NIIT to focus on corporate training
NIIT plans to focus more on the corporate training space, especially in the ‘targeted training’ area.
By Thanuja BM, TNN |
BANGALORE: NIIT plans to focus more on the corporate training space, especially in the ‘targeted training’ area. Incidentally, during the last fiscal, the corporate training segment overtook individual training as the company’s biggest segment earner and now accounts for about 60% of total revenues. "The three areas in the current work-related learning process are knowledge, skills and personality. NIIT has been in the first two areas for a while but the company’s new focus is personality building," said NIIT’s CEO Vijay Thadani.
This area requires continuous measurement and remedial actions, he said, adding that the company is working for several global corporations in the targeted training space. For instance, NIIT with Ford Motor has created a targeted profile for a Ford salesperson and uses a process called ‘Critical Mistakes Analysis’ to train people. Another big customer is retail giant Walmart for whom NIIT trains cashiers on being faster in response when people return items. According to Mr Thadani, NIIT has about 400 clients in India with whom they are doing targeted training, mostly in IT and customer service skills.
"These are smaller accounts compared to the global ones and we want to go after bigger deals," he adds. Meanwhile, the IT training major is looking to increase its physical capacity (read as centres) by 12% this fiscal. It currently has over 4,000 centres globally with about 800 of them outside India. Apart from India, the expansion will happen in Africa, Mexico, Central and South America, Mr Thadani said.
The company has three business segments — individual learning, institutional learning and corporate training. According to Mr Thadani, the company expects to see a growth rate of 30% plus in individual learning this fiscal, about 10-11% in institutional business and 11-12% in corporate training including the revenues of Element K, a UK-based company acquired last year.
In FY07, NIIT’s net revenues stood at Rs 795 crore while net profit stood at Rs 57.3 crore, a growth of 43%. In the first quarter of the current fiscal, NIIT recorded net revenues of Rs 225.4 crore, an increase of 104% over the same period last year while net profit was Rs 15.4 crore, a growth of 17%.
This area requires continuous measurement and remedial actions, he said, adding that the company is working for several global corporations in the targeted training space. For instance, NIIT with Ford Motor has created a targeted profile for a Ford salesperson and uses a process called ‘Critical Mistakes Analysis’ to train people. Another big customer is retail giant Walmart for whom NIIT trains cashiers on being faster in response when people return items. According to Mr Thadani, NIIT has about 400 clients in India with whom they are doing targeted training, mostly in IT and customer service skills.
"These are smaller accounts compared to the global ones and we want to go after bigger deals," he adds. Meanwhile, the IT training major is looking to increase its physical capacity (read as centres) by 12% this fiscal. It currently has over 4,000 centres globally with about 800 of them outside India. Apart from India, the expansion will happen in Africa, Mexico, Central and South America, Mr Thadani said.
The company has three business segments — individual learning, institutional learning and corporate training. According to Mr Thadani, the company expects to see a growth rate of 30% plus in individual learning this fiscal, about 10-11% in institutional business and 11-12% in corporate training including the revenues of Element K, a UK-based company acquired last year.
In FY07, NIIT’s net revenues stood at Rs 795 crore while net profit stood at Rs 57.3 crore, a growth of 43%. In the first quarter of the current fiscal, NIIT recorded net revenues of Rs 225.4 crore, an increase of 104% over the same period last year while net profit was Rs 15.4 crore, a growth of 17%.
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