According to IDC, software spending in North America did not grow
nearly as quickly in 2001 as it did in 2000, when it increased more than
18% over 1999 spending. Over-investment, particularly in technology, by
companies prior to the bubble burst has deterred growth in investment over
the past 18 or so months. The result is that the IT training market, while
still growing in 2001, was impacted adversely.
The training market is not immune to the IT service spending slowdown,
a new research from IDC reveals. In a recently published report, virtually
every region in which IDC covers IT training, analysts have revised their
market sizing for 2001 downward and lowered expectations for growth in
2002. However, longer-term outlooks are more positive. IDC predicts the
worldwide market for Corporate IT Education and Training will increase
at a compound annual growth rate (CAGR) of 11.2% to reach $39 billion
The picture for 2002 will be anything but rosy, particularly during the
first two quarters. The main factors that will affect IT demand remain
related to wider economic concerns and business confidence. However, the
growth of various software markets foretells revenue increases in the
IT training market.
IDC believes that the market for delivering IT training content using
the corporate network as a medium will grow by nearly 44% in 2002, as
buyers feel that e-learning is particularly suitable for technical subjects
such as application training, programming, and system infrastructure training.
IDC remains optimistic about the corporate IT training marketplace, particularly
over the long term.