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Skills shortage an obstacle to growth

Information Age staff, Information Age

10/04/2008 13:36:12

AUSTRALIAN ICT INDUSTRY GROWTH is being constrained by skills shortages in key industry sectors, along with a downturn in telecommunications employment and research & development (R&D) spending, according to an ACS report released in February.

The ACS ICT Industry Report, conducted for the ACS by the Centre for Innovative Industries Economic Research (CIIER), provides an overview of the Australian ICT industry as of December 2007.

ACS president Kumar Parakala said the primary concern identified by the ACS Industry Report was that ICT skills shortages are now negatively impacting ICT industry performance.

Parakala said this will have significant economic flow-on effects for Australian business at a time when global industry growth is paramount. "The report provides a significant overview of the current state of the ICT industry and its impact on other industry sectors," he said.

"Findings suggest that employment volatility is declining, vacancies are up to record highs and employment growth is slowing."

There are three key factors creating significant pressure on the ICT industry performance - a downtrend in telecommunications employment, a reduction in the number of Australian ICT companies in the market, and a continued decline in R&D spending.

Other findings from the report show ICT employment growth since 2003 in Western Australia stands at 42 percent, in Queensland it is 31 percent, Victoria 22 percent and NSW is 16 percent compared to only 12 percent in the Northern Territory, nine percent in Tasmania and four percent in South Australia. Parakala said some of the report's findings raise concerns for the future of the ICT industry and overall economic prosperity. "ICT underpins so many areas of our national growth and productivity Australia's ICT priorities must be top of mind if Australia is to maintain its globally competitive position.

"This includes encouraging more people to enter or re-enter the ICT workforce, particularly women and older workers. It's important for industry and government to collaborate on creating a sustainable ICT ecosystem that will help manage and grow the ICT workforce."

In addition to developing policies to support the industry, the ACS believes firms should be encouraged to undertake a three- to five-year rolling skill forecast as part of their annual planning.

Parakala said the government, together with industry, urgently needs to build an ICT Skills Demand Model to help to identify how many ICT workers the industry will need in 10 to 15 years time.

"We have now reached the tipping point and if the industry is not supported by the federal government, Australia will slip further down the line on the global stage."