With a strong tradition, a proven track record, a proliferation of human resources driven by knowledge and availability of quality education in the English language, India is soon to become the knowledge capital of the world. It is thus not surprising that with the kind of demographic profile this country has, with a large proportion of working and knowledgeable human capital, India is one of the most favoured outsourcing destinations.

The present decade has witnessed India graduating from gestation to its growth phase in the outsourcing sector. The BPO sector has grown to offer more specialised services with new independent streams such as Knowledge Process Outsourcing (KPO). From pharmaceuticals to R&D to engineering, KPO is what the industry is betting big on. Education Services Outsourcing (ESO) is the latest introduction in the KPO segment.

What is ESO?

ESO, a term coined by TutorsWithoutLimits (TWL), is the business of internet education and online tutoring. The model followed in this sector enables U.S. and U.K. students to outsource their homework and get tutored by Indian teachers and tutors. In fact, it provides a platform for communities of tutors and students to connect at mutually convenient times at very competitive prices.

This also enables tutors to earn in foreign currencies while sitting in India and leverage the most out of their knowledge/skills. With over 10,000 tutors registered with TWL and many to join the bandwagon, India is increasingly becoming the preferred destination for U.K. and U.S. students who have a need for improving their learning/education standards.

How does it work?

ESO services are based on latest Web 2.0 and VoIP technologies that once were predominantly used for chatting and networking. With the introduction of ESO, these latest technology innovations are now being used as tools for sharing knowledge and education. Through programmes such as Skype, Indian tutors are now tutoring foreign students using web as the medium. TWL has, in fact, developed customised tools such as Lesson Board using Web 2.0 interface to ensure one-on-one interaction between students and tutors sitting miles apart across different time zones.

The business model

Though ESO has many players operating various business models, the one-on-one tutoring is the ideal model to be practised. This ensures individual attention for the students and also allows the tutors to teach subjects they are comfortable with. Unlike other portals, the business model provided by TWL allows the teachers to set their own pricing in foreign currencies depending upon sessions, periodicity and complexity of the subjects. TWL keeps 15 per cent of the tutoring charge as service charge. Currently science, mathematics and humanities have a strong demand among foreign students.

The ESO industry in the U.S. is estimated at $20 billion and in India is increasingly growing with people gaining awareness on the subject. The steady growth of internet usage, particularly in the urban households, means the ability to get merged with the mainstream. For instance, in developed countries, buyers use internet more than traditional newspapers and magazine classified ads combined for their buying decisions. Around 25, 40 and 57 per cent of all new buyers used the Internet during their purchasing process in 1998, 2004 and 2005 respectively.

Statistics prove that the Indian customer too is rapidly adopting internet as the search media. The latest study by Internet And Mobile Association of India (IAMAI) says that e-mail and chat are no longer primary internet traffic drivers, but it's research and information that prompts people to log on to the net more often. A total of 32 per cent active users of the internet in India use it as their primary source for information and research in 2006, up from just 20 per cent in 2001, says the study.

With this backdrop, there is a huge potential for Indian tutors to leverage the growth in the ESO industry. According to Glynn Willet, founder, TutorsWithoutLimits, "E-commerce in India is set to jump 95 per cent from Rs. 11.8 billion to Rs. 23 billion in 2006-07 on a whopping Rs. 2.18 billion advertisement-spend. This is largely because India's current 38.5 million Internet users will shoot up to 100 million by 2007-08. The convenience and flexibility of the medium bring in a high degree of stickiness with its users. Also, with the robust growth in the telecommunication industry, Internet will definitely continue to boom in the years to come."

"The ESO market place has just now started and is estimated to be $50 million. In 10 years, we expect the ESO market to grow to be a billion-dollar market in the external arena (inter-State) and a $ 10 billion dollar market in the internal arena (intra-state). An example of an external ESO transaction is an Indian tutor teaching an American student. An internal ESO transaction would be a California teacher teaching a Florida student online."

ESO is all geared up to bring the best match between tutors and students over the web. It is not surprising that India again would lead the pack with its pool of high quality tutors and experts who are working towards the creation of global knowledge society.

R. CHANDRAKANTH

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