IDP Education Ltd. · ASX:IEL
IDP Education — Asia Pacific Association for International Education Annual Conference 2010
45 slides from IDP Education's conference presentation, Apr 16, 2010
Slide 1: open your world
open your world
Slide 2: Meeting the new challenges in international education
Meeting the new challenges in international education Asia Pacific Association for International Education Annual Conference 2010 16 April 2010 Anthony Pollock Chief Executive IDP Education Pty Ltd
Slide 3: Introduction
Introduction Challenges lead to more opportunities in international education www.idp.com 3
Slide 4: The virtuous circle
The virtuous circle Globalisation of the world economy Acquired skills Trade drives develop higher value economic growth in add industries developing countries Expanding middle class: children become international students • International education as we know it today is a response to the rising wea
Slide 5: The next steps
The next steps • International education is at a tipping point – It has rapidly grown to be a globally significant industry which is integral to the globalisation of the world economy – International students are part of the large scale movements of human capital which are shaping economic relations
Slide 6: IDP Buyer Behaviour study
IDP Buyer Behaviour study • In this presentation you will see data cited from IDP Buyer Behaviour research 2009 • This study results from a large online survey in Sep-Oct 2009 of 6,173 prospective students, current students in Australia, current students in other countries, Australian alumni – Sampl
Slide 7: Challenge 1: Growth in demand
Challenge 1 Growth in demand www.idp.com 7
Slide 8: Rapid expansion
Rapid expansion Source: UNESCO • As many as 3 million students are now enrolled in tertiary study overseas (Observatory on Borderless Higher Education estimate)
Slide 9: Demand drives growth
Demand drives growth • No sign of diminishing demand for international education • International student numbers are driven by rapidly growing demand for tertiary education • Recent statistics bear this out. For the five year period 1999-2004 international tertiary student numbers rose in synch with
Slide 10: Demand exceeds supply
Demand exceeds supply • While there is rapid growth in higher education places in emerging economies, demand still outstrips supply • The OECD reports that China’s tertiary student numbers have grown over the past decade from 5 million to 22 million • Quality higher education places are limited and
Slide 11: Growing middle class
Growing middle class According to the World Bank, the middle class of South and East Asia accounted for 1.4% of the global population and 2.1% of global income in 2000. By 2030, the World Bank forecasts that this same group will account for 8.9% of the population and 7.7% of global income – much hig
Slide 12: Supply-side challenges
Supply-side challenges • Given the strength of demand, education providers should find things easy • But even with the expanding base of potential international students, education institutions face challenges – Students are increasingly sophisticated and have high expectations of their course, thei
Slide 13: Challenge 2: Focus on job outcomes
Challenge 2 Focus on job outcomes www.idp.com 13
Slide 14: Jobs, jobs, jobs
Jobs, jobs, jobs • Four of the top six reasons for choosing a course are related to jobs • They are – Job opportunities in home country – Job opportunities in other countries – A job which pays good money – A job in a growth industry with a bright future The three most important factors considered w
Slide 15: Key student motivators
Key student motivators • The main motivator for international students is to graduate to a good job and career • Many want to work in another country – In the highly mobile and highly paid international workforce; or – By migrating to a country with higher living standards • Not all students intend
Slide 16: Challenges for institutions
Challenges for institutions • For educational institutions the challenge is to provide education and qualifications which are valued and sought after by employers • Produce students who are employment ready • The ideal graduate – Is a problem solver who is ready to take the initiative – Has fluent E
Slide 17: Challenge 3: Strong competition for skills
Challenge 3 Strong competition for skills www.idp.com 17
Slide 18: Study and stay
Study and stay • Many students want to work in and/or migrate to the country where they study • Higher standard of living on offer • “Job prospects in study country after graduating” and “Desire to migrate or obtain permanent residency” both in top five factors influencing choice of country to study
Slide 19: Competition for skills
Competition for skills • Increasing competition between developed countries for skills • The GFC did not end skill shortages • Graduating international students have great appeal to developed countries as a means to solve skill shortages – They have been trained “in-country” and their qualifications
Slide 20: Trail blazing students
Trail blazing students International students’ family background Source: IDP Buyer Behaviour research 2009 • Over half are first in their family to gain skills by studying overseas – First timers particularly strong in India, China and Vietnam • Less than 10% have parents who studied overseas • Most
Slide 21: Demand for skills grows
Demand for skills grows • The United States’ failure to attract domestic students to higher degrees in engineering and sciences has prompted influential calls to allow more foreign graduates in these disciplines to stay in the US • Prominent New York Times columnist Tom Friedman has voiced this view
Slide 22: Striking the balance
Striking the balance • Governments of international student destination countries need to strike a balance – Attract international students to work or migrate who will make an economic contribution – Set skilled migration policy realistically to ensure that students’ primary motivation is education,
Slide 23: Challenge 4: Impact on governments
Challenge 4 Impact on governments www.idp.com 23
Slide 24: Policy challenge
Policy challenge • International education is a major industry whose health is important to national governments • In Australia international education created 1.1% of GDP in 2007-08 – Australia’s largest services sector export • Governments need to ensure the right environment exists for internatio
Slide 25: The Australian approach
The Australian approach • Plan to separate government roles in international education into three areas – marketing, policy development, regulation – each overseen by different agencies of government • Plan to integrate regulation of international education into wider regulatory system – Higher educ
Slide 26: Impact on diplomacy
Impact on diplomacy • Relations between nations are increasingly influenced by international education • A matter of national interest to governments because of – Large cohorts of international students temporarily resident in other countries – Growing importance of international education as trade
Slide 27: Challenge 5: Private sector investment
Challenge 5 Private sector investment www.idp.com 27
Slide 28: Private sector growth
Private sector growth • Capital investment for higher education traditionally funded by government or philanthropy (US) • Today there is a lack of investment capital available from government to fund higher education expansion • Growing number of for-profit companies investing in higher education pr
Slide 29: Challenge for public institutions
Challenge for public institutions • UK research group Observatory on Borderless Higher Education noted in a March 2010 report on for-profit education providers that – For-profits can offer lower fees because • They use facilities more efficiently all year round • They can employ academic staff more
Slide 30: Education agents
Education agents • Education agents, operating in the for-profit sector, provide key competitive advantage to institutions in international education “The widespread US reluctance to use offshore agents, in particular, appears to be having an adverse impact on the competitiveness of the US in the in
Slide 31: Student decision making
Student decision making International students’ level of dependence and independence in decision-making about studying overseas Source: IDP Buyer Behaviour research 2009 • Predominantly, students have a high comfort level with advice from agents and often develop a reliance on it
Slide 32: Most students use agents
Most students use agents • Most international students studying in Australia use agents • Most students find them useful • Recent JWT Education survey found that 73% of students’ used an education agent and 79% of these students found agents useful – In India, agent usage was higher at 87% Overall I
Slide 33: Using agents effectively
Using agents effectively • Australia pioneered use of education agents • Seen as a key factor contributing to Australia’s success • Growing number of overseas institutions (particularly in US) see Australian agent system as a model – American International Recruitment Council (AIRC) established to c
Slide 34: IDP's role as an agent
IDP’s role as an agent IDP Offices IELTS Centres Language Schools 70 across 25 countries 215 locations across 49 countries 3 IDP Representative Locations Australia France South Korea Oman Taiwan Bahrain Germany Kuwait Philippines Thailand Bangladesh Hong Kong Malaysia Saudi Arabia United Arab Emirat
Slide 35: Challenge 6: Primacy of the student
Challenge 6 Primacy of the student www.idp.com 35
Slide 36: The student's journey
The student’s journey Decision Make arrangements for Information • Application Arrival • Career • Enrolment • Orientation • Course • Funding • Accommodation • Institution • Visa • Banking • Country • Tickets • Transport • Cost • Health insurance • Making friends • Part-time work Job and career • Fur
Slide 37: Putting the student first
Putting the student first • At every step the student’s needs must be met – Needs are widely varied – No one institution, agency or organisation can provide them all • The student comes with financial capital and intellectual capital • The rest comes from the education agent, the education instituti
Slide 38: Don't forget the parents
Don’t forget the parents Funding source for international students Source: IDP Buyer Behaviour research 2009 • It’s important to put students first, to analyse their needs and ensure they are met • But parents are by far the dominant source of funding for international students • Their views are imp
Slide 39: Main sources of family income
Main sources of family income Primary sources of international students’ family income Source: IDP Buyer Behaviour research 2009 • Largest group of students do not come from established, wealthy families – Small, family-owned business is the largest source of student family income • Students whose p
Slide 40: Student aspirations
Student aspirations • Students’ ambitions are overwhelmingly related to work and professional success What international students in Australia and other countries and alumni, hope to achieve in the next ten years Source: IDP Buyer Behaviour research 2009
Slide 41: Choosing an institution
Choosing an institution • “The two Rs” • Ranking and reputation are the two most important factors for students in selecting an institution • The city where the student will study is also a significant factor Three most important factors in choice of institution Source: IDP Buyer Behaviour research
Slide 42: Studying in Australia
Studying in Australia • International students rate Australia highly for the study experience • Difficulty in securing internships and work experience is a weakness International students’ level of satisfaction with various study experiences in Australia and overseas Source: IDP Buyer Behaviour rese
Slide 43: Living in Australia
Living in Australia • Students rate Australia’s safety highly • However they are less satisfied with the ease of finding part- time work and in feeling part of the local community International students’ levels of satisfaction with various living experiences in Australia and overseas Source: IDP Buy
Slide 44: Thank you
Thank you www.idp.com 44
Slide 45: open your world
open your world
IDP Education — Asia Pacific Association for International Education Annual Conference 2010 on 6ix