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©2015 Redseer Consulting

The need for higher education in today’s working professionals is significant. Online

higher education systems are not only a convenient mode, but also an effective mode to

acquire higher education; however this system still faces certain barriers. An in-depth

look into overcoming the barriers and succeeding in the market

Online higher education market in India

Challenges and overcoming them

CONTENTS

1. Motivating factors for higher education among working professionals ............................. 1

Key success factors of online education ......................................................................................... 2

2. Barriers to online higher education .................................................................................................. 2

3. Online vs. Offline education ................................................................................................................. 2

4. Overcoming the challenges in online higher education ........................................................... 3

1

India has one of the largest education systems in the

world of has a huge potential for future growth. While

India has a rich history of traditional (classroom)

education systems, the online education space is fast

catching up and beginning to change the dynamics of

the entire education system.

Online education covers a wide spectrum of courses

and curriculums from vocational courses, special

skills training to degree courses and higher education

courses. With the rise in the general education level in

India, there has been a significant rise in the need for

higher education as well. There are more than

18,000 institutes for higher education and a

significant part of the target audience are working

professionals.

Propensity to choose online education is highest

among management and technical degree seekers,

capturing nearly 80% of the market. About 58% opt

for online courses in the field of management with an

average course duration of 16-18months. Among

engineering graduates, technical courses such as

SAP, Oracle certifications, software languages and

analytics courses are popular.

1. Motivating factors for higher education

among working professionals

Factors affecting the need for a higher degree

Work environments in India are becoming highly

competitive and to progress and climb the corporate

ladder, professionals need to constantly upgrade their

skills and knowledge. About 50% of working

professionals pursue higher education to strengthen

the prospects of finding a new job. Gaining

specialised expertise and obtaining internal job

promotions are also important motivators.

Preference of online courses by course streams

2

Recent trends in this industry include courses in digital

marketing and Big data analytics. Professionals are

taking courses in the area of digital marketing in

order to cut into the rapidly growing e-commerce

industry and Big data analytics professionals are

constantly upgrading their knowledge through courses

and certifications in order to qualify for global

projects.

Key success factors of online education

The prime factor favouring online education is the

ability to obtain quality education from a branded

institute with the convenience of study timings.

Another significant aspect is the cost; most online

courses are less expensive than their full time

equivalents and the candidate can continue his/her

regular job as well.

2. Barriers to online higher education

Although online education is growing, it still faces

certain barriers in comparison to traditional face to

face classroom education. The biggest barrier for the

online higher education market is the higher market

acceptability of traditional courses. Close to 59% of

the motivation to take up face to face degrees is the

college brand related motivation.

Perception is also major driver in the choice of

education. Misleading perception in relation to less

effective learning systems and lower chances of

employability pushes students away from online

education. Nearly 41% of IT professionals do not

consider online degrees due to the perception of

lower employment opportunities.

In smaller cities and towns, low awareness levels and

low internet penetration levels act as barriers to the

growth of online education.

Reasons for not considering Online Education

3. Online vs. Offline education

Online and Offline education systems both have their

individual advantages and disadvantages. While

efficient doubt solving through face to face

interactions and more personalised attention are

reasons for choosing offline courses, online courses

provide the benefit of cost and convenience. The

selection criteria for both modes are mentioned

below.

Selection criteria for course delivery mode

3

4. Overcoming the challenges in online

higher education

With advancements in technology and higher

awareness levels, the online education medium can

definitely overcome most of its growth barriers. In

order to succeed online, players will need to focus on

the primary value proposition for education; online

programs will need to have a heavy focus on

developing quality course content, superior lecture

material, and an effective doubt clearing mechanism.

Players should also invest in interactive learning

systems and virtual classrooms which provide live

assistance for projects and discussions with peers and

faculty. Features such as 24*7 call/email support,

easy access to study material and mobile/tablet

compatibility of course material are also important for

the seamless integration of online education.

Brand associations with premier colleges still play

heavily on the perception of both employers and

employees. Tie ups with national government

universities should be considered by players in order

to bridge this perception gap. Nearly 45% of students

preferred to take courses from reputed national and

state universities.

Being in the initial stages, course providers should

take efforts at building awareness with both employers

and the target market. Collaborations with

organisations for support and acceptability of

programs will surely impact the online higher

education system positively.

In conclusion, given the huge market for higher

education, innovations in technology and the steadily

shifting mindsets of people, the online market for

higher education is surely progressing into the growth

phase

.

4

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Authors

Research & Analysis Niteesh Verma (Associate Consultant) Manu Gupta (Senior Research Analyst)

Content Editor Pavithra Babu (Content & Thought Leadership)