Online higher education market in India Challenges and overcoming them

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1 c Online higher education market in India Challenges and overcoming them The need for higher education in today s working professionals is significant. Online higher education systems are not only a convenient mode, but also an effective mode to acquire higher education; however this system still faces certain barriers. An in-depth look into overcoming the barriers and succeeding in the market 2015 Redseer Consulting

2 CONTENTS 1. Motivating factors for higher education among working professionals... 1 Key success factors of online education Barriers to online higher education Online vs. Offline education Overcoming the challenges in online higher education... 3

3 India has one of the largest education systems in the world of has a huge potential for future growth. While India has a rich history of traditional (classroom) education systems, the online education space is fast catching up and beginning to change the dynamics of the entire education system. 1. Motivating factors for higher education among working professionals Online education covers a wide spectrum of courses and curriculums from vocational courses, special skills training to degree courses and higher education courses. With the rise in the general education level in India, there has been a significant rise in the need for higher education as well. There are more than 18,000 institutes for higher education and a significant part of the target audience are working professionals. Propensity to choose online education is highest among management and technical degree seekers, capturing nearly 80% of the market. About 58% opt for online courses in the field of management with an average course duration of 16-18months. Among engineering graduates, technical courses such as SAP, Oracle certifications, software languages and analytics courses are popular. Factors affecting the need for a higher degree Work environments in India are becoming highly competitive and to progress and climb the corporate ladder, professionals need to constantly upgrade their skills and knowledge. About 50% of working professionals pursue higher education to strengthen the prospects of finding a new job. Gaining specialised expertise and obtaining internal job promotions are also important motivators. Preference of online courses by course streams 1

4 Recent trends in this industry include courses in digital marketing and Big data analytics. Professionals are taking courses in the area of digital marketing in order to cut into the rapidly growing e-commerce industry and Big data analytics professionals are constantly upgrading their knowledge through courses and certifications in order to qualify for global projects. lower employment opportunities. In smaller cities and towns, low awareness levels and low internet penetration levels act as barriers to the growth of online education. Key success factors of online education The prime factor favouring online education is the ability to obtain quality education from a branded institute with the convenience of study timings. Another significant aspect is the cost; most online courses are less expensive than their full time equivalents and the candidate can continue his/her regular job as well. 2. Barriers to online higher education Although online education is growing, it still faces certain barriers in comparison to traditional face to face classroom education. The biggest barrier for the online higher education market is the higher market acceptability of traditional courses. Close to 59% of the motivation to take up face to face degrees is the college brand related motivation. Perception is also major driver in the choice of education. Misleading perception in relation to less effective learning systems and lower chances of employability pushes students away from online education. Nearly 41% of IT professionals do not consider online degrees due to the perception of Reasons for not considering Online Education 3. Online vs. Offline education Online and Offline education systems both have their individual advantages and disadvantages. While efficient doubt solving through face to face interactions and more personalised attention are reasons for choosing offline courses, online courses provide the benefit of cost and convenience. The selection criteria for both modes are mentioned below. Selection criteria for course delivery mode 2

5 4. Overcoming the challenges in online higher education With advancements in technology and higher awareness levels, the online education medium can definitely overcome most of its growth barriers. In order to succeed online, players will need to focus on the primary value proposition for education; online programs will need to have a heavy focus on developing quality course content, superior lecture material, and an effective doubt clearing mechanism. Players should also invest in interactive learning systems and virtual classrooms which provide live assistance for projects and discussions with peers and faculty. Features such as 24*7 call/ support, easy access to study material and mobile/tablet compatibility of course material are also important for the seamless integration of online education. to bridge this perception gap. Nearly 45% of students preferred to take courses from reputed national and state universities. Being in the initial stages, course providers should take efforts at building awareness with both employers and the target market. Collaborations with organisations for support and acceptability of programs will surely impact the online higher education system positively. In conclusion, given the huge market for higher education, innovations in technology and the steadily shifting mindsets of people, the online market for higher education is surely progressing into the growth phase Brand associations with premier colleges still play heavily on the perception of both employers and employees. Tie ups with national government universities should be considered by players in order. 3

6 Authors Research & Analysis Niteesh Verma (Associate Consultant) Manu Gupta (Senior Research Analyst) Content Editor Pavithra Babu (Content & Thought Leadership) About RedSeer RedSeer is one of the fastest growing research and consulting firms in India. It's unique service offerings serves decision makers across the value chain. RedSeer works across the sectors with specific focus on auto, construction, farm equipment s, healthcare, CPG/retail/e-commerce, funds, investment banks & technology sectors. For more information, visit redseerconsulting.com 4 BANGALORE DELHI MUMBAI