The business of education

According to Training magazine, nearly two-thirds of all corporate-training expenses involve accommodations and travel in getting to and from a training site. Traditional corporate-training firms still fill classrooms across the country and will likely continue to do so for many years to come. In fact, traditional classroom learning still commands almost 90 percent of the corporate-training market. However, recent trends show this changing throughout various industries in the near future. According to GartnerGroup, in the health industry, e-learning was zero percent of the market in 1999, vs. 10 percent in 2000, and is projected to be 15 percent in 2001. Within the education industry, e-learning was 10 percent in 1999 and 13 percent in 2000, and is projected to be 30 percent in 2001. In training programs at distribution companies, it was 7 percent in 1999, moving toward 30 percent in 2001. According to the International Data Corp., the total corporate-training market is $66 billion, and this will continue increasing at an unspectacular but steady rate of roughly 5 percent per year for the foreseeable future. The market for Web-based corporate training will increase from $2 billion today to $11.5 billion in 2003.