The Hindu Business Line : IT training cos look to establish footprint in Africa

Algeria, Ivory Coast, Ethiopia and Kenya are some of the developing countries in Africa that are on the radar of home-grown learning firms such as NIIT, Aptech and Karrox.

Robust demand for IT training coupled with strong growth rates in these countries (vis-À-vis Indian operations) and a favourable bias to the Indian education system are good enough reasons for these companies to spread their tentacles in Africa, according to Mr Pramod Khera, Chief Executive Officer and Managing Director of the Mumbai-based Aptech.

Mr Jitendra Nair, Chief Executive Officer of Karrox Technologies, is of the view that operations in Africa are at least 30 per cent more profitable than India. “There are only a handful of firms that offer IT learning courses there and so margins and profitability are much higher,” said Mr Nair. According to the roadmap outlined for 2011, the company sees itself being present in Ghana, Tanzania, Ethiopia and a few other countries, says Mr Nair.

However, Mr G. Raghavan, President, Global Individual Learning Services of NIIT, is of the view that it is purely the strong demand environment and not the pursuit of higher margins that is prompting companies to establish footprint in African countries. Barring South Africa, most African countries are in the first wave of adopting computer technology (for both private and public sector operations) and hence there is tremendous demand for IT skills, said Mr Raghavan.

“Prices are very competitive in Africa as the affordability factor is not very high, translating into slender margins. Demand is purely the driver,” he said. Moreover, for better job prospects outside of the continent, people realise the necessity of keeping abreast with basic IT training, said Mr Raghavan.

Indian IT firms keep their business model pretty simple. They tie up with local counterparts and run the business from the partners’ premises; the Indian firm provides training and software support, he said. This way, learning firms can refrain from making huge investments in capex.

Aptech is looking at setting up shop in French speaking countries (in Africa) such as Algeria, Ivory Coast or others by the current year end, said Mr Khera. “We enjoy capacity utilisation of about 80 per cent in Nigeria and hence are keen to invest in enhancing our presence there,” according to Mr Khera.

NIIT too will strengthen its presence in western Africa and also enter the French speaking regions there in the near future.