Elearning Market Update Sept 2010

This month we take a look at the recent survey of elearning companies carried out by IT Training Magazine, the British Computer Society's (BCS) quarterly magazine. We are pleased to see that Kineo is notable in growing strongly despite a generally flat elearning market.

In an article called Weathering the Storm, Clive Shepherd explores how the UK elearning industry has handled the recession. The survey puts Kineo as the second largest elearning developer in the UK behind LINE, who continue to do well. Congratulations to Piers and the team at LINE. The survey covers the calendar year 2009, when the recession was biting in the private sector in particular. 

The survey shows that the total revenues in cash terms of the top 10 elearning development companies was flat between 2008 and 2009. Thus whilst companies may be undertaking more elearning a growth in internal elearning development, combined with more informal types of online learning, webinars and lower prices generally mean that the overall external spend on elearning content development is not increasing. However, on the positive side elearning companies appear to be weathering the storm much better than many face-to-face training companies and we are seeing a continual shift towards technology supported learning. 

 The key trends which emerge out of the report are:
  • Procurement departments are much more active in determining training spend and challenging L&D departments to do more with less
  • Ongoing growth in rapid elearning and lower cost solutions
  • A shift in customer demand towards shorter, more informal types of elearning content
  • A move to shorter elearning modules as part of a blended intervention
  • An increased emphasis on in-house development which has helped drive the revenues of authoring tool providers
  • Increasing use of virtual classrooms
You can read the full article and review the survey.

Outside of the UK, the acquisition of Learn.com supports Bersin's predicted consolidation of Learning Management companies. See our Bersin's commentary.

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