The IT-education sector has been a star performer on the bourses in calender year 2007. Each of three listed companies - Core Projects & Technologies, Educomp Solutions, and Everonn Systems have delivered returns in excess of 300%. See the chart below:
The sector offers immense potential. Consider the following points:
- India's Poor literacy rate: 67% (as of 2004-05)
- The employable population is set to account for close to 65% of the total population over the next 10-15 years
- More than 40% of the students drop out by eighth standard. Read this pdf on a survey on Primary education & the level of drop outs in Maharashtra.
- The ever-expanding share of the services sector in the overall GDP. Fast-growing sectors such as finance & banking, IT & ITES, insurance, engineering, organized retailing, etc. require employees with some form of formal education.
Total spend by the GoI on the education sector is set to cross Rs.1.25 lac crore in fiscal 2008. IT is expected to account for anywhere between 7-10% of this spend, resulting in an opportunity worth Rs.8,750 - 12,500 crore.
To know more about this sector and its concerns & prospects, refer to the following links:
- IT Education Sector - Learning to Grow
- Annual Status of Education Report 2006 (Rural)
- IT education stocks in the limelight
- Dr.Ajay Shah's observations on the Education sector (elementary)
- Sarva Shiksha Abhiyan
- Find a detailed note on the IT Education Sector & Prospects in Core Projects' AR 0607