ICT SECTOR PROFILE

INTRODUCTION

Skills development is a national priority across the South African economy, hence Government’s decision five years ago to create a Sector Education and Training Authority (SETA) for each of the 25 economic sectors.

Isett Seta was established specifically to address skills development in Information Systems, Electronics and Telecommunications Technologies – one of the most fragmented and complex of all the sectors.

Like the other remaining 23 Setas, ICT work is regulated by the Skills Development Act, which is overseen by the Department of Labour, and funded through payroll levies paid by employers in the sector.

SECTOR PROFILE

The ICT landscapeis quantified by focusing on the population of the major sectors, sub sectors and fields. This sector has approximately 201 800 employees spread across2400 levy-paying companies, 80% of them small, medium and micro enterprises (SMMEs).

This composition, together with the unique dynamics of the technology sector, poses significant skills development challenges. A total number of 11, 600(m) people (25.94) ofthe populations of 44.5(m) were estimated to be employed. Out off this group only 201 849 technical and non technical are employed inthe ICTsector.

The employee profile reflects that there are highly skilled and skilled employees across the sector, but that there is a distinct racial and gender imbalance amongst those employed. The private training providers represent 73.28% of the sample data while universities and technical colleges represent 26.72%.

The entry-level opportunities, especially young black people, have moved closerto balance the race demographics inSouth Africa. The White student population represents 22.96%, while the Black, Indian and Coloured already represent 77.04% of the total.

TheICTsector is moving away from the perception of being a White male dominant environment. It has moved closer to the gender demographics, with females presenting 50.3%.

FACTORS INFLUENCING CHANGE

Many challenges face the sector;most noticeably theICT emerged as one of the areas of the economy – cutting acrossa wide range of sector domains. The sudden realisation that,the ICT sector has always been recognised as a strategicholding centre to the future growth and prosperity of South Africa’s economy.

Most of the government’s socio-economic initiatives, such as poverty alleviation, grant administration, education and training, and national healthcare system depend on the availability of a sound national ICT infrastructure. Despite its infancy, the South African ICT sector is ranked among the top five sectors in terms of its contribution to the South African Gross Domestic Product (GDP).

Key to the process of ICT skills development,the challenge is educating, training and integrating a large proportion of the population that is not yet part of the information society.

CURRENT EDUCATION AND TRAINING SUPPLY

The development of ICT skills has been identified as an important aspect of growing the ICT sector in South Africa even though the digital divide is often perceived as a problem relating to access to technology.

However,the Isett Seta endeavours to develop strategic quality human capital in relation to the needs of the South African ICT sector that will contribute to social upliftment and the stimulation of economic growth - by raising the levels, quality and relevance of education and training in the sector.

Also encourages partnerships between public and private organisations to benefit employers, employees and the unemployed – through the development of high level skills, as well as, present education and training on offer.

EMPLOYMENT AND SKILLS NEEDS

According to a recent report(Analysis of the ICT Skills Audit Report, published in February 2004), South Africa’s position in the Human Development Index has dropped from the 94thto 107th place in 2002, despite the aggressive national skills development policy through the Skills Development Act and other legislation.

Owing to lack of ICT skills and the impact of the brain drain, high levelInternship Programmes for ICT graduatesare developed to address skills shortages in key fields such as Masters in Information Engineering and Masters in Telecommunications Engineering.

To overcome the barriers of the employment and skills needs, the Isett Seta needs to obtain accurate and timely labour market intelligence to inform decision makers on national, organisational, and individual levels with regards to employment and skills development in the ICT market.

SKILLS PRIORITIES

To achieve this, the Isett Seta jointly with the Department of Trade and Industry (DTI) commissioned a research on areas of critical skills shortage in the ICT sector. The Skills priorities identified in the ICT sector are:

•IT Technical Support (Hardware and Networking)

•IT System Development (Software Development including database)

•Telecommunication Technology

•Electronics (Development and Maintenance)

•Project management

•Venture Creation (Business Development and Entrepreneurship)

•End User Computing

It is important to note that these skills reflect the number of training interventions planned or implemented. The number of training interventions is likely to exceed the total number of beneficiaries from training by a large margin, as the same employee might attend 4 or 5 different training interventions.

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