STG comes home to cash in on untapped IT training market

Kumarkaushalam in New Delhi

Slowdown is bringing the best of survival strategies to the information technology (IT) marketplace. The New Delhi-based Software Technology Group International Ltd (STG) seems to have honed in on one such strategy: it’s taking computer training beyond institutional premises to the homes of aspiring candidates.

Branded as ‘Dial a Trainer’ and targeted at first-time PC-users, the new service will be extended across the country by March 2002. Under the service, individuals can dial a toll number and get an instructor to teach them at their homes or offices.

The new initiative comes at a time when STG is confronted with the challenge of maintaining atleast a 10 per cent growth this fiscal against over 50 per cent a year growth for the last couple of years. STG posted revenues of Rs 59 crore in 2000-01 with software education and training accounting for 90 per cent of revenues and software development 10 per cent.

Says Dr Suresh Nanda, CEO, STG: ‘‘Dial a Trainer can change the whole picture for us. Its promise of providing computer literacy will attract a host of segments — youngsters, housewives, professionals and the elderly (who are reluctant to learn in schools) — who need elementary courses on Windows, MS Word, MS Excel, MS Powerpoint, e-mail and Internet.’’

Mr Nanda adds that besides bringing new customers, ‘Dial a Trainer’ would also lead to brand-building. ‘‘We would like STG to be a household brand,’’ he says.

STG plans to appoint 3,000 instructors — to be called Mobile Computer Trainers — under its ‘Dial a Trainer’ initiative. The company will recruit young computer-educated personnel, looking for self-employment generation scheme. The programme has been launched in Delhi a week ago and beginning with other metros, it will be rolled out nationally by March 2002.

Initially, half a dozen courses are on offer, with fee ranging between Rs 499 and Rs 2,999. These include: C++ (for class XII) scheduled to be taught in six sessions with each session of three hours; MS Excel two sessions (six hours); e-mail and Internet one session (three hours).

The ‘Dial a Trainer’ move is also aimed at strengthening STG’s existing franchisee institutes, whose revenues have come under pressure recently because of a slowdown in IT job-market. The company, which is primarily strong in northern India, hopes to target even regions where it has no franchisee support.

STG has a network of 300 training centres, including 13 company-owned, and over 1,500 instructors across the country. The company provides high-end training for corporates and individuals. Recently, it has started focusing on software development for sectors like banking, insurance and health care.

Besides ‘Dial a Trainer’, STG has also identified foreign markets as a new growth area. Says Dr Nanda: ‘‘We’re focusing on CIS countries, where hourly rates are much higher for high-end courses. We’ve plans to set up ten centres by March 2002. Initially, we’ll pursue the franchisee route, but we’re also considering the partnership model for our expansion.’’