The UK market for IT training reached £661m at current prices in 2006. There has been a shift in emphasis from technical training to IT-user training, which has fuelled growth. Key Note estimates that, in 2007, the market will increase by a further 8%.

A growing trend towards blended learning has started to lessen the gap that was previously identified between instructor-led and technology-based training, since both of these elements are now often requested in a training package. Other trends include the growing demand for one-to-one, tailored, on-premise training courses, and just-in-time, online training modules.

The decision-making for IT training continues to become more centralised in company training departments. This, in turn, is continuing to lead to major companies consolidating their purchasing among a small number of training vendors. Larger vendors clearly have an advantage when bidding for such large contracts, particularly as major companies also seek to outsource all, or part, of their training management to vendors.

Although the market remains fragmented, the leading 15 providers share almost 50% of the market by value. There are signs of consolidation in the industry in the form of acquisitions and partnerships, as players position themselves strategically in order to cater for the demands required by customers looking for a blended learning solution, and/or to outsource the management of their training.

Between 2008 and 2012, steady growth is forecast to continue, with the market increasing by between 7.4% and 8.2% year-on-year. The major growth sectors of the market will be blended learning and managed services/outsourcing. At the same time, an increased drive by the Government to see the higher education sector play a greater role in the provision of advanced-level IT skills could start to change the dynamics of competition in the IT training market.

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Instructor-Led Training
E-Learning
Problems of Calculation
MARKET TRENDS
IT Skills Continue to be An Important Business Driver
A Flourishing IT Market
Table 1: The Number of Annual IT Vacancies Notified to Job Centres, March 2005-March 2007
Figure 1: The Number of Annual IT Vacancies Notified to Job Centres, March 2005-March 2007
Buyers Continue to Have Firm Control Over IT Budgets
Focus on Training to Increase Job Satisfaction and Retain Staff
E-Business Continues to Drive Demand
ECONOMIC TRENDS
Population
Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
Gross Domestic Product
Table 3: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
Inflation
Table 4: UK Rate of Inflation (%), 2002-2006
Unemployment
Table 5: Actual Number of Unemployed Persons in the UK (million), 2002-2006
MARKET POSITION
The UK
Table 6: The IT Training Market Share of the Total UK Computer Market† (%) 2003-2007

2. Market Size
THE TOTAL MARKET
Table 7: The Total UK IT Training Market by Value at Current Prices (£m), 2003-2007
Figure 2: The Total UK IT Training Market by Value at Current Prices (£m), 2003-2007
BY MARKET SECTOR
Table 8: The Total UK IT Training Market by Sector by Value at Current Prices (£m), 2005-2007
Figure 3: The Total UK IT Training Market by Sector by Value at Current Prices (%), 2005-2007
MARKET SHARES
Table 9: The Leading 15 IT Training Providers by Estimated Market Share by Value (%), 2006

3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 10: Breakdown of Companies Operating in the UK IT Training Market by Size (% and £m), 2006
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
Economic Influences
Technological Influences
KEY TRADE ASSOCIATIONS
The British Computer Society
Becta
The British Institute for Learning and Development
Chartered Institute of Personnel and Development
The eLearning Network
e-skills UK
European Computer Driving Licence Foundation
European Institute for E-Learning
Institute of IT Training
Learning and Skills Council

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
IBM Education Services
Company Structure
Current and Future Developments
Financial Results
Learning Tree International Ltd
Company Structure
Current and Future Developments
Financial Results
Oracle University
Company Structure
Current and Future Developments
Financial Results
Parity Training Ltd
Company Structure
Current and Future Developments
Financial Results
PPI Learning Services
Company Structure
Current and Future Developments
Financial Results
QA-IQ
Company Structure
Current and Future Developments
Financial Results
SAP Education
Company Structure
Current and Future Developments
Financial Results
SkillSoft PLC
Company Structure
Current and Future Developments
Financial Results
SkillSoft NETg Ltd
Company Structure
Current and Future Developments
Financial Results
Other Companies
Azlan
Global Knowledge
HP Education Services
KnowledgePool
LogicaCMG
The Matchett Group
New Horizons
Remarc Group
Sun Educational Services
Xpertise Training
OUTSIDE SUPPLIERS
Hardware and Software Vendors
Other Suppliers
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 11: Main Media Advertising Expenditure by IT Training Companies (£000), Year Ending December 2006

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
SKILLS GAPS REMAIN A KEY DETERMINANT OF TRAINING
Table 12: Main Areas in Which IT User Skills are Considered Lacking (%), Third Quarter 2006
INCREASED DEMAND FOR PROFESSIONAL SKILLS DEVELOPMENT
DECLINING DEMAND FOR TECHNICAL TRAINING
DEMAND FOR CUSTOMISED TRAINING IS ON THE RISE
THE TRAINING AUDIENCE
CHOICE DRIVERS

7. Current Issues
IT TRAINING AND STAFF RETENTION
GROWTH IN STRUCTURED TRAINING
SKILLS SHORTAGE AT 2-YEAR LOW, BUT IT PROFESSIONALS INCREASINGLY NEED BUSINESS SKILLS AS WELL AS TECHNICAL TRAINING
IT EXPERIENCE GAINED IN THE WORKPLACE VERSUS IT DEGREES
OLDER PEOPLE MISSING OUT ON IT TRAINING
STAFF PREFER INFORMAL TRAINING
IN A FLOODED MARKET SELECTING COURSES CAN BE A PROBLEM
BLENDED LEARNING
CUSTOMISED TRAINING
E-LEARNING
VIRTUAL CLASSROOMS
OUTSOURCED TRAINING

8. The Global Market
OVERVIEW
GLOBAL MARKET SIZE ESTIMATES

9. Forecasts
INTRODUCTION
The Economy
Population
Table 13: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011
Gross Domestic Product
Table 14: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011
Inflation
Table 15: Forecast UK Rate of Inflation (%), 2007-2011
Unemployment
Table 16: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011
FORECASTS 2008 TO 2012
Table 17: The Forecast Total UK IT Training Market by Value at Current Prices (£m), 2008-2012
Figure 4: The Forecast Total UK IT Training Market by Value at Current Prices (£m), 2008-2012
MARKET GROWTH
Figure 5: Growth in the Total UK IT Training Market by Value at Current Prices (£m), 2003-2012
FUTURE TRENDS
Continued Need for Improved IT Skills
The Growth of E-Learning
Growth in Just-in-Time Training
Mobile Learning Continues to Take a Greater Share of the Training Mix
Growth in Demand for Blended Learning
Continued Growth in Demand for On-the-Job Training and Customised Training
Continued Growth of Managed Services, or Outsourcing and Out-Tasking
The Market Will Continue to Consolidate
Increased Competition from Universities

10. Company Profiles
Learning Tree International Ltd
Parity Training Ltd
QA-IQ Group Ltd
Skillsoft Uk Ltd
Skillsoft Netg Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Improves
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Willingness to Borrow Slips Slightly
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007
SPENDING FROM SAVINGS
Slight Increase in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bisnode Sources