Kathy Gibson reports – The global digital economy is driving a growing need for IT skills – and this is exacerbating the many skills challenges facing the South African market.
This is among the headline findings of the latest Institute of IT Professionals of South Africa (IITPSA) Skills Survey and Research report, launched today.
According to Hloni Mokenela, MD of Africa Analysis, which conducted the survey, global digitalisation will account for $16,5-trillion dollars by 2030, a massive 17% of global GDP.
Growth is being driven by several main trends: artificial intelligence and machine learning (AI/ML), which will grow 35% to reach $1,6-trillion by 2030; cybersecurity, which will reach $270-billion by 2019; and data science, expected to hit $470-billion by 2030.
South African employers report significant skills shortages in the fields of information security/cybersecurity, AI/ML, big data/data science, data storage, DevOps and systems design – and they are prioritising professional experience as an important attribute when selecting candidates.
At the same time, local ICT practitioners are increasingly looking for remote opportunities with clients and employers overseas, as the global skills gap makes these opportunities more attractive.
The 2024 survey reveals that 46% of organisations are currently prioritising information security/cybersecurity, 32% prioritise AI/ML and 19% have made big data/data science a priority.
These are also the areas experiencing the greatest skills shortages: 27% of employers have current AI/ML skills shortages, with 32% expecting to have shortages in AI/ML skills in future; 19% reported current skills shortages in data science; 22% in data storage; 27% in information security/cyber security; 20% in DevOps; 19% in systems design; and 19% in business intelligence.
Not-for-profit organisations and state-owned enterprises seem to exhibit some notable differences in their ICT priorities and practices compared to enterprises in other sectors, with state-owned enterprises prioritising technologies such as AI and ML, and not-for-profit organisations focusing more on social media.
There has also been a shift in the most popular programming languages among respondents, with Python emerging as the programming language that most respondents are using in their organisations, followed by JavaScript, Java, SQL and C#. Java, which previously ranked as the programming language used by most respondents, was this year relegated to third position for the first time since 2012.
Africa Analysis says graduate degrees have given way to professional experience in the 2024 and 2022 ICT Skills Surveys as the most highly ranked attribute of potential recruits, with 47% of employers in this year’s survey ranking experience as a key attribute for potential candidates, followed by 32% citing a graduate degree. Less important factors include an industry association (17%), post-graduate degree (14%), vendor certification (12%), diploma or certificate (10%) and a coding bootcamp (7%).
Mokenela comments: “In earlier editions of the skills survey, corporates had indicated a preference for academic training as the main attribute they used when selecting new candidates. In recent years however, professional experience was picked well ahead of the rest. This was partly due to graduates produced by the education system not being considered ‘job-ready’ and lacking some of the softer business, non-technical skills.”
Exacerbating factors
A lack of adequate training, an insufficient pool of new graduates and an ongoing brain drain are exacerbating the skills gap, the study finds.
An overriding frustration from the industry is that graduates are not coming into the job market ready to work, so companies spend a lot of time and investment training them up. The reasons for this include a lack of training and education at a basic level (26%), an insufficient pool of new graduates (24%), migration of skilled labour (24%) and rapid technological change (21%).
Sixty-five percent of employers said skills gaps had a moderate or high impact on their businesses.
Among ICT practitioners, 49% are considering working remotely for an employer or client overseas, 9% plan to do so, and 11% already do so. Eight percent describe themselves as digital nomads.
Mokenela points out that the skills gap is made up of two components: the skills pipeline, with STEM graduates accounting for less than 20% of graduates in 2021; and the quality of skills, which is poor due to the limitations in the quality of training for professionals and graduates.
Issues affecting the skills gaps include structural drivers like low interest in STEM as a career option, the volume and quality of STEM trained teachers, the unaffordability of higher education, and the infrastructure gap. Transitional drivers include the evolving technology landscape and the high mobile of staff as the brain drain takes effect.
There are economic impacts from the skills gap. Perhaps the biggest is unemployment, where under-utilised ICT human capital is estimated at close to 280 000 people. The opportunity cost is also huge, with business and tax being lost. And the ICT sector in this country becomes less competitive as a result.
Filling the gaps
The percentage of respondents that reported to be recruiting staff from overseas dropped to 36% in 2024, down from 50% in 2022, and over half (56%) of the corporates do not outsource their ICT functions to overseas resources.
In an effort to retain skilled staff and build capacity, employers are offering professional development programmes and performance bonuses, followed by flexible schedules and increased basic pay.
The study found that flexible schedules have become the most used policy, offered by 44% of employers. Forty-one percent use development programmes, with employers saying they prefer online training platforms and academic institutions to meet their staff development needs through short courses.
Practitioners are also taking charge of their own professional development: at least 38% of respondents relying on online training platforms such as Coursera, Skillshare and Udemy, with some pursuing professional certifications (25%) and vendor certifications (20%) to improve their technical skills. The overwhelming majority (97%) of respondents felt they needed to reskill themselves in view of the changing digital environment.
For new recruitment, 23% of employers look to Universities of Technology, 21% to universities, 19% use employment agencies and 9% seek new recruits from private training providers. A further 9% source new talent from Web/Internet platforms such as LinkedIn.
IITPSA CEO Tony Parry says: “As we have seen in previous Skills Surveys, the lack of progress in broadening STEM education and training programmes not linked to employment continue to contribute to the skills gaps challenges.”
The latest survey indicates a need for coordinated efforts to make candidates more work-ready when they enter the labour force, as well as more qualified educators to help academic institutions produce a larger pipeline of ICT professionals. While there are numerous training and upskilling schemes and a large number of providers offering certifications and qualifications, it seems these initiatives are not creating the required skills resources.”
But South Africa is not seen as a quality contributor to the skills environment, and it well behind some of its local and global peers in terms of STEM graduates, with the percentage of STM graduates at just 17,7% in 2022.
With a dire need to improve the quality of training in STEM subjects at the basic education level, academia will need assistance to expand the number of quality of ICT trainers
Mokenela adds: “There is an acceptance by practitioners and corporations of the need for ICT professionals to continuously invest in updating and refreshing their skills in order to remain relevant. While the majority of corporations and practitioners seem to favour a tertiary qualification to provide foundation skills, short courses from online platforms and tertiary institutions are preferred for helping to keep upgrading their skills.”
Featured picture: Hloni Mokenela and Tony Parry present the IITPSA Skills Survey and Research report