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Indalytics global education insights - december 2012
1.
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Global G— I — Education Insights INDALYTICS ADVISORS DECEMBER 2012
2.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 C ONTENTS Africa Becoming an Attractive Destination................................................. 2 Increasing activity by Private Players.......................................................... 3 Collaboration in Education Space ............................................................... 3 New Courses and Institutes ........................................................................ 4 Increasing Funding and Deal Activity .......................................................... 5 New Education Regulations in the Middle East .......................................... 6 List of Institutions and Organizations ......................................................... 7 © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 1
3.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 A FRICA B ECOMING AN A TTRACTIVE D ESTINATION UAE based Global Education Management Systems Limited (GEMS) is planning to invest approximately US$650 million in emerging markets, including in Africa and the Middle East, by 2017. GEMS, which operates private schools in 10 countries, is planning to spread across 25 – 40 countries by 2017. GEMS entered Kenya with its first private school in 2012. The company has plans to rapidly expand in other African countries such as Ghana, Mozambique, South Africa, Tanzania and Uganda. Similarly in South Africa, Polokwane—based Northern Academy Independent Secondary School has been acquired by life assurer Old Mutual, South Africa’s biggest sovereign wealth fund PIC, and Johannesburg Stock Exchange listed education company Curro Holdings. The acquisition, worth ZAR150 million (US$17 million), is being seen as start of deals in South African education sector. Established in 1996, Northern Academy currently provides education to approximately 3,900 learners. African nations are also attracting investments in education from other parts of the globe. Several Indian institutes are planning to invest in African countries such as Nigeria. Private Indian educational players, such as Educomp, Edusoft, and Amity University are planning to provide education to approximately 4.7 million children of primary school, who do not attend school. As per UNICEF, approximately 40% of Nigerian children aged 6 — 11 do not attend any primary school. © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 2
4.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 I NCREASING ACTIVITY BY P RIVATE P LAYERS GEMS is also going to open a school in Switzerland. The 14,000-square-metre private school will be built overlooking the Geneva-Lausanne highway, at a cost of approximately SFR162 million (US$174 million), will be operated by GEMS. The school will start in 2013, and will teach approximately 1,000 students under International Baccalaureate. It will primarily cater to employees of multinational firms in the Lake Geneva region. In India, the All India Council for Technical Education (AICTE) has allowed private companies to start technical education institutions. As per AICTE, any company having turnover of at least INR 100 Crore (US$18.26 million) per year for previous 3 consecutive years, will be allowed to setup technical institutions — providing training in engineering and technology, pharmacy, architecture & town planning, and hotel management catering technology. The move is seen as an initiative to bridge the gap between demand and supply of technical labor in India. AICTE is the government body, responsible for providing technical education in India. C OLLABORATION IN E DUCATION S PACE London based outsourcing services provider, Capita Plc, has got a "preferred bidder" status on a GBP1.7 billion (US$2.8 billion) contract to run educational services in Staffordshire. The 20–year contract will be a joint venture between Capita and the local authority, where Capita will look after improvement and maintenance of schools, along with catering and introduction of other additional educational subjects. Capita will also invest GBP24.9 million (US$40.5 million) in the first year and a further GBP6.6 million (US$10.7 million) over the following three years, into the joint venture. In the US, distributor of digital and physical books and entertainment products, Baker & Taylor, is joining hands with the Penguin Group to introduce Penguin e–books into selected libraries across the country. Baker & Taylor, which already has a distribution network across libraries, will make Penguin's e–books to Los Angeles Public Library and Cuyahoga County Public Library — via its Axis 360 digital media library platform. © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 3
5.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 Abu Dhabi’s Tourism Development and Investment Company (TDIC) is partnering with UK based independent school, Cranleigh School, to open an elite campus on Saadiyat Island. The campus, which will be ready by third quarter of 2014, will be the largest school campus in Abu Dhabi, spread over seven hectares of land. It is expected to provide co-educational facilities to over 1,600 students in several subjects. In the UK, Microsoft, Intel and RM education have partnered for a program to provide hardware and software to government–funded schools across UK, at a discount. According to the partnership, the three companies will together provide a discount of up to 30% to the government schools. The move is seen as a step to leverage the increasing use of technology in education by schools and students. Irish Literacy support software, Texthelp Limited, has entered into a partnership with Chinese education resources and services company, China Education Alliance, Inc. Under the partnership, Texthelp will provide exclusive rights of its English learning software, English Hero to China Education Alliance. The software will be distributed among Schools and students across China, to help them learn English. Doha Academy of Tertiary Studies (DATS), Education Trust, Mauritius, has signed a Memorandum of Understanding (MoU) with the International Center for Chemical and Biological Sciences (ICCBS), Karachi University. The MoU is aimed at facilitating academic exchange and scientific cooperation between both the institutions. The institutes are expected to work collectively on several disciplines, such as marine, chemical and biological sciences. N EW C OURSES AND I NSTITUTES In Europe, The Isle of Man College of Further and Higher Education is expected to launch a new course in i–gaming. The postgraduate qualification will start from January 2013, and will help in providing skilled labor to gaming companies. The qualification will be delivered through a work–based higher education framework, which will be accredited by the University of Chester. © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 4
6.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 Malaysia is inviting foreign universities to setup their campuses in the country. The country has invited organizations, including foreign universities to setup campuses at the Pagoh Higher Education Hub (HPTP) — a 506 acre site in the Mukim of Jorak, Muar district, Johor. Malaysia is planning to make HPTP a higher education hub, with Universiti Tun Hussein Onn, the International Islamic University, Malaysia, the Universiti Teknologi Malaysia Research Centre and the Pagoh Polytechnic being setup in the first phase. London–based College of Law, has been approved by the British government, to be converted into country’s first for–profit university. The college will now be called University of Law. It is one of the largest professional law schools in the world, imparting education to more than 7,000 students each year on various undergraduate and postgraduate programs. Clearance for private educational institutions by the government is in lines to open the higher education sector to more competition. In order to qualify for the university title in Britain, private institutions should fulfill the prerequisites of growing to a credible size, and have degree-awarding powers. I NCREASING F UNDING AND D EAL A CTIVITY The most talked about deal was the sale of education unit of McGraw–Hill companies to Apollo Global Management LLC. The US$2.5 billion sale will help the new company migrate to a more subscription–based business model, which is expected to have more predictable revenues, and less manufacturing and inventory costs. US based BetterLesson, which offers a social network for teachers has received grant money of US$3.5 million from the Bill & Melinda Gates Foundation. The network offers a free site to teachers for uploading their lesson plans and curriculum, and a premium offering to schools and educational institutions, to create an intranet for teachers in a certain district. The website currently has approximately 160,000 teachers and 20 paying school networks. BetterLesson has over last three years, already raised US$2.7 million from angel investors and Venture Capital Firms. © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 5
7.
GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 University of Michigan spinoff — LectureTools — has been acquired by Virginia based innovative education company, Echo360. LectureTools is a web–based student response system, which helps the teachers to connect to their students in classrooms. The company was started by Perry Samson, professor at University of Michigan. The acquisition is expected to help Echo360 expand its specialization in “blended learning” technology. Microsoft Corporation has reaffirmed its commitment to education with a US$250 million, five-year renewal of ‘Microsoft Partners in Learning’. ‘Partners in Learning’ comes under Microsoft YouthSpark, which is aimed at connecting youth around the world with greater opportunities for education, employment and entrepreneurship. Microsoft, through the program, has trained more than 11 million teachers and reached more than 200 million students since 2003. The investments will help the program grow to approximately 20 million teachers worldwide by 2018. Microsoft’s total investment in the program is estimated to be approximately US$750 million over a period of 15 years. N EW E DUCATION R EGULATIONS IN THE M IDDLE E AST In Qatar, the government has introduced new regulations for private schools, to reserve 25% of the seats for Qatari students. As per the revised licensing rules by the Supreme Education Council (SEC), in order to obtain new license for setting up a school, private players will have to abide by the guidelines, However the guidelines will not be applicable in case of community schools. Other guidelines by the SEC mandate schools to comply with the Qatari curriculum standards, such as allocating weekly hours for teaching Arabic language and Islamic studies to Muslim students. Further, all students will have to be taught Qatari history, as per the national standards. A similar regulation has come up in the UAE, where private schools have been asked to teach compulsory national identity lessons. The new regulation, aimed at emphasizing national identity in school, will also mandate schools to include courses in include courses in Emirati society, Islamic studies and Arabic. Further, they will be required to fly a UAE flag and play the national anthem at morning assembly. © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 6
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GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 L IST OF I NSTITUTIONS AND O RGANIZATIONS Amity University Isle of Man College of Further and Higher Education Apollo Global Management LLC LectureTools Baker & Taylor McGraw–Hill BetterLesson Microsoft Corporation Bill & Melinda Gates Foundation Northern Academy Independent Capita Plc Secondary School China Education Alliance, Inc. Old Mutual College of Law, London Pagoh Higher Education Hub Cranleigh School Pagoh Polytechnic Curro Holdings Penguin Group Doha Academy of Tertiary Studies PIC Echo360 RM education Educomp Texthelp Limited Edusoft Universiti Teknologi Malaysia Research Global Education Management Systems Centre Limited Universiti Tun Hussein Onn Intel University of Law, London International Center for Chemical and University of Michigan Biological Sciences International Islamic University, Malaysia © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 7
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GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 K EEP YOURSELF UPDATED BY SUBSCRIBING TO G LOBAL E DUCATION I NSIGHTS Global Education Insights is a monthly report, prepared for the decisions makers in global education space. The report covers key trends and opportunities in education space, which the readers can benefit from, while preparing their strategies. You can keep yourself abreast through free subscription to Global Education Insights. Subscribing to our report will help you in the following ways: • You will remain updated on latest trends and opportunities in the education sector • You will be able to take fast and accurate business decisions • You will save your costs of hiring a consultant, or a team for same purpose Mail us at gei@indalytics.com for free subscription to Global Education Insights © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 8
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GLOBAL EDUCATION INSIGHTS
I DECEMBER 2012 D ISCLAIMER The information contained in this report is of a general nature and is not intended to address any particular individual or entity’s circumstances. Although proper care has been taken to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Indalytics Advisors do not guarantee the company name provided by the readers to be accurate. It is understood that by receiving the report, the readers allow Indalytics Advisors to use their organizations’ name in its list of readers. If the readers have any objection to it, then they should report it to Indalytics Advisors immediately. Before subscribing to the report and paying for subscription, Indalytics Advisors strongly recommends readers and subscribers to read the terms of use on their website. Anyone paying for subscription will be deemed to have read and understood the terms of use mentioned on the website. Their absence of objection will be treated as their approval to use their and their organizations’ name in this report. Indalytics Advisors Private Limited does not guarantee that the information contained in this report is authentic and reliable. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. If you want to advertize your products and services through this report, then please write to us at business@indalytics.com Publication Volume: 12-012 Publication Date – December 2012 © 2012 Indalytics Advisors Private Limited For further information, please contact gei@indalytics.com © Indalytics Advisors l www.indalytics.com l gei@indalytics.com 9
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