Bangalore: The E-learning Outsourcing industry in India is expected to achieve revenue growth by $603 million by the end of 2012. The Compound Annual Growth Rate (CAGR) is expected at 15 percent per year, which might also waver till 2010 because of the global economic recession.

A report published by a business intelligence and service provider firm ValueNotes 'entitled e-learning Outsourcing 2009: Advantage India' reveals that the growth rate of the e-learning industry will be slow for coming 6-8 quarters, but will attain its pace by then.

The e-learning industry earned a profit around $341 millions in the year 2008. The aspects of the industry are growing as 50 percent of the industry growth comes from the small scale companies. In 2002, the profit earned by the industry was around $6 billion, which went up to about $20 billion in the year 2008.

The industry has spread widely throughout the country, with many corporates and NGO's taking active part in it. One such organization, Smile, claims to place 70 percent of its students in the year 2009, through its Twin e-Learning Programme (STeP).

Self paced e-learning allows the students to pursue their choice of courses along with their jobs. And by the concept of e-learning, around 3 lakh students are planning to take part in the CAT 2009. Prestigious institutions like Indian Institute of Management (IIM), Indian Institute of Technology (IIT) and Indian Institute of Foreign Trade (IIFT) are actively adopting e-learning courses.

The current economic slowdown has effected the e-learning institutions in the country, but NGO like Smile Foundation are confident enough to meet the ongoing challenges and are planning to come out successfully.

"We started the e-learning program two and half years back and now have over 5000 students in 50 centers. We have our blue print ready for further expansion to 100 more centers, and it will happen as soon as we get the funding from our national and international sources," said Naresh Choudhary, COO, Smile Foundation.

However, companies like Hyderabad based Swingwind Technologies which mainly concentrates on the schools and colleges feels the heat. "A couple of deals which we have got through, are now being postponed but once the economy bounces the deals will come back. So it is just a time thing. We will have to wait," said the Founder Prasanth R. Marreddy.

The greatest challenge faced by the players in the industry is the acceptance of the concept of e-learning amongst the people as they do not understand the value of the software for learning purposes. Still founders and heads of most e-learning companies in India are confident about the growth and the huge profits that lie in the coming years.