Relationship building in India: Benefits of a long-term approach
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1 Relationship building in India: Benefits of a long-term approach AIEC Conference Thursday 15 October, 2009 Joanna Wood, Director, South & South East Asia Teams, International Group, DEEWR Sabina Jain, Team Leader (Services), Austrade South Asia Jayaraman, CEO, Skill Development, Everonn Education Limited Chaired by: Peter Mackey, Senior Industry Adviser, Education & Business Services, Austrade
2 Background Factors 1. Resilient Indian Economy 2. Indian student mobility to Australia 3. Single objective for the market Enhance profile and image of Australia
3 Whole of Government Approach AEI, Austrade, DIAC DEEWR/AEI Promote international education links Liaison with Government Encourage institutional alliances Work with AAERI to provide quality service for students DIAC Providing information about visa requirements processing of applications & conducting visa work shops. AUSTRADE Practical advice, market intelligence and ongoing in market support
4 Austrade s presence in South Asia Growing presence 6 cities in India Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Chennai Offices in Bangladesh, Sri Lanka and Pakistan In-market support in Nepal and Maldives
5 What we will cover? India Opportunity Australia International Education Destination Engagement models for education providers (Live Opportunity: Everonn Systems) Marketing guidelines Summary
6 Presenters for the session: Joanna Wood, Director South, South-East Asia Team, International Group, Department of Education, Employment and Workplace Relations Sabina Jain, Team Leader (Services), Austrade South Asia Jayaraman, CEO, Skill Development, Everonn Education Ltd
7 Key Messages - Long term market strategy Holistic/ multi-pronged approach Understand International markets Innovate for better return on investment Invest in the market
8 India Opportunity - Market highlights Education sector relatively insulated from Global Financial Crisis Education Service companies performing well on Indian bourses Private Equity players investment in education domain on a rise Indian education sector IT spend to reach US$ 704 million by 2012 Indian society puts a premium on knowledge and it s acquisition
9 India Opportunity Human Capital 550 million people below the age of 25 years Over 32 per cent of the 1.1 billion population is between the age group 0-14 Demographic Dividend
10 India Opportunity Higher Education Sector In the 11th Five Year Plan ( ), public spending on education is being raised from 3.5% to 6% of GDP & on higher education from 0.37 % to 1.5% India has the largest higher education system in the world with over 21,000 institutions (475 universities & 20,677 colleges) Third largest higher education system in the world in terms of enrolments (more than 10 million per year) Enrolments increasing at a constant rate of 5% Proportion of youth enrolling into colleges/ Higher education: 12% - India 22% - China 60% & above - in developed countries India has the lowest public expenditure on higher education per student in the world Industry finds only 25% graduates employable
11 India Opportunity Vocational Education Current skill development programs offered under various government schemes Ministry of HRD Only 2% of Indian population has undergone skill training, one of the lowest in the world Ministry of Labour & Employment 4 million Ministry of Women & Child Development Ministry of Agriculture 500 million Ministry of micro, small & medium enterprise Others Skill Development target (2022)
12 India Opportunity Sector prospects Vocational Education Sectoral Analysis Industry Sector Market Size 2008 (US$ billion) Market Size 2013 (US$ billion) Additional Direct Employment 2008 to 2013 % requiring vocational training (million) Retail to 4* 90% Healthcare to 4 ** 20% Hospitality & Tourism to % Food & Agro % Textile & Apparel to % Source: Technopak Analysis * Estimated only for organised retail ** Doctors and Nurses estimates are not considered in this dataset
13 India Opportunity GOI Accelerator Union HRD Minister eyes education renaissance in India Expansion (Education for all), Equity (Inclusion of SC, ST, Girls) & Excellence (quality) Rights to Education Bill is passed by the parliament Set up 14 innovation universities from 2010; 6000 model schools of which 2500 through PPP model by next academic year Open up the education sector to private players & foreign education providers
14 India Opportunity GOI Accelerator Government s initiatives in VET Establish, Expand & Upgrade 1, 500: New Industrial Training Units (ITIs) 125: New polytechnics through public private partnership (PPP) 50,000: New Skill Development Centres Expand: Vocation education in senior secondary schools from 9,500 to 20,000 schools Upgrade: 400 existing it is into Centres of Excellence with World Bank assistance Upgrade: 100 ITI with Central funding Upgrade: 1,396 ITI through PPP
15 India Opportunity GOI Accelerator Government s new initiatives - Laws on the Anvil Foreign Educational Institutions (Regulation of Entry and Operations, Maintenance of Quality and Prevention of Commercialisation) Bill The prohibition of Unfair Practices in Education Institutions and Universities Bill, 2009 Education Tribunals Bill, 2009 National Authority for Regulation in Accreditation of Higher Educational Institutions, 2009 National Commission for Higher Education & Research (NCHER) Concept note on brain gain policy
16 Australia International Education Destination International markets Shortfall of 1.6 million higher education places in India Competition from US, UK, NZ, Germany and Singapore Australia s Competitive Advantages Student Enrolment Trends AEI Report by Nationality India
17 Australia International Education destination Student Safety
18 Australia International Education destination The Australian Government s Response National International Student Strategy ESOS Review the Hon Bruce Baird ESOS Amendment Bill Introduced to Parliament International Student Roundtable Ministerial Visits to India Deputy Prime Minister s Visit Senior Officials Visit Australia India Joint Working Group
19 International Student Roundtable
20 Engagement models for foreign education providers Australia-India Institutional Collaboration 1. Modes of Collaboration Twining, student and faculty exchanges etc. 2. Collaborating key benefits and Considerations Enhanced Diversification & Credentials, joint research Prestige of the Institute, Quality, Research Work, Utility 3. Collaboration Trends Key implications
21 Engagement models for foreign education providers Collaboration with the Private sector Size of private education market estimated at US$ 45bn Private players developing business models in Formal Education (30bn) (Regulated) Non Formal Education (15bn) (Unregulated) K-12 (23 bn) Higher Education (7 bn) English Language Training Tutorials / Coaching IT Training; e-learning Content providers Corporate Training Test preparation & administration Example: Everonn Systems, Yash Birla Group, EdServ Soft systems Ltd
22 Engagement models for foreign education providers Collaboration with Industry Corporate Universities Commercialization of Research Curriculum Development Executive Education & Corporate Training Internships & Placements Examples: Infosys, Wipro, Kerala Tourism, Reliance World, JBM Group
23 Engagement models for foreign education providers A LIVE Opportunity on Public Private Partnership (PPP) Business Model EVERONN SYSTEMS
24 Marketing Guidelines 1. Reaching India s Hinterland Emerging Cities of India (Study by UK India Business Council)
25 Marketing Guidelines 2. Try the road less travelled Popular/ Evergreen Courses Information Technology Business & Finance Engineering Specialisations New Generation Courses Retail Biotechnology Nanotechnology Automotive Industry Logistics, Supply Chain Food processing, food safety Clean Energy & Environment
26 Marketing Guidelines 3. Integrated Communication Channels - Traditional Vs New Biggest advertiser on print media Education Tamil Nadu, Uttar Pradesh, Maharashtra top in print advertising Advertising on TV grew 34% (Jan-May 09) India to have third largest number of internet users by 2013 (Forrester Research) Google Most popular search engine with students (Tata Consultancy Service) SMS solutions gaining popularity
27 Marketing Guidelines 4. Modes of Delivery Distance Education to in-market presence 5. Leverage In-market linkages -Alumni - Institutional partners - Agents 6. Profiling Communication strategy (Corporate) Social Responsibility
28 Questions?
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