Online degree & certification programs have gained significant traction in the last few years. While a few EdTech startups have become unicorns with specialized offerings in this space, less than ~15% of all Higher Ed programs are being administered online. Content creators and providers (including traditional educational institutions like colleges and universities) are tapping into this opportunity through different approaches

1. Creating an end-to-end learning platform with proprietary content/courses;
2. Partnering with Massive Open Online Course (MOOC) platforms like Coursera, Udemy, etc.
3. Delivery of content through tech partnerships with Online Program Management (OPM) service providers

In the following sections, we explore the world of OPM and understand how it is changing educational institutions globally

Online Programme Management, or OPM, is changing the way educational institutions bring online education to the masses. OPM providers help colleges/universities build, recruit for, and deliver online programs, providing them with an opportunity to scale their courses to a wider audience. The global OPM market is expected to reach US$ 9.9B by 2025, growing at a CAGR of ~20%.

Postgraduate programs have historically been the fastest to adopt OPM as the learners typically are working professionals who require flexibility and have a strong willingness to pay. Business, Healthcare, and Technology have been the most desired streams by students seeking upskilling programs. Lately, undergraduate colleges have been increasingly adopting OPM services, especially in the post-CoVID world.

OPMs function predominantly on 2 kinds of business models – revenue-sharing and fee-for-service.

Traditionally, the revenue share approach has been the more popular model, with ~86% of universities establishing rev-share relationships. However, due to high ‘take-rates’ and stronger control on content + distribution by these EdTech platforms, institutions are increasingly showing preferences towards an ‘a-la-carte’ option as it allows them to withhold control and target their expenditure in areas of necessity while giving them enough time to build internal capacity. Most recently, a convertible-revenue model that starts with an initial revenue-share that eventually converts to fee-for-service over time is gaining popularity

While globally, OPM service providers are somewhat tenured with players like 2U and Noodle Partners targeting collaborating with colleges/universities since 2013, the space is relatively new to India.

The removal of restrictions against fully online degree programs in 2020 saw positive developments, especially for players like upGrad, SimpliLearn, Great Learning, and Eckovation, which have since been leading Indian markets; foraying into OPM services, having worked with IIT Madras, IIT Roorkee, IISC, OP Jindal, and other educational institutions

1. University network model: Universities developing their own tech/IT infra as centralized public alternatives to privatized OPM services – making online learning more accessible to their students
2. Scale OPM platforms: Scale OPM players providing customized services to colleges/universities withholding steep take-rates, with educators focussing primarily on content creation leveraging their domain expertise, enabling universities to diversify their range of services
3. OPM unbundling: IT/Tech-infra platforms providing fee-for-service and commoditized offerings, allowing universities to hold control of content, student learning experience, and other engagement activities – enabling institutions to partner with multiple OPM providers for specialized target audiences

Colleges/universities realized the need for #1 above albeit slowly and subsequently adopted #2 to cater to the fast-growing demand for skill-based learning courses. #3 poses an opportunity for disruption through tech-infra-focused EdTech platforms.

The OPM industry, though currently small with less than ~15% of the overall online higher education market estimated at US $75B led by the US and the UK, is expanding its coverage rapidly. India is one of the fastest growing markets with strong demand for courses like Psychology, Criminal Justice, and Cybersecurity-related fields – beyond the traditional Business and Finance courses.

Post-CoVID, there has been an increased emphasis on skill-based courses and learning at one’s own pace or flexibility. This opens multiple avenues for online learning and OPMs. At 1Lattice (erstwhile PGA Labs), we have identified 3 key scenarios that might define the market in the future: