'Lionbridge constantly looking for organic, inorganic growth'

In September 2003, Lionbridge arrived in India with a bang, acquiring a Mumbai-based e-learning company Mentorix, for an all cash deal of approximately $21 million. Lionbridge has been extending its footprint in India; opened another development center in Chennai and seems to be quite bullish about its prospects in the country.

Harish Joshy, vice president, Lionbridge Technologies, spoke to Shashwat Chaturvedi of CyberMedia News on Lionbridge's expansion plans in India and e-learning in general. Joshy has been in the e-learning industry for close to two decades, was associated with Mentorix before it was acquired by Lionbridge. Excerpts from an interview:

What is e-learning? What are the benefits over traditional means of learning for instance, classroom learning?

E-learning a term for learning with the aid of technology, it is a more evolved form of learning. When Internet was not so prominent, computer-based training or CBT was termed as e-learning. Thus, e-learning is just a generic name.

E-learning has innumerable edges over traditional means of learning, but the most fundamental benefit is self-paced learning or anytime learning. A learner can has the full onus for the learning, he can proceed at a pace and a tempo that he is most comfortable with. Another significant gain is that in an e-learning course one can have inputs from different experts, which was not possible in traditional means. Also, it is a well-known fact that we grasp information more easily with the aid of media like audio/video.

Will e-learning eventually replace classroom learning?

No. E-learning will not replace classroom learning; only reduce the dependence on instructor-based learning. Both together can bring in what I call as holistic learning.

E-learning reduces cost dramatically, for instance a large corporation can save a lot of sum by employing e-learning, classroom learning will continue to coexist.

How large is the e-learning market? Where does India stand in whole picture?

The market is quite large. Different research firms come up with different figures, so it hard to quote one single figure. What is indisputable is that the opportunity is really big one.

India's contribution is quite big and significant. E-Learning development outsourcing is well established.

What is the compelling reason for client to outsource their work to India?

Well, there are two reasons, quality and scale. If a company wants to develop huge number of courses, you require processes, quality and skill sets specific to the industry. That can only come from countries like India, where such scale is feasible.

What are your views on the standards in e-learning industry?

There are two well-established standards, namely, AICC (Aviation Industry CBT Committee) and SCORM (Sharable Content Object Reference Model.). Of the two, SCROM has overtaken AICC. SCORM courses are the norm.

Views on learning management systems or LMS.

LMS is a completely fragmented industry; there are thousands of them available. A few of them are well established. Lionbridge clients have the option of going in for a custom LMS developed by us.

What are the kinds of projects undertaken by Lionbridge?

Lionbridge takes up numerous e-learning projects. Clients prefer Lionbridge to other Indian vendors due to the since. We have a presence in 25 countries, so we don't have any sort of problems while incorporating cultural nuances in the various projects. Normally vendors in India are limited to IT based learning, but when it comes to soft skills they are not as proficient. Numerous publishers and corporates get their e-learning courses done at Lionbridge. We are also working with IT companies like Microsoft, developing courses for them.

Views on mobile-based learning or m-learning.

M-learning is just taking off. It is in a nascent stage and is an emerging market. Handhelds are evolving in terms of how rich media it can provide, screen size, etc. I anticipate, that in a few years time, it will be a big thing.

How strategic is e-learning to Lionbridge? What are the company's revenues?

E-learning is very strategic to Lionbridge, we offer four services to our clients: content development, localization, testing, application development. These services are categorized in two groups namely, core and content. And both these functions are intricately interrelated and fall under the gamut of e-learning.

Lionbridge will be $400 million in 2006. We acquired Bowne Global services in September 2005; prior to that we were a $154 million company. We have grown to this size by the latest acquisition.

What are your plans for India?

We are very ambitious about our India operations. We have two centers in Mumbai and in Chennai to give us bigger footprints for expansion. India is going to be a focus for Lionbridge in 2006, we will be moving as much work as possible and for that we will need to expand and expansion is better done at two places rather than one.

Views on attrition rate?

Any industry that is growing fast will have these kinds of issues. Comparing e-learning to any other IT industry, the attrition rates are more or less the same. Personally, I believe poaching (by other e-learning companies) and attrition can affect custom deliverables, hence knowledge management is the key to survival. How well a company manages the resources will determine its success.

Opportunity in domestic market?

Indeed there is a big opportunity in the domestic sphere. But, you need to understand that e-learning can be costly, courses rich in media are expensive to develop. The places that need e-learning the most like universities cannot really afford it. There needs to be more investment from private and public sector for e-learning to take off in India.

Lionbridge establishes itself after acquiring Mentorix in India, are there more acquisitions in the offing?

Lionbridge is constantly looking for organic and inorganic growth. All I can say now is that there could be acquisitions in future and not necessarily in the area of e-learning.

CyberMedia News