Aptech to tap IT training market in Philippines

MUMBAI: Indian IT education and training firm Aptech has entered into a joint venture with Philippines-based New Life Pharmaceuticals to tap the growing market for IT training in that country. Aptech will hold 40% in the venture and New Life Pharmaceuticals will hold 60%.

“Our goal is to expand rapidly overseas. The Philippines is a strong market for IT offshoring services. Demand for multimedia services is also strong. So as part of our expansion strategy, we are entering the Philippines market,” said Aptech CEO Ninad Karpe. He said foreign investment regulations did not permit non-Philippines companies to hold more than 40% in the education sector.

The Philippines is a hot destination for offshoring services after India. The two countries together account for about 50% of the business process outsourcing market, according to a study by the Everest Research Institute. It is second-largest low-cost destination after India. The country is extending its success in voice-based BPO services to non-voice functions as well, the same study found.

Apart from computer education and multimedia, Aptech will also introduce its three other retail brands in the area of English language training, networking and travel, tourism, hospitality and aviation management in the Philippines. Aptech currently gets about 22% of revenues from outside of India — primarily from Vietnam, Russia and Nigeria. It has a presence in about 35 countries.

"In countries we consider to be strategic growth markets, we have a presence through joint ventures. In other countries, we have a presence through franchisees," Mr Karpe said. Aptech’s overseas revenues do not include its Chinese operations, which are now part of a separate firm. Aptech holds a 22% stake in this firm. Shares of Aptech were down 6.7% on BSE to Rs 179.55 on Tuesday.