A SUMMER TRAINING PROJECT REPORT

ON

“A Market Analysis of

A virtual classroom coaching by eAge Software Services

”
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD

OF DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2008-10

UNDER THE GUIDANCE OF:

MRS. KIRAN VASHISHTHA

FACULTY, RDIAS
SUBMITTED BY:

ROHIT DEY
ROLL NO.01415903909
MBA III SEM SECTION A

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi

 Table of CONTENTS

Student declaration..........................................................................................................................i

Certificate from Company/Organization…........................................................................................ii

Certificate from Guide....................................................................................................................iii

Acknowledgement...........................................................................................................................iv

Executive Summary.........................................................................................................................v

List of Tables.................................................................................................................................vi

List of Charts................................................................................................................................vii

CHAPTER SCHEME

CHAPTER 1- INTRODUCTION

1.1 Purpose of Study………………………………………………………………………….

1.2 Research Objective of Study…..........................................................................................22

1.3 Review of Literature..........................................................................................................23

1.4 Research Methodology

1.4.1 Research Design…..............................................................................................25

1.4.2 Data Collection…...............................................................................................25

1.4.3 Sample Design….................................................................................................26

 Sample Size

 Sample Population

 Sampling Method
 1.4.4 Duration of research…........................................................................................27

1.4.5 Limitations…………………………………………………………………
…..27

CHAPTER 2- REVIEW OF LITERATURE

CHAPTER 3- INDUSTRY AND COMPANY PROFILE

3.1 Industry Profile....................................................................................................................2

3.2 Company Profile..................................................................................................................9

3.3 SWOT Analysis..................................................................................................................12

3.4 Major Competitors..............................................................................................................14

CHAPTER 4- CONCEPTUAL DISCUSSION...............................................................................47

CHAPTER 5- ANALYSIS AND INTERPRETATION.....................................................................77

CHAPTER 6- FINDINGS…………………………………………………………………………………..

CHAPTER 6- RECOMMENDATIONS AND CONCLUSION.....................................................80

BIBLIOGRAPHY
ANNEXURES

STUDENT DECLARATION

This is to certify that I have completed the Project titled “A Market

Analysis of Gurumantra: a virtual classroom coaching by eAge
Software Services” under the guidance of “Mrs. Kiran Vashishtha” in
the partial fulfillment of the requirement for the award of the degree of
“Masters in Business Administration” from “Rukmini Devi Institute Of
Advanced Studies, New Delhi.” This is an original work and I have not
submitted it earlier elsewhere.

……………………

. (Rohit Dey)

Enrollment No. – 01415903909

(MBA, 3rd Sem, Sec-A)

i
 CERTIFICATE

This is to certify that the project titled “A Market Analysis of

Gurumantra: A virtual classroom coaching by eAge Software
Services” is an academic work done by ROHIT DEY submitted in the
partial fulfillment of the requirement for the award of the degree of
Masters in Business Administration from Rukmini Devi Institute of
Advanced Studies, New Delhi. under my guidance and direction. To the
best of my knowledge and belief the data and information presented by
him in the project has not been submitted earlier elsewhere.

……………………....

Mrs. Kiran

Vashishtha

Faculty,RDIAS

(Project Guide)

ii
iii
 ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more matter of feeling."

There is always a sense of gratitude which one express towards others

for their help and supervision in achieving the goals. This formal piece
of acknowledgement is an attempt to express the feeling of gratitude
towards people who helpful me in successfully completing of my
training.

I would like to express my deep gratitude to Mr. Rahul Sharma my

training coordinator for their constant co-operation. He was always there
with his competent guidance and valuable suggestion through out the
pursuance of this research project. Special thanks to Mrs. Kiran
Vashishtha who guided me to work honestly and to give valuable
suggestion for improving my work Last but not least I would also like to
place of appreciation to all the respondents whose responses were of
utmost importance for the project.

Above all no words can express my feelings to my parents, friends all

those persons who supported me during my project. I am also thankful to
all the respondents whose cooperation & support has helped me a lot in
collecting necessary information.

I would also like to thank almighty God for his blessings showered on
me during the completion of project report.

iv
 EXECUTIVE SUMMARY

"And then the whining school-boy, with his satchel and shining morning
face, creeping like snail unwillingly to school".

- Shakespeare, As You Like It, 1599

Shakespeare identified the core problem with most learning

experiences; a failure to engage and harness our intrinsic motivation to
learn. In a connected world, technology is fundamentally challenging
traditional models of education and training, empowering us to learn in
a more fluid and natural way than ever before, at our own pace and
place. The learners are taking control.

India’s education and training sector offers private institutions an

estimated US$40bn market, with a potential 16% five-year Cagr. With
142 million of the 361 million school-age children not attending classes,
the system’s shortcomings are well documented. However, the
opportunities for organized private-sector involvement do not enjoy such
recognition. Turning education into a profitable, high-growth business is
a long-term investment theme. Corporate initiatives are beginning to
address the needs of India’s youth by tapping into the propensity of the
middle class to spend more on education.

In this report I have studied the E-learning industry in India, its size and
growth potential. Since e-learning is at a very nascent stage in India, I
have done a Market analysis for a virtual classroom coaching/ online
tutoring service ‘Gurumantra’, by eAge Software Services. I have done
a SWOT analysis for eAge and identified its major competitors.

v
I have shown the marketing mix for Gurumantra and also interpreted the
various Environmental factors influencing e-learning.

I have also conducted a survey on the consumer perception towards e-

learning to highlight the shift in consumer’s perspective from traditional
to online learning.

I concluded that there are significant opportunities to tap for an online

tutoring service like ‘GURUMANTRA’, both in the Government
schools and Private schools businesses.

LIST OF TABLES

1. Table
1.1…………………………………………………………………
……………….7

2. Table
4.1…………………………………………………………………
………………53

3. Table
4.2…………………………………………………………………
………………58

4. Table
4.3…………………………………………………………………
………………60

5. Table
4.4…………………………………………………………………
………………61

vi
6. Table
4.5…………………………………………………………………
………………62

7. Table
4.6…………………………………………………………………
………………64

8. Table
4.7…………………………………………………………………
………………66

9. Table
4.8…………………………………………………………………
………………68

10. Table
4.9…………………………………………………………………
………………70

11. Table
4.10………………………………………………………………
………………..72

12. Table
4.11………………………………………………………………
………………..74

vii
 LIST OF CHARTS

1. Chart
1.1…………………………………………………………
………………6

2. Chart
4.1…………………………………………………………
………………48

3. Chart
4.2…………………………………………………………
………………49

4. Chart
4.3…………………………………………………………
………………58

5. Chart
4.4…………………………………………………………
………………60

6. Chart
4.5…………………………………………………………
………………61

7. Chart
4.6…………………………………………………………
………………62

viii
8. Chart
4.7…………………………………………………………
………………64

9. Chart
4.8…………………………………………………………
………………66

10. Chart
4.9…………………………………………………………
………………68

11. Chart
4.10………………………………………………………
………………..70

12. Chart
4.11………………………………………………………
………………..72

13. Chart
4.12………………………………………………………
………………..74

ix
x
 CHAPTER-1

INTRODUCTION

xi
1.1 Purpose of the Study

The purpose of the study is to get an overview of the Indian e-

learning industry, its growth trends, future prospects and
opportunities available. The project is an extensive study of the
marketing mix of an e-learning product known as Gurumantra:
A virtual classroom coaching by eAge Software Services as well
as on the consumer perception towards e-learning.

1.2 Research objective of Study

 Primary Objective

The primary objective of this research is to know the market

potential of Gurumantra in the e-learning industry and to
suggest a marketing mix for the product on the basis of the
research

 Secondary Objectives

 Study of Online education market, both in India

and globally

 Evaluate the consumers’ perception towards e-learning

xii
  To study the marketing strategies of the leading
competitors in the Indian e\online education
market.

1.3 Research Methodology

The research methodology is the framework or blueprint for

conducting the research. It includes the following:

1.4.1 Research Design

The research design used by me for the research is

Descriptive research. The main reason for the same is
that information needed for the research is clearly
defined. As a researcher, I had prior knowledge about the
problem situation. Therefore my research was preplanned
and structured.

1.4.2 Sources of Data Collection

For the purpose of data collection both the Primary and

Secondary Sources have been employed.

xiii
Primary Data Collection

xiv
 Different tools have been used to collect the Primary
data, which are:

▪ Survey: A survey was conducted to know the

consumer perception towards e-learning. A
questionnaire has been designed to collect the
primary data. Considering the purpose of this
study, nature of the investigated population and
time constraint, it was decided to use only
close- ended questions in the questionnaire.

The questionnaire contains 11 questions and was

structured for both teachers and students.

▪ Interviewing: Employees of eAge were

interviewed about the features of
product ‘Gurumantra’, its pricing,
delivery etc.

▪ Observation Method: Traffic analysis on

eAge portal.

Secondary Data Collection

For secondary data collection Internet, research studies,

newsgroups, magazines, journals, various reports,
surveys, etc. have been studied.

 Quantitative - Education sector reports by CLSA

and Angel Broking

 Qualitative- Case studies and research papers

xv
on e-learning

xvi
1.4.3 Sample Design

1.4.3.1. Population

The sample population comprises of

respondents from schools, colleges and
corporate who use some form of e-
learning tools. All respondents were above
18 years age group.

1.4.3.2. Sample Size

The sample size was 100 respondents.

1.4.3.3. Sampling Method

The sampling method used was

Judgmental Sampling. The main reason
for using Judgmental sampling was that
the sample chosen was representative of
the population and was most likely to give
accurate results since the elements were
chosen on the judgment of researcher.

1.4.4 Duration of Research

Duration of the summer training research project was 6

weeks which is bifurcated in different phases as under:

xvii
 ➢ Phase – I (15th June’10 to 23rd June’10) –
Understood about the education industry, the
company – eAge software services, its
competitors and also performed SWOT analysis.

➢ Phase – II ( 24th June’10 to 30th June’10) –

Decided project objectives – primary and
secondary- on the basis of the area of interest
and planned and designed the research
methodology for the same.

➢ Phase – III (1st July’10 to 20-th July’10) –

Visited various colleges and institutes to conduct
the survey and gather information.

➢ Phase – IV (21st July’10 to 30th July’10)

- Analyzed the information gathered.

1.4.5 Limitations

For Primary Data:

1. Comprehension potential of the respondents is

a major issue.

xviii
 2. Time constraints may have led to biasness by
the respondent.
3. Respondent may not have provided
with completely accurate information.

For Secondary Data:

1. May not be very accurate.

2. May have been collected for some
other purpose.

xix
 CHAPTER-2

REVIEW OF LITERATURE

xx
Review of Literature

The biggest asset of any country is its people. India has a

population if 108cr, the second-largest in the world. However,
India's literacy rate is just 61% and it ranks a disappointing
172nd in the world on this front. Thus, there is a short supply of
educated manpower in India.

Organised private initiatives are gaining momentum in India’s

lucrative education market. The total education market is worth
US$40bn, with the estimation of Kindergarten to Grade 12 (K-
12) segment at US$20bn, private professional colleges at
US$7bn and tutoring at US$5bn. Other meaningful and fast-
growing areas include vocational training at US$1.4bn, test
preparation at US$1.7bn and preschools at US$1bn. The
combined market capitalisation of listed education companies in
India is only about US$2.6bn, on 2008 revenue of US$450m.

A large part of a student’s time is spent at post-school mentoring

institutions, as large class sizes in private schools hamper
teachers from giving individual attention to students. This
consumes a lot of time, effort and money. Companies like
Educomp, Transwebtutors and Everonn have introduced
innovative products to get a slice of this market. These products
enjoy a distinct advantage over the current ones on account of
being available 24/7 and the student not being required to travel
to the location where the classes are held.

xxi
The experience of younger learners with television, video games
and computers, with a corresponding reduction in the amount of
time spent reading, means that they actually think differently.
The technology of e-learning, because it resembles the media
familiar to younger learners, demands that they get actively
involved in the learning experience. The resulting shift is a
change from receptive learning to active learning.

The pressure of networked digital communications technology

to move learning from passive or receptive modes of learning to
active inquiring modes of learning is in opposition to the
tendency of formal schooling to convert “dynamic knowledge
into static information”. Schooling is often about learning
“facts” and not about learning about “life” or integrating all of
one’s experiences into an illuminating and generative world
view.
Generally, interactivity in e-learning consists of turning pages
through clicking on hyperlinks. True interactivity is based on
feedback loops, whereby the action of one participant, the
learner, results in an action by the other participant, the
computer, in a back-and-forth exchange. With feedback, learners
reflect on what is happened by seeing the results of their actions
or decisions. We also learn by being challenged or questioned on
our decisions.

xxii
 CHAPTER-3

INDUSTRY AND COMPANY

PROFILE

xxiii
3.1 Industry Profile

 Educating India's population - A humungous task

India has the largest student population in the world with over
13.5cr pupils in primary education followed by China at over
12.1cr pupils at this level. India has the second-largest population
in the world of over 110cr people (1.1bn), with a literacy rate of
61% and ranks a disappointing 172nd on this front. Educating
such a large population is not only an expensive task but also a
very difficult one. This task is being handled primarily by the
government through its school infrastructure and large Budgetary
outlays. In the last five years, the government has been focusing
on the Education Sector through increased fund allocations. In
the current year also, the government has increased the allocation
by 20% from Rs28,674cr to Rs34,400cr. This amount would be
spent under various schemes like the Sarva Shiksha Abhiyan
(SSA), the Mid-day meal scheme, Kasturba Gandhi Balika
Vidyalaya and teacher's education. The allocation for SSA is
Rs13,100cr, the Mid-day meal scheme would be provided
Rs8,000cr and Rs4,554cr would be allocated to secondary
education. In the current Five-Year Plan period, the focus of SSA
would shift from access and infrastructure to enhancing retention
and improving the quality of learning. (Source: Statistics from
Nationmaster and Union Budget 2008-09)

xxiv
 E-learning Industry-Worldwide

The world market for e-learning is expected to exceed $52.6

billion by 2010, according to a new report by Global Industry
Analysts.

Rapid changes in training and the workforce means that

information and communication technologies will increase their
role dramatically in terms of teaching and learning, while
pressures to stay competitive drive companies to increasingly
focus on the latest technologies, including e-learning

E-learning has emerged as the second most popular method for

organizational teaching, in terms of hours spent, and is quickly
increasing in use among primary, secondary and higher
education centers.

The choice of learning systems is growing, but broader choice

from a greater number of offerings and content, service, and
technology providers have produced obstacles to
interoperability, according to Global Industry Analysts.

The United States is the largest e-learning market globally and

revenues here are expected to surpass $17.5 billion in 2007,

xxv
according to the report. Europe and Japan offer prospects
for growth, but they lag behind because of smaller markets.

Globalization could drive faster adoption in Asian market, which

experts predict will register an average annual growth rate
ranging between 25% and 30% through 2010.

The overall e-learning market at the global and regional levels is

expected to grow at rates ranging between 15% and 30%. The
US retains its dominance in the corporate eLearning market with
a share of over 60%. Europe is the second largest market with a
share of less than 15%.

xxvi
 Indian E-learning industry

Till last decade, India was known as the rich country of poor
peoples. But, this Indian image has now been changed due to
emergence of Information Technology in India. Though, India is
one of the giant in IT industry, this technology has not reached to
the common people effectively. We have not changed our mind
to use Information Technology as the learning media. Several
organizations are trying to introduce Information Technology in
learning. But, this process is not that much fast. Engineering
education institutes, boards and councils has taken initiative to
learn via process of E – Learning. Due to the growing population
of India, there is a vast scope for E – Learning methodologies.
They can be implemented effectively.

New businesses are emerging within e-learning, tutoring and

teacher training. E-learning has focused on augmenting
classroom study with revision modules on the Internet (for K-12).
Some portals such as Studyplaces.com and Pragati Infosoft are
functioning as information exchanges for Indian education.
100percentile.com provides online examinations and analysis,
while mathguru.com has solved questions on the CBSE
Mathematics curriculum. The e-learning market in India is by our
estimates worth about US$15m each for retail and corporate. We
see e-learning as a suitable force multiplier in a package of
educational products, while the segment as a whole will take
some years to emerge in scale.

xxvii
E-learning’s growth is linked to broadband penetration. By end-
2007, India had about 3mn broadband subscribers, and was
adding 0.25mn per quarter. At this rate, the Indian market would
become scalable for e-learning only after at least three-to-five
years, when the user base reaches 8-10mn. As of now, e-learning
models are likely to target the upper-most segment of India’s
student population. Is this meaningful? Recall that:

 90mn children study in India’s private schools.

 18mn study in private schools with monthly fee above
Rs1,250.
 Assuming only those above Grade 6 use e-learning in
any meaningful way, the broader market is about 9mn
students.
 A 10% penetration into this segment would yield
900,000 e-learning subscribers. If each of these pay
Rs15,000 annually for e-learning, the market can
grow to US$300-350mn at the upper end.
 We are assuming the e-learning for the retail segment
grows to less than half this number, or about
US$150mn, by 2012. This corresponds to a 5%
penetration in the Grade 6 and above, or about
500,000 students. This implies the largest company’s
revenue in e-learning, five years out, would be limited
to US$30-50mn, depending on levels of consolidation.

Clearly, e-learning is interesting, but very much a market of the

future. It seems that India is moving from Gurukul to Macaulay’s
education system to the world of E – Learning.

xxviii
  Size of Indian E-learning Industry and Growth Potential

The current Indian e-learning industry landscape looks something

like this –

 Indian e-learning industry employs about 11,000

people and total revenue is estimated at $316 million
 Domestic e-learning industry is about 10% of the total
industry size and stands at around $30 million
 Indian e-learning industry had been experiencing a
healthy CAGR of approximately 30% over last 5 years.

To estimate growth potential and growth rates the following

questions are considered –

 What is the current maturity level of Indian e-learning

industry?
 What is the global e-learning market size, and what’s
India’s share in the same?
 What are the growth opportunities in Indian market?
 How does e-learning industry numbers compare with
more established ‘Software & Related Services’ industry
numbers?

To get answer to our first question, we looked at size of different

e-learning organizations. Findings are summarized in the chart
below -

xxix
 Chart 1.1

We now have over 30 organizations with 100+ employees, and

there is also a significant activity happening at entry level. We
thus have the foundation laid, but as we will see from numbers
below, there is lot of work that needs to be done – we quickly
need to move up the value chain, and we need to further
strengthen the talent base to capitalize the potential.

Let’s also look at a comparison between e-learning and ‘Software

& Related Services’ industry segments that can help to estimate
growth possibilities –

Table 1.1

Since all the factors that have worked in favour of ‘Software &
Related Services’ industry (abundant talent, cost arbitrage,
process maturity, adherence to standards, government support,
and growing domestic market) are in place or are getting in

xxx
place

xxxi
for e-learning industry as well. In next decade or so, Indian e-
learning industry would carve out similar presence in global
market as achieved by ‘Software and Related Services’ sector.

Based on above comparison table and analysis of industry trends,

the following would happen over next 4-5 years –

1. Organizations that have achieved certain scale would go

in for more and more direct presence in geographies
which are big e-learning consumers. These organizations
can be expected to grow at CAGR of 30 – 40% or more.
2. On domestic front, India is increasingly getting close to
the tipping point and it will experience aggressive growth
for coming few years.
3. Now that Indian corporate sector has realized benefits of
e-learning, it can be expected to grow at 80-100% on
yearly basis for next 5 years.
4. With renewed thrust on education and skill development
by Government of India and role of technology being
imperative in realizing the goals being set, there are
endless opportunities that are opening up in this sector.
The scope is so wide that one would not even hazard a
guess on what can be the growth percentages over here.

xxxii
3.2 Company Profile

 About eAge

eAge Software Services is a technology start up and our

mission is to develop online solutions in education and virtual
meeting space, using advance technology of global standards.
With presence in India and Singapore, eAge owns and
supports the complete customer cycle, from conceptualization
to implementation.

 Vision of the Company

To be the best-in-class portal to serve knowledge,

infotainment and professional needs of GenX and to be a
provider of technology solutions and services to address the
training and development needs of existing education
providers and corporates.

 Business Model

xxxiii
 eAge products, like all e-services, will be available on
subscription to users. For companies using eAge platform for
delivery of their own services to their clients, eAge offers
product R&D services, on a turnkey basis, revenue-share
and/or IP share basis.

 Products

eAge has a range of ready and under development products,

including Gurumantra – a virtual classroom coaching that
provides any time – anywhere post-class mentoring, as per
user requirement. It facilitates a collaborative learning
environment in a cost efficient manner and also provides a
unique blend of mix & match of study groups and 1:1 student
time with coaches and teachers. Question banks, practice
papers and expert advice for parents and students are just
some of the services available in this feature rich product.

 Services

eAge offers services in virtual training space for educational

institutions and corporates. This includes content digitization,
automation of school management processes and delivery of
education to remote locations. eAge will create services and
facilitate existing service providers in creating new revenue
opportunities.

xxxiv
 Corporate

Information eAge

Founder

Chander K. Madan – CEO and founder of eAge, he has over

23 years’ experience in General Management, Finance,
Business and Operations, in reputed US and Indian
organizations such as Hewlett-Packard and NIIT. In his last
assignment at HP, as Vice President and General Manager for
Commercial Systems unit, he built, managed and led
significant Business Units for the Personal Systems Group in
Asia Pacific and Japan. In this role, he was responsible for
the overall business performance of the HP Business PC,
workstations and remote client solutions product lines. He
was instrumental in driving new business models like remote
client solutions and thin clients in the Asia Pacific region.

Prior to this, Chander served as VP Finance for Personal

Systems group – Asia Pacific and Japan for 5 years. As VP
finance, he was instrumental in helping to turn around the
PSG business at the time of merger to record profit levels and
growth well above market average. He also helped drive the
emerging market growth plans of China/India from inception
to reality. In the finance function he used the combination of
functional knowledge with passion for IT to improve
productivity andcost of operation.

Before that, Chander served as the Financial Controller of

HP's Imaging and Printing Systems' Asia-Pacific Operations.
Chander joined HP in 1990. During his initial years with HP,
xxxv
he held various positions with the finance team in HP
India

xxxvi
and was instrumental in setting up India-based finance team.
He moved to Hong Kong in 1996 and supported regional
finance activities for the medical business for an additional
two years

Chander holds a Bachelor of Commerce (Hons) from Delhi

University and a CFA Charter from the Institute of Chartered
Financial Analyst of India.

xxxvii
3.3 SWOT Analysis

 Strengths

➢ eAge is amongst the first Indian companies to build e-

solutions for the dissemination of coaching and tuition on the
net. Its strength lies in our understanding of the ground
realities and the gaps in this space.

➢ ‘Gurumantra’ is a student-centered customizable e-learning

product. This form of blended learning provides a
personalized and customized learning process that empowers
the learner to take charge of the way they learn, with total
control and flexibility

➢ Online tutoring is provided on a variety of subjects across all

kinds of curriculums.

➢ High-end technology is used for delivering e-learning content

to students with proper monitoring and feedback.

 Weaknesses

➢ The company still has a very low presence in the e-learning

market.

xxxviii
 ➢ Little emphasis has been given to marketing of product
‘Gurumantra’.

➢ Advertising and promotional activities are not substantial.

 Opportunities

➢ E-learning industry is still at a nascent stage thereby there is

a lot of growth potential

➢ Rural markets can be tapped as secondary and higher

education is quite insufficient in rural India.

➢ Research and development can be done to make the product

‘Gurumantra’ competitive in its existing market.

➢ A customized version of the product could be used for

training and development in corporates.

 Threats

➢ Awareness about online tutoring is low in India. Parents still

give preference to the traditional way of tutoring.

xxxix
➢ Stiff competition from competitors like Educomp, NIIT,
Tutorvista etc.

➢ Foreign players are also keen to exploit the untapped

potential in this sector.

xl
3.4 Major Competitors

 Educomp Solutions

Educomp Solutions, incorporated in 1994, has grown to become

one of the largest technology-driven innovative education
companies in India. With an employee base of over 3,000
professionals, Educomp currently serves approximately 6mn
learners and educators across India, USA and Singapore.
Educomp has 11 offices in India, 1 each in the US, Canada, Sri
Lanka and Singapore. The company has a sales presence in over
57 locations. Educomp works closely with schools to implement
innovative models to create and deliver content to enhance
student learning experience. The company went public on
January 13, 2006, with an Issue price of Rs125 per share and a
total Issue size of 40lakh shares.

Educomp is India's leading Kindergarten to class 12 (K-12)

Education Company and has, over the years, pioneered various
initiatives in the e-education space. Notable among them are the
'teacher-led' content system called SmartClass that has
dramatically improved learning effectiveness in classrooms,
development of India's largest K-12 content library, with over
15,000 modules of rich 3D content that is aligned to Indian as
well as international learning standards, India's first structured
pre-school learning system, Roots 2 Wings, online learning
initiatives like mathguru.com and pioneering Education
Process
xli
Outsourcing in India through the Learning Hour platform, which
has emerged as a benchmark for many similar initiatives.

Educomp has a track record of implementing large-scale Public-

Private-Partnership (PPP) projects. The company works closely
with various State and Central Government agencies, the IT and
HRD Ministries and the governments of other countries. These
educational programs also involve across-the-board education
infrastructure implementation, teacher training and content
development projects. The current client base of PPP projects is
over 6,000 schools including large projects from the governments
of Assam, Chattisgarh, Orissa, Karnataka, Uttar Pradesh, Tripura,
Gujarat, and West Bengal. Educomp today works with over
7,000 schools across India, the US and Singapore. In the US, the
company's presence is via its fully owned subsidiary, Edumatics
Corporation, based in Ventura, California.

xlii
 Everonn Systems

Everonn, incorporated in 1987, is one of the pioneers in computer

education at schools and colleges, and has partnered various state
governments to bridge the 'digital divide'. The company has set
up Virtual and Interactive Learning classroom networks across
India, delivering quality and affordable education. Everonn is a
fully integrated Knowledge Management, Education and
Training Company offering a range of services, including:

 Creating educational and training content that is globally

relevant,

 Designing and executing large learning initiatives, and

 Setting up the needed infrastructure for learning and training.

Everonn develops integrated content for the Indian and global

audience for schools, colleges, corporate and retail segments. It
sets up the Computer Lab infrastructure in schools and colleges,
and IT Education is imparted through well-trained Everonn
faculty. Everonn has experience in bringing management
programs from premier institutions like the IIMs, XLRI, IIT,
LIBA, MICS and MAHE to working professionals and students
all over the country through its well-developed and unique
platform that uses V-SAT technology.

xliii
 In FY2007, the company accessed the capital markets with an
IPO of Rs50cr.

 NIIT Limited

NIIT Limited is India’s largest IT training company and has the

largest network of centres (own and franchisee) across the
country. The company provides IT education and training to
students and professionals. Its training programmes cover the
entire spectrum of learners, from youngsters learning computers
for the first time, to students looking at pursuing IT as a career
option to professionals looking to upgrade their IT skills to keep
pace with the demands of a highly competitive working
environment.

NIIT’s business segments are fairly diverse and can be divided

as follows:

 Individual Learning Solutions (ILS) – NIIT is the

market leader in the Indian Retail IT training market,
recording Net Revenues of Rs247cr in FY2007. This
business is segregated into two parts – ‘Careers’ and
‘Non-careers’. In the ‘Careers’ segment, NIIT delivers IT
training to graduates and under-graduates who are
looking
xliv
 to make a career in IT. Its flagship program, GNIIT,
enables students to get up-to-date on the latest
technologies and skill sets in the industry.

In the ‘Non-careers’, or Re-skilling segment, NIIT trains

professionals currently working in the industry and
enables them to upgrade their skills to become more
relevant in line with market requirements. The company
trains over 5,00,000 learners each year, with an alumni
base exceeding 3mn. At the end of 9MFY2008, NIIT’s
ILS net revenues hit Rs234cr, clocking a strong yoy
growth of 30%.

 School Learning Solutions (SLS) - NIIT‘s SLS business

segment caters to the computer
education requirements of school children studying in
government and private schools in India.

There are 9,50,000 government schools and 50,000

private schools in the country catering to the education
requirements of over 200mn students. Hence, the market
size is fairly significant. In the government schools
segment, through a tendering process the company bids
for contracts and after securing a contract, it works with
the concerned state governments towards setting up the
infrastructure. NIIT also designs and develops the
courseware and textbooks in many Indian languages.
NIIT, at the end of 3QFY2008, was working with 3,828
government schools in its Government schools business.
On the other hand, the estimated market size for
private
xlv
 schools is 50,000 schools. At the end of December 2007,
NIIT served around 940 private schools. In 9MFY2008,
SLS net revenues hit Rs63cr.

 Corporate Learning Solutions (CLS) - NIIT provides

content development, learning management solutions and
training delivery services to its clients in its CLS
business. The company has a strong focus on the US,
which has further increased with the acquisition of
Element-K, a leading provider of learning solutions in
North America. Going ahead, spending on corporate
training is expected to rise by around 7% per annum until
2010 as per IDC, with training outsourcing expected to
grow by a considerably faster rate of nearly 25% per
annum over the same period. In 9MFY2008, the CLS
business clocked net revenues of Rs418cr, recording yoy
growth of 43%, aided by the acquisition of Element-K.
This business contributed the maximum to NIIT’s net
revenues.

xlvi
 Transwebtutors

TransWebTutors.com is the world leader with regard to online &

collaborative learning processes and learning enhancement and
educational services

Founded by a group of ex-IITians (Indian Institute Of

Technology), TransWebTutors.com has a team which is
unparalleled and the best. It comprises academicians, professors,
college teachers who have wide experience of teaching students,
assessing them, authoring books and setting standards in schools
and colleges across the world. Not only they form our core team
but are actively involved in mentoring and counseling students
all around the globe. In a couple of years we have evolved and
devised the formula for successful online tutoring. This makes us
unique and outstanding in performance. As soon as your ward
starts working with us, you will feel that special touch and care
which he needs from an educational institute and personalized
attention that almost most educational institutes are negligent of.
We encourage students to take responsibility for their own
development. We concentrate on the child's overall development
and growth rather than just spoon feeding the student for money.
All our tutors are trained in our methodology and pattern of
online tutoring which is to guide the student through the
problems. We never believe in solving problems for them, rather
we make them do the problems themselves. We make parents a
part of this process and involve them simultaneously with the
child. We provide recorded sessions to the parents so that they
are informed of their wards progress. We provide you the

xlvii
option of

xlviii
 changing a tutor if you are unhappy with his/her method of
teaching. Our study methodology revolves around the initial
assessment of the student's caliber, preparation of customized
study plan, periodic tests and regular feedback regarding the
progress to the parent. We at TransWebTutors.com understand
that every student has a different requirement and we prepare our
study plan keeping in mind the pace and the level at which the
student will understand the most. All the E-Instructors working
with TransWebTutors.com are highly qualified, experienced,
trained and certified and understand the cultural knowledge,
accent and course curriculum of different countries we cater to.
All of them undergo a background check to make sure that all our
students study in a volatile, safe and secure environment and that
we deliver what we promise.

Our methodology has helped the process of learning evolve a

step further. We offer

 24X7 tutor availability

 Well qualified, experienced and certified online tutors to
handle all your tricky problems
 Live one to one help through voice, text chat and virtual
whiteboard
 Skill assessment test and customization of
course according to your need
 K- 12 and college level help and exam preparation in
Math, Physics, Chemistry, Biology, General Science

xlix
 CHAPTER-4

CONCEPTUAL DISCUSSION

l
 What is E-learning?

Markus (2008) defines e-learning as follows:

“E-learning is a learning process created by interaction with

digitally delivered content, network-based services and tutoring
support. This definition focuses on the revolutionary impact of
network-enabled technology. Adding more details on
methodology: e-learning is any technologically mediated learning
using computers whether from a distance or in face to face
classroom setting (computer assisted learning), it is a shift from
traditional education or training to ICT-based personalized,
flexible, individual, self-organized, collaborative learning based
on a community of learners, teachers, facilitators, experts.”

Central in this definition are two aspects of e-learning:

 E-learning as computer assisted learning, and

 E-learning as pedagogy for student-centered
and collaborative learning.

These aspects in fact summarize the development of e-learning in

time. Early development in e-learning focused on computer
assisted learning, where part or all of the learning content is
delivered digitally. More recently the pedagogical dimension of
e-learning has become prominent.

li
 Types of E-learning

E-learning is emerging as a solution for delivering online, hybrid,

and synchronous learning regardless of physical location, time of
day, or choice of digital reception/distribution device.

E-learning programs are implemented in the following ways:

 The virtual classroom

This model of e-learning continues to be the most familiar

analogue for building e-learning programs. The intention of
virtual classrooms is to extend the structure and services that
accompany formal education programs from the campus or
learning center to learners, wherever they are located. The
virtual classroom is for learners who may be pursuing a
distance education degree made up entirely of online lessons,
and it may include campus-based courses, where students
join in from a variety of on- and off-campus locations—in a
real- time class session via the Internet.

 Online learning

lii
 This model of e-learning revolves around its dependence on
courseware, delivered over the Internet to learners at a variety
of locations where the primary interaction between the
learner and the experiences of their learning occur via
Networked Computer Technology.

 Rapid e-learning

This is a direct response to e-learning products that made it

hard for nontechnical subject matter experts and learners to
contribute and make use of multimedia learning content to
the knowledge base.

 Mobile learning

This type of learning builds on the availability of ubiquitous

networks and portable digital devices, including laptop
computers, PDAs, game consoles, MP3 players, and mobile
phones, and it takes advantage of place-independent
flexibility that comes from working away from the desktop.
Mobile learning provides the opportunity to connect informal
learning experiences that occur naturally throughout the day
with formal learning experiences. Common tools for
producing mobile learning content include Flash
Professional, Flash Media Server, and Flash Lite.

liii
 The Benefits and Drawbacks of e-Learning

The vast movement towards e-learning is clearly motivated by

the many benefits it offers. However much e-learning is praised
and innovated, computers will never completely eliminate human
instructors and other forms of educational delivery. What is
important is to know exactly what e-learning advantages exist
and when these outweigh the limitations of the medium.

Features Unique to e-Learning

Like no other training form, e-learning promises to provide a

single experience that accommodates the three distinct learning
styles of auditory learners, visual learners, and kinesthetic
learners. Other unique opportunities created by the advent and
development of e-learning are more efficient training of a
globally dispersed audience; and reduced publishing and
distribution costs as Web-based training becomes a standard.

liv
 E-learning also offers individualized instruction, which print
media cannot provide, and instructor-led courses allow clumsily
and at great cost. In conjunction with assessing needs, e-learning
can target specific needs. And by using learning style tests, e-
learning can locate and target individual learning preferences.

Additionally, synchronous e-learning is self-paced. Advanced

learners are allowed to speed through or bypass instruction that is
redundant while novices slow their own progress through
content, eliminating frustration with themselves, their fellow
learners, and the course.

In these ways, e-learning is inclusive of a maximum number of

participants with a maximum range of learning styles,
preferences, and needs.

Advantages of e-Learning to the Trainer or Organization

Some of the most outstanding advantages to the trainer

or organization are:

 Reduced overall cost is the single most influential factor in

adopting e-learning. The elimination of costs associated with
instructor's salaries, meeting room rentals, and student travel,
lodging, and meals are directly quantifiable. The reduction of
time spent away from the job by employees may be the most
positive offshoot.
 Learning times reduced, an average of 40 to 60 percent, as
found by Brandon Hall (Web-based Training Cookbook,
1997, p. 108).

lv
 Increased retention and application to the job averages an
increase of 25 percent over traditional methods, according to
an independent study by J.D. Fletcher (Multimedia Review,
Spring 1991, pp.33-42).
 Consistent delivery of content is possible with asynchronous,
self-paced e-learning.
 Expert knowledge is communicated, but more importantly
captured, with good e-learning and knowledge management
systems.
 Proof of completion and certification, essential elements of
training initiatives, can be automated.

Advantages to the Learner

Along with the increased retention, reduced learning time, and

other aforementioned benefits to students, particular advantages
of e-learning include:

 On-demand availability enables students to complete training

conveniently at off-hours or from home.
 Self-pacing for slow or quick learners reduces stress and
increases satisfaction.
 Interactivity engages users, pushing them rather than pulling
them through training.
 Confidence that refresher or quick reference materials are
available reduces burden of responsibility of mastery.

Disadvantages to the Trainer or Organization

e-learning is not, however, the be all and end all to every training
need. It does have limitations, among them:

lvi
  Up-front investment required of an e-learning solution is
larger due to development costs. Budgets and cash flows will
need to be negotiated.
 Technology issues that play a factor include whether the
existing technology infrastructure can accomplish the training
goals, whether additional tech expenditures can be justified,
and whether compatibility of all software and hardware can
be achieved.
 Inappropriate content for e-learning may exist according to
some experts, though are limited in number. Even the
acquisition of skills that involve complex physical/motor or
emotional components (for example, juggling or mediation)
can be augmented with e-learning.
 Cultural acceptance is an issue in organizations where
student demographics and psychographics may predispose
them against using computers at all, let alone for e-learning.

Disadvantages to the Learner

The ways in which e-learning may not excel over other training
include:

 Technology issues of the learners are most commonly

technophobia and unavailability of required technologies.
 Portability of training has become a strength of e-learning
with the proliferation of network linking points, notebook
computers, PDAs, and mobile phones, but still does not rival
that of printed workbooks or reference material.
 Reduced social and cultural interaction can be a drawback.
The impersonality, suppression of communication

lvii
 mechanisms such as body language, and elimination of peer-
to-peer learning that are part of this potential disadvantage
are lessening with advances in communications technologies.

Do the Benefits Outweigh the Drawbacks?

The pro's and con's of e-learning vary depending on program

goals, target audience and organizational infrastructure and
culture. But it is unarguable that e-learning is rapidly growing as
form of training delivery and most are finding that the clear
benefits to e-learning will guarantee it a role in their overall
learning strategy.

lviii
 E-learning Technology and the
Infrastructure

The basis of e-learning is digital technology – computers and

computer networks. The Internet allows one to reach out across
town or across continents to deliver e-learning courses.
Broadband computer networks allow vast quantities of data to
be moved quickly and efficiently from computer to computer.
Advances in computer software and hardware allow new and
innovative approaches to teaching and learning. This can present
problems as some parts of the globe do not have broadband
Internet access and/or do not have dependable sources of
electricity to run their computers.

 Internet

When discussing e-learning technology, the Internet easily

comes to mind. There is a trend among the Internet
community to redesign the whole Internet system be one
gigantic e-learning system. In most cases, the Internet offers
the most efficient and cost effective method of conducting e-
learning. Beyond having the ability to interconnect computers
is the need to have the interconnection in such a way that e-
learning can be effectively and efficiently managed. Special
software for organizing e-learning (called platforms) can be
used to manage e-learning.

E-learning is, for the most part, dependent on the Internet.

Broadband Internet access is necessary to use most e-

lix
learning

lx
 objects other than text documents. This can still be a problem
in some parts of the world. E-learning is made simpler by the
use of Learning Management Systems (LMS) which can
create portals on the Internet through which students can
easily find and access learning objects. These systems, often
called e-learning platforms, are placed at the portals to allow
instructors and administrators to organize and deliver
educational courses.

 Learning management systems

E-learning platforms are software that organize and automate

many of the activities associated with e-learning. These
platforms can be organized in a variety of ways.E- learning
platforms offer users a structure that can be easily adapted to
multiple uses from augmentation of “brick and mortar”
education to stand-alone training exercises. They allow easy
organization of e-learning materials with relatively easy user
interaction. Students may use them to work on group
projects, take online quizzes and examinations, and turn in
assignments (Markus, 2006). They can allow students to
register for classes, pay for classes, and take classes all
online. They can allow educators to present learning
materials, monitor student activity and assess student learning
(Australian Flexible Learning Community 2002). The
platforms are commercially available (like WebCT,
Blackboard) or Open Source (Moodle, etc.).

lxi
 Initially learning management systems were dominated by
content, but over the last four to five years Web 2.0 features
were added to facilitate communication and collaborative
learning. Internet discussion boards and forums, chats, wikis
and blogs are common collaborative learning tools integrated
in the learning management systems.

Discussion boards can be used both formally and informally

in e-learning. Students are able to discuss their understanding
of topics with other students and with instructors outside of
the virtual classroom.

 (Multi-media) software for course development

There are literally thousands of software applications

available for building and managing e-learning courses. Most
of the conventional software applications used for learning
and business, such as word processors, slide presentation
software, video software and others can and have been
adapted to create material for e-learning courses. A plethora
of new software applications aimed directly at creating e-
learning courses and materials have also emerged. Companies
like Adobe, Articulate, imc AG, Lectora, RapideL and
SoftChalk, to name a few, make software specifically aimed
at developing e-learning applications.

The trend is towards open source and web-based learning.

Online applications, such as Google Earth, that focus on
geospatial information, are being designed for e-learning and
are being incorporated into e-learning exercises.

lxii
 Virtual libraries

Repositories of digital information (virtual libraries) can be

accessed to assist e-learning. Originally developed by
converting brick and mortar library records to electronic
form, they have expanded to include a vast array of digital
information and data. Specialized virtual libraries contain
electronic records specific to one or more related topics. FIG
maintains a virtual library of papers presented at FIG
workshops, annual working weeks and conferences.

Virtual libraries are indexed databases of electronic

educational materials. They are places where instructors,
researchers and students go to find electronic publications on
research, theory, history and other important aspects of a
particular theme. In cases where the learning material is not
in electronic form users may search and order or reserve
copies of the materials. Most academic and national libraries
have developed virtual capabilities where electronic copies
library resources may be downloaded. Virtual libraries can
contain digital copies of textbooks, audio, video, software,
datasets and other resources that can be quickly accessed by
people all over the world. Language will always be a barrier
to some but virtual libraries are being developed in most of
the World’s major languages.

In addition to traditional libraries being put online in

electronic format, new virtual libraries are being developed as
repositories of learning and other materials. In the United
States, as in many other countries, a national geospatial

lxiii
data

lxiv
clearing house has been established with links to various
local, state and national geospatial data including survey,
mapping, and GIS data. The sites are maintained primarily by
government agencies and provide a wealth of geospatial
information. These materials are being incorporated into
many e-learning courses.

Other new virtual libraries are being developed that are

repositories of e-learning materials. Structure on the IEEE
Learning Object model, they allow access to learning objects
and learning object metadata. These libraries consist of e-
learning objects that can be accessed and reassembled to
modify existing courses or to develop new courses.

Access to virtual libraries may be free to all, free to

subscribers or at some cost to subscribers. Subscribers may
pay either a set periodic access fee or pay individually for
each item they download. Good practices require that virtual
libraries contain metadata of the learning materials available
so that students and instructors can evaluate the usefulness of
those materials for a particular need. The accessing the data
need to know not only the content of the information and/or
data but also any special data formatting or other
characteristics that will allow them to evaluate whether they
have the necessary software to take full advantage of the
information and data.

The role of the virtual library can not be underestimated in e-

learning in academic settings. Students can access the virtual
library where and whenever they like; this is an advantage in
traditional, blended and complete online courses. In
particular
lxv
 e-learning courses focusing on participants from developing
countries, access to online library resources is of vital
importance and contributes highly to the success of these
courses.

 E-learning infrastructure

The learning infrastructure encompasses the culture,

processes, tools and other essences of learning. It is about
creating learning environments that can develop tools and
processes to improve teaching, lower costs, and provide
greater access to learning. To fully realize the potential for e-
learning, students, educators and administrators must re-think
the concepts of education. Students must become more self-
reliant and self-motivated. Educators and administrators must
become more innovative and flexible.

As the Internet easily reaches across international boundaries,

so does e-learning. E-learning has the ability to build capacity
for developing nations with agreements with institutions in
developed countries. Students in developing countries will be
able to receive at least a part of their education while working
or going to school within their home country.

Alliances formed among e-learning software developers have

the advantage of extending software use within the learning
community. Few developers or vendors can offer more than

lxvi
a

lxvii
 few of the components needed to build a complex e-learning
platform. Alliances allow vendors and developers to
incorporate more and more capabilities into these systems.

 End-to-end model for e-learning

The end-to-end principle states that operations should occur

at the end points of a system or as close to the end points as
possible. In e-learning this concept would apply when
knowledge is transferred from the instructor to the student.
Students can access learning objects through a software
platform that is located at a server site at the host University,
agency or company. The nature of the end-to-end model for
e- learning is such that the instructor and student are seeing
the same material, organization of material and sequencing of
material regardless of the distance between the two or the
computers that they are using.

To achieve and end-to-end business process, e-learning must

be scalable, adaptable, agile and must establish a brand. A
service-oriented, business driven approach is needed. The
focus should be on user needs. Educational organizations
must learn to build ever more complex and flexible
applications and products over time.

lxviii
 Current Trends in e-Learning

Given that e-learning is here to stay, we need to examine some

trends to help set the stage for 2004 and beyond. These trends
help us to understand why and how eLearning will continue to
become a driving force in business and industry, as well as in
the arenas of education.

Trend Number 1: e-Learning as a Business Strategy

Smart organisations know that e-learning is a strategic solution

that must be deployed throughout their organisation. It is no
longer a question of “if,” but “when.” e-learning is becoming and
will continue to be a part of organisational infrastructure, similar
to mail packages and other suites of products used to increase
organisational productivity.

Organisations deploying e-learning for one set of business

reasons are finding it to be an integral part of their operating
strategy. Deployments of enterprise-wide eLearning are used for
increasing sales effectiveness, improving organisational
competency, and building richer customer relationships.

Trend Number 2: Integrated e-Learning Suites

The e-learning universe is large and diverse, consisting of three

major categories: content, technology, and services. In many
cases, a comprehensive e-learning solution consists of
components of each, integrated into eLearning "suites" aimed
at

lxix
solving a particular business problem, such as sales or product
training.

Relative to content, think of the vertical areas where you would

apply content, such as business skills, technical skills, soft skills,
and specific areas related to various functions in your
organisation. Also consider what format you can best deliver the
information whether it is simulations, games, mentoring, or
various other methods.

In the area of technology, you need to think of your needs today

and tomorrow for learning management, content management,
knowledge management, content distribution, competency
management, collaboration, assessments, reporting, workflow
and localisation.

In the area of services you may need to think about change

management, customisation, strategic deployment, project
management, and other areas related to the successful
implementation and deployment of technology within your
organisation.

Trend Number 3: Blended Learning

An emerging trend in eLearning involves blended learning

programmes, designed to integrate eLearning with traditional
training methods to increase overall effectiveness. No longer is
one delivery method alone sufficient to handle enterprise-wide
training needs. The construction of true blended learning
programmes moves learning itself into a new age.

Blended learning preserves the necessary consideration of how

people learn, offers options for learning, improves
learner
lxx
retention, increases completion rates for learning programmes,
and has been shown to produce measurable savings in learning
offerings.

Trend Number 4: From Discrete to Integrated Learning

If there is a trend towards blended learning, there is also a trend

towards a seamless transition from one learning activity to
another. Instead of point learning activities that stand alone, such
as a physical classroom training session, or a Web-Based
Training module, the trend is towards the integration of these
activities or delivery mechanisms.

Look for seamless transitions from live group activities to

individual exercises, from self-paced learning activities to live
and back again, from activities in smaller groups to activities in a
larger learning community and back again. e-Learning makes this
possible with great ease!

Trend Number 5: The Disappearing LMS

A few years ago organisations looked to Learning Management

Systems (LMS) to solve their business problems. The LMS
strategy was a reasonable one, but one that involved a corporate
commitment in time, cost, resources, and energy that few
organisations could afford or be successful at. Learning
Management Systems were said to be able to "do it all" for the
internal workings of an organisation. The fact is that no one
product can do it all, and it is not reasonable to assume one
would be able to do so. True knowledge delivery solutions need
to work internally as well as internally. They need to connect
suppliers,
lxxi
business units within your organisation, and customers external
to your organisation. They need to work in a world that joins
your suppliers, your internal organisation and your customers in
such a way that the knowledge and information needed by
everyone in your supply chain is there for them when they need
it. The LMS is only part of any solution. The trend is to look at
the bigger picture of knowledge delivery solutions that address
enterprise- wide learning needs from the inside out.

In summary …

These 5 trends in e-learning are intended to provide you with a

framework to consider the e-learning needs of your organisation.
In the months and years to come, smart organisations will bring
together executive decision makers from all corners of their
company to understand the corporate needs for e-learning and
make purchase and buying decisions based on an understanding
of today's business needs and tomorrow's requirements for
growth and evolution.

Finally, think about how your organisation will handle the

change. Clearly, how your organisation will accept the new
paradigm of eLearning is key. Make sure you work with
suppliers who do more than just "drop the box at your door."
Only work with vendors who speak to you up front about the
changes your organisation may experience with e-learning and
how it can be managed. Remember, if your employees don't
know what to do with it, or can't or won't use it, even the best
product, technology, or service won't provide the returns you are
looking for.

lxxii
CHAPTER-5

ANALYSIS
&
INTERPRETATION

lxxiii
 Environmental Analysis (PEST Analysis)

 Political

From the use of satellite in the early 1970s to the present

interest in a dedicated satellite for education (EDUSAT),
India has considered education as a primary force for
development of the nation. The Union Budget 2010-11
announced a major allocation increment of 16 per cent for
school education from Rs 26,800 crore in 2009-10 to Rs
31,036 crore in 2010-11. This accounts for an increase of Rs
4,236 crore from the 2009-10 fiscal. In addition, states will
have access to Rs 3,675 crore for elementary education under
the 13th Finance Commission grant for 2010-11.

E-Learning Developments

The real impetus for e-learning came from the National Task
Force on Information Technology and Software Development
constituted by the Prime Minister of India in 1998. The Task
Force report presents the master plan that India has in place
as a long term policy for capacity building of institutions,
human resource development in IT related areas, and use of
ICTs in education.
The Indira Gandhi National Open University (IGNOU)
responded to the recommendations of the Task Force with its
Virtual Campus Initiatives (VCI) in 1999. Since then a
number of such initiatives are in operation in the country.
The
lxxiv
 number here is not that important; what is important is the
number of institutions that are considering the idea of going
online or are being chased by private agencies/technology
providers to start online operations.

 Economic

The Gross Domestic Product (GDP) in India expanded at

an annual rate of 8.80 percent in the last reported quarter.
From 2004 until 2010, India's average quarterly GDP
Growth was 8.37 percent reaching an historical high
of
10.10 percent in September of 2006 and a record low of
5.50 percent in December of 2004. India's diverse
economy encompasses traditional village farming,
modern agriculture, handicrafts, a wide range of modern
industries, and a multitude of services. Services are the
major source of economic growth, accounting for more
than half of India's output with less than one third of its
labor force. The economy has posted an average growth
rate of more than 7% in the decade since 1997, reducing
poverty by about 10 percentage points.

lxxv
 Chart 4.1

Beneath the good growth numbers, lies a harsh and

potentially lethal truth – the dismal condition of the
country’s education system. Even as young Indians today
are enjoying prosperity of an unprecedented magnitude,
leading to increased consumerism, buying everything
from FMCG products, consumer durables, cars, mobile
services to financial services, it is the sustainability of this
prosperity for future generations that is under a cloud.

A strong grassroots-level educational infrastructure,

which helps in the creation of a well-rounded human
resource base, is important to sustain strong GDP growth
rates going ahead. A resilient education system would
facilitate a steady supply of high quality personnel who
would join the workforce in future years. Thus, the
educational system acts as the creator of a strong pipeline
of talent, enabling sustainable and inclusive economic
growth.

 Social

lxxvi
 India’s middle class households continue to spend a
large part of its income to fund the education (with an
eye on quality) of its children.

Chart 4.2

Though virtual or online tutoring is still new in the

Indian society, it is slowly making its way in replacing
traditional way of private tutoring. With both the male
and female counterparts following a corporate work life
in metros such as Delhi, Bangalore and Mumbai, parents
have slowly begin to realize the benefits of online
tutoring where they can monitor the child’s progress
while sitting at a PC in their office.

 Technological

lxxvii
The story of the phenomenal growth of India's Mobile
Telecommunications Sector is well-known. However, in
complete contrast to the Mobile Telephony Sector is the
Broadband Sector. The growth of broadband internet
access connections (access speeds in excess of 256kbps)
has been pathetic, to say the least. The total number of
broadband subscribers at the end of July 2010 stood at
a mere 9.77mn, implying a broadband penetration of a
miserable and pitiable 0.74% in spite of 104 telecom
service providers providing broadband services.

This poor growth has been on account of a number of

reasons including the slow growth of personal computers
(PCs) in the country leading to low PC penetration,
greater affordability issues as compared with mobile
phones and the reluctance of state-owned telcos to un
bundle their last-mile access infrastructure and share it
with private telcos.

E-learning is heavily dependent on reliable high-speed

Internet coverage. As a pre-requisite to expansion of on-
line education services, it is essential that various parts
of the country be connected with high speed Internet. As
more and more cities in India are coming within the
ambit of high speed cyber-network, the concept of e-
education, especially at higher levels should be viewed
seriously. Most Indian Universities make little use of the
Internet in improving administrative efficiency.

lxxviii
 7P’s of ‘Gurumantra’

 Product

Gurumantra is online or eLearning which does not require a

physical classroom attendance. Through the Internet, online
tuitions are delivered to the user personally and effectively.
Gurumantra is dedicated in helping our students excel in their
subjects by providing tutorial classes at a convenient and best
place the Home. Gurumantra has ignited the education
revolution, making education easily accessible anytime,
anywhere, thereby providing a flexible learner support tool.
This form of blended learning provides a personalized and
customized learning process that empowers the learner to take
charge of the way they learn, with total control and flexibility.
Gurumantra is a one stop service for online coaching on a
variety of subjects across all kinds of curriculums.

Key Features of Gurumantra

 Gurumantra Platform enables an advanced

learning process through latest and simple to
use technology.

 Accessible Any Time, Anywhere-As required,

it's a Virtual Class room on your desktop.

 No Time constraints, accessible across all

time zones

lxxix
 No Location constraints, accessible across
all cities.

 Cost effective and affordable.

 Choice of group or individual sessions

 Access to a varied pool of best

experienced teachers.

 Option for the Parents to monitor and observe

the online sessions from any location.

 Online tutorials are recorded for future reference

 Option to re-play it as and when required

lxxx
  Price

Classes Offered and Fee Structure

Here is a summary of the classes that are available and the

fee structure.

Table 4.1

Subject VI VII VIII IX X XI XII

Accountancy - - - - - 25 250
0
Biology - - - 20 22 25 250
0 5 0
Biotechnolog - - - - - 25 250
y 0

Business - - - - - 25 250
Studies 0

Chemistry - - - 20 22 25 250
0 5 0
Compute - 20 20 20 22 25 250
r Science 0 0 0 5 0

Economics - - - 20 22 25 250
0 5 0
English 20 20 20 20 22 - -
0 0 0 0 5
English - - - - - 25 250
Elective 0

English Core - - - - - 25 250

0
French 35 35 35 35 40 45 500
0 0 0 0 0 0
Functiona - - - - - 25 250
l English 0

lxxiii
Hindi 20 20 20 20 22 25 250
0 0 0 0 5 0
History - 20 20 20 22 25 250
0 0 0 5 0
Mathematics 20 20 20 20 22 25 250
0 0 0 0 5 0
Physics - - - 20 22 25 250
0 5 0
Sanskrit - 20 20 20 22 25 250
0 0 0 5 0
Science 20 20 20 - - - -
0 0 0
Social 20 20 20 22 - - -
Science 0 0 0 5

Tamil 20 20 20 20 22 25 250
0 0 0 0 5 0

As the above table indicates, an hour of online tutoring for

any subject and any class ranges between Rs.200 to
Rs.250. Pricing strategy adopted by E-Age Software
Services is competitive keeping in mind the prices offered
by other players in the market.

lxxiv
 Place (Distribution Channel)

➢ Type of Distribution: Since the product

‘Gurumantra’ is Accessible Any Time, Anywhere-As
required, an intensive distribution is done and the
product can be made available to anyone who has a
PC and Internet connectivity. This includes people
from:

▪ Rural areas

▪ Metropolitan cities

▪ New and upcoming urban areas

➢ Channel Intermediaries: eAge is the only

intermediary involved in the distribution channel.
eAge facilitates the online tutoring session by
providing a Java platform to both the tutor as well as
the learner. Following diagram illustrates the same.

Online Tutor Online Learner

lxxv
 Promotion

Various promotional tools used by eAge include:

➢ Advertising – eAge advertises in all leading

newspapers such as The Times of India,
Hindustan Times, Dainik Jagran, Apna Akhbaar,
Rashtriya Swaroop, Amar Ujala, Rahat Times,
Janshakti Samachar etc.

➢ Sales Promotion- Various sales

promotion techniques used by eAge are:

▪ eAge offers attractive summer packages

to the students.

▪ eAge offers 1 Month Free Online Tuition

to the students.

▪ eAge sets up kiosks in schools during

various functions where kids can interact
and have fun by playing games and winning
eAge freebies.

lxxvi
➢ Personal Selling- eAge representatives travel to
various schools in different cities across India to
give presentations and demo about the product
‘Gurumantra’.

➢ Direct marketing- eAge online portal

www.eageyouth.com caters to all people who wish
to know and purchase the product. Online payment
facility is also available on the portal.

lxxvii
 People

Since the online tutor is the most important and critical to

the success of ‘Gurumantra’, he/she is assessed through
aptitude tests (technical and non-technical), behavioral
tests and several rounds of interviews conducted by the
top management of eAge.

This ensures that eAge provides the highest quality of

service to the e-learner.

 Process

The process of delivery of ‘Gurumantra’ has been kept

simple keeping in mind that the target audience is
between 10-17 years age group.

The process can be described as:

1. The user needs to go the website

www.eageyouth.com

2. The user needs to login with his/her username and

password.

3. The user needs to select the subject he/she wants

to study.

4. Java technology on the background does the rest

by providing an interactive session between the
online tutor available and the user.

 Physical Evidence

lxxviii
 eAge also ensures that the service being offered to the
customer (the student) is the best. Several facilities are
available to the student such recording of sessions, no
time constraints, choice of group sessions etc.

 Analysis of the Survey on

“Consumer Perception Towards E-
learning”

1. Respondent’s Age

Table 4.2

Respondent's age Number

18-27 years 76
27-38 years 9
38-47 years 13
over 47 years 2

lxxix
 Chart 2.3

Inference:
This can be depicted/ understood/ observed/ seen/ from
the pie-chart above that:
 76% people of the total population studied is of
the age group 18-27years.
 9% people of the total population studied is of the
age group 28-37 years.
 13% people of the total population studied is of
the age group 38-47 years.
 7% people of the total population studied is of
the age group 47 years and above.

Findings:

 As main emphasis of the survey was on students,

most no. of respondents is of the age group 18-27
years.

lxxx
 The rest included teachers and students from B-
schools and institutes who are using e-learning.

lxxxi
2. PC’s Ownership

Table 4.3

PC Ownership Number
Yes 95
No 5

Chart 4.4

Inference:

This can be understood from the pie-chart above that:

 95% people of the total population studied

have a personal computer in form of either
desktops or laptops.
 5% people of the total population studied did
not have a personal computer.

lxxxii
 Findings:
Since computer has become a basic necessity in urban
and metropolitan areas, PC ownership is high. Almost
every family has at least has a PC nowadays.

3. Situation of Internet access

Table 4.4

Access to Internet Number

Yes 98
No 2

Chart 4.5

Inference:

It can be studies from the pie chart above that:

 98% of the total population studied has an access
to internet on their personal computers.

lxxxiii
  2% of the total population studies did not have an
internet connection.

Individual's Level of computer skills Number

Low 16
Medium 45
High 39
Findings:

Most of the people have access to Internet from home that

makes it easy for them to study, work and collaborate.

4. Individual’s level of computer skills

Table 4.5

lxxxiv
 Chart 4.6

Inference:

It can be studies from the pie chart above that:

 80% of the total population studied has strong
knowledge about computer skills.
 62% of the total population studied has
medium knowledge about computer skills.
 4% of the total population studied has no or very
little knowledge about computer skills.
Findings:

Mostly respondents are well equipped with the

knowledge about usage of computer and internet but very
few are there who possess little of knowledge about the
same.

lxxxv
 5. Average time spent weekly over the Internet

Average time spent weekly on Internet Number

0-5h 7
5-10h 14
10-15h 42
15-20h 27
More than 20h 10
Tab
le 4.6

Chart 4.7

Inference:

lxxxvi
It can be studies from the pie chart above that:
 7% of the total population spends up to 5hrs.
on internet weekly.
 14 of the total population spend 5-10hrs.
on internet weekly.
 42% of the total population spends 10-15hrs.
on internet weekly.
 27% of the total population spends 10-15hrs
on internet weekly.
 10% of the total population spends more
than 20hrs on internet weekly.

Findings:

Average Internet usage by a respondent is 2-3h a day.

This indicates an individual spends a considerable
amount of time on the Internet for various purposes
(checking e-mails, social networking, blogging etc.).
This is a good indicator for growth prospects of e-
learning.

lxxxvii
6. Type of E-learning tools used

Table 4.7

Type of E-learning tools used Number

Instant messaging 92%
Training 35%
Video Conferencing 40%
Blogs 21%
Off-the shelf
courseware/libraries 27%
Virtual classrooms/Online
tutoring 23%
Online media sharing 42%
Social Networking 96%
Podcasting and webcasting 5%
Other 15%

Chart 4.8

Inference:
It can be studies from the pie chart above that:

lxxxvii
  92% of the total population studied prefers
studying through instant messaging.
 96% of the population studied prefers studying
though social networking for studying.
 42% of the total population studied prefers online
media sharing for studying.
 40% of the total population studied prefers video
conferencing for studying.
 35% of the total population studied prefers
training for studying.

Findings:

E-learning tools are being mostly used for instant

messaging and social networking. Corporates are using e-
learning tools for training and video conferencing. Only a
small section of people use e-learning tools for online
tutoring or virtual classroom coaching. This indicates that
online tutoring are good growth prospects in the area.

lxxxix
 7. Perception about link between IT and education

Table 4.8

Perception about link between IT and education Number

Strong 67
Moderate 18
Weak 15

Chart 4.9

Inference:

xc
It can be studies from the pie chart above that:
 67% of the total population studied feels that e
learning is a very useful tool and can help in day
to day activities.
 18% of the total population studied feels that e
learning is still a developing tool in the education
sector.
 15% of the total population studied feels that e
learning is of no use to them.

Findings:

Perception about e learning varies from people to people.

Many felt that e learning was a useful tool for gaining
knowledge when utilized properly where as others felt
that it still needs to be developed in comparison to the
traditional education system.

xci
 8. Preferences regarding teaching method

T
able 4.9

Preferences regarding teaching method Number

Combined 55
Traditional learning 16
Online learning 29

Chart 4.10

xcii
Inference:

It can be studies from the pie chart above that:

 55% of the total population studied feels that
combined learning method is more effective and
preferable.
 29% of the total population studied feels that
online learning is better option for them.
 16% of the total population studied feels that
traditional learning is better.

Findings:

Perception about e learning varies from people to people.

Many felt that having combined learning is more useful.
Though most of the respondents are still used to the
traditional form of tutoring, but the perspective is slowly
shifting towards online learning.

xciii
 9. Perception about online tutoring platform

Table 4.10

Perception about online tutoring platform Number

Easy and accessible 74
Hard, but can be managed 22
Not understandable 4

Chart 4.11

Inference:

It can be studies from the pie chart above that:

xciv
  74% of the total population studied could easily
access and take advantage of e learning platform.
 22% of the total population studied found it hard
but still managed to access the platform.
 4% of the total population studied could not
understand what they were to do and hence could
not access it at all.

Findings:

E learning platform is easily accessible if one knows how

to go about working on it. Most of the respondents could
easily work on it while very less no. of respondents found
it difficult to access. This indicates that e-learning
platform should be simple enough so that it can be used
by all.

xcv
 10. Problems in using e-learning

Table 4.11

Problems in using e-learning Number

Don't have a prompt feedback 40
Can't download the material 25
Too many steps 56
Difficult to find the required information 55
Problems with connection 65

xcvi
 Chart 4.12

Inference:

It can be studies from the pie chart above that:

 56% of the total population studied found the
platform too time consuming with too many steps.
 40% of the total population studied found the
platform time consuming as it did not give them a
prompt feedback to their query.
 27% of the total population studied was unable to
download the study material.
 55% of the total population studied had difficulty
in finding the required data.
 65% of the total population studied had hardware
or software problems.

Findings:

xcvii
E-learning is still facing infrastructure problems. E-
learning requires high speed Internet connection for
facilitating a session. Not everyone has a high-speed
Internet connection. Accessibility to platform is another
major concern. Some people also feel that it involves too
many complicated steps.

xcviii
CHAPTER-6

FINDINGS

xcix
 FINDINGS

The main findings of this research study are:

1. Since computer has become a basic necessity in urban and

metropolitan areas, PC ownership is high. Almost every family
has at least has a PC nowadays.

Also, most of the people have access to Internet from home that
makes it easy for them to study, work and collaborate.

This is positive for facilitating e-learning.

2. Mostly respondents are well equipped with the knowledge

about usage of computer and internet but very few are there
who possess little of knowledge about the same.

3. Average Internet usage by a respondent is 2-3h a day. This

indicates an individual spends a considerable amount of time
on the Internet for various purposes (checking e-mails, social
networking, blogging etc.). This is a good indicator for growth
prospects of e-learning.

4. E-learning tools are being mostly used for instant messaging

and social networking. Corporates are using e-learning tools for
training and video conferencing. Only a small section of people

c
 use e-learning tools for online tutoring or virtual classroom
coaching. This indicates that online tutoring are good growth
prospects in the area.

5. Perception about e learning varies from people to people. Many

felt that e learning was a useful tool for gaining knowledge
when utilized properly where as others felt that it still needs to
be developed in comparison to the traditional education system.

Many felt that having combined learning is more useful.

Though most of the respondents are still used to the traditional
form of tutoring, but the perspective is slowly shifting towards
online learning.

6. E learning platform is easily accessible if one knows how to go

about working on it. Most of the respondents could easily work
on it while very less no. of respondents found it difficult to
access. This indicates that e-learning platform should be simple
enough so that it can be used by all.

7. E-learning is still facing infrastructure problems. E-learning

requires high speed Internet connection for facilitating a
session. Not everyone has a high-speed Internet connection.
Accessibility to platform is another major concern. Some
people also feel that it involves too many complicated steps.

ci
 CHAPTER-7

RECOMMENDATIONS AND
CONCLUSION

cii
 RECOMMENDATIONS

After this research study, I would give the following recommendations:

 Gurumantra has great potential in the Indian e-learning market. A

major section of this market is untapped. However, brand
awareness needs to be created about the product so that people
would go ahead and try the service.

 Rural areas can be good market for Gurumantra since there are
inadequate facilities of education. eAge can link up with Govt.
bodies and NGO’s to initiate this.

 Target market can be extended to students of graduation and

post- graduation level.

 With increase in broadband penetration, Gurumantra will be able

to reach out to more people. The company should plan for its
promotion strategies in this direction.

 A customized version of Gurumantra can also be as online

training module for corporates.

ciii
 Gurumantra should also facilitate peer group learning so that
students can collaborate and exchange their notes etc.

civ
 CONCLUSION

With the strong growth expected in the Indian economy going ahead, it
is clear that human resources will be the key competitive advantage that
the country has to sustain this robust growth. Thus, a strong foundation
in the form of a robust education system will be the cornerstone to
leading India's growth over the next many years. With the Government
showing a clear willingness to engage the private sector in
accomplishing the daunting task of educating India's 13.5cr students,
there are thus significant opportunities to tap for an online tutoring
service like ‘GURUMANTRA’, both in the Government schools and
Private schools businesses. With burgeoning demand for skilled human
resources also in sectors like Financial Services, there exist significant
opportunities for growth in the Corporate Training business as well. We
remain positive on the Indian Education Sector and believe it is a multi-
year growth story that will play out over the next many years and thus,
are enthused about the growth prospects of companies serving this space.

cv
 BIBLIOGRAPHY

 Vajpayee,Bhavtosh; Joshi,Nimish :” CLSA Indian

Education- sector outlook”, CLSA Asia Pacific markets, 14th
March,2010

 Shah,Harit; Agrawal,Sulabh : “Education India”, Angel

Broking Limited, 5th June,2010

 Tutunea, M.; Rus, R.V; Toader,V. : “Traditional Education vs.

E-learning in the vision of Romanian business students”,
International Journal of Education and Information
Technologies, Issue 1, Volume 3, 2009

 http://www.gc-solutions.net/blog/?p=41, 15th July2010 12 Noon,

Manish Gupta,” Size of Indian e-learning industry and
Growth Potential”

 http://www.e-learningguru.com/articles/art1_3.htm, 1st
August2010 6 P.M, Kevin Kruse, “The Benefits and
Drawbacks of E-learning”

 http://www.trainingreference.co.uk/e_learning/elearning_trends.h
tm, 8th August 3P.M, Amy Finn, ”Trends in E-learning”

cvi
 ANNEXURE-I

QUESTIONAIRE:

Name:

Occupation:

1. Age of the respondent

2. PC ownership

a. Yes
b. No

3. Situation of Internet access

a. Yes
b. No

4. Mention which of these you could do without any help.

(multiple- choice)

a. Launch programs on your computer(e.g. Microsoft

Word, Internet Explorer, Windows Explorer)

b. Work with files and folders (copy, save, move, rename

, delete)
c. Use Copy-Paste options in applications
d. Use formulas in spreadsheet (e.g. Microsoft Excel)
e. Compress files (Arching/Extracting)
f. Use programming languages

5. Mention which of these operations on the Internet you could

do without any help. (multiple-choice)

a. Use search engines to find information (e.g.

Yahoo, Google)
b. Send email with attachments
c. Use Internet to make phone calls
d. Communicate with other people using chat, forum,
and newsgroup.

cvii
 e. Use local networks for exchanging
multimedia resources(torrents)
f. Create a Web page

6. Average time spent over the internet

a. 0-5hrs
b. 5-10 hrs
c. 10-15hrs
d. 15-20hrs
e. More than 20hrs

7. Which form of e learning method do you prefer?

a. Instant messaging
b. Training
c. Video Conferencing
d. Blogs
e. Off the shelf courseware/ libraries
f. Online media sharing
g. Social Networking
h. Podcasting/webcasting
i. Other

8. Respondent’s perception about link between IT and education

a. Strong
b. Moderate
c. Weak

9. Student’s perception about teaching method:

a. Combined
b. Traditional learning
c. Online learning

10. Student’s perception about online tutoring platform

a. Easy and accessible
b. Hard, but can be managed
c. Not understandable

11. Problems faced by respondents in using e learning?

a. Don’t have a prompt feedback
b. Can’t download the material
c. Too many steps involved
d. Difficult to find the required information

cviii
e. Problems with connection

cix