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/Organizationii
Certificate from Guide..iii
Acknowledgement..iv
Executive Summaryv
List of Tables.vi
List of Chartsvii

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 Design26

Sample Size

Sample Population

Sampling Method

1.4.4 Duration of research27

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 CONCLUSION80

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)

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.
Indias 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
systems 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 Indias 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.

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 elearning to highlight the shift in consumers 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

1.1 Purpose of the Study

The purpose of the study is to get an overview of the Indian elearning 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
xii

questionnaire has been designed to collect the

primary data. Considering the purpose of this study,
nature of the investigated population and time
constraint, it was decided to use only close-ended
questions in the questionnaire.
The questionnaire contains 11 questions and was
structured for both teachers and students.

Interviewing: Employees of eAge were

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

Observation Method: Traffic analysis on eAge

portal.

Secondary Data Collection

For secondary data collection Internet, research studies,
newsgroups, magazines, journals, various reports, surveys,
etc. have been studied.

Quantitative - Education sector reports by CLSA

and Angel Broking

Qualitative- Case studies and research papers on elearning

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 June10 to 23rd June10)
Understood about the education industry, the
company eAge software services, its competitors
and also performed SWOT analysis.
Phase II ( 24th June10 to 30th June10) Decided
project objectives primary and secondary- on the
basis of the area of interest and planned and
designed the research methodology for the same.

xiv

 Phase III (1st July10 to 20-th July10) Visited

various colleges and institutes to conduct the survey
and gather information.
Phase IV (21st July10 to 30th July10) - Analyzed
the information gathered.
1.4.5 Limitations

For Primary Data:

1. Comprehension potential of the respondents is a
2.

major issue.
Time constraints may have led to biasness by the

3.

respondent.
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

CHAPTER-2

REVIEW OF LITERATURE

xvi

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 Indias
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 students 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
xvii

time spent reading, means that they actually think differently. The
technology of e-learning, because it resembles the media familiar
to younger learners, demands that they get actively involved in the
learning experience. The resulting shift is a change from receptive
learning to active learning.
The pressure of networked digital communications technology to
move learning from passive or receptive modes of learning to
active inquiring modes of learning is in opposition to the tendency
of formal schooling to convert dynamic knowledge into static
information. Schooling is often about learning facts and not
about learning about life or integrating all of ones 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-andforth 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.

xviii

CHAPTER-3

INDUSTRY AND COMPANY PROFILE

xix

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 Midday meal scheme would be provided Rs8,000cr and Rs4,554cr
would be allocated to secondary education. In the current FiveYear 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)

xx

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,

xxi

according to the report. Europe and Japan offer prospects for

growth, but they lag behind because of smaller markets.
Globalization could drive faster adoption in Asian market, which
experts predict will register an average annual growth rate ranging
between 25% and 30% through 2010.
The overall e-learning market at the global and regional levels is
expected to grow at rates ranging between 15% and 30%. The US
retains its dominance in the corporate eLearning market with a
share of over 60%. Europe is the second largest market with a
share of less than 15%.

xxii

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-learnings growth is linked to broadband penetration. By end2007, India had about 3mn broadband subscribers, and was adding
xxiii

0.25mn per quarter. At this rate, the Indian market would become
scalable for e-learning only after at least three-to-five years, when
the user base reaches 8-10mn. As of now, e-learning models are
likely to target the upper-most segment of Indias student
population. Is this meaningful? Recall that:

90mn children study in Indias 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 companys revenue in
e-learning, five years out, would be limited to US$3050mn, 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 Macaulays
education system to the world of E Learning.

xxiv

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 whats

Indias 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 elearning organizations. Findings are summarized in the chart below
-

xxv

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.
Lets 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
xxvi

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 elearning, 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.

xxvii

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

xxviii

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.

xxix

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
xxx

was instrumental in setting up India-based finance team. He

moved to Hong Kong in 1996 and supported regional finance
activities for the medical business for an additional two years
Chander holds a Bachelor of Commerce (Hons) from Delhi
University and a CFA Charter from the Institute of Chartered
Financial Analyst of India.

xxxi

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.

Advertising and promotional activities are not substantial.

xxxii

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.

xxxiii

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 preschool learning system, Roots 2 Wings, online learning initiatives
like mathguru.com and pioneering Education Process Outsourcing

xxxiv

in India through the Learning Hour platform, which has emerged

as a benchmark for many similar initiatives.
Educomp has a track record of implementing large-scale PublicPrivate-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.

xxxv

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.

xxxvi

NIIT Limited

NIIT Limited is Indias 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.
NIITs 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.

xxxvii

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

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

School Learning Solutions (SLS) - NIITs 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.

xxxviii

Corporate Learning Solutions (CLS) - NIIT provides

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

xxxix

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
xl

his/her method of teaching. Our study methodology revolves

around the initial assessment of the student's caliber, preparation of
customized study plan, periodic tests and regular feedback
regarding the progress to the parent. We at TransWebTutors.com
understand that every student has a different requirement and we
prepare our study plan keeping in mind the pace and the level at
which the student will understand the most. All the E-Instructors
working

with

TransWebTutors.com

are

highly

qualified,

experienced, trained and certified and understand the cultural

knowledge, accent and course curriculum of different countries we
cater to. All of them undergo a background check to make sure that
all our students study in a volatile, safe and secure environment
and that we deliver what we promise.
Our methodology has helped the process of learning evolve a step
further. We offer

24X7 tutor availability

Well qualified, experienced and certified online tutors to

handle all your tricky problems

Live one to one help through voice, text chat and virtual
whiteboard

Skill assessment test and customization of course according

to your need

K- 12 and college level help and exam preparation in Math,

Physics, Chemistry, Biology, General Science

xli

CHAPTER-4

CONCEPTUAL DISCUSSION

xlii

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 elearning has become prominent.

xliii

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 locationsin a realtime class session via the Internet.

Online learning

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

xliv

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.

xlv

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 Webbased training becomes a standard.
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

xlvi

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
independent study by J.D. Fletcher (Multimedia Review, Spring
1991, pp.33-42).
xlvii

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:

xlviii

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.

xlix

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.

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 elearning 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
li

objects other than text documents. This can still be a problem

in some parts of the world. E-learning is made simpler by the
use of Learning Management Systems (LMS) which can create
portals on the Internet through which students can easily find
and access learning objects. These systems, often called elearning 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
lii

learning. Internet discussion boards and forums, chats, wikis

and blogs are common collaborative learning tools integrated
in the learning management systems.
Discussion boards can be used both formally and informally in
e-learning. Students are able to discuss their understanding of
topics with other students and with instructors outside of the
virtual classroom.

(Multi-media) software for course development

There are literally thousands of software applications available
for building and managing e-learning courses. Most of the
conventional software applications used for learning and
business, such as word processors, slide presentation software,
video software and others can and have been adapted to create
material for e-learning courses. A plethora of new software
applications aimed directly at creating e-learning courses and
materials have also emerged. Companies like Adobe,
Articulate, imc AG, Lectora, RapideL and SoftChalk, to name a
few, make software specifically aimed at developing e-learning
applications.
The trend is towards open source and web-based learning.
Online applications, such as Google Earth, that focus on
geospatial information, are being designed for e-learning and
are being incorporated into e-learning exercises.

Virtual libraries
liii

Repositories of digital information (virtual libraries) can be

accessed to assist e-learning. Originally developed by
converting brick and mortar library records to electronic form,
they have expanded to include a vast array of digital
information and data. Specialized virtual libraries contain
electronic records specific to one or more related topics. FIG
maintains a virtual library of papers presented at FIG
workshops, annual working weeks and conferences.
Virtual libraries are indexed databases of electronic educational
materials. They are places where instructors, researchers and
students go to find electronic publications on research, theory,
history and other important aspects of a particular theme. In
cases where the learning material is not in electronic form users
may search and order or reserve copies of the materials. Most
academic and national libraries have developed virtual
capabilities where electronic copies library resources may be
downloaded. Virtual libraries can contain digital copies of
textbooks, audio, video, software, datasets and other resources
that can be quickly accessed by people all over the world.
Language will always be a barrier to some but virtual libraries
are being developed in most of the Worlds 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
liv

government agencies and provide a wealth of geospatial

information. These materials are being incorporated into many
e-learning courses.
Other new virtual libraries are being developed that are
repositories of e-learning materials. Structure on the IEEE
Learning Object model, they allow access to learning objects
and learning object metadata. These libraries consist of elearning 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 elearning 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.
lv

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 selfmotivated. 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

incorporate more and more capabilities into these systems.

lvi

to

End-to-end model for e-learning

The end-to-end principle states that operations should occur at
the end points of a system or as close to the end points as
possible. In e-learning this concept would apply when
knowledge is transferred from the instructor to the student.
Students can access learning objects through a software
platform that is located at a server site at the host University,
agency or company. The nature of the end-to-end model for elearning 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 serviceoriented, 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.

lvii

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.
lviii

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,

management,

and

other

strategic

areas

related

deployment,
to

the

project

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.
lix

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
lx

your supply chain is there for them when they need it. The LMS is
only part of any solution. The trend is to look at the bigger picture
of knowledge delivery solutions that address enterprise-wide
learning needs from the inside out.

In summary
These 5 trends in e-learning are intended to provide you with a
framework to consider the e-learning needs of your organisation.
In the months and years to come, smart organisations will bring
together executive decision makers from all corners of their
company to understand the corporate needs for e-learning and
make purchase and buying decisions based on an understanding of
today's business needs and tomorrow's requirements for growth
and evolution.
Finally, think about how your organisation will handle the change.
Clearly, how your organisation will accept the new paradigm of
eLearning is key. Make sure you work with suppliers who do more
than just "drop the box at your door." Only work with vendors who
speak to you up front about the changes your organisation may
experience with e-learning and how it can be managed. Remember,
if your employees don't know what to do with it, or can't or won't
use it, even the best product, technology, or service won't provide
the returns you are looking for.

lxi

CHAPTER-5

ANALYSIS
&
INTERPRETATION

lxii

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

lxiii

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

institutions that are considering the idea of going online or are
being chased by private agencies/technology providers to start
online operations.

Economic

The Gross Domestic Product (GDP) in India expanded at

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

lxiv

Chart 4.1

Beneath the good growth numbers, lies a harsh and

potentially lethal truth the dismal condition of the
countrys 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

lxv

Indias 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 childs progress while sitting
at a PC in their office.

Technological
The story of the phenomenal growth of India's Mobile
Telecommunications Sector is well-known. However, in
lxvi

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 lastmile 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 online 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.

lxvii

7Ps 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.

lxviii

Cost effective and affordable.

Choice of group or individual sessions

Access to a varied pool of best experienced

teachers.

Option for the Parents to monitor and observe the

online sessions from any location.

Online tutorials are recorded for future reference

Option to re-play it as and when required

lxix

 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

XI

XII

Accountancy

250

250

Biology

200

225

250

250

Biotechnolog
y

250

250

Business
Studies

250

250

Chemistry

200

225

250

250

Computer
Science

200

200

200

225

250

250

Economics

200

225

250

250

English

200

200

200

200

225

English
Elective

250

250

English Core

250

250

350

350

350

350

400

450

500

250

250

French
Functional
English

lxx

Hindi

200

200

200

200

225

250

250

200

200

200

225

250

250

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

History
Mathematics

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.

lxxi

 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

lxxii

Online Learner

 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.

lxxiii

 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
lxxiv

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. Respondents Age
Table 4.2

Respondent's age
18-27 years
27-38 years
38-47 years
over 47 years

Number
76
9
13
2

lxxv

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.

lxxvi

The rest included teachers and students from B-schools

and institutes who are using e-learning.

lxxvii

2. PCs Ownership
Table 4.3

PC Ownership
Yes
No

Number
95
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:

lxxviii

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
Yes
No

Number
98
2

Chart 4.5

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

98% of the total population studied has an access to

internet on their personal computers.

2% of the total population studies did not have an

internet connection.

lxxix

Findings:
Most of the people have access to Internet from home that

Individual's Level of computer skills

Number
Low
16
Medium
45
High
39
makes it easy for them to study, work and collaborate.
4. Individuals level of computer skills
Table 4.5

lxxx

Chart 4.6

Inference:

It can be studies from the pie chart above that:

80% of the total population studied has strong

knowledge about computer skills.

62% of the total population studied has medium

knowledge about computer skills.

4% of the total population studied has no or very

little knowledge about computer skills.

Findings:
Mostly respondents are well equipped with the knowledge
about usage of computer and internet but very few are there
who possess little of knowledge about the same.

lxxxi

5. Average time spent weekly over the Internet

Average time spent weekly on Internet
0-5h
5-10h
10-15h
15-20h
More than 20h
Table 4.6

Chart 4.7

Inference:
lxxxii

Number
7
14
42
27
10

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 emails, social networking, blogging etc.). This is a good
indicator for growth prospects of e-learning.

lxxxiii

6. Type of E-learning tools used

Table 4.7

Type of E-learning tools used

Instant messaging
Training
Video Conferencing
Blogs
Off-the shelf courseware/libraries
Virtual classrooms/Online
tutoring
Online media sharing
Social Networking
Podcasting and webcasting
Other
Chart 4.8

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

lxxxiv

Number
92%
35%
40%
21%
27%
23%
42%
96%
5%
15%

92% of the total population studied prefers studying

through instant messaging.

96% of the population studied prefers studying

though social networking for studying.

42% of the total population studied prefers online

media sharing for studying.

40% of the total population studied prefers video

conferencing for studying.

35% of the total population studied prefers training

for studying.

Findings:

E-learning tools are being mostly used for instant

messaging and social networking. Corporates are using elearning 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.

lxxxv

7. Perception about link between IT and education

Table 4.8

Perception about link between IT and education

Strong
Moderate
Weak

Chart 4.9

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

Number
67
18
15

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.

lxxxvii

8. Preferences regarding teaching method

Table 4.9

Preferences regarding teaching method

Combined
Traditional learning
Online learning

Chart 4.10

Inference:
lxxxviii

Number
55
16
29

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.

lxxxix

9. Perception about online tutoring platform

Table 4.10

Perception about online tutoring platform

Easy and accessible
Hard, but can be managed
Not understandable

Chart 4.11

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

xc

Number
74
22
4

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.

xci

10. Problems in using e-learning

Table 4.11

Problems in using e-learning

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

Number

Chart 4.12

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

40
25
56
55
65

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.

xciii

CHAPTER-6

FINDINGS

xciv

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.

xcv

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.

xcvi

CHAPTER-7
RECOMMENDATIONS AND
CONCLUSION

xcvii

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 NGOs to initiate this.

Target market can be extended to students of graduation and postgraduation 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.

xcviii

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.

xcix

BIBLIOGRAPHY

Vajpayee,Bhavtosh; Joshi,Nimish : CLSA Indian Educationsector 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. Elearning 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 Elearning
http://www.trainingreference.co.uk/e_learning/elearning_trends.ht
m, 8th August 3P.M, Amy Finn, Trends in E-learning

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. (multiplechoice)
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.
ci

e. Use local networks for exchanging multimedia

resources(torrents)
f. Create a Web page

6. Average time spent over the internet

a. 0-5hrs
b. 5-10 hrs
c. 10-15hrs
d. 15-20hrs
e. More than 20hrs
7. Which form of e learning method do you prefer?
a. Instant messaging
b. Training
c. Video Conferencing
d. Blogs
e. Off the shelf courseware/ libraries
f. Online media sharing
g. Social Networking
h. Podcasting/webcasting
i. Other
8. Respondents perception about link between IT and education
a. Strong
b. Moderate
c. Weak
9. Students perception about teaching method:
a. Combined
b. Traditional learning
c. Online learning
10. Students 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. Dont have a prompt feedback
b. Cant download the material
c. Too many steps involved
d. Difficult to find the required information
cii

e. Problems with connection

ciii