SIC 8243
DATA PROCESSING SCHOOLS



The data processing schools category encompasses establishments primarily engaged in offering data processing courses or training in computer programming and computer peripheral equipment operation, maintenance, and repair. Schools offering an academic degree in computer sciences are classified in SIC 8221: Colleges, Universities, and Professional Schools.

NAICS Code(s)

611420 (Computer Training)

611519 (Other Technical and Trade Schools)

Industry Snapshot

Data processing schools are profit-making institutions that teach specific skills required for computer-related jobs. The types of schools range from residential vocational training schools to correspondence school programs. The U.S. Census Bureau showed that there were 10 exclusive establishments in the data processing schools industry in 1992. By 1997, 2,785 establishments were listed as offering computer training, but not all were data processing schools exclusively. Most were headquartered in California, Connecticut, Illinois, New Jersey, New York, Pennsylvania, and Wisconsin. Several schools were subsidiaries of larger corporations.

Computer consulting and training is a multi-billion dollar industry. The growth of this industry, however, does not necessarily translate to the data processing schools industry, which is limited by competition from computer-related training in secondary and other post-secondary schools and the availability of self-tutorials. On the other hand, the market for data processing schools could increase as employers demand specialized skills from their workers and other post-secondary education becomes more expensive. Successful marketing of data processing schools as a less expensive and more job-specific alternative to college and university education is essential for growth.

Industry Leaders

The National Education Training Group (NETG), a subsidiary of National Education Corporation, which was acquired by Sylvan Learning Systems in March, 1997, is the global leader in information technology and interactive media-based learning. Its broad area of training ranges from programming to networking. NETG has been successful due to its diversified offerings, including multimedia products to train information technology professionals and end-user clients. NETG courses also include training to prepare professionals for vendor certification exams. NETG students may choose to combine media-based courses with classroom instruction. In February, 1997, NETG was selected by Microsoft Corporation to provide computer-based training to its employees.

Workforce

Most instructional staff members of data processing schools hold bachelor's degrees and have worked in the data processing field prior to becoming instructors. According to U.S. Census Bureau information released in 1999, employment in the industry in 1997 was listed as 28,848 people—from 8,200 in 1987. Industry payroll increased as well, from $165.3 million in 1987 to $970.2 million in 1997.

America and the World

The U.S. data processing network is among the world's largest, and much of the industry's growth potential exists in foreign markets. U.S. Industrial Outlook estimates that more than 28 percent of computer education and consulting revenues will come from foreign countries.

Data processing schools must continue to work closely with the computer industry to train workers adequately. Computer hardware and software change frequently, and the schools must strive to utilize state-of the-art equipment to prepare students for employment in an increasingly computer-reliant business world.

Further Reading

Grubb, W. Norton. "Local Systems of Vocational Education and Job Training: Diversity, Independence, and Effectiveness." Berkeley, CA: National Center for Research in Vocational Education Study, University of California, Berkeley, 1991.

National Education Training Group, 1999. Available from http://www.netg.com/ .

U.S. Bureau of the Census. Business and Industry Statistics , 1999. Available from http://www.census.gov/ and http://www.factfinder.cen/ .

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