Training firms taught lesson in customer maintenance

IT training companies need to prepare to protect their businesses from stiff competition offered by vendors, in-house and large training alliances, according to an IDC report.

To survive, training firms need to sharpen their marketing and invest in Web-based training packages with innovative multimedia, said the report.

Demand for IT skills training outstrips supply, leaving UK businesses facing skills shortages, but competition among trainers is stiff.

IDC claims that the growing market for IT skills training is based increasingly on niche applications training. IDC senior research analyst Alison McKenzie said: ?It?s very tough competition, so anyone going into providing training needs to be aware of the fragmentary nature of the market.?

But McKenzie said she saw no evidence that independent training companies would be squeezed out ? so long as they kept up with the market.

Notable successes among the six training firms studied in the report were Peritas online, IBM and Oracle, which focus on Web-based education.

The report also showed that Web-based and online training is on the increase, but is not expected to replace instructor-led training. McKenzie said companies should be working to develop training applications that could be accessed by the user at the desktop, and held people?s attention with multimedia and graphics.

?If companies are investing in online training, they need to consider how to keep courses interesting by offering innovative and dynamic initiatives.?

The total IT training market is expected to grow six per cent every year for the next five years.