South Africa`s ailing skills machine. South Africa`s shortage of IT skills is widely recognised, yet there is no long-term solution. If the industry is to contribute to 6% target economic growth and survive a global recruitment onslaught, we need the right skills, and lots of them ALTHOUGH IMPOSSIBLE to calculate, it is universally understood that economic health depends on the volume and quality of skills that enter the market. In South Africa, however, the debate about the skills shortage has become so commonplace, that today it is received with apathy.

While logic would dictate that public and private enterprise would work towards restoring the balance through skills development initiatives, evidence in the IT sector suggests otherwise.

A case in point is Minister of Public Service and Administration Geraldine Fraser-Moleketi`s recent announcement that government would be seeking specialised skills from India to bolster capacity in the public sector.

Despite Fraser-Moleketi`s careful emphasis that this is to be a short-term programme aimed at facilitating critical skills transfer, one can`t help but wonder at the intent of the second phase of a `more comprehensive recruitment of technical skills` from that country.

The need for government to look outside South Africa`s borders for appropriate skills should not come as a surprise to the industry, however. For some time, offshore companies have capitalised on skills shortages as a way in which to promote outsource-related offerings.

But while this has proven profitable to suppliers and their regions, the practice does not allow for the development of a sustainable local industry.

KNOW YOUR ENVIRONMENT

In assessing the skills required for a sustainable industry, says Professor Derek Smith, head of the Information Systems department at the University of Cape Town, one first needs to appreciate the multiple factors that may have an impact on skills development.

"There are many aspects to consider when evaluating the current rate and focus of skills development initiatives, and their sufficiency in meeting market demands.

"Foremost is government`s ambitious 6% economic growth target. In order to achieve this, the IT industry will need to increase its output contribution, and also ensure that there is sufficient skilled capacity to meet demand from the rest of the market," he says.

Moreover, points out Smith, the global shortage of IT skills could potentially have a devastating effect on South Africa`s ability to retain its talented workforce.

"Many developed countries have identified skill shortfalls in their workforce and are relaxing immigration requirements to facilitate recruitment drives. South Africa, having built a reputation of quality skills, will undoubtedly feature in the shortlist of countries with attractive candidates," he warns.

Others in ICT academia express similar concerns. Professor Dave Sewry, Rhodes University`s Information Systems head of department, notes that discussions with peers have revealed a decline in registration for ICT degrees.

NOT SKILLED ENOUGH

Professor Basie von Solms, head of department of the Academy for Information Technology at the University of Johannesburg, adds that academia`s inability to retain third-year students for post-graduate research programmes will hamper South Africa`s ability to leverage the full capability of ICT.

"ICT has a critical role to play in solving many of South Africa`s problems as well as building the economy at large. However, in order to reach its potential, it requires a strong research capacity.

Although we do have pockets of good ICT research in SA, the efforts are mostly fragmented and disjointed due to lack of collaboration among education, industry and government," he says.

According to Smith, Sewry and von Solms, academia`s inability to hold onto students for post-graduate degrees is a combination of higher industry demand for graduates and attractive financial packages offered by the market.

"The only financial incentive we are able to offer to students is a bursary of up to R20 000 per annum. When compared to the market offering of around R180 000 per annum, it`s easy to understand why the number of Masters and PhD students is dwindling so quickly. As educators, we are unable to compete with employers," says von Solms.

But perhaps the IT skills shortage is being exaggerated in boardrooms, the corridors of academia and on magazine covers. Some light is visible at the end of the tunnel.

Mark Walker, BMI-T`s research director, explains: "Although the skills hype may have been true a few years back, the growth in entry level skills - and the return of skills to the country - has addressed many of the inadequacies.

"As a result, the local arena has pockets of shortages which are largely based on the seniority of the skills and the focus of the skills.

"A broader skills shortage can [admittedly] be found among the black-empowered workforce. These candidates are still in the process of moving through the ranks."

IBM South Africa`s country manager, Mark Harris, agrees. He explains that the cyclical nature of IT and its adoption often results in particular skills going through periods of high demand before being surpassed by the next technology cycle.

"An IT qualification is not a guarantee of employment anymore, as can be seen by the number of trained people who are unable to find employment. Additionally, the growing reluctance in the market to hire people who have not yet gained experience is making this pool significantly larger.

"Having said that, we do need to address the gap that is emerging, as many of our senior skills reach mandatory retirement age.

Although South Africa is not the only country experiencing this gap, our focus on rectifying race and gender-related imbalances from the apartheid era has added a dimension of complexity to the succession planning of many companies.

"Sadly, industry is not doing enough to facilitate skills development among previously disadvantaged individuals, and as a result it will encounter difficulties in replacing senior skills with candidates who meet both skills and empowerment requirements."

In terms of First World interest in South Africa`s skill base, both agree that the threat is real with potentially devastating effects if not addressed suitably.

HOMECOMING QUEEN

For guidance on how to keep our IT professionals on South African soil we turned to Homecoming Revolution managing director, Martine Schaffer. Launched in January 2003, the non-profit organisation has set itself the daunting task of encouraging South Africans to return to their home country.

Nevertheless, Schaffer says the news is good: "We are certainly seeing professionals across all sectors coming back to South Africa and a significant number seriously considering the possibilities of return. Of course it is better for the country to take a proactive approach to keeping skills on board, rather than a reactive approach, once they have left."

At the time of going to press, the organisation`s website poll showed that the four biggest concerns for South Africans considering returning home was the crime rate with 28.72%, followed by BEE and affirmative action at 24.14%, finding work at 23.51% and earning rands at 12.2%. This shows that while financial reward is important, it is still not more important than job security and satisfaction.

"Few of our companies and industries can compete with countries like America in the salary stakes, so we need to be more creative in retaining our skills.

"This means we have to start looking after our staff, investing in career paths and highlighting the opportunities that are unique to South Africa," comments Schaffer.

It`s not impossible, says Harris. "We only need to look at the complete turnaround that Ireland made in its own brain drain. A few years ago, the country was losing an alarming percentage of its skills to the international community. As a result, the government embarked on a strategy which focused on making Ireland an attractive place to work and live, thereby generating a natural return of the country`s skills."

It`s certainly an interesting example for South Africa to consider. Having been producers of skills to the rest of the world, Ireland is now rated as one of the most attractive countries to work in. Additionally, its `rags to riches` economic transformation has many trying to emulate its success. If South Africa can do the same, a 6% economic growth rate may not be as ambitious as previously thought.