E-learning market – online tutoring offers a bonanza

Online tutoring service provides one-on-one online tuition services to students, from K-12 to college. This is a very good example to realize that digital technology can bring any part of the world to your study room!

Online tutoring service providers employ and train tutors, and they in turn connect with students through online chat sessions or voice-over Internet call and teach using an interactive virtual whiteboard. Students can take this service from anywhere with just a computer connected to the Internet, and get online teaching lessons, homework help, focused exam preparation guidance, and even discuss subject-related problems. Besides tutoring for school students, there are several service providers, who cater to the high-end sector of R&D professionals, MNCs, lawyers, and even entrepreneurs.

According to a statistics published in financial express, worldwide market for online tutoring services is estimated to be in the region of $12 billion and India earns around $15 million per year, which is approximately 10% of the total market share. It also estimates that this industry is growing at the rate of 10-15% per annum.

Large number of English-speaking population and vast pool of qualified teachers at reduced labor cost makes it advantageous for India, win in this market. Indian service providers focus more on the international market and find it more profitable. This trend is yet to get familiarized in the domestic market.

Online tutoring companies are mushrooming to greater extent in India and estimates suggest that more than 100 players fill the space. Indian service providers mostly target the US students, since US represents more that half of the global online tutoring market. However, the Indian companies have also started to reach out students in other countries such as UK, Canada, China, West Asia, and Australia.

Tutorvista is a major player in the industry and they have around 100,000 registered users across the globe. This company has students from 13 countries, but most of its revenue is from the US market. Some companies like Educomp Solutions and TransTutors, have created a tie-up with U.S. e-tutoring firms and get work subcontracted from them. BSNL, the state-owned telecom firm in India, has also entered the market in 2009 and in partnership with Smartlinx has introduced the “Live tutor” service for students and tutors in India.

No doubt that this industry is growing and will continue to grow multifold with Internet and online-learning gaining popularity among younger generation!