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Host Alex Usher speaks with Christine Wach, Senior Vice President of Partnerships and Stakeholder Engagement at IDP Education, about the evolution of international student mobility and the shifting global higher education market. Wach traces IDP’s origins as an Australian government and university initiative, its transformation into a multinational education services company, and the development of IELTS and other major business lines. The conversation explores the post-pandemic surge and subsequent slowdown in international student flows across Anglophone countries, the growing importance of migration pathways and employability in student decision-making, and the emergence of new destination markets beyond the traditional “Big Four.” They also discuss AI’s impact on student recruitment, the challenges of sustainable growth, and how institutions and governments may need to rethink international education strategies in an increasingly competitive and uncertain environment.
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What is The World of Higher Education?
The World of Higher Education is dedicated to exploring developments in higher education from a global perspective. Join host, Alex Usher of Higher Education Strategy Associates, as he speaks with new guests each week from different countries discussing developments in their regions.
Produced by Tiffany MacLennan and Samantha Pufek.
Alex Usher: Hi, everyone. I'm Alex Usher, and this is the World of Higher Education podcast.
Student mobility is big business. Behind the process of getting students to apply to and then attend a university or college thousands of miles away from home is an industry that's worth billions of dollars a year. And one of the OGs of that industry is a company called IDP, which grew out of an Australian government scheme beginning in 1969, and which for the first 37 years of its existence was owned by a consortium of Australian universities.
Over the decades, IDP diversified away from simple student recruitment in a number of ways. It also left university control about 20 years ago and evolved into a publicly listed company on the Melbourne Stock Exchange, which at one point was worth over $10 billion. Few companies have had a better view of the explosion of international student enrollment in Anglosphere countries over the past decade, and few have been more exposed as one by one those countries began to turn away international students over the past three years.
With me today to talk about all things IDP and student mobility is IDP's Christine Wach. She's IDP's Senior Vice President of Partnerships and Stakeholder Engagement. We cover a lot in this interview, from the company's historical evolution to the current state of the international education market, who the new big players are, and how the market will evolve over the next few years.
It's an interesting blend of past and future from an observer who's had lots of time to think about both. And so without further ado, let's turn things over to Christine.
Christine, tell us about how IDP started. Why did Australian universities feel the need to create a joint service to recruit students abroad? Why didn't, you know, everyone else in the world just goes out individually and does it. Why did they do it differently?
Christine Wach: Ya, great questions, so I think IDP has a pretty interesting origin story. We were started by the Australian government in 1969 as the Australian Asian Universities Cooperation Scheme, AAUCS. And initially, we were really just focused on skills exchange programs with academics from Southeast Asia and Australia in the areas specifically of agriculture and food science.
So at the time, we were a not-for-profit and this was all in collaboration with the Australian universities. Our initial goal was really to build capacity with Australia's Southeast Asian neighbors. And over that time this work developed into a broader sort of international education mission.
In nineteen eighty-one we actually transitioned and became the International Development Program, or IDP, IDP Education, as we're known today. And it wasn't really until nineteen eighty-six that we shifted our model to a more commercially focused student placement business which, you know, one of the things we're most famous for today. When the Australian government changed the rules to enable international students to study in Australian universities at scale. So given we already had a strong university collaboration at our core, it was a very natural link to become a leading student placement provider, formerly known as agent, for students to come to Australia.
I think over the years, we've grown, our model has evolved to cater to more destinations but through it all, our purpose has remained consistent. So at the heart of everything we do is to support students and to, to really transform people's lives through international education.
Alex Usher: So, you were started by government, and your clients, I guess, were universities, but eventually you became an, as you say, an independent corporation. How did that happen?
Christine Wach: So the shift happened gradually as we expanded from a university consortium initiative into a large scale international education services organization. As our footprint grew, IDP needed more flexibility, and we needed more capital to invest in new markets, tech, operations and capabilities, I think that are really harder to build under a purely sector-owned structure.
A major milestone for us is when we listed on the Australian Securities Exchange or ASX. That was in twenty fifteen which really
Alex Usher: that late? I, I, I thought that was much earlier. Okay,
Christine Wach: No, it's, it's only eleven years ago. And that helped fund growth. I mean, and it really positioned us for global scale. Some universities still remain shareholders today in IDP.
Alex Usher: So you're not fully... So, so in a sense you're public, but you still have significant institutional shareholding.
Christine Wach: Yes. Yeah.
Alex Usher: Got it. Got it. But you were growing quite big before 2015. So what are those... Were there key events that, that made IDP what it is sort of before the, uh, the IPO?
Like, what were the things that really pushed you to become the kind of, you know, big multinational company that you are?
Christine Wach: Yeah. I mean, I think there's so many milestones in our history given that we're almost sixty years old, but I'm gonna call out a few that I think have really defined us the most. So in nineteen eighty-nine we established IELTS, and we co-own IELTS with the British Council and Cambridge, Cambridge University in the UK.
So we know this has gone on to become the world's sort of most trusted and largest English test for migration, high-stakes migration and academic study. In two thousand and nine, we shifted away from just a focus on Australia and began to support students to study in other destinations. So originally, the second destination was the US, but now we send students to the US, Canada, the UK, Ireland, New Zealand, and more recently, we've just launched Malaysia as a destination.
Alex Usher: Oh,
Christine Wach: Yeah. So this is really key to who we are today, and our commitment is still to place students in the right country, right program, right course, right school to set them up for success. In twenty seventeen, we acquired the Hotcourses Group, which really boosted our digital capability and shifted us from that bricks and mortar company to a multi-channel experience, which, you know, we're known for today.
And then in more recent years, you've seen we've evolved how we deliver the IELTS test, changed our models for how we connect and support students, and we've introduced new service lines. So we've got things like Student Essentials, which is designed to support students once they arrive in a destination country with things like accommodation, banking, insurance, et cetera.
And then recently, obviously, we're needing to shift, and we're shifting to become more AI-enabled, flexible given the fast-changing market that we're in right now. Though, of course, we are shifting and, and we're AI-enabled, we're still at the core of IDP is we keep the human connection and that student support central to everything we do.
Alex Usher: I'll come back to the AI thing in a second. But so your big lines of business right now, IELTS, student mobility I guess you view Hot Courses as a, as a separate line of business, or
Christine Wach: Yeah. I mean, yes and no. I mean, the Hotcourses site still exists, IDP Hotcourses, but we integrate them as a service for our clients, so it's all a part of IDP. But initially, it was run separately, and now it's, you know, emerged into the IDP world.
Alex Usher: And would, would you call those your three main areas of business? Are there any others that we haven't touched on yet?
Christine Wach: Yeah. I mean, I think the two main-- the two largest and main lines of business are student placement, traditional student placement, and language testing. So we also have marketing services, which would include that Hotcourses, and data and research services, which we call IQ services. So that's where you see like right now we're releasing Emerging Futures Nine research, which is our student research.
That team in the-- based in London, in the UK manage all that. We have smaller lines of business too, uh, language teaching in Southeast Asia and some UK specific services for the UK domestic university market.
Alex Usher: That's pretty diversified. So how does AI fit into all that? Is AI just something that you're helping in terms of the, the marketing and the student placement, or does it have a more horizontal effect across a, a larger percentage of your businesses?
Christine Wach: Yeah, I think the latter. I mean, from our student surveys, we know that of course, students are using AI in their search. Research is showing us that sixty percent of searches are zero-click searches right now, so meaning they don't end up landing on a website. So that's transforming all aspects of our business.
And then I think operationally, internally, we're using AI enabled services in our student counseling, with language testing. We're doing a lot of research and development in this area, and yeah, so horizontally across everything.
Alex Usher: Interesting. We're going to take a short break, we'll be right back.
And we're back. Christine, I want to turn now to, you know, market conditions in the last few years, 'cause it's been a rollercoaster, right? And not just here in Canada, it's been quite... So 2021, 2022, we saw a huge explosion of international students right across the Anglosphere, right?
So US, Canada, UK, Australia, New Zealand. Well, not New Zealand in, in '21. But anyway, the, the big, big jumps in numbers post-COVID. Now I know why supply increased, right? Like, there were more universities who wanted to accept international students 'cause it's, you know, it was more money. But what was behind the increase in demand?
Why did hundreds of thousands of students suddenly decide they had to study abroad? Because that's, that's the half I never see spoken about very much. What's your guess?
Christine Wach: Ya, I mean, we were talking about this just before this podcast. I think there's a few things. So, just obviously the rising global mobility skills driven career pathways, perhaps the digitization of student decision-making, students how much they were, able to research, compare more options online.
There was increased demand, I think, for higher quality, institutions and really practical options available in the major English-speaking destinations. But I think there's a connection to migration that people weren't talking about before COVID started. So I think that for the first time after the pandemic, we started talking about migration and education together.
During the, the pandemic, provincial governments and institutions here in Canada started to work closely aligned policies to allow students to enter Canada. I mean, so I think this really contributed to that huge growth and that demand, and students seeing the opportunity. You know, we look at our research with students, ROI, as it pertains to employment, whether it's cooperative education, internships, and post-study work or post-grad work permits, are driving factors for students and parents. And I think that opportunity to study in the Big Four destinations was driven largely because of this.
Alex Usher: Staying on the subject of that sort of explosion of international students in '21, '22, '23, do you think that universities and colleges in the Anglosphere actually did right by that big explosion of international students? I mean, you know, the students want a quality experience, but the... there were so many people coming into the country for education, and I'm not just talking about Canada, UK was arguably a, a, bigger case. You know, did we manage to supply a quality experience to all these students, or did our institutions fall short? And, and if so, why?
Christine Wach: So I think in many places quality did hold up, but obviously rapid growth exposed a lot of the capacity constraints. So first of all, I think a lot of institutions genuinely did care and do care and worked hard, especially supporting students arriving into a post-pandemic environment, perhaps even when they've been onboarded in their home country.
So second, I think when the volume grew faster or when it grows faster than accommodation, than staffing, than local services, students feel it most in areas like housing affordability, which we saw, wait times for support, consistency of onboarding, wellbeing services, job opportunities And so I think the lesson is that sustainable growth needs to be coordinated, and planning so that enrollment settings, housing supplies, student supports all scale together.
I think this is consistent. So talking about our research, Emerging Futures Nine, students are weighing destinations more carefully with things like cost of living and value playing a bigger role in decision-making. So like that lived experience of the students, especially in areas like housing, becomes central to the reputation and the long-term demand for a destination or an institution.
Alex Usher: Hmm. So obviously we know the bubble burst across the Anglosphere in '23 and 2024 in, you know, in the sense that receiving countries, those with lots of international students, they started becoming less welcoming. You know, it's been of different severity in different countries. Canada's been a lot you know, the, the shutdown has been much more complete here than it was in either the UK or Australia.
But it's all, you know, kind of the same thing. And at the same time, we started seeing really big increases in international student numbers in some very odd places, right? Like not just, you know, Germany and France where you might expect it, but Turkey, South Korea, Kazakhstan, Bulgaria. I can't remember, I did a list last year of like how many countries said 2025 was their record year, and it was big, right?
And I know in the higher education press, people often suggest that, well, these are smaller countries picking up students who can't go to the big four Anglophone countries. Is that true? Like, are these the same-- Is this seriously just a diversion, like we say no, and they go somewhere else? Or are these countries attracting a different type of student from a different set of countries and a different set of markets and programs?
Christine Wach: Yeah. I don't think it's entirely that there's simply... It's, it's partly true. I don't think it's entirely true. They're not just picking up students who can't access the major anglophones. I think there's some substitution, you know, when the policies tighten here in Canada, the US, or when costs rise in a major anglophone direction, I, I don't think we can forget about price as a driving factor. Some students who are flexible on destination will shift to alternatives, especially if they offer... I think clarity is a big thing in terms of visa processing, and speed, faster visas, right? Lower costs and then clearer work options.
I think we're also seeing some genuinely different segments emerge. I mean, some students choose continental Europe for affordability or expanded English-taught options. We're seeing a lot of that. Other choose parts of Asia for scholarships, proximity to their home. I think strong innovation brands we see.
Some consider, and are considering trans- trans edu-- like TNE routes. And EF9, that's Emerging Futures Nine, I keep referring to it. So we see this broadening, the students' willingness to look at this, you know, as we're calling it the, the big 14 now. They are comparing multiple pathways and markets. And I think transnational education is no longer viewed just as sort of the cheap option, but as a route to employability and sometimes onward study, though I, I'm not sure that that's gonna work for all institutions to invest in that.
And that's got a very long horizon, I think, many years to see that flourish, I think for some institutions. But yeah, I think, you know... And there's a lot of questions, are the programs offered in English? What's the cost? Et cetera, et cetera. But, a lot of these emerging destin- as you said, they're not really new, like Germany and France.
They've been attracting students for a long time, so they have important relationships across the globe. But I think it's just more apparent now that you see all the, the visa lack of clarity and geopolitics and what's going on in the US.
Alex Usher: Ya, or in the case of branch campuses in Dubai, whether there are bombs falling, right? I mean, like s- secure, security that whole equation's changed quite a bit in the last few months.
Christine Wach: Yeah, absolutely.
Alex Usher: So, these are some pretty big changes in student mobility. How does it affect IDP? I mean, obviously you're, you say you're moving into Malaysia. I would guess that's one consequence, right, of the recent changes. But are your fortunes kind of indifferent to where students go, or does the shift away from Anglophone countries affect your, your bottom line disproportionately?
Christine Wach: So yeah, I mean, IDP is diversified across destinations and services, so we're not tied to a single country in a way, you know, that a mono-destination model might be. But policies in major destinations still matter 'cause they influence the volume.
The conversion is a big thing, not just the volume of applications, but what's converting. And then student confidence in that destination. Our research, again, students want clarity. They need to know that, um, they don't like this constant changing landscape. So we use our, our research, our insights, including our own, you know, Emerging Futures Nine to understand where student preferences are heading, which destinations are gaining consideration, what factors like cost, safety, work rights, employability are shaping students' and parents' decisions.
When a large market tightens rules or signals uncertainty, demand shifts. So that's-- we have that advantage, obviously, and that shows up in student placement volumes and related services. It also shows up in our IELTS data. Where do we see people choosing that they're gonna go in, you know, twenty-four months or eighteen months out, and volumes of language testing students.
So yeah, the short answer is we're somewhat insulated by our diversity but we're not completely immune just like anyone. And um, as you said, look at our Malaysia new destination, which we're excited about, is an example of this.
Alex Usher: Yeah, and IELTS I imagine is, is much more insulated from change than you know, your, your student mobility stuff too, right? 'Cause it doesn't matter where they're going, they need IELTS.
Christine Wach: They need IELTS. Yeah, they do. They need a language test and you know, it's still impacted, but it's, it's global. So, yeah.
Alex Usher: Walk me through how you think the next four or five years will play out. I mean, who knows what's gonna go on in the US, and who knows how, you know, what policy changes will happen here. You know, the UK certainly political instability looks like it might affect international students.
Do you think international student numbers are likely to come back in the Anglophone world? And if not, um, you know, who, who in there is best placed to grab new students? You know, I have seen a few countries just sort of say flat out, we're gonna replace falling domestic student numbers with international students.
The, the higher education minister in Poland said that a couple weeks ago, and I remember thinking, they're all gonna run up against exactly the same problem we did in Canada, right? Which is they're not gonna do it in a coordinated fashion. You're gonna run into housing problems, et cetera, et cetera, et cetera. So, who's best placed to avoid messing up the way Canada messed up if things don't return in Anglophone countries?
Christine Wach: Well, I think, I mean, I think the things will return. I think, depends on the country, I guess, for the Anglophone countries. We think that the next four or five years are gonna be defined by a more managed growth. Canada is obviously, I mean, the focus on quality, the focus on the U15. I mean, all the universities and of course, the college. Yeah. Yeah.
Alex Usher: no, there's no falling below
where we are.
Christine Wach: we're at the bottom. I-- Hopefully, we're at the lowest point. We're at the lowest point. And we are seeing signs of interest and improving visa conversion rates and, you know, I met with a, a U-fifteen the other day in Toronto, and they're seeing the same.
So I'm actually optimistic about Canada, but again, I think it's quality managed growth. And a couple of weeks ago in Ottawa, everyone was talking about global talent connected to economic outcomes. So much more structured. I think most of this change is actually good for Canada but it's time for us to grow again.
So underlying demand remains strong, we think. I think the big swing factor is gonna be policy stability. So that's where the US, less certainty. Students and families respond very quickly to uncertainty in visa rules, work rights, and cost of living, but especially the visa rules and work rights, and we're seeing that in a major way in the US right now.
Our survey, EF nine, students shows once again, they're shopping globally more than ever. So seventy-eight percent are seriously considering more than one destination. So, we're just gonna continue to see the growth shared across a wider set of markets. I think that's important for universities and regions to keep in mind when they're looking at how they're marketing.
They can't do it the way they used to do it. They need to be much more specific and bold in their marketing. But interestingly, the EF nine still shows traditional that big four destinations remain the top first choices. They seem to own that space of career confidence. Students and parents trust they will deliver on what they've promised to in the past, and that the key ROIs are, you know, that employability, post-grad work permits, all the stuff we're talking about, safety, stable rules, et cetera.
So for the new destinations, I mean, any country that scales quickly without coordinated planning is gonna feel pressure, like you said, just like we did. I think the difference is can the governments and institutions align enrollment with accommodation strategies, local infrastructures, student supports, so that growth is, you know, intentional and sustainable.
I think that's what we all, what Canada needs to do, what all the destinations need to do.
Alex Usher: Christine, thanks so much for being with us today.
Christine Wach: Thank you so much, Alex. My pleasure. Thanks for having me.
Alex Usher: And it just remains for me to thank our excellent producers, Tiffany MacLennan and Sam Pufek, and you, our listeners and readers, for joining us. If you have any questions or comments about today's episode or suggestions for future ones, please don't hesitate to get in touch with us at podcast@higheredstrategy.com.
Join me next week when our guest will be Marcel Levi. He's president of the executive board of the Dutch National Research Council, or NWO. We'll be talking mainly about the work of the Dutch Knowledge Coalition, of which the NWO is a part, in the recent national general elections, and also how countries like the Netherlands are positioning research and talent as key drivers of economic competitiveness. Bye for now.