AO FORUM Marketing UK qualifications overseas AndreW Hall & Martin LOwder 21st April 2016 Thanks very much for inviting Andrew and I to the AO forum to present our research I am Martin Lowder Head Client Relations in the exams team I am joined by my colleague Andrew Hall, Skills adviser, policy, education and society 1st a bit of background on why we carried out the two pieces of research 2nd Andrew will talk about the TVET research 3rd Me 4th Next steps and any questions www.britishcouncil.org

PURPOSE OF RESEARCH TVET REVIEW FAB / British Council want to help AOs expand into new markets Global economic trends Indicators and potential opportunities AO DIRECTORY Comprehensive view of UK awarding organisation sector Match AOs with opportunities Provide appropriate services Just to give you a it of background of why we decide to carry out this research with FAB’s support TVET’s aim is to understand what is happening globally , what are the trends and economic indicators' etc Directory- know a lot about the top 20 AOs we work with, we only work with a few of you and some on a very small scale but not a lot about the rest we work with and the ones we don’t. Attempt to build a snapshot of which boards are delivering what where We get market insight and are carrying out extensive market research so this will help us direct opportunities to the correct boards- been v difficult in the past Ultimately we want to help you grow your business for the benefit of UK PLC www.britishcouncil.org

What is THE TVET Research Saying? A global picture Youth unemployment in MENA of 30% with estimated 10.7 million new entrants to workforce in the next decade A quarter of Africa’s young people are either out of work or not in education. 470 million jobs are needed globally by 2030. TVET an increasing focus of Governments to tackle complementary challenges i.e. civil unrest http://www.unevoc.unesco.org/go.php?q=World+TVET+Database Sustainable Development Goals: 4 on TVET

Global annual GDP growth projections (%) This table highlights the global GDP growth projections and changes between 2013-2016. (From International Monetary Fund) With education and TVET enrolment linked closely to a country’s GDP, this creates a useful picture to understand the potential areas of growth for the sector, trends and the regions and countries that are leading this growth. The growing economies can suggest that as GDP grows, so can enrolment in tertiary education. Key stats: Following the global recession in 2008 and 2009, the global economy is getting back on track.   The data predicts that growth will pick up again this year, driven largely by countries in Asia including China, India, and the ASEAN-5. The ASEAN-5 is made up of Indonesia, Malaysia, Philippines, Thailand and Vietnam. Other areas of the world that will drive global growth include Sub-Saharan Africa, including Nigeria which is forecast to grow at 4.5 and five per cent in 2015 and 2016 respectively, and the Middle East, North Africa, Afghanistan, and Pakistan region.   Regions and countries with a high or increasing GDP and a growing young population, will invest more to become knowledge investment economies. www.britishcouncil.org

Factors affecting AO’s Clearly, security, prosperity and age demographics are important as shown above However also The perception of TVET. Many countries, in East Asia and Wider Europe in particular, are taking significant steps to challenge the entrenched deficit of esteem in Vocational qualifications Confidence in qualifications or the “currency” Price points and the market conditions The effect of post-oil economies and shifts in government policy Local understanding

General Trends we see in our work   Move towards occupational standards Importance of the currency of qualifications Rebirth of apprenticeships. Core skills Market for qualifications is diffuse but some areas like ASEAN working on common standards.

The UK has a great reputation The global market There are a lot of competitors… But Seen as having high level of quality Valued for being employer led Qualifications have high currency so are seen as desirable The UK has a great reputation

The highest rates of growth are forecast to come from Asia and Africa From 2012 to 2025 the British Council estimates an increase in local enrolments in tertiary education of: 3.4 per cent annual average in India 5.7 per cent in Nigeria 7.9 per cent in Angola 10.1 per cent in Ethiopia 6.8 per cent in Kenya 5 per cent in Pakistan 3.8 per cent in Sri Lanka

Awarding Organisation Directory Research HIGHLIGHTS www.britishcouncil.org

Methodology / survey RESULTS Thank you Targeted 160 FAB members. 109/160 responses in total. Phone calls / web sites. Still opportunity to add your organisation. First of all thank to all of you who took part and apologies of we didn’t communicate the purpose well enough. What we more comprehensive view of the UK AO sector – work in progress Needed to act quickly so we had something we could use once we got the EA research data China, HK, Malaysia, Singapore, Myanmar www.britishcouncil.org

How many countries are your assessments delivered in? Given only 13% of boards operate in more than 51 countries, still room for business expansion Over one third only operate still in 1 to 5. Is this because these boards are still starting out, or has there not been a real strategy to grow the business overseas? What’s holding AO back Some of the big ones we work with operate in 95 If you have a global offer why can’t you deliver in more places? www.britishcouncil.org

What are THE Current top countries? China India Ireland Malaysia UAE Hong Kong South Africa Cyprus These are all countries the boards which responded said they operate in Most are in Asia China and India too big to ignore Why not Africa- BC have office in 20, but work across borders in many more? Not more in Middle east. Is this because of the drive to local qualifications? www.britishcouncil.org

What range of income is Generated from Your overseas assessments? Can we estimate a total value of what our current business overseas means to the UK sector financially? An estimate was made of approx 200 million, but potential to be much higher, how much? 55% only generating under £100,000, suggests there is lots of untapped potential Is it part of the internal culture where the majority of the focus on the UK and not much thought is being put into global, no deliberate strategy? www.britishcouncil.org

Do you have plans for offering assessments overseas? Only about a third 37% of those which answered are looking to start delivering overseas, what is putting off the other 63%? Too much competition, not aware of the opportunities, or too many perceived barriers and easier to focus on UK www.britishcouncil.org

What is your time frame for delivering assessments overseas? Of those two thirds which want to expand overseas the timeframe for some is very short 80% in next two years. www.britishcouncil.org

? Target REGIONS Middle East British Asia Africa Current top 10 are mainly in South Asia, one in Middle East and Europe, but TVET research says Why not Africa? Is it seen as too difficult? Growing focus on tourism in post oil states in Eastern Europe www.britishcouncil.org

Do you face any of the following challenges in protecting your reputation of your qualifications? Top 5 of the challenges are actually British Council USPs and why many of the 150 boards work with us Reputation of Education UK Policy change www.britishcouncil.org

Do you face any of the following challenges in protecting your reputation of your qualifications? % of Responses BC Services 1. Quality assurance inspections and spot audits 60% * 2. Compliance with UK best practice in Equal opportunities, Health & Safety & data Protection 45% 3. Checking the identity of the candidate 40% 4. Quality of invigilation 36% 5. Security of confidential materials 34% 6. Quality of risk management and contingency planning 33% 7. Customer services 21% 8. Same organisation provides training & invigilation 9. Communication issues with the assessment provider 16% 10. Technical and connectivity issues when delivering CBT 9% Top 5 of the challenges are actually British Council USPs and why many of the 150 boards work with us Reputation of Education UK Policy change www.britishcouncil.org

Do you face any of the following challenges in GROWING YOUR BUSIINESS OVERSEAS? If you are landing in Addis Ababa on your own, it meets our objectives whether you work with we want to raise the profile of UKPLC or not and provide value to the UK If you have questions,, we have people on the ground, let us know www.britishcouncil.org

Do you face any of the following challenges in GROWING YOUR BUSIINESS OVERSEAS? % of Responses BC Services 1. Finding good quality course providers for your qualifications 62% * 2. Growing recognition for your qualifications 3. Understanding legal and regulatory barriers 51% 4. Gaining access to government, industry and academic decision makers 46% 5. Making effective decisions about which cities and countries to target 41% 6. Finding an effective local marketing partner 36% ? 7. Restrictions on foreign currency movements 11% If you are landing in Addis Ababa on your own, it meets our objectives whether you work with we want to raise the profile of UKPLC or not and provide value to the UK If you have questions,, we have people on the ground, let us know www.britishcouncil.org

NEXT STEPS / COMING SOON East Asia Research Enhanced menu of services You can still take part in the research www.britishcouncil.org

questions Who do they see as the main competition and why? What do they see as the trends in TVET? Given the data, why are such boards looking at opportunities overseas? Does anyone see delivering international expansion as a way of mitigating the challenges which will be happening? www.britishcouncil.org

Thank you! www.britishcouncil.org