2008 Corporate Learning Factbook Values U.S. Training Market at $58.5B
According to this BNet article referencing a recent Bersin & Associates study, overall corporate spending on training products and services grew from $15.8B in 2006 to $16.38B in 2007. This is as the total market grew slightly from $55.8B to $58.5B
Let’s hear it for eLearning
eLearning’s growth is phenomenal with a 5% increase in one year for self-study / computer based training, attributed mainly to online training adoption by small organizations. All of this is in line with the top technologies I’ve been tracking.
* E-learning has grown dramatically. The use of self-study e-learning now accounts for 20% of student hours, up from last year’s figure of 15%.
This growth is driven largely by an increase in online training among small organizations (100-999 employees), which are acquiring the skills and technology to make online training a reality.
Web 2.0 – Creating conversations and pushing knowledge
Notice within the article about the study the Web 2.0 effect on learning:
* The younger generation of learners is driving changes in learning strategies. This year’s study shows a sharp increase in new web-based and collaborative learning resources, such as podcasts, communities of practice, blogs, and wikis.
Trend alert: More space for consultants, less offshore content developing
According to the article, outside consulting is growing along with content developed and tailored specifically for the company.
* Reliance on outsourcing continues to increase in two categories: the use of outside instructors and custom content development. Outsourcing of LMS administration showed a decline in 2007, as did use of offshore content developers.
Consulting Market Analysis: Focus on PnP
To me this shows a concentration on Policy and Procedure (PnP) along with the realization that corporate workflow is now able to be quickly corrected through on-demand training.
As far as the decline of outsourcing LMS administration I would have to read the study further, as well as to to analyze the decline of offshore content developers. As far as whether this was limited to LMS content or across the board, I would offer that there has recently been an industry wide offshoring backlash.
Let’s talk about Learning Management
Along with the LMS Intellectual Property fight that Blackboard has (tentatively) lost, it appears that LMS usage is still prevalent and the new niche seems to be the mid-market buyer.
The article states:
* Today 38% of organizations are using a learning management system (LMS), with the highest growth in usage among mid-market buyers.
Trend alert: Blended Learning software tool sales are increasing
Now application simulation and rapid eLearning are normal along with cost effective. Tools such as Adobe Captivate, MadCap Mimic, and Camtasia gained a foothold in corporate learning over five years ago with a small market share. What was once only considered bleeding edge technology is quickly becoming the norm.
From the article:
Over half of all companies are using a virtual classroom tool, and between 20 to 30% are using application simulation and rapid e-learning tools.
Blended Learning methods such as virtual classrooms are becoming more available with technology. I’ve been checking some of the virtual classroom technology that’s now available and it has been pretty out of this world.
Educational content has a place in driving consumer sales…
I’ve revisited the HDTV content delivery methods in a recent article as well. I see a definite trend towards marketing through instruction, and with the digital TV deadline only a year away, there are competitive edges that broadcast TV will have against the pipelines such as cable and DSL.
FYI: If you’re in Florida…
A lot of you reading this may be in Florida for eLearning conferences this month. The 2008 Factbook findings are the foundation for benchmarking workshops held at Bersin & Associates’ upcoming research conference, IMPACT 2008: The Business of Talent, April 22-24, in St. Petersburg, FL. Here are a couple relevant books by Josh Bersin:
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The Blended Learning Book: Best Practices, Proven Methodologies, and Lessons Learned by Josh Bersin |
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The Training Measurement Book: Best Practices, Proven Methodologies, and Practical Approaches by Josh Bersin |
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Posted by Charles in Blended Learning, eLearning, Software, Technical Communication, Web 2.0 | Comment now »
