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Thursday, August 19, 1999

NIIT, Aptech admit they have underlying pact 

Prakash Chawla  
New Delhi, Aug 18: NIIT and Aptech, by far, the top two players in India's Rs 1,200-crore computer education industry, on Wednesday admitted they have an underlying agreement not to disclose which one of them is the country's number one training company.

The two companies, which claim over 55 per cent of the market share accounting for education revenues exceeding Rs 658 crore between them, do not divulge the vital information to media, market research or ranking agencies, spokespersons of both Aptech and Niit told UNI.

Unlike in the rest of the information industry where the employee turnover ratio is the highest among all the industries, Aptech and NIIT have also this arrangement of not poaching on each other's professionals.

Industry observers including the computer publishing houses like Cyber Media and Media Transasia agree that the top two companies have been following a kind of information censor which makes any ranking of training vendors meaningless. "What kind of ranking can we have ina market where the third player is way behind, making any comparison ridiculous," said a senior editor in one of the publishing houses regularly doing the surveys listing the ranking.

It is like Pepsi and Coke reaching an agreement and calling a marketing truce, editor of another IT journal said.

NIIT spokesman tried to justify the arrangement saying "perception is very important in this industry and the perception of any one of us being number one would severely damage the other".

Aptech spokesperson talked in a similar vein and admitted that even on the pricing package there is not too much of a difference. NIIT spokesman, on the other hand, insisted they compete fiercely "in all other respects".While the two companies do not disclose the figures, it is estimated that Aptech has more number of centres and students and NIIT grosses in more revenue. NIIT also has software development business combined in its total revenue whereas almost 100 per cent of Aptech's business comes from the trainingbusiness.

Besides the top two, other major vendors in IT training include Software Solutions Integrated, LCC Infotech, Tata Infotech, CMC, Indian Institute of Hardware Technology, First Computers, Pentafour Communications, Jetking, IIS Infotech, Boston Education, SQL Star and IBM Learning Services.

Barring "all other respects", Aptech and NIIT, by their own admission, have cut out a perfect duopoly for themselves in the multi-crore computer education industry.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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