This document was created before Parthenon joined Ernst & Young LLP on August 29, 2014, and has not been updated to reflect the combination. Standing Out From The Crowd How Can Governments, Institutes, and Private Providers Collaborate to Create International Education Hubs and Differentiate their Brand Abroad? Prepared by The Parthenon Group for British Council s Going Global 2014, Miami
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International are an crucial opportunity for universities and governments to pursue Canada 100K Students =$3B Revenue USA 600K Students =$13B Revenue UK 400K Students =$8B Revenue Dubai ~6KStudents =$0.1B Revenue Singapore ~30KStudents =$0.5B Revenue Australia 300K Students =$6B Revenue
What can universities do to internationalize? 1 Establish foreign branch campus 2 Recruit international
Many brands already offer offshore degrees in growing hubs like Dubai, Singapore, and Malaysia 1 2 Establish foreign branch campus Recruit international UAE Malaysia Singapore
Lower fees in these new education hubs widen the base of universities are able to attract 1 2 Establish foreign branch campus Recruit international 30 $23K $22K 20 $19K 10 Home $9K Home $12K Home $10K Vietnam Dubai Singapore 0 RMIT University University of Wollongong University of Newcastle
It s important to understand specific characteristics of the location before choosing to go abroad 1 2 Establish foreign branch campus Recruit international Market Demand Regulations Employability in Market Repatriation Setting up a foreign branch campus requires high capex
Total demand for international higher education incountry from key source countries continues to increase Enrolment in U.S., Australia, and UK by Selected Source Countries, 2005-2011 1 2 Establish foreign branch campus Recruit international 800K 600 400 Malaysia South Korea India Malaysia South Korea India Malaysia South Korea India Vietnam Malaysia South Korea India Vietnam Malaysia South Korea India Vietnam Malaysia South Korea India 200 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Will international continue to go abroad?
The most highly ranked universities are still primarily in the West Top 200 University Rankings by Country, 2008-12 1 2 Establish foreign branch campus Recruit international 100% n=200 n=200 n=200 80 Others Australia Others Australia Developed Asia Others Australia Developed Asia 60 Developed Asia Europe Europe Europe 40 20 US + Canada US + Canada US + Canada 0 2008 2010 2012 No. of Chinese Universities in Top 200 6 6 2
Agent use continues to increase in key source markets 300K Students Using Agent Channel in Korea and for Overseas Education, 2008-10 1 2 Establish foreign branch campus Recruit international 200 161K 176K 206K Korea 100 Korea Korea 0 2008 2009 2010 Penetration Korea Penetration 50% 50% 50% 70% 70% 70%
Agents also the biggest influencers on parents 1 2 Establish foreign branch campus Recruit international Q: [For parents] Who are the key influencers when selecting a program to enrol in? Q: [For parents] What are the key selection criteria when selecting an agent? 93% Other University Partner Quality Recommendation Percent Selected 48% Agent use continues to increase in key source markets 37% 30% Agency Credentials 15% Knowledge & Professionalism Counselor Family Members Friends Teacher Colleagues Parent Selection Criteria
Provision of sales support from the university is the key driver in building effective relationships with agents 100% Incentives 1 2 Establish foreign branch campus Q: [For Agents] What are key factors that influence your decision to promote an institution? Recruit international Product Offerings Sales Support Quality of Institutions Variety of Courses Sales Support Includes: In-Office Visits Responsiveness (Enquiry Time) Fairs and Exhibitions Support Quality of Marketing Materials Quality of Institution 1. Courses delivered with high-quality standards 2. Good reputation relative to what it offers High-Quality Marketing Material is Critical to: Build brand amongst Build program familiarity among agents In-Office Visits Help agents close leads Act as informal training refresher Help build rapport with counsellors Agents from, India, and Indonesia
Lower academic requirements via pathways allow for increased access from international Average India Board Exam Requirements, Regular versus Pathway Programs 1 2 Establish foreign branch campus Recruit international 80 Standard Entry Requirement 60 40 Pathway Requirement 20 0 Academic Requirements
Governments, universities, and employers must work together to create attractive international education hubs 1 Raise Awareness 2 Expand Access Developing an Education Hub 3 Enhance the Value Proposition
Local government organizations are essential for universities and governments to share resources to best promote themselves abroad Promote programs that leverage your core strengths Make imagine themselves in your location by focusing on quality of life factors Maintain relationships with quarterly trips and strong partnerships Create localized materials available online and via social media
Case Study: ASEAN Scholarships in Singapore were designed to attract the best from the region Singapore Global Schoolhouse Policies Asean Scholarships Low Admissions Rate 12% Government Scholarships Work During Degree Allowed Tuition Scheme Reimbursement available for talented 16 hours per week Government Recruitment? Work After Education Allowed Allowed to stay to look for job Requirement to stay? Scouts sent all over ASEAN Students may stay for 3 years May look for 1 year Students with scholarships must work for 3 years Singapore s full scholarships and eligibility for to work after the degree program attract top talent to their universities and encourage top universities to tap into this talent
Infrastructure and student life are important areas to focus on for local governments Ease to Reach Recruit regionally and strategically Partnerships with airlines Safety Track record promoted of safety News perception of safety in the area Language English is preferred Training in local language Quality of Life Activities for young people Affordable lifestyle Strong Economy Attractive growth sectors Job Prospects
For the most critical factor in selecting a location are job placements Q. What are the top reasons that made you want to study abroad? Q. What are your plans post-completion of your current program? 100% Other 100% Go for further education inmy country of origin 80 Exposureto culture/life in another place 80 Go for further education in another country Go for further education in Destination Country Migration from country of origin 60 60 Better job prospects than in countryof origin 40 40 Find employment in DestinationCountry 20 Better quality of institutions than in countryof origin 20 0 TransnationalStudents 0 Current Students Source: Dubai Current Students and Recent Graduates Survey, n=149 (current =99; recent graduates=50)
Education hubs need to reflect on how strategic economic areas of growth are reflected in courses Key Development Goals for City Higher Education Enrolment by Discipline, City, 2010-2012 Economic Development Strategic Thrusts Travel and Tourism Financial Services Professional Services Transport and Logistics Services Trade and Storage Construction Humanities and Law Business Engineering Media and Design Foundation Information Technology Undeclared Social Development Strategic Thrusts Health and Medicine Quality/Availability of Education Quality/Affordability of Health Care 65% of are enrolled in Business; Humanities and Law; and Engineering. Natural and Physical Sciences Architecture and Construction Tourism and Hospitality Education *Note: See Source Source; Dubai Strategic Plan 2015; TECOM, Falcon team correspondence
Case Study: London s Study London has strategically used partnerships to promote itself as a top destination for international London (Study London) London is aiming to capitalize on its wealth of education options; for example in October 2013 London Mayor Boris Johnson travelled around for a week promoting London The focus is on London as a destination with all universities working together to pool resources and jointly make London an attractive destination for international
About The Parthenon Group s Education Practice The Parthenon Group is a leading advisory firm focused on strategy consulting, with offices in Boston, London, Mumbai, San Francisco, Shanghai, and Singapore. Parthenon has served as an advisor to the education sector since 1991. Parthenon s Education Practice the first of its kind across management consulting firms has an explicit mission and vision to be the leading strategy advisor to the global education industry. To achieve this, Parthenon invests significantly in dedicated management and team resources to ensure that our global expertise extends across public sector and non-profit education providers, foundations, for-profit companies and service providers, and investors. Parthenon also has deep experience and a track record of consistent success in working closely with universities, colleges, states, districts, and leading educational reform and service organizations across the globe. Learn more about our Education practice at www.parthenon.com/industries/education Ashwin Assomull Partner aassomull@parthenon.com + 91-22-67442500 Follow Us for Regular Updates Facebook www.facebook.com/parthenongroup LinkedIn www.linkedin.com/company/the-parthenon-group Twitter @Parthenon_Group WWW.PARTHENON.COM