By Steve Rayson

In November 2005 we published our first report on the UK e-learning market.

1. Suppliers

Increased competition in the bespoke market

Increased competition in the bespoke e-learning market is leading to lower prices (below £10,000 an hour for systems training), increased off-shoring and a focus on niche areas.

Consolidation amongst learning management suppliers

There is significant consolidation taking place amongst learning management suppliers and we are seeing the emergence of more stable open source alternatives such as Moodle and Sakai.

2. Entrants

New kids on the block

In the bespoke e-learning space a number of companies such as Cylix, Redtray, Saffron and Brightwave have emerged over recent years to join the e-learning content development establishment in the UK.

3. Substitute learning technology

E-Learning is still embryonic

 It is still early days. The internet is creating a new range of technologies that have the potential to transform learning. These include audio learning, Podcasting, Wikis, simulation tools and Blogs.

E-Learning goes open source

A wide range of open source tools are emerging that will reduce the costs of e-learning development and deployment. From open source learning management systems to authoring tools.

The asynchronous- synchronous split is too simple

The old definition of e-learning as self-study content or virtual classroom is breaking down. Learning solutions are far more complex and integrate technology which defies such simple definitions. Content may increasingly have parts that can be edited and updated by learners online and in collaboration.

4. Buyers' Learning driven strongly by compliance requirements

When asked companies are consistently saying that one the key drivers of learning in their organisations is the need to meet compliance requirements.

More sophisticated buyers

The new learning professionals are developing integrated learning strategies that exploit the new learning technologies and he competition in the bespoke e-learning space through reverse online auctions.

Buyers want content faster

Business demands mean that all suppliers want content developed and deployed faster.

Buyers are off-shoring

According to Bersin in the US there has been a stampede of organisations rushing to off-shore their learning development. We have begun to see a similar trend in the UK.

Buyers do it themselves

Over 30% of organsiations now develop their own content in one form or another. Effective E-Learning means AEES Successful organisations are ensuring that their strategies are: · Aligned · Efficient · Effective · Sustainable.