Online learning account for just a fifth of the IT training market by 2004, says analyst Ovum Holway.

Despite the hype, the web is far from fulfilling its potential as a teaching medium because of high costs and the lack of a cheap broadband infrastructure.

And Ovum Holway analyst Heather Small said IT training still means going back to the classroom for the majority of companies in the UK.

'Rather like the dot com phenomenon, we believe reality will set in sooner rather than later and for many companies and investors, it could well all end in tears.'

'There have been some quite outrageous claims about elearning and its impact on the bottom line. It's actually very damaging because it gives companies false expectations.

'Elearning won't replace other forms of learning. It has to be part of a blended approach.'

The UK IT training market is expected to grow four per cent in 2001 with companies spending around £546m.

However elearning represented only 15% of all IT training in 2000 and Ovum forecasts that figure will rise to only 20% in 2004.

'Elearning is part of the learning process but it would be very foolish to ditch what you do in favour of a technology-based approach. Don't throw out the baby with the bath water,' Small added.

However the driving force behind most companies' investments in elearning is cost saving. 'Customers expect training to be cheaper [than instructor led training] but it's acutally phenomenally expensive to deliver.'

And although the technology sector is keener than most to embrace the elearning model, there's still a perception that certification from a 'bricks and mortar' training organisation is more credible than certification from a 'pure' elearning company.

Despite significant hype surrounding eleaning, employees should not expect their companies to offer unlimited access to online training courses at work. Although companies may like the idea of being able to offer multimedia elearning to their employees, few realise the bandwidth implications of such projects, Small said.