GROUP - 10 THE NIIT STORY

NIIT was the first company to start a chain of computer education centers in the organized sector

in India imparting IT training to a broad spectrum of people including students, IT professionals, school children and managers. Entrepreneurs Rajendran, Pawar and Vijay K Thadani, who were working with HCL promoted the company in 1981. In early 2001, India's leading information technology (IT) education company the National Institute of Information Technology Ltd. (NIIT) launched an aggressive marketing campaign to spread awareness among college students about the necessity of strong IT fundamentals and the need for developing new skills in the IT field. The company also launched a television campaign featuring its brand ambassador Vishwanathan Anand (Anand), world chess champion. Various Campaigns were conducted to highlight the importance of a 'right' IT training institute and how NIIT met all the required standards. Analysts felt that this was the first time that an IT education player had undertaken such an elaborate, nationwide campaign using divergent communication media. In January 2002, NIIT launched another nationwide campaign for its GNIIT career program. The ad campaign promised students, 100% job assurance or money back. This was done in order to attract students. It was observed by the industry that the company did not have many options. Net profits declined
by 57% from Rs 2.24 billion in 2000 to Rs 960 million in 2001 The company s market share was as follows:Year Market share 1992 70% 1996 41% 2001 36% In 1989, NIIT got recognition from the American Council on Education (ACE), which enabled its students to get credit exemptions from around 1700 university members of ACE. Over the next few years, the NIIT brand became synonymous with IT education in India. In 1993, the company came out with an initial public offering of 3.6 million shares. It emerged as one of the largest network of Microsoft Certified Technical Education Centers (CTEC) in India.

NIIT not only pioneered the concept of IT education and training in India, it also revolutionized IT education by taking it to small towns. It was the first organization to market the concept of teaching computers for students in the age group of 18-21 and then moving on to specialized application-oriented courses for professionals.
NIIT opened 87 centers, franchises as well as company-owned during July-September 2001. NIIT introduced the iGNIIT course with a web-centric syllabus. For this course, the company partnered with the International Finance Corporation (IFC) and Citibank, to provide seven-year study loans to students - around Rs 4 billion was provided for disbursing loans to students.

In the same year NIIT launched an online learning facility through website www. A decision was taken to increase the focus on the retail finance business by providing solutions in customer relationship management. Due to these initiatives at the end of December 2001 quarter the student s enrolment was 159. NIIT had its global presence in Asia.In 1990 NIIT introduced the concept of Scholarships to attract students. Europe. franchises as well as company owned during July-September 2001 NIIT extensively started promoting the four year GNIIT course to attract students in long term career in IT To cater to the need of school children it started a project K-12 which focused on implementing projects for school children. In July 2002 NIIT renamed its global software business as NIIT Technologies.netvarsity . America and Africa .com Aptech and SSI were NIIT s major competitors In 1991 NIIT signed Anand as its brand ambassador and launched the mind champion campaing featuring him in print and TV advertisements. In the mid 1996 it launched the Learning through Education and Direct Application (LEDA) program. NIIT decided to increase its focus on legacy software services. Australia. Through LEDA it successfully integrated multimedia with education. There were various initiatives taken by NIIT such as:y y y To reach out to various customers NIIT opened 87 centers. which later on became Industry wide practice. Business Revenue Break up Learning Software 58% 54% 49% 55% Year 1997-98 1998-99 1999-00 2000-01 42% 46% 51% 45% In order to improve its performance NIIT decided to separate its software business from learning business by creation two vertical operations For improving revenues from its software business.163 as against 51943 in the same quarter of the previous year. including upgrading old computer systems to new technologies. NIIT also entered in to alliances with foreign universities to help its students gain admissions in foreign universities for higher education.

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