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

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

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

vi
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

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

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

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

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

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

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

ix
 CHAPTER-1

INTRODUCTION

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

xi
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.

Primary Data Collection

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

xii
 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 on e-

learning

1.4.3 Sample Design

1.4.3.1. Population

xiii
 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:

 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

xiv
 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.
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.

xv
xvi
 CHAPTER-2

REVIEW OF LITERATURE

xvii
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.

The experience of younger learners with television, video games and

computers, with a corresponding reduction in the amount of time

xviii
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.

xix
 CHAPTER-3

INDUSTRY AND COMPANY PROFILE

xx
3.1Industry 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)

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

xxii
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%.

xxiii
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.

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
xxiv
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.

xxv
 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 -

xxvi
 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 place for e-learning

xxvii
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.

xxviii
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

xxix
 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.

xxx
 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, he held
various positions with the finance team in HP India and was
instrumental in setting up India-based finance team. He moved to

xxxi
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.

xxxii
3.3SWOT 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.

 Little emphasis has been given to marketing of product

‘Gurumantra’.

xxxiii
 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.

 Stiff competition from competitors like Educomp, NIIT,

Tutorvista etc.

 Foreign players are also keen to exploit the untapped potential in

this sector.

xxxiv
3.4Major 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 Outsourcing in India through the Learning Hour
platform, which has emerged as a benchmark for many similar
initiatives.
xxxv
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.

xxxvi
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.

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

Rs50cr.

xxxvii
 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 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

xxxviii
 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 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.

xxxix
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.

xl
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 option of changing a tutor
if you are unhappy with his/her method of teaching. Our study

xli
 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

xlii
 CHAPTER-4

CONCEPTUAL DISCUSSION

xliii
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.

xliv
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

xlv
 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.

xlvi
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.

xlvii
 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).

 Increased retention and application to the job averages an

increase of 25 percent over traditional methods, according to an

xlviii
 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:

xlix
  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.

l
 Reduced social and cultural interaction can be a drawback. The
impersonality, suppression of communication 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.

li
 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-learning
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

lii
 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.).

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

liii
 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.

 Virtual libraries

Repositories of digital information (virtual libraries) can be

accessed to assist e-learning. Originally developed by converting
liv
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 data 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.

lv
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 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.

lvi
 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 a 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

lvii
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.

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

lix
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 retention,
increases completion rates for learning programmes, and has been
shown to produce measurable savings in learning offerings.

lx
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, 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

lxi
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.

lxii
CHAPTER-5

ANALYSIS
&
INTERPRETATION

lxiii
 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 number here is not
that important; what is important is the number of institutions that

lxiv
 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.

lxv
 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

lxvi
 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

lxvii
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.

lxviii
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

 No Location constraints, accessible across all cities.

 Cost effective and affordable.

lxix
 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

lxx
  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 - - - - - 250 250

Biology - - - 200 225 250 250

Biotechnology - - - - - 250 250

Business Studies - - - - - 250 250

Chemistry - - - 200 225 250 250

Computer - 200 200 200 225 250 250

Science

Economics - - - 200 225 250 250

English 200 200 200 200 225 - -

English Elective - - - - - 250 250

English Core - - - - - 250 250

French 350 350 350 350 400 450 500

Functional - - - - - 250 250

English

Hindi 200 200 200 200 225 250 250

lxxi
History - 200 200 200 225 250 250

Mathematics 200 200 200 200 225 250 250

Physics - - - 200 225 250 250

Sanskrit - 200 200 200 225 250 250

Science 200 200 200 - - - -

Social Science 200 200 200 225 - - -

Tamil 200 200 200 200 225 250 250

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.

lxxii
 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

lxxiii
 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.

 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.

lxxiv
 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

eAge also ensures that the service being offered to the

customer (the student) is the best. Several facilities are

lxxv
 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

lxxvi
 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.

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

lxxviii
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.
Findings:

lxxix
 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

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

Findings:

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

Individual's Level of computer skills Number

Low 16
Medium 45
High 39
4. Individual’s level of computer skills

Table 4.5

Chart 4.6

lxxxi
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.

lxxxii
 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
Table 4.6

Chart 4.7

Inference:

lxxxiii
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.

lxxxiv
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:
 92% of the total population studied prefers studying
through instant messaging.
lxxxv
  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.

lxxxvi
 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:

It can be studies from the pie chart above that:

lxxxvii
  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.

lxxxviii
 8. Preferences regarding teaching method

Table 4.9

Preferences regarding teaching method Number

Combined 55
Traditional learning 16
Online learning 29

Chart 4.10

Inference:

lxxxix
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.

xc
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:

xci
  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.

xcii
 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

Chart 4.12

Inference:

It can be studies from the pie chart above that:

xciii
  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:

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.

xciv
CHAPTER-6

FINDINGS

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

xcvi
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.

xcvii
 CHAPTER-7

RECOMMENDATIONS AND
CONCLUSION

xcviii
 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.

 Gurumantra should also facilitate peer group learning so that students

can collaborate and exchange their notes etc.

xcix
 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.

c
 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.htm,
8th August 3P.M, Amy Finn, ”Trends in E-learning”

ci
 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.
e. Use local networks for exchanging multimedia
resources(torrents)

cii
 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
e. Problems with connection

ciii
civ