Demand for English Language Services in India and China (April 2009)

1. Demand for English Language Services in India and China April 2009

2. Outline • Objectives & methodology 3 • Main findings – India 6 • Methodology 7 • Overview of the market 10 • The market among learners/potential learners 24 • The market among English language teachers 45 • The market among major employers 58 • Summary & Implications 68 • Main findings – China 73 • Methodology 74 • Overview of the market 77 • The market among learners/potential learners 92 • The market among English language teachers 113 • The market among major employers 125 • Summary & Implications 132

3. Objectives & methodology

4. Research objectives • Research required to provide quantitative data on market trends and developments in the demand for, and provision of, all kinds of English language services in India and China • And to up-date previous research conducted in the two markets in 2007 and 2008 • Specific questions that need answering include: • Who wants to learn English, and how does this market segment? • What are the key drivers of demand? • What kinds of English language services are required? • How much is currently being spent on these services and how is this forecast to change over the next 5-10 years? • In what way do perceptions of, and demand for, UK English compare with other kinds of English (eg American, indigenous variants)? • This will be used to inform strategic decision-making by UK EL providers in relation to: • Business opportunities in India and China • Recruitment of students for ELT in the UK

5. Meeting the objectives Quantitative research with adults/parents learners and potential learners Desk research Qualitative research with major employers Qualitative research with teachers

6. Main findings - India

7. Methodology - India • Qualitative research: • In-depth interviews, conducted face-to-face • Each interview up to 30 minutes long • 5 interviews with English language teachers, mix of schools/universities • 5 interviews with leading employers, HR Director level or equivalent, mix of national companies serving the domestic market only and those who are ‘going global’, range of sectors • Employers - Gugaon and Mumbai, 18 April – 2 May 2009 • Teachers – Delhi and Bangalore, 18 April – 2 May 2009 • NOTE: care must be taken in interpretation of these qualitative results due to the small number of interviews

8. Methodology – India - cont • Quantitative research: • Face-to-face interviews • Each interview up to 20 minutes long • 200 interviews, 50 each with adult learners, potential adult learners, parents of young learners and parents of potential young learners • Delhi and Bangalore, 17-24 April2009 • Comparisons also made with quantitative research conducted by IMRB in 2008 – ELT Audience Segments report: • Mix of self-completion with interviewer present, and face-to-face interviews (approx 60% self-completion) • 756 interviews with teachers/professors • 50 interviews with establishments • Report dated March 2008

9. Desk research sources - India • English Language Teaching Audience Segments in India & Sri Lanka and their Support Requirements, IMRB International, March 2008 (Previous research) • CLSA Asia-Pacific Markets Report 2008 (http://www.scribd.com/doc/5324806/CLSA-Indian-Education-Industry-Survey) • Angel Broking (www.angelbroking.com) • The Internet and Mobile Association of India (IAMAI) (www.iamai.in) • National Institute of Finance & Accounts (NIFA) (www.nifaindia.com) • IMRB International (www.imrbint.com) • The Associated Chambers of Commerce and Industry of India (ASSOCHAM) (www.assocham.org) • The Constitution of India (www.commonlii.org) • NIIT (www.niit.com) • BusinessWeek (www.businessweek.com)

10. Overview of the market - India

11. Large and growing market • India’s private sector education and training market is estimated to be worth US$40bn, with a potential 16% five year CAGR(CLSA Asia: Pacific report, 2008) • Of this, the adult market for ELT (aged 20+) is estimated to be worth around US$450m • CLSA - estimates 3.8m people paying average fee of US$120

12. Majority of English Learning population aged below 18 • Estimated 320m aged 5-17 (Census 2001 - projected to 2008) • 249m students (the English learning population) enrolled at primary, middle, secondary and higher educational levels (Department of Education)

13. Around 2.1 – 2.2 million English language teachers in India [1] Source: Department of Education, Government of India [2] IMRB International estimate based on primary survey

14. English forms a large proportion of vocational training • Vocational training in India accounted for US$1,365m, according to CLSA • And English training represents one-third of this figure Data Source: CLSA Asia-Pacific Markets (2008)

15. English becoming increasingly important • Service sector = 55% of India’s GDP (Angel Broking) • Industries like Information Technology (IT), Information Technology-enabled Services (ITeS), Hospitality, Tourism, Retail and Aviation in particular generate a large number of jobs which require competency and fluency in English • Eg Business Process Outsourcing (BPO) /IT/ITES sector alone expected to need approx 3.6m English speakers in 2010, implying 1.9m new jobs 2007 – 2010 (NIIT, 2008)

16. One of major drivers is growth in IT/ITES industry • Top five IT companies spending US$ 500 million a year on education and training for their employees • Many established large training campuses for this Data Source: NASSCOM

17. English language ability commands a premium • ‘Our results indicate a significantly high English skill premium in the labour market in terms of 2004 wages’ (Kapur & Chakraborty, Washington Univ in St Louis, 2008) • MNCs pay better than non MNCs, sometimes by over 50% and regard English skills as a pre-requisite (spokesperson for NIFA, 2008)

18. English – bridging India’s communication gap • 22 languages recognised by the Indian constitution. • Hindi is the ‘official’ language, but spoken by only 50% of the population (IMRB, 2008). • English is therefore key for internal communication: • Part of colonial legacy • Part of education system from school onwards (either as medium of instruction or second language, depending on State) • High social status • Second most widely read and spoken language in India after Hindi – 15% have speaking, writing and reading capabilities in English compared to 40% for Hindi (National Readership Survey)

19. Online becoming more popular but limited by internet availability • Indications that more popular for things like test preparation, tutoring in school curriculum etc • But only 50 million people in India have internet access (IAMAI, 2008)* • Rapid adoption of mobile based access to the internet may change this. • A special report in BusinessWeek in 2007 described how the Indian Cellular Association forecasts 200 million people will sign on to the internet with their mobile phones by 2010. * www.internetworldstats.com shows internet penetration in India at 7.1% in November 2008, and 81 million users

20. Some key players, other than British Council • British School of languages (BSL): • Founded 1975 • Over 1.6 million students trained in spoken English • A network of 30 study centres across the country • Caters to a broad audience - from those who do not know English to those who aim to hone their English speaking skills • Works in the corporate training sector – Ashok Leyland, Ranbaxy, American Express, U.N.O, Asian Paints are some of the clients • Course fees range from Rs 2500 to Rs 3000

21. Some key players - cont • Veta English language training institute (formerly known as Vivekananda Institute): • Founded 1981 • Over 2.2 million students trained in spoken English • A network of 200 study centres across the country • Some centres can accommodate more than 500 students • Veta offers a ‘Self tutor’ pack for those learners who cannot access one of its centres • Seven main programmes, including ‘Veta English Holiday’

22. Some key players - cont • Hero Mindmine Institute (HMIL): • Founded 2000 • Provide training and development services to multinational companies, Indian Blue Chip companies and the Government • Part of USD 4.2 bn Hero Group • Over 1.6 m students trained in spoken English • A network of 150 offices and learning centres across the country • A team of 200 professionals • Clients include IBM, American Express, Bharti Telecom and Convergys

23. Some of key players - cont • Inlingua • 300 language centres in 40 countries • Language centres are free to shape their training programs to suit the local market • Mix of private persons, employees of large and small companies, institutions and government offices have used their services • Course fees range from Rs 6500 to Rs 10000

24. The market among learners/potential learners - India

25. Personal development + improved career prospects = key reasons for learning English Which of these, if any, best describes your reasons for wanting to learn English/for wanting your child to learn English? Parents of current/ potential learners Adult learners/ potential learners All Top mentions Personal development Improved career prospects Many jobs now require employees to speak English General interest in learning English To meet new people/make to friends To communicate with friends in other countries Base: All respondents, India (202), adult learner/potential learner (102), parent of current/potential learner (100)

26. Increased propensity to learn, esp among young Do you think you/your child are more likely or less likely to learn English (outside school) than you were 6 months ago? Don’t know 2% Less likely No real difference compared to 6 months ago More likely Base: All respondents, India (202), parent of potential learner (50), parent of current learner (50), adult potential learner (52), adult learner (50)

27. Economic downturn main current barrier Which of these things, if any, have caused this change? Base: All who think their likelihood of learning English will decrease, India (14)

28. ELT schools most used method by adults Are you currently learning English / ever learnt English / in the next 2-3 years think you are likely to learn English in any of these ways? ELT school Online training course Personal teacher for one-to-one tuition Part of full time education course Training course provided by your company Adult education class Base: All respondents, India (202)

29. ELT school is preferred method for parents Is your child currently studying English in any of these ways? Would you like your child to study in any of these ways? Preferred for child/ren Child/ren currently use ELT school At school Personal teacher for one-to-one tuition Other kind of organisation Online training course None of these Base: All parents, India (100)

30. Group tuition most used and most preferred In which of these ways, if any, would you prefer (your child) to learn English / are you/your child currently using to learn English (outside school) ? Preferred Used by current learners Top mentions Group or classroom tuition One-to-one tuition ‘Teach Yourself’ guides – text book Online courses ‘Teach Yourself’ guides – audio/visual Base: Preferred - All respondents, India (202), Current – All adult learners/parents of current learner, India (100) )

31. High future demand for ELT, across all groups How likely is it that you/your child will (continue to) study English at an English language learning institute in the next 2-3 years? Don’t know Certain not to 1% Certain To Very unlikely Fairly unlikely Very likely Fairly likely Base: All respondents, India (202), parent of potential learner (50)

32. Very high level of interest in UK ELT institutes And, in the next 2-3 years, how likely is it that you/your child will study English at a UK English language learning institute, assuming one was based in your city? Don’t know 1% Fairly unlikely Certain to Fairly likely Very likely Base: All likely to study at an ELT Institute in the next 2-3 years, India (145)

33. Better quality teaching, credibility and UK English = key reasons Why do you say you/your child would study at a UK English language institute? Top mentions (71% of parents of current learners) Better quality teaching Will have more credibility with employers (56% of potential adult learners) Prefer to learn UK English Have heard good things about UK providers from others Have had a good experience in the past Have a generally positive Image of the UK Base: All likely to study at a UK ELT in the next 2-3 years, India (135), potential adult learner (36), parent of current learner (31)

34. Price and usefulness of UK English = barriers Why do you say you/your child would not study at a UK English language institute? Base: All unlikely to study at a UK ELT in the next 2-3 years, India (9)

35. Online learning – fairly high awareness but low usage Were you aware that it is possible to learn English online, that is using an online course provider? All Adult learner Yes No Don’t know Base: All currently not learning English via an online course, India (199),adult learner (48)

36. Less than half would consider online learning How likely are you to consider learning English online in the next 2-3 years/choosing an online English learning course for your child? Certain To Don’t know Very likely Certain not to Very unlikely Fairly likely Fairly unlikely Base: All not currently learning English via an online course, India (199), adult learner (48(, adult potential learner (52), parent of current learner (49), parent of potential learner (50)

37. Use of multimedia methods biggest draw Why do you say you/your child would study online? Top mentions Can use multimedia methods More flexible/convenient More cost-effective Environmentally better Can chat online with students and teachers Base: All likely to study online, India (96)

38. Main barrier is lack of speaking practice Why do you say you/your child would not study online? Top mentions Little/no opportunity to practice speaking Online English qualifications little credibility Don’t have access/easy access to the internet Concerns about security on internet The speed of the internet can be slow Software might not be compatible with my pc Base: All unlikely to study online, India (53)

39. Few employees offered ELT at work Does your company offer English language courses for employees? Don’t know 1% I am unemployed Yes 2% I am a student No Base: All current/potential adult learners, India (102)

40. Majority of all groups feel the type of English learnt is very important How important or unimportant to you is the type of English learnt? Not very important Fairly important Very important Base: All respondents, India (202)

41. International English most popular, except among current adult learners Which if any of these different types of English would you choose to learn/for your child to learn? International English Local form of English UK English US English Base: All respondents, India (202)

42. Divided opinions over local vs overseas materials When it comes to materials for English language learning, do you generally prefer those produced locally or by overseas organisations or do you have no preference? Don’t know No preference Locally Overseas Base: All respondents, India (202)

43. UK materials the same or better than others Do you think that materials produced by UK organisations for English language learning are generally better or worse than those from other overseas organisations or are they about the same? Don’t know Better About the same Base: All respondents, India (202)

44. Ease of use & quality are strengths Why do you say you materials from UK organisations are better? Clearer/easier to use Better quality/more reliable Prefer UK English UK materials have a better reputation Have a generally positive image of the UK Base: All who think materials from UK organisations are better, India (99)

45. The market among English language teachers* - India * These findings are based on just 5 qualitative interviews, so are indicative only

46. Teachers have little say in materials used “To make it more creative and interesting I pick out the boy or girl and they will read out in the class” • Public sector: decided by the university (eg Delhi University) or school boards (eg CBSE, ICSE etc) • Individual teachers have no say • Some do try to liven up lessons by adding their own things – but only limited in scope • More advanced techniques/audio visual aids etc only really used in private sector* “We make teaching aids and we give them projects like collecting more information” * Confirmed by IMRB 2008 report on ELT Audience Segments which found private sector use more advanced teaching methods than government schools

47. Old-fashioned approach to teaching • A number of key weaknesses identified: • Out of date materials & curriculum/need reviewing more frequently to keep up with changes in outside world • Teaching methods too traditional – chalk & board* – making lessons monotonous and boring • Too much emphasis on exams and not enough on real understanding and fluency “The curriculum should change every 3-4 years, if not every year” “Even in an English class, when the teacher speaks, the inability to follow, understand, comprehend, this constitutes about 70% of the students” “Even though they score good percentage marks in English, they are unable to write correctly and they are unable to express themselves in good English” * Confirmed by IMRB 2008 report on ELT Audience Segments, 81% use chalk & board, the top method

48. Materials need up-dating and tailoring • Need for regular review of curriculum and course materials: • Committee of experts (teachers, government officials, industry experts and external experts) to up-date materials regularly • More tailoring of materials to students of different abilities • More flexibility for teachers to add in extras to main course work “The needs are different. …we have students who have absolutely no foundation of English yet the whole book is not geared up to teach them, and we do have intelligent students…the text doesn’t reach them either, it’s somewhere in between, and so the standard just comes down automatically” “I think there should be collaboration with professionals”

49. More emphasis on real command of the language • Want more emphasis on the basics of the language at an early age • Exams and assessment to be a better reflection of a student’s true ability, rather than ability to learn by rote • More emphasis on practical application of the language “It is really tough to make them understand that they really need to learn the language in a very different way and not just to get marks” IMRB 2008 report on ELT Audience Segments showed fluency as a major area of concern for students, followed by grammar, reading habits and writing skills

50. And more use of interactive methods • More audio visual aids, PCs, internet, CDs, plays, quizzes called for: • Makes lessons more interesting and interactive • Richer learning experience • Increased involvement and motivation “That would probably help me teach better and encourage them to read more and more which is lacking in today’s generation”