Worldwide IT Training Market To Approach $34 Billion By 2004, IDC Forecasts.

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 percent 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," says 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 percent of worldwide revenues in 1999, and no vendor had market share over three percent. IBM Global Services was the top vendor in 1999 with revenues of $560 million and a market share of 2.9 percent.

"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 Horizon's all grew more than 20 percent, compared with the overall market's 13 percent rate and the top 15's 10.5 percent average. NETg was the market's growth leader with a 33 percent 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 percent of all IT training by 2004, up from three percent 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 percent 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."