Technical training and managerial skills development
• Accenture, Infosys, Microsoft, TCS have their own training centers

Information Technology – Enabled Services

• Growing at 14%
• Communication Skills – Essential
• Training has become a major tool to retain employees
• Constant change in processes and technologies mean constant need for
training the employees
The Market: India
Where are the opportunities?
Commonwealth Games (3-13 October 2010)

• Consulting opportunities to Organizing Committee

• Security and Safety training
• Volunteer Training
• Emergency and Disaster Management
• Venue Management

Government’s new initiatives

• 1, 500: Industrial Training Units (ITIs)

• 125: New polytechnics through public private partnerships (PPP)
• 50,000: New Skill Development Centres
• Upgrade: 400 existing it is into Centres of Excellence with World Bank
assistance
• Upgrade: 100 ITI with Central funding & 1,396 ITI through PPP
The Market: India
What are the challenges?

• Geography – Scattered opportunity pockets

• Bureaucracy

• Lack of Transparency

• Long gestation period

• Relationship driven market

• Industry marked by slowdown (GDP growth rate down from 9% to

under 6%)

• Patience with dedicated investment of time, money & energy

• Culture and Language (Even though English widely used in business)

The Market: Sri Lanka

Sri Lanka
The Market: Sri Lanka

How attractive is the market?

• GDP growth rate: 6% (2008)
• 93% of the population is literate
• Service sector is the largest component of GDP at around 60%
• Work force accounts for 35% of the total population
• English is widely spoken in the country, main language used in business

How attractive is the ‘Corporate training’ market?

• Public & private sector companies are active in initiating & meeting training needs
• Leading industry associations, training agencies, consultants & professionals take
part in delivering training
• Training as a medium to reorient, improve, expand the knowledge of workforce
• Delivery: Through in-house trainers, through training agencies, consultants
• The cost of training for supervisory and middle level executives/staff - between Lkr
Rs. 10,000 – 30,000 per day/per event
The Market: Sri Lanka

Where are the opportunities?

• Textile & Garments
• Hospitality – Hotel, Tourism, Food and beverage
• ICT / IT
• BPO/Call Centre
• Finance & Insurance
• Retail
• Office Management / Human Resources

What are the challenges?

• Market demands degree of customisation - training courses need to be designed/
tailor made to suit the individual companies
The Market: Pakistan

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The Market: Pakistan

How attractive is the market?

• The 26th largest economy in the world in terms of purchasing power parity
• 47th largest in absolute dollar terms
• Main sectors: textiles, chemicals, food processing, agriculture
• Pakistan Economy ranked top in South Asia for ease of Doing Business
• Training and advisory businesses are rising because of large-scale restructuring of public &
private enterprises

How attractive is the ‘Corporate training’ market?

• 3% of corporate budget allocated to training, development and restructuring of organisation

• Majority of the training are currently delivered by local companies
• A level of individual development, cultural issues
• MNC’s & foreign presence in consumer, pharmaceutical, energy, oil & gas sectors
• Favourable public sector policies and government funding available
• Cost conscious market
The Market: Pakistan
Programs:
• Financial Planning and
Where are the opportunities?
Management
• Project Management
Sectors:
• Corporate Governance
• Information Communication &
• Customer Relationships
Telecommunication (ICT)
• Risk Management
• Energy, Mineral, Oil & Gas
• Leadership and
• Financial & Services
Development
• Pharmaceuticals & Agribusiness
• Human Resource
• Small and Medium Enterprises & Social Management
Sector
• Occupational Health and
• Public and Civil Administrations Safety
• Train the Trainers (teachers
training, mentor, coach)
What are the challenges? • Information Management
Strong education links to UK & USA
The Market: Bangladesh

Bangladesh
The Market: Bangladesh

How attractive is the market?

• Extremely attractive. Growing professionalism

• Steady GDP growth of 6 percent
• Scarcity of managers with the required professional skills
• Low inflation rate
• Import based economy – US$10 billion+
• Australian goods and services highly valued
• No import restrictions
• Less competition from local supplies
• Liberal investment policies
• Stable economy and politics
The Market: Bangladesh
How attractive is the ‘Corporate training’ market?

• The size of the training market is huge.

• Estimated amount for training & development per year is about Taka 200 crore
(US $ 300million)
• Almost all sectors of the economy (public & private) have general and specific
training needs
• Existence of large non-governmental organisation requires formal as well as non
formal training
• Cost conscious market
• Quality training is required
• All training has to be market driven
• Most funds generated from own sources and from governmental agencies and
donor agencies
The Market: Bangladesh
Where are the opportunities?

Public sector Private sector NGO

Agriculture Financial services Agriculture
Health (nursing, Health Water Management
paramedics, lab Textile Rural development
technicians) Tourism & Hospitality Health
Port management IT Nutrition
Transport (Railway, Building & Construction
Roads and highways) Electrical & Electronics
Water Management Hospital management

Soft Skills /Non–technical

Leadership courses, communication, stress management, time management,
business English, decision making, delegation, change management, empowerment
The Market: Bangladesh

What are the challenges?

• Identification of sectors where immediate assistance in the form of training or

seminars are required and a subsequent follow up made

• Identification of opportunities in the medium and long term

• Identifying the subject matter experts in the country who can deliver market
driven solutions
The Markets: India, Sri Lanka, Pakistan, Bangladesh
Engagement models/ Entry strategies/ Business tips

• Long term relationship driven approach

- Direct user/customer
- Joint ventures/ partnerships
- Reseller / distributor models
- Franchise
- Representative Office
- Wholly owned subsidiary -

• Delivery
- Onshore, offshore, Hybrid models, Train the trainer
- Vocational training (PPP model)
- Employability training (campuses)

• Unique point of differentiation

- Leading edge content
- Professional promotional collateral and website
- Strong track record and testimonials
The Markets: India, Sri Lanka, Pakistan, Bangladesh
Engagement models/ Entry strategies/ Business tips

Know your competition!

India Sri Lanka

NIIT Evolv Management Services Lanka
Karrox Franklin Covey
Aptech McQuire Ren & Jones
Educomp
Everonn Pakistan
Expertus Pakistan Institute of Management
Element K ITA Pakistan
Lionbridge LUMS Pakistan
NIS Sparta School of Applied Arts & Science
Dale Carnegie
Accenture Learning Bangladesh
General Physics - GP
IBM Learning Solutions TTTL
Raytheon Professional Services SENSEI
Development Dimensions International
The Markets: India, Sri Lanka, Pakistan, Bangladesh
Engagement models/ Entry strategies/ Business tips

• Majority of South Asia markets are price sensitive

• Finding the key decision maker – building rapport & relationship building
• Maintaining your pipeline of potential customers
• Protect your intellectual property as appropriate
• Government linked projects can be risky – long lead time, cancellation due to
change in Governments, receivable delays
• Stay focused & strategic in export development – 1 OR 2 markets at a time
• Build a brand – right price – Build scale, scope and depth
Austrade Initiatives: Past, Present and Future
Inaugural HR-Corporate Training mission to India (May 09)
Clients on the mission
Clients on the
AAMC mission
Pty Ltd
o AAMC Training Group
o Asia Pacific
International College
o DeakinPrime
o Dta Worldwide
o Dynamiq Pty. Ltd.
o EPSI Learning
o Excelerator Pty. Ltd
o Facilities Management
Training Partners Pty
Ltd
o Hyco Pty Ltd
o Sunshine Coast
Institute of TAFE
Austrade Initiatives: Past, Present and Future

Links & Relationships

• Australia New Zealand Business Association in India (ANZBAI)

• Relationship with associations

- National Human Resource Network (NHRD)
- National Institute of personnel Management (NIPM)
- Indian Management Association (IMA)
- The Institute of Management Consultants of India (IMCI)
- Confederation of Indian Industry (CII)

• Relationship with Partners/local firms

- Mafoi, Everonn, Franklin Covey

• Doing Business with Australia Seminars in tier 2 & 3 cities

Austrade Initiatives: Past, Present and Future

• PR/ Media Support

• Customised solutions to suit your

needs
– Market research & information
– partner search & business
matching
– Seminars

• Support to Australian industry

associations via market visits

• Forthcoming mission to India –

19-24 April 2010
Success Stories & testimonials

• Australian training companies in India & growing

dtaWORLDWIDE MRWED Bsmartonline AAMC Training Group

BTS Australia eBilities Chisholm Caliper SiiA Fmedge

DBL Deakin Prime HR Workbench Accord Consulting

• Corporate Training Mission to India

40% clients achieved success in the market -

AAMC Training Group, Sunshine Coast TAFE, dtaWORLDWIDE, Fmedge
Success stories & testimonials
Indian customers promoting
Australian companies
Success Stories & testimonials
“Austrade makes the whole process easy and without your support there is
no way anyone could achieve such great opportunities in such a short
time, well done and a big thank you.”
- Jeff Mazzini, AAMC Training Group

“A BIG Thank You - I am delighted to announce that dta WORLDWIDE has

signed an Alliance Partnership agreement with XXX. This is as a direct
result of our meeting in Mumbai in May at the Austrade Corporate
Training Mission” - Malcolm Dawes dtaWORLWIDE

“Great job for herding us cats around the world - it was a like a week of
speed-dating on steroids!” - API College, Prof Ali Jaafari

“Wonderful event with so much packed on a single day”

– Excelerator, Hazel Thompson
Key contacts in Australia
NSW ACT
Vivien Lim Chris Horsburgh
Senior Export Advisor Senior Export Advisor
T: 02 9390 2329 T: 02 6201 7572
Vivien.lim@austrade.gov.au Chris.horsburgh@austrade.gov.au

QLD NT
Vince Kelly Bernadette Eggington
Senior Export Advisor Export Advisor
T: 07 3364 7705
Vince.kelly@austrade.gov.au T: 08 8982 4505
Bernadette.eggington@austrade.gov.au
SA
Linda Marchesan WA
Export Advisor Madeleine Stringer
T: 08 8202 7809 Senior Export Advisor
Linda.marchesan@austrade.gov.au T: 08 9261 7943
Madeleine.stringer@austrade.gov.au
VIC
Green Yang
Senior Export Advisor
T: 03 9648 3261
Green.yang@austrade.gov.au
Offshore key contacts
India
Vijay Subramanian
Business Development Manager
T: +91 44 4297 0003
Vijay.subramanian@austrade.gov.au

Pakistan
Azhar Shah
Business Development Manager
T: +92 51 8355 373
Azhar.shah@austrade.gov.au

Bangladesh
Mostafizur Rahman
Business Development Manager
T: +880 2 88 13101
Mostafizur.rahman@austarde.gov.au

Sri Lanka
David Samuel
Business Development Manager
T: +94 11 246 3253
David.Samuel@austrade.gov.au
The way forward

South Asia – the Next Big Region

Are you ready?