Investing in one’s future
The growing demand for new skills sets is proving to be a big business opportunity for vocational training institutes, writes Mayank Singh

The creation of employment opportunities for Omanis has been an article of faith for the Sultanate’s government. If the latest numbers are anything to go by the efforts seem to be paying off in a big way. According to the Central Bank of Oman’s Annual Report for 2007 the number of Omanis working in the private sector increased from 114,311 in 2006 to 131,775 in 2007, a jump of 15.3 per cent. The number of expatriates too has grown by an unprecedented 25 per cent in 2007 to stand at 638,447. With the economy growing at a rapid pace (Oman’s GDP grew by 12.9 per cent in 2007) more jobs are expected to be created in the coming years.

New market demands
The creation of jobs has been accompanied by more competition for better prospects. Employers on their part have become more demanding. Says Lawrence Alva, general manager, National Training Institute (NTI), “A realignment has been going on in the job market as more Omanis realise that their educational qualifications are not enough to get better paying jobs and they need to acquire the right skill sets.”

This in turn is proving to be a big business opportunity for vocational training institutes like NTI, Polyglot Institute, Oman and Khimji Training Institute (KTI). Most of these institutes have been experiencing good growth in the last few years. Polyglot grew by 15 per cent in 2007 and its student strength stands at 4000 plus. NTI has been growing at a CAGR of 15-17 per cent. Says Jabir P O, manager – operations, Polyglot, “The industry has seen good growth in the last six to seven years.” The growth has emboldened training institutes to invest in bigger premises and better facilities. NTI which was constrained for space at its Madinat al Sultan Qaboos (MQ) outlet, shifted to a new location in Al Khuwair in 2008. The Al Khuwair centre will have 16 classrooms compared to nine at MQ. The institute beefed up its geographical spread by opening a new centre at Sohar in 2007 and Ghala in 2006. Alva explains, “The Sohar Centre offers a full range of courses like IT, business skills, technical and commercial skills. The Ghala Centre offers technical training, HSE (health, safety, environment) and driver training.”

Polyglot is investing RO1.4mn in building a new premise at Wattayah. The institute expects to shift into the new building in the next six months. The shift will help the institute offer better facilities like counselling cubicles, library etc to its students. “In the long term this business will grow and we are investing with a long term mindset,” says Jabir.

KRT has seen its teaching faculty’s strength go up from 10 in 2006 to 20 in 2008. The institute has been growing by 28-29 per cent this year and has doubled its business over the last three years. Says Nadeem Ahmed, manager, KTI, “We have grown not only in the local market but are also undertaking industrial workforce training in Qatar and Pakistan.” KTI is not the only company which is eyeing foreign markets. NTI set up a training centre in Qatar on August 1, 2007. It is working with reputed companies like Shell in Yemen and Babco in Bahrain. “We see it as an upcoming market,” says Alva. In a number of cases companies which have worked with institutes in Oman, have been keen to extend this partnership to countries within the region.

Improved methods
The quality of training being imparted is getting more sophisticated as archaic teaching aids give way to improved methods. Says Jabir, “The delivery modes have changed, so instead of merely using teaching aids we use audio video methods, interactive CDs, and power point presentations to create a friendly course.” Institutes have been quick to tie-up with internationally acclaimed organisations. For example, Polyglot is an affiliate of the International House World Organisation, a network of over 140 language schools worldwide. It is also an approved centre for ACCA and CAT computer based examinations. KRI has tie ups with the Royal Institute of Private health to provide HACCP certification, NIIT for Oracle and Microsoft courses. NTI operates New Horizons Computer Learning Centre (NHCLC) an international franchise with 300 worldwide centres. It is a Microsoft gold certified partner, an extension of Oracle University in Oman.

Most vocational training institutes are flexible enough to customise courses to suit the varying needs of customers. Thus NTI’s NHCLC is the first centre in the Middle East to launch Mentored learning in 2007. Says Alva, “The training solution (mentored learning), provides the flexibility and convenience in terms of timings and pace to the learners. The method provides targeted training, focused and completely customsied to a learner’s needs.” In a mentored learning course there can be six different students doing different things at varying levels of a course. The approach suits companies as they can send people at different times. A pre-test is conducted to determine the stage at which a person is in terms of training and the instructor then prepares a plan to suit the candidates need.

There are instances wherein institutes have set up temporary facilities to cater to the demands of a particular company. KTI customised its IT courses to suit the needs of clients like BankMusat and Bank Dhofar. Polyglot built a workshop and 20 classrooms in Sohar to train 1300 workers from Sohar Aluminium in various skills like machinery, electrical, welding etc over 45 days before the smelter commenced production in June this year. Vocational training institutes pride themselves as partners in the nation building process. Says Ahmed, “We see ourselves as playing a socially responsible role and are not just an institute for profit.” KTI is a partner of the ministry of manpower’s National Project to train Omanis in various sectors like retail, shipping, hospitality, accounts and training.

As the market gets globalised, small time training is giving way to international standards. The skill sets required in the market has evolved from language and IT skills to job and interpersonal skills. “Employees are looking at good communication, management and team skills,” says Alva.

Roadblocks on the way
Despite the growing popularity of training, there are still a number of challenges faced by vocational training institutes. While the bigger companies are ready to spend money on training its staff, most small and medium enterprises are still to wake up to the need for training their staff. Says Alva, “It will require a big mindset change for them to start spending on training, it is happening but very slowly.” On an individual level there is a reticence to spend more than a certain sum of money on training. Says Jabir, “Every time we think of increasing the fee there is a backlash.” This is surprising as the fees charged by most institutes are quite competitive. Polyglot for instance charges RO210 for a two and half month English language course. NTI’s fees averages around RO100 per month. Despite these pressures most institutes are confident about the future prospects of the industry.

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