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Building Australian ICT skills Report of the ICT skills foresighting working group
May 2006
ISSN 0 642 75354 7
© Commonwealth of Australia 2006
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This report has been produced by the Australian Department of Communications, Information Technology and the Arts.
Building Australian ICT skills Report of the ICT skills foresighting working group
May 2006
‘…in order to realise the predicted productivity benefits it will be necessary to support an appropriate level of investment in skill formation and in ICT related R&D…
The introduction of new ICT technologies involves an extensive learning process that generates significant knowledge and innovation...’
Forecasting Productivity Growth 2004 to 2024, DCITA, 2006
Contents
Executive summary...........................................................................................................................................................1
Key findings and recommendations...........................................................................................................................5
Industry.leadership..............................................................................................................................................................7
ICT.labour.market.intelligence..........................................................................................................................................7
Upgrade.of.the.IT.Contract.and.Recruitment.Association.placement.data.collection.........................................8
Access.to.information.on.ICT.skills,.occupations.and.careers...................................................................................8
ICT.workforce.retention,.retraining.and.up‑skilling......................................................................................................9
ICT.workforce.attraction.....................................................................................................................................................9
Research.on.ICT.skills.in.schools...................................................................................................................................10
Background.........................................................................................................................................................................11
1.1.Building.ICT.Skills.as.a.Strategic.Priority.............................................................................................................13
1.2.Formation.of.the.ICT.Skills.Foresighting.Working.Group..................................................................................13
The Key Strategic Role of ICT in Australia’s Economy.....................................................................................15
2.1.ICT.as.a.major.driver.of.economic.growth............................................................................................................17
2.2.Technology.trends......................................................................................................................................................17
2.3.The.Structure.of.the.Australian.ICT.Industry.......................................................................................................18
Major ICT labour trends and issues.........................................................................................................................21
3.1.ICT.Employment........................................................................................................................................................23
3.2.The.changing.nature.of.ICT.employment.............................................................................................................23
3.4.Demand.for.non‑technical.(‘soft.or.employability’).skills..................................................................................27
Role of Education in ICT skills supply.....................................................................................................................29
4.1.ICT.skills.development.in.schools..........................................................................................................................32
Career.Advice.Australia.................................................................................................................................................33
4.2.Role.of.the.VET.sector.in.ICT.skills.development...............................................................................................33
VET.in.Schools.program...............................................................................................................................................33
4.3.Role.of.Universities.in.ICT.skills.development....................................................................................................34
University.ICT.course.enrolments...............................................................................................................................35
ICT.graduate.employment............................................................................................................................................36
4.4.Articulation.of.course.pathways.between.university.and.VET.sectors............................................................36
Skills development in the marketplace.................................................................................................................37
5.1.The.role.of.employers................................................................................................................................................39
ACS.ICT.staff.training.survey.......................................................................................................................................39
5.2.Outsourcing.and.off‑shoring....................................................................................................................................40
5.3.Skilled.migration........................................................................................................................................................41
Future ICT skills demand..............................................................................................................................................43
6.1.Challenges.and.issues.in.ICT.skills.foresighting.................................................................................................45
6.2.Forecasting.and.technology.trends.........................................................................................................................45
6.3.ICT.skills.forecasting.in.Australia...........................................................................................................................46
6.4.Modelling.the.future..................................................................................................................................................47
6.5.Current.modelling......................................................................................................................................................47
The future ICT professional.........................................................................................................................................49
Conclusion...........................................................................................................................................................................53
Appendices..........................................................................................................................................................................57
Appendix.A..........................................................................................................................................................................59
ICT.Skills.Foresighting.Working.Group.Membership.and.Terms.of.Reference.................................................59
Appendix.B..........................................................................................................................................................................60
Overview.of.the.ICT.industry.in.Australia..................................................................................................................60
Appendix.C..........................................................................................................................................................................62
Overview.of.ICT.employment.in.Australia.................................................................................................................62
Appendix.D..........................................................................................................................................................................73
Overview.of.ICT.Skills.Supply.in.the.Higher.and.Vocational.Education.Sector................................................73
Endnotes...............................................................................................................................................................................79
Executive summary
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Building Australian ICT skills
May 2006
Executive summary•. Targeted.and.decisive.action.is.required.to.enhance.Australia’s.level.of.information.communication.
technology.(ICT).skills.and.capability.in.order.to.maintain.competitiveness.and.maximise.the.potential.of.ICT‑generated.productivity.growth.across.all.sectors.of.the.economy..
• Research.by.the.Department.of.Communications,.Information.Technology.and.the.Arts.and.the.Productivity.Commission.has.demonstrated.that.ICT.has.played.a.major.role.in.Australia’s.productivity.growth.in.recent.years,.highlighting.its.potential.to.support.further.sustained.growth..
• Australia.must.ensure.that.these.productivity.gains.are.secured.and.built.upon.by.increasing.ICT.labour.force.participation.levels.and.building.the.ICT.skills.base..A.highly.skilled.ICT.workforce.is.the.key.to.business.productivity.improvement.through.innovative.use.of.ICT..This.in.turn.provides.businesses.with.the.capability.to.compete.successfully.for.export.opportunities.
•. The.ICT.Skills.Foresighting.Working.Group,.chaired.by.Keith.Besgrove,.Chief.General.Manager,.Information.Economy.Division.of.DCITA,.has.analysed.prevailing.trends.and.identified.a.number.of.major.inhibitors.which.threaten.Australia’s.future.ICT.skills.development,.productivity.gains.and.competitiveness..These.are:
–. inadequate.coverage.and.access.to.quality.data.on.demand.for.skilled.ICT.occupations;
–. poorly.defined.systems.of.classifying.occupational.skills.leads.to.gaps.and.inconsistencies.in.available.data.series;
–. apparent.declines.in.industry.investment.in.workforce.retraining.and.up‑skilling;
–. flow.on.effects.within.the.ICT.industry.of.intergenerational.social.and.demographic.factors,.such.as.the.ageing.workforce,.changing.workplace.attitudes.and.generational.patterns.of.work;
–. outmoded.and.negative.perceptions.of.ICT.occupations.and.careers.due.to.a.poor.understanding.in.schools.and.across.the.community.of.the.diversity.of.ICT.occupations.and.opportunities;
–. evidence.of.a.tightening.ICT.labour.market.and.the.emergence.of.recruitment.difficulties.for.some.ICT.skills;
–. falling.entry.level.job.numbers.for.new.ICT.graduates.and.a.marked.decline.in.ICT.course.enrolments.in.the.university.and.VET.sectors.all.suggest.a.declining.pool.of.local.ICT.workers.in.the.medium.to.longer‑term;.
–. the.variable.nature.of.ICT,.over.time.and.across.industries,.that.requires.ICT.professionals.to.regularly.redefine.and.reassess.their.roles,.functions.and.skill.requirements;.and
–. lack.of.multi‑jurisdictional.cooperation.in.regard.to.the.issues.outlined.above.
Unless.these.issues.are.adequately.addressed.they.will.lead.to.a.severe.constriction.in.the.supply.of.skilled.ICT.workers.and.increase.the.risk.of.sustained.skills.shortages.
The.recommendations.in.this.report.suggest.key.areas.to.be.addressed.by.government,.industry,.and.education.and.training.providers..Working.together.to.improve.the.way.ICT.is.represented.to.parents.and.young.people,.to.encourage.higher.levels.of.ICT.workforce.participation.and.to.improve.understanding.of.the.nature.of.ICT‑related.work.throughout.the.economy.
Key findings and recommendations
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Building Australian ICT skills
May 2006
Key findings and recommendations
Industry leadershipOne.of.the.major.issues.identified.by.the.Working.Group.was.the.lack.of.public.and.private.sector.cooperation.on.many.of.the.issues.challenging.the.ICT.industry..While.a.vast.amount.of.data.was.available.on.the.issue.of.skills.across.the.ICT.industry,.there.was.no.evidence.to.suggest.it.was.being.coordinated.adequately.or.effectively..The.recent.partICipaTion.Summit.also.came.to.the.conclusion.that.efforts.being.made.by.individual.organisations.would.be.maximised.if.they.could.be.aggregated.and.managed.under.a.single.industry.leadership.group.
Recommendation 1The.Working.Group.recommends.the.formation.of.an.industry.leadership.group.to.develop.and.facilitate.improved.ICT.information.and.participation.in.ICT.occupations.and.careers.
ICT labour market intelligenceThere.is.currently.a.lack.of.consolidated.useful.data.and.information.on.ICT.skills.market.intelligence..This,.along.with.the.poor.dissemination.of.the.detailed.information.which.is.available,.prevents.labour.market.participants.gaining.a.well.informed.understanding.of.the.ICT.skills.market.and.future.skills.demand..
The.Online.and.Communications.Council.and.the.PartICipaTion.Summit.also.identified.shortcomings.in.current.statistical.collections.and.access..Improved.information.on.skills.in.demand.and.ICT.occupations.and.careers.are.needed.by.industry,.employers,.ICT.professionals,.students.and.education.and.training.providers..This.information.will.enhance.training.and.career.planning,.course.and.curriculum.development,.and.assist.government.policy.development..
Recommendation 2The Working Group recommends that the proposed industry leadership group take on improved market intelligence as one of its main activities and work with government to:
•. assist.industry.to.implement.a.national.ICT.nomenclature.and.job.description.framework.consistent.with.the.new.Australian.and.New.Zealand.Standard.Classification.of.Occupations.(ANZSCO).occupational.classification;.and
•. adapt.and.implement.policies.being.established.overseas.to.improve.information.on.skills.in.demand.and.thereby.assist.government.policy.development.
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Upgrade of the IT Contract and Recruitment Association placement data collectionThe.IT.Contract.and.Recruitment.Association.(ITCRA),.in.conjunction.with.Multimedia.Victoria,.has.established.an.internet.based.data.collection.of.IT.placements.with.data.supplied.by.32.of.its.members..The.data.is.currently.published.for.Victoria.only..However,.with.a.relatively.small.effort.the.data.collection.process.could.be.greatly.improved.to.align.the.data.with.the.new.ANZSCO.occupation.classification.and.published.for.all.states.and.territories.
Recommendation 3The.Working.Group.recommends.that.the.Australian.Government.fund.the.establishment.of.an.open‑access.National.ICT.Skills.Tracking.and.Monitoring.System.based.on.the.Multimedia.Victoria/ITCRA.model..Any.information.collected.should.be.presented.in.a.manner.consistent.with.recommendation.four..
Access to information on ICT skills, occupations and careersThere.is.currently.a.lack.of.public.access.to.data.about.the.ICT.skills.labour.market,.largely.due.to.the.poor.dissemination.of.the.quality.data.already.available.
The.new.Skills.Australia.(web/online).portal.being.developed.by.DEST.and.DEWR.appears.to.be.the.most.obvious.initiative.to.address.this.issue..The.website.will.provide.information.on.skill.shortages,.industry.skill.needs,.future.employment.growth.and.education,.and.training.opportunities.across.all.occupations..It.will.include.a.specific.ICT.module.
Recommendation 4The.Working.Group.recommends.that.the.Australian.Government.work.with.key.stakeholders.to.improve.access.to.quality.data.and.analysis.on.ICT.skills.and.jobs.by.aggregating.and.maintaining.weblinks.and.data.on.the.ICT.skills.market..This.would.include.analysis.of.ICT.labour.market.trends.and.projections.as.well.as.information.on.career.structure.on.an.upgraded.Skills.Australia.website.
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Building Australian ICT skills
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ICT workforce retention, retraining and up‑skillingThere.is.a.perception.that.industry.investment.in.ICT.workforce.retraining.and.up‑skilling.has.declined,.but.there.is.little.data.on.this.important.issue.for.either.the.ICT.industry.or.the.broader.ICT.labour.market.
The.combined.impacts.of.the.ageing.workforce,.changing.generational.patterns.of.work.and.the.apparent.failure.of.many.employers.to.upgrade.workplace.skills.could.mean.that.Australia.risks.being.unable.to.sustain.key.ICT‑based.economic.capabilities,.operations.and.services.in.the.future.
Recommendation 5The Working Group recommends that the Australian Government, in cooperation with industry stakeholders, fund additional research into staff retention, retraining and up‑skilling issues and practices. This could include:
• ACS.and.AIIA.undertaking.regular.review.of.investment.in.and.attitudes.towards.staff.retention,.retraining.and.up‑skilling.as.part.of.their.regular.surveys.and.consultations.with.members;.
• CompTIA.Australia,.possibly.through.the.new.IT.Pro.Australia.website,.undertaking.a.survey.into.investment.in.and.attitudes.towards.vendor.training;.and
• DEWR.including.questions.in.its.ICT.skills.shortage.surveys.on.employer.investment.in.and.attitudes.to.staff.retention,.retraining.and.up‑skilling.
ICT workforce attractionThe.Working.Group.identified.as.a.major.concern.an.outmoded.and.negative.perception.of.ICT.occupations.and.careers,.and.a.poor.understanding.in.schools.and.across.the.community.of.the.diversity.of.ICT.occupations.and.opportunities..
The.Working.Group.concluded.that.there.is.an.urgent.need.for.action.to.address.negative.perceptions.of.ICT.careers.in.the.community.which.lead.many.young.people.and.those.who.influence.their.career.choices.(such.as.parents,.teachers,.career.advisers).to.underestimate.the.opportunities.available.in.ICT.and.thus.to.turn.away.from.considering.a.career.in.ICT.
Recommendation 6The Working Group recommends that the Government work with industry, the education and training sector and State/Territory governments to re‑focus the way ICT is presented by:
• jointly.funding,.developing.and.delivering.a.National.ICT.Awareness.Campaign.consisting.of.a.national.communications.campaign.addressing.negative.perceptions.of.ICT.and.highlighting.the.opportunities.and.attractiveness.of.ICT.careers;
• enhancing.ICT.careers.promotion.and.outreach.efforts.to.schools.by.leveraging.the.new.Career.Advice.Australia.(CAA)..In.particular.this.would.include:
–. forming.strong.links.with.the.network.of.National.Industry.Career.Specialists.(NICS).and.Regional.Industry.Career.Advisers.(RICAs);
–. providing.them.with.information.and.advice.on.the.modern.ICT.workplace,.jobs.and.careers.and.ICT.skills.in.demand.and.in.shortage;.and
• promotion.and.marketing.of.the.ICT.module.of.the.Skills.Australia.website.as.part.of.the.above..
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Building Australian ICT skills
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Research on ICT skills in schoolsThe.Working.Group.expressed.concerns.that.the.quality.of.ICT.teaching.in.schools,.and.the.outmoded.image.of.ICT.work.presented,.may.be.deterring.students.from.considering.ICT.as.an.option.for.further.study.at.university/TAFE.and.as.a.career.choice..This.was.an.issue.that.also.received.considerable.attention.at.the.partICipaTion.Summit..
In.particular.the.Working.Group.raised.concerns.about.the.teaching.of.ICT.as.a.specialised.subject.in.the.later.school.years..The.Working.Group.considered.that.the.focus.should.be.on.teaching.fundamental.ICT.principles,.useful.as.a.foundation.for.further.study,.rather.than.on.specific.programming.areas.
Recommendation 7The Working Group recommends that action be taken to review and enhance the teaching of ICT in schools. The working group suggests that:
• government.fund.detailed.research.on.school.ICT.teachers.to.assess.the.characteristics.(e.g..gender,.age),.qualifications.and.challenges.of.ICT.secondary.and.high.school.teachers;.and
• ICT.industry.bodies.and.leading.ICT.vendors.work.with.education.agencies.and.professional.bodies.to.assist.and.support.school.ICT.teachers.and.teaching.staff.in.universities.and.TAFEs.
1Background
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Building Australian ICT skills
May 2006
1. Background
1.1 Building ICT Skills as a Strategic PriorityBuilding.and.maintaining.a.sustainable.and.world‑class.ICT.workforce.and.ICT.skills.base.is.necessary.to.meet.the.current.and.future.needs.of.the.economy.and.ensure.that.Australia.continues.to.achieve.strong.productivity,.economic.and.social.benefits.from.ICT..
As.part.of.its.fourth.term.commitment.the.Australian.Government.recognised.the.need.to.support.future.economic.growth.by.addressing.Australia’s.growing.demand.for.skilled.labour.and.the.challenges.of.skills.shortages.and.mismatches.
Research.by.the.Productivity.Commission1.and.the.other.government.bodies2.predicts.future.declines.in.labour.force.participation.as.the.Australian.population.ages..Increasing.labour.force.participation.through.ongoing.skills.development.for.young.and.prime.age.workers,.and.ensuring.older.workers.maintain.their.skills.and.employability.are.a.major.priority.
In.its.2004.election.policy.statement,.Information Technology: Connecting an Innovative Australia,.the.Australian.Government.highlighted.the.reskilling.of.ICT.workers.as.an.important.issue..Furthermore,.Online.and.Communication.Council.Ministers3.agreed.at.their.August.2005.meeting.to.collaborate.on.a.more.coordinated.approach.to.Australia’s.ICT.capability,.particularly.ICT.skills,.and.to.improve.the.quality.and.range.of.key.data4..
These.commitments.recognise.that.Australia.faces.an.ongoing.challenge.to.ensure.that.the.available.ICT.workforce.is.in.line.with.the.changing.needs.of.the.ICT.industry.as.well.as.industries.across.the.Australian.economy..
1.2 Formation of the ICT Skills Foresighting Working GroupIn.February.20055.the.Minister.for.Communications,.Information.Technology.and.the.Arts,.Senator.the.Hon.Helen.Coonan,.established.the.ICT.Skills.Foresighting.Working.Group.to.contribute.to.the.portfolio’s.consideration.of.the.Australian.ICT.labour.market..
The.Working.Group.analysed.the.current.trends.and.potential.developments.of.ICT.technologies,.the.applications.of.technologies,.and.their.implications.for.the.ICT.workforce.and.its.skills.development..This.included.a.review.of.the.ability.to.accurately.forecast.future.ICT.workforce.demand,.the.fit.between.industry.skill.needs.and.existing.training,.and.possible.options.for.better.forecasting.the.future.workforce.needs.of.industry..
� EconomicImplicationsofanAgeingAustralia,PC2005www.pc.gov.au/study/ageing/finalreport/index.html
2 Forexample:Workforce Tomorrow—Adapting to a more diverse Australian labour market,DEWR2005www.workplace.gov.au/wt
� OnlineandCommunicationCouncilismadeupofFederalandStateMinistersresponsibleforInformationTechnology.
� JointMediaStatement,TwelfthMinisterialmeetingoftheOnlineandCommunicationCouncil,2�August2005:p.2Building Australia’s ICT Capability
5 MediaRelease,Building future skills in Australian ICT,February2005www.minister.dcita.gov.au /media/media_releases/building_future_skills_in_australian_ict2
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Building Australian ICT skills
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The.Working.Group.focused.on.ICT.skills.development.directly.related.to.the.ICT.industry.as.well.as.the.ICT.skills.needed.in.other.industries.in.the.economy..However,.the.Group.did.not.concern.itself.with.broader.basic.ICT.skill.levels.required.in.business,.government.and.by.people.in.the.Australian.community..In.addition,.issues.such.as.off‑shoring.and.skilled.migration.were.not.given.detailed.attention.as.they.were.areas.which.fell.outside.of.the.Working.Group’s.terms.of.reference..
The.members.of.the.Working.Group.as.well.as.its.terms.of.reference.are.provided.at.Attachment.A..
2The Key Strategic Role of ICT in Australia’s Economy
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Building Australian ICT skills
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2. The Key Strategic Role of ICT in Australia’s Economy
2.1 ICT as a major driver of economic growthThere.is.a.strong.consensus.both.internationally.Organisation.for.Economic.Co‑operation.and.Development.[OECD].and.in.Australia.that.ICT.is.a.major.driver.of.economic.growth.and.productivity,.principally.through.its.capacity.to.enhance.efficiency.and.innovation.
ICT.provides.the.communications.infrastructure.and.the.means.to.access.and.store.data.and.to.manipulate.it.to.provide.information.critical.to.business,.government,.research,.education.and.community.operations..
Innovations.using.ICT.that.capture,.transmit.and.display.data.and.information.electronically.have.become.a.central.ingredient.to.the.growth.of.national.productivity..Over.the.past.two.decades,.up.to.85.per.cent.of.productivity.growth.in.the.manufacturing.sector.was.due.to.technology,.of.which.ICT.was.a.significant.part.6
Recent.research.by.DCITA,.Productivity Growth in Service Industries.2005,.has.found.a.strong.correlation.between.productivity.growth.and.ICT.use.and.intensity..ICT.intensive.services.that.have.experienced.high.productivity.growth.include.communications,.electricity,.finance.and.wholesale.trade.
ICT.transformation.and.innovation.is.a.broader.social.process.encompassing.technological,.organisational.and.cultural.change..The.DCITA.commissioned.study.Achieving Value from ICT: Key Management Strategies�.demonstrated.that.regardless.of.the.business.size,.organisational.structure.or.industry,.those.that.combine.their.ICT.investments.with.good.management.practices.achieve.the.greatest.value.from.their.ICT.outlays..The.essentials.of.good.ICT.management.consist.of.being.ICT‑aware,.possessing.a.strong.change.management.philosophy,.a.strategic.organisational.culture,.and.providing.effective.leadership.
The.rising.role.of.ICT.in.economic.activity.has.made.it.critical.to.the.achievement.of.Australia’s.national.goals,.for.example,.future.economic.growth,.national.security,.dealing.with.demographic.change,.environmental.management,.education.and.health..As.ICT.is.a.collection.of.many.constantly.evolving.technologies,.the.continuous.process.of.technology.migration.and.the.emergence.of.new.solutions.require.frequent.renewal.of.the.economy’s.technical.know‑how.
2.2 Technology trendsBusiness.demand.for.ICT.and.ICT.innovation.are.interdependent,.and.ICT.take‑up,.infrastructure.capability.and.level.of.integration.in‑turn.influence.the.adoption.of.other.ICT.technologies.
Current.ICT.technology.trends.can.be.grouped.into.those.related.to.infrastructure.and.those.related.to.the.business.enterprise..Infrastructure.technologies.experiencing.the.highest.growth.are.broadband.networks.and.wireless.systems,.which.form.the.communications.backbone.of.business.enterprises..
� www.dcita.gov.au/ie/publications/2004/march/productivity_growth_in_australian_manufacturing
� Achieving Value from ICT: Key Management Strategies, DCITA2005 www.dcita.gov.au/__data/assets/pdf_file/25466/Achieving_Value_from_ICT_‑_Key_Management_Strategies.pdf
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Building Australian ICT skills
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Enterprise.technologies.that.businesses.are.investing.in.are.those.that.run.applications.internally.and.manage.linkages.with.other.businesses,.such.as.e‑commerce.and.supply‑chain.systems.(e.g..Enterprise.Resource.Planning).
Developments.and.improvements.in.core.ICT.technologies.such.as.processor.speeds,.miniaturisation.and.bandwidth.are.fuelling.rapid.changes.in.the.capabilities.of.the.communications.platforms.and.the.services.they.provide..For.example,.digitisation.is.blurring.the.boundaries.between.communications.infrastructure.and.services.such.as.television.and.telephony..Devices.which.attach.to.these.platforms,.such.as.3G.mobiles.and.games.platforms,.are.acquiring.functionality.which.cuts.across.traditional.industry.distinctions..
ICT.is.facilitating.change.in.business.models.and.allowing.new.business.models.to.emerge.which.have.implications.for.skills.demand..For.example,.the.customisation.of.software.is.reportedly.declining.in.favour.of.proven.off‑the‑shelf.business.processes.
2.3 The Structure of the Australian ICT IndustryThe.Australian.ICT.industry.is.a.source.of.internationally.competitive.products.and.services.that.contributes.to.a.significant.percentage.of.productivity.growth.across.the.Australian.economy..In.2002–03.the.value.of.Australian.production.in.ICT.goods.and.services.by.ICT.specialist.firms.is.approximately.$48.�.billion,.of.which.$2.9.billion.was.ICT.goods,.$16.5.billion.computer.services.and.software,.and.$29.3.billion.telecommunication.services..More.detail.is.provided.in.Attachment.B.
ICT.Research.and.Development.(R&D).is.also.important.to.future.economic.and.employment.growth..Most.sectors.of.the.economy.spend.a.significant.portion.of.their.R&D.effort.on.ICT.R&D.(Table.1)..This.figure.as.high.as.��..per.cent.in.the.finance.and.insurance.sector..The.supply.of.high.level.research.skills.is.a.fundamental.input.to.the.success.of.industry.research.and.these.skills.are.most.fully.developed.by.post‑graduate.research.training.
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Building Australian ICT skills
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Table 1
Industry ICT Employment for Industry Sector Aug 2005
ICT Capital Expenditure Share of Industry Sector
Expenditure 2003–04 (%)
ICT R&D Share of Industry Sector
R&D Expenditure 2002–03 (%)
Number employed % share
Mining 4.250 1.3 3.9 0.2
Agriculture,.forestry.and.fishing .540 0.16 �.� *
Transport.and.storage �.650 2.3. 15.8 31
Manufacturing 22.390 6.� 16.2 16
Construction 12.880 3.9 16.3 16
Retail.Trade 14.920 4.5 21.6 33
Health.and.community.services 6.420 2.0 25.5 np
Wholesale.trade 13.960 4.2 26.1 41
Accommodation,.cafes.and.restaurants
.380 0.1 26.6 np
Property.and.business.services 124.030 3�.2 33.6 63
Personal.and.other.services 2.�20 0.8 35.0 np
Government.administration.and.defence
25.620 �.� 42.0 52
Education 16.300. 4.5 43.� 83
Cultural.and.recreational.services 6.660. 2.0 44.4 np
Electricity,.gas.and.water.supply 9.460. 2.8 68.4 39
Communication.services 42.580. 12.8 89.1 42
Finance.and.insurance 22.810. 6.8 90.1 ��
All.industries 333.5�0. 26.�
.Source. ABS.collections.Notes. *:.Data.not.collected. np:.Data.not.published
3Major ICT labour trends and issues
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3. Major ICT labour trends and issues
3.1 ICT Employment In.February.2006,.Australia.employed.approximately.356.600.ICT.practitioners.across.all.sectors,.representing.3.6.per.cent.of.the.total.workforce..The.Australian.ICT.industry.accounts.for.some.40.per.cent.of.ICT.professionals..The.remaining.60.per.cent.are.spread.throughout.ICT‑user.industries.across.the.economy..This.reflects.the.development.of.a.broader.ICT.capability,.greater.reliance.on.ICT‑based.services.and.integration.of.ICT.in.virtually.all.economic.activity..Intensive.ICT‑user.industries.include.the.communications,.electricity,.mining,.manufacturing,.financial.services.and.services.sectors.(Table.1)..More.detail.is.provided.in.Attachment.C:.Overview.of.ICT.employment.in.Australia
3.2 The changing nature of ICT employmentThe.roles.that.ICT.professionals.perform.are.becoming.increasingly.diverse.and.cause.constant.change.in.the.job.tasks.within.ICT.occupations..The.work.of.an.ICT.professional.can.now.encompass:.
•. management.of.significant.ICT.contracts.with.major.vendors;.
•. development.of.application‑oriented.solutions;.
•. implementation,.management.and.support.of.ICT.systems;.and
•. selling.of.ICT.products.and.services;.and.undertaking.consultancies..
The.skills.required.vary.considerably..They.range.from.very.specific.in‑depth.technical.knowledge.and.expertise.to.others.where.broader.technical.ability.is.needed.alongside.good.interpersonal.and.project.management.skills.
Converging.technologies.and.capabilities.driven.by.ICT,.and.consequent.changes.in.markets.and.business.models,.is.continuing.the.rapid.and.spreading.adoption.of.ICT.technologies.by.business.and.governments..Distinctions.between.‘old’.and.‘new’.economies.are.now.blurred.as.many.older.industries.are.becoming.hybrid.industries.with.a.strong.ICT.dependence..It.is.increasingly.difficult.to.distinguish.between.ICT.service.and.hardware.providers.and.companies.providing.specialist.electronic.hardware.or.software.solutions..For.example,.in.the.areas.of.robotic.equipment.or.toll.related.financial.services.the.outputs.are.predominantly.ICT‑based.yet.wouldn’t.be.considered.as.ICT.output.in.the.traditional.sense.
As.ICT.is.increasingly.embedded.in.all.aspects.of.business.and.government.operations,.ICT.professional.skills.and.competencies.are.becoming.core.elements.of.many.occupations..This.trend.has.increased.the.need.for.a.clear.understanding.of.the.fundamentals.of.business.and.markets.as.a.necessary.part.of.the.ICT.professional’s.skills..As.ICT.professionals.now.work.in.multi‑disciplinary.teams.dealing.with.complex.problems,.they.also.require.problem‑solving.abilities,.negotiation.skills.and.a.capacity.to.understand.the.needs.of.customers.and.project.colleagues.
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Figure.1.seeks.to.illustrate.the.multiple.career.pathways.and.influences.on.skills.supply.for.the.ICT.workforce.
Figure 1: Key Pathways and Influences on ICT Skills Supply
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3.3 Demand for ICT skillsFigure.2.shows.the.indexed.long.term.employment.growth.of.ICT.professionals.compared.to.all.professional.occupations.and.all.occupations..It.demonstrates.the.significant.growth.the.ICT.profession.has.undergone.since.1986..Figure.3.shows.the.breakdown.of.this.growth.amongst.the.three.largest.ICT.occupations.and.demonstrates.that.computing.professionals.have.had.the.most.substantial.increase..
Figure 2: Long‑term employment growth for ICT Professionals*, compared with Professionals and All Occupations: 1986 to 2005
50
100
150
200
250
300
350
400
450
Aug-86 Aug-88 Aug-90 Aug-92 Aug-94 Aug-96 Aug-98 Aug-00 Aug-02 Aug-04
ProfessionalsICT ProfessionalsAll Occupations
*Source:.ABS.Labour.Force.Survey‑.IT.Managers.and.Computing.Professionals.(DEWR.trend.data).
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Figure 3: ICT Professionals Employment February 1996 to February 2006
0
25
50
75
100
125
150
175
200
225
Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06
ICT Professionals
Computing Support Technicians
Information Technology Managers
Computing Professionals
Source:.DEWR.2006
In.the.lead.up.to.2000.(Y2K).ICT.employment.was.driven.by.the.pressure.to.upgrade.computer.software.combined.with.strong.growth.in.ICT.investment.by.communication.service.and.the.finance.and.insurance.industries..Also.in.2001.the.world‑wide.ICT.industry.suffered.a.sharp.contraction.in.demand.in.many.markets.and.this.led.to.a.substantial.restructure.of.large.international.firms.such.as.Nokia,.Motorola.and.Ericsson..
Australia.felt.some.of.the.repercussions.of.this.development..Following.a.strong.period.of.growth.between.1994.and.2003,.the.slowing.of.demand.for.ICT.products.and.services.led.to.a.levelling‑out.and.then.fall.in.growth.of.professional.ICT.in.February.2005..The.strong.rise.in.the.past.year.has.taken.employment.of.ICT.professional.to.a.new.Australian.peak.with.206.300.ICT.professionals.employed.in.February.2006..
There.are.many.and.varied.reasons.for.skill.shortages.in.ICT..In.particular.the.demands.for.specific.skills.related.to.specific.technologies.can.happen.with.both.new.and.outdated.technologies..A.sudden.lack.of.employees.with.skills.in.new.technologies.can.outpace.the.supply.if.enterprises.and.governments.suddenly.adopt.new.technologies.and.their.applications..Equally,.businesses.using.older.ICT.technologies.can.sometime.find.the.recruitment.of.practitioners.difficult.because.the.needed.skill.sets.are.becoming.rare.
Several.technologies.are.often.employed.to.develop.a.solution,.and.increasingly.they.are.being.combined.to.inject.innovation.into.products.and.services.provided.by.older.industries.and.other.fields.of.research..Many.industries.and.areas.of.research.are.becoming.increasingly.dependent.on.the.advances.in.ICT.to.support.their.leading.edge.research.and.applications..For.example,.the.convergence.between.nanotechnology,.biotechnology,.information.technology.and.cogitative.science.is.widely.acknowledged.as.an.important.area.of.research.which.is.expected.to.yield.significant.innovation..
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Each.technology.has.a.pool.of.skills.related.to.it,.ranging.from.electronic.hardware.to.software.and.systems.know‑how..There.are.well.over.a.hundred.recognised.and.evolving.ICT.skills.currently.in.demand.in.the.Australian.labour.market..These.skills.will.continue.to.change.as.business,.government.and.consumers.find.new.ways.to.improve.productivity.and.make.product.and.service.innovations..
Furthermore,.demand.for.ICT.skills.changes.as.ICT.tools.and.enhancements.change.business.models.and.firms.grow.and.move.up.the.value‑chain..This.stimulates.demand.for.different.skills.and.skill.sets..These.systemic.changes.in.business.can.create.‘skill.deficiencies’.or.‘skill.gaps’..A.mismatch.of.skills.demand.and.supply.can.result.in.there.being.both.ICT.unemployment.and.skills.shortages.(structural.unemployment)..Outsourcing.and.off‑shoring,.the.continuous.growth.of.ICT.products.and.services,.and.the.diffusion.of.these.new.technologies.to.other.industry.sectors.contribute.to.these.dynamic.changes.
The.forecasting.of.potential.skill.shortages.is.particularly.difficult.because.of.the.lack.of.fine.detail.in.the.data.on.ICT.in.the.labour.market..The.DEWR.annual.Australia‑wide.ICT.skills.shortage.survey.is.as.comprehensive.as.possible.in.analysing.ICT.skills.in.demand..In.undertaking.the.survey.in.2005.DEWR.contacted.90.recruitment.agencies.and.124.employers..Any.improvements.in.the.quality.of.data.obtained.from.these.recruitment.agencies.and.employers.will.assist.in.improving.the.quality.of.the.survey.and.its.overall.findings.
3.4 Demand for non‑technical (‘soft or employability’) skillsEmployers.of.ICT.professionals.are.now.requiring.these.professionals.to.possess.a.broader.skill.set.in.addition.to.technical.expertise..
A.report.prepared.by.the.Austrian.ARC.Systems.Research.Centre.for.the.European.Union,.The Human Resource Factor in the Information Society Future, reviewed.a.wide.range.of.sources.and.identified.a.number.of.trends.as.characterising.the.emerging.needs.of.the.European.ICT.market..Significant.trends.identified.include:
• increasing.need.for.employees.with.broader.skills.sets,.in.addition.to.technical.expertise;
• businesses.identifying.ICT.tools.with.the.potential.to.positively.influence.productivity;
• increasing.demand.for.more.specialised.technical.skills;.
• rapid.change.means.that.ICT.professionals.need.to.be.flexible.and.open.to.continuous.learning;
• organisational.structures.and.workplace.cultures.require.flexibility.and.responsiveness.to.facilitate.learning;.and
• the.rate.of.growth.of.the.industry.means.that.more.skills.of.all.kinds.will.be.needed.
4Role of Education in ICT skills supply
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4. Role of Education in ICT skills supplyIt.is.now.generally.acknowledged.by.governments,.leading.industry.and.professional.associations,.employers.and.the.education.and.training.sector.that.there.is.an.urgent.need.for.improved.targeting.of.information.and.advice.on.ICT.courses.and.careers.to.school.students.
A.recent.Victorian.Government.study,.Attitudes to ICT careers and study among 17–19 year old Victorians8.found.that:
• �2.per.cent.claim.that.they.don't.know.very.much.about.ICT.courses.offered;
• 86.per.cent.agreed.that.specialising.in.ICT.opens.doors.to.careers.in.many.types.of.industries.or.businesses;
• 40.per.cent.of.interviewees.showed.at.least."some.interest".in.pursuing.an.ICT.career,.with.10.per.cent.expressing.a."strong.interest";
• 59.per.cent.agreed.that.the.greatest.disincentive.to.working.in.ICT.was.being.stuck.in.front.of.a.computer.all.day;
• 6.per.cent.plan.to.do.an.ICT.course.at.university.but.none.of.these.are.female;
• the.major.influences.on.decisions.related.to.young.people.undertaking.courses.(in.the.order.of.influence.are.word.of.mouth,.parents,.teachers,.careers.advisers,.friends,.TAFE.and.university.open.days,.careers.expos.and.careers.guides;.and
• when.asked.about.the.best.methods.to.promote.ICT.careers.to.young.people:
–. 94.per.cent.considered.work.placements.or.job.experience.in.an.ICT.company.would.be.effective;
–. 90.per.cent.considered.schools.visits.and.information.sessions.by.young.people.who.have.been.successful.in.ICT.would.be.effective;.and
–. 90.per.cent.considered.competitions.sponsored.by.ICT.companies.to.encourage.innovation.and.technology.in.schools.or.universities.would.be.effective.
Strategies.to.improve.advice.on.ICT.courses.and.careers.to.school.students.could.include.improved.research.and.marketing.and.new.approaches.in.order.to:
• address.commonly.held.public.misconceptions.about.the.nature.and.scope.of.ICT.work.and.occupations;.and
• improve.the.understanding.of.school.students.at.all.levels,.and.of.teachers,.career.advisers.and.parents,.of.potential.career.and.study.opportunities.in.ICT,.in.particular.that.approximately.40.per.cent.of.ICT.professionals.work.outside.of.the.ICT.industry.
The.Working.Group.concluded.that.there.is.an.urgent.need.for.action.to.address.the.negative.perception.of.ICT.careers.in.the.community.which.is.turning.many.young.people.away.from.considering.a.career.in.ICT.
� www.mmv.vic.gov.au/year12research
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The.supply.and.development.of.ICT.skills.within.the.education.sector.is.influenced.by.a.multitude.of.factors,.the.principle.being:
• the.capacity.and.role.of.formal.education,.training.institutions.(schools,.universities.and.VET).and.vendor.training.in.skills.development;
• the.ability.to.attract.new.entrants.into.ICT.education/training.and.into.ICT.careers;
• ICT.course.enrolments.in.universities.have.a.lagged.impact.in.four.years.time.when.currently.enrolled.students.graduate;
• graduate.employment.which.is.the.first.step.to.building.experienced.practitioners;.and
• low.demand.for.graduates.can.discourage.future.course.enrolment.
The.following.sections.of.this.report.describe.these.major.sources.of.ICT.skills.supply.and.further.explore.some.of.these.issues.and.concepts..
4.1 ICT skills development in schoolsThe.development.of.basic.ICT.literacy.skills.for.students.and.teachers.in.schools.falls.outside.of.the.Working.Group’s.terms.of.reference..However,.the.Working.Group.identified.as.relevant.the.related.issues.of:
• the.overall.level.of.understanding.by.teachers.in.schools.of.ICT.jobs.and.careers;.and
• the.quality.of.teaching.of.VET‑based.ICT.subjects.in.schools.
These.two.issues.in.particular.were.identified.as.having.a.possible.impact.on.students’.understanding.and.attitudes.to.considering.further.study.or.employment.in.ICT‑related.areas.
The.Working.Group.noted.that.there.are.already.significant.commitments.and.initiatives.at.the.Australian.and.State.Government.levels.targeting.these.areas,.in.particular:
• Partnerships in ICT Learning.is.a.project.that.will.equip.teachers.to.focus.on.the.technology.related.needs.and.challenges.for.different.groups.of.Australian.teachers;
• Making Better Connections.project.focuses.on.teachers’.professional.development.in.their.use.of.ICT;
• Teaching Australia ‑.Australian Institute for Teaching and School Leadership.supports.and.advances.the.effectiveness.and.standing.of.the.teaching.profession..ICT.will.be.addressed.in.this.context;.and
• Australian Government Quality Teacher Programme.focuses.on.the.renewal.of.teachers.and.leaders.skills.and.understanding.within.a.range.of.priority.areas.including.literacy,.numeracy,.mathematics,.science,.and.technology.(including.ICT),.vocational.education.in.schools.and.the.National.Safe.Schools.Framework.
However,.the.Working.Group.found.that.while.considerable.research.has.been.funded.into.the.generic.ICT.skills.of.school.teachers,.no.specific.research.has.been.undertaken.into.the.skills.and.understanding.of.school.teachers.who.teach.ICT.to.students.through.vocationally‑oriented.ICT.courses,.including.as.part.of.the.VET.in.Schools.program..
The.Working.Group.also.noted.the.submission9.made.by.the.Australian.Science.Teachers.Association.to.the.DEST.audit.of.science,.engineering.and.technology.skills..The.submission.stated.that.the.teaching.profession.was.facing.particular.challenges.in.relation.to.the.aging.population.of.science.teachers.
� ASTASubmissiontoAuditofScience,EngineeringandTechnologySkillswww.asta.edu.au/resources/skillsaudit
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Building Australian ICT skills
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adapting.to.ICT.within.the.curriculum..In.addition.the.submission.stated.that.there.was.a.need.for.the.provision.of.financial.and.infrastructure.support.from.government.and.industry.to.broaden.the.reach.of.existing.professional.learning.opportunities.available.to.teachers.
Career Advice AustraliaThe.Department.of.Education,.Science.and.Training.(DEST).presently.funds.a.range.of.career.development.and.advisory.initiatives.targeted.at.schools.across.Australia..The.Working.Group.noted.that.it.would.be.desirable.for.leading.ICT.industry.and.professional.bodies.to.work.with.DEST.through.these.existing.initiatives.to.improve.understanding.and.promotion.of.ICT.careers.to.schools,.teachers.and.career.advisers..There.is.an.ideal.opportunity.for.leading.ICT.industry.and.professional.bodies.to.work.with.DEST.on.the.early.development.of.the.recently.announced.Career.Advice.Australia.initiative,.in.particular.the.new.National.Industry.Career.Specialists.
4.2 Role of the VET sector in ICT skills developmentThe.vocational.education.and.training.(VET).sector.plays.a.primary.role.in.the.provision.of.training.for.ICT.workers..VET.is.delivered.within.a.range.of.training.environments,.including.TAFE.institutes,.a.range.of.schools,.agricultural.colleges,.universities,.community.education.providers.and.private.providers.with.a.focus.on.the.teaching.of.skills.required.in.the.workplace..The.VET.sector.provides.a.wide.range.of.opportunities.for.a.diverse.student.population.and.demand..
IT.in.the.VET.system.incorporates.Computer.Science,.Information.Systems.and.other.Information.Technology..A.new.National.IT.Training.Package.(ICA05).has.been.endorsed.by.industry.and.replaces.the.former.National.IT.Training.Package.(ICA99).which.was.developed.in.1999..The.new.framework,.developed.in.close.consultation.with.the.ICT.industry,.provides.a.far.more.highly.developed.and.structured.system.of.qualifications.and.pathways.to.better.reflect.the.current.and.emerging.ICT.skills.needs.of.industry.
In.2005.NSW.TAFE.developed.an.associate.degree.in.cooperation.with.several.universities.and.industry.associations,.including.the.Australian.Information.Industry.Association.(AIIA)..The.associate.degree.is.being.piloted.initially.with.overseas.students.and.aims.to.be.comparable.with.two‑year.university.courses..NSW.TAFE.is.negotiating.to.ensure.students,.who.complete.the.associate.degree.and.then.want.to.move.on.to.a.three.to.four.year.university.degree,.can.secure.significant.credits.for.the.work.already.covered.10
Also.in.2005.Box.Hill.Institute,.a.Victorian.TAFE.institute,.received.accreditation.to.deliver.three.degrees.in.the.ICT.industry:.a.Bachelor.of.Computer.Systems.(Networking);.an.Associate.Degree.in.Computer.Systems.(Networking).and.an.Associate.Degree.in.Software.Development..This.was.a.first.for.the.TAFE.system.for.a.TAFE.Institute.to.be.able.to.offer.a.Bachelor.program.in.its.own.right.serving.the.ICT.sector..Each.Degree.had.industry.leading.the.design.phase.and.focuses.being.applied.and.practical.in.line.with.industry.specifications.
Further.details.in.regard.to.the.Vocational.Education.and.Training.sector.are.provided.in.Attachment.D.
VET in Schools programVET.in.Schools.is.defined.as.a.program.which.allows.students.to.combine.vocational.studies.with.their.general.education.curriculum..Students.participating.in.VET.in.Schools.continue.to.work.towards.their.Senior.Secondary.School.Certificate,.while.the.VET.component.of.their.studies.gives.them.credit.towards.a.nationally.recognised.VET.qualification..
�0 www.tafensw.edu.au/tafeunicredit/
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Outcomes.from.students.studying.ICT.as.part.of.the.VET.in.Schools.program.provide.mixed.results..Analysis.of.data.obtained.from.DEST.(May.2004.survey.data).on.student.participation.in.and.outcomes.from.the.VET.in.Schools.program.found.that:
• Of.all.students.participating.in.structured.workplace.learning.(i.e..work.placements.under.the.program),.11.per.cent.were.in.ICT.work.placements.and.of.this.number.33.per.cent.were.female.students.
• ICT.had.the.highest.outcomes.of.students.going.onto.either.full‑time.work.or.study.(��.per.cent).post.placement.but.with.the.main.outcome.related.to.full‑time.study.(55.per.cent).and.22.per.cent.onto.full‑time.work.[the.data.does.not.specify.whether.or.not.the.full‑time.study.is.ICT.related].
• Female.ICT.students.more.likely.than.male.students.to.go.onto.full‑time.study.rather.than.full‑time.work..
• The.overall.trend.in.participation.and.outcomes.from.2001.to.2004.has.remained.stable.
The.program.appears.to.provide.a.pathway.option.for.some.students.into.further.study.although.the.precise.nature.of.the.study.cannot.be.determined.from.the.survey.data.
4.3 Role of Universities in ICT skills developmentUniversities.are.a.major.source.of.new.ICT.professionals..However,.the.rapid.rate.of.technological.change.creates.challenges.for.universities.to.keep.pace.with.the.skills.needed.to.build.and.maintain.new.technologies..Traditionally,.the.cycle.for.review,.development,.and.implementation.of.new.curricula.takes.five.to.eight.years..This.is.severely.misaligned.with.changing.technology.cycles.which.can.be.counted.in.months.rather.than.years.
This.nexus,.between.the.capabilities.of.universities.and.other.higher.education.bodies.and.industry.needs,.relies.on.effective.linkages.and.collaborative.approaches.between.industry.and.universities.to.avoid.misalignment.in.the.demand.and.supply.cycles.
A.number.of.universities.have.openly.stated.their.preference.for.focussing.on.providing.foundation.skills.to.ICT.students,.rather.than.focussing.on.specialised.narrow.skills,.which.they.argue.might.quickly.become.redundant.as.market.demand.changes..
The.conclusion.drawn.by.leading.academics.working.in.the.ICT.field.is.that.it.is.not.possible.for.universities.to.respond.to.narrow,.short‑term.technical.specialisations..This.is.compounded.by.the.fact.that.only.four.universities.have.IT.Faculties.(Monash,.UTS,.QUT.and.Wollongong)..Of.the.remaining.39.universities.ICT.is.often.located.in.a.department.or.school.within.the.Faculty.of.Engineering.or.Business.
There.is.debate.about.whether.freestanding.ICT.Faculties.will.be.sustainable.in.the.future.given.the.strong.trend.towards.ICT.graduates.with.a.strong.understanding.of.business..Indeed,.even.those.universities.with.freestanding.ICT.Faculties.are.pursuing.more.broadly.based.multidisciplinary.ICT.programs.and.degrees..For.example,.the.UTS.has.a.combined.technology‑business.degree,.where.a.full‑time.student.undertakes.two.business.subjects.and.two.ICT.subjects..
However.the.capacity.of.most.universities.to.establish.alternative.business.models.to.respond.to.short‑term.specialisations.is.currently.severely.limited,.given.competition.for.funding.with.other.disciplines.such.as.engineering.and.business..Even.universities.with.purpose‑built.ICT.Faculties.find.the.choice.between.their.core.teaching.business.and.more.market‑driven.short.courses.is.constrained.by.available.teaching.staff.and.resources.which.are.primarily.dependent.on.undergraduate.enrolments..The.lack.of.flexibility.is.considered.to.be.particularly.acute.for.many.universities.in.an.environment.of.constrained.funding.levels,.falling.ICT.course.enrolments.and.increased.government.reporting.requirements..
Rather.than.seeking.to.predict.skill.demands.and.shortages,.students.are.given.the.opportunity.to.gain.experience.in.a.variety.of.technology.platforms.through.their.course.work..This.way,.students.not.only.gain.experience.in.the.Microsoft.operating.system.but.also.open.source.software.such.as.Linux.
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Practical.implementation.skills.and.experience.in.current.technologies.is.emphasised.through.lab.work,.and.this.means.that.over.time.the.primary.skills.specialization.for.different.student.intakes.has.shifted.from.Cobol.to.C+.to.Java..
Some.universities.emphasise.industry.work.placement.as.a.core.part.of.the.degree,.with.a.four.year.degree.offering.one.year.in.industry.(sometimes.referred.to.as.‘sandwich’.courses)..Several.leading.universities.have.reported.that.factors.such.as.the.industry.downturn.in.2002–2003,.and.changes.to.higher.education.funding.arrangements,.has.made.it.difficult.to.maintain.industry.placements.as.a.compulsory.element,.and.three.year.degrees.are.also.offered.which.excludes.the.industry.placement.component.
Many.universities.are.making.provision.for.more.complex.arrangements.in.cross‑disciplinary.degrees,.such.as.combining.ICT.units.with.studies.in.commerce,.languages.and.health.sciences.to.enable.wider.choices.which.may.raise.the.employability.skills.of.graduates..Project.management.in.particular.is.receiving.a.strong.focus..Some.universities.are.also.recognising.that.for.graduates.to.be.marketable.in.an.international.ICT.employment.market,.they.may.need.a.good.understanding.of.the.regulatory.regimes.and.IP.rules.in.different.overseas.jurisdictions..This.suggests.an.increasing.internationalisation.of.ICT.curricula..There.is.also.likely.to.be.increased.need.for.students.to.be.more.culturally.sensitive.and.globally.aware.in.order.to.be.effective.in.overseas.ICT.markets.
A.view.from.some.in.the.ICT.industry.is.that.while.universities.are.coming.to.terms.with.the.need.to.develop.undergraduates’.broader.business.and.interpersonal.skills.that.they.need.to.enter.the.workforce,.this.is.happening.slowly.in.a.piecemeal.way.and.a.more.concerted.effort.is.needed.
Universities.however.consider.that.they.are.severely.constrained.and.lack.the.flexibly.to.respond.to.industry.and.market.demands.and.potential.student.preferences..This.includes.legal.and.funding.requirements.placed.upon.them.by.government.when.making.curriculum.and.course.changes,.and.the.long.lead.times.in.preparing.information.and.marketing.on.new.course.offerings.
University ICT course enrolmentsUniversity.graduates.are.the.major.source.of.new.ICT.professionals..However.the.number.of.students.commencing.ICT.university.studies.continues.to.decline..This.decline.in.total.ICT.enrolments.has.been.due.to.a.general.decline.in.Australian.students.enrolling.in.professional.courses,.and.to.their.selection.of.other.courses..
Figures.from.the.NSW.University.Admissions.Centre.show.first‑preference.applications.to.study.IT.in.2006.were.down.1�.3.per.cent..First‑round.offers.for.IT.courses.in.NSW.fell.15.per.cent.in.2005,.after.falls.of.25.per.cent.and.24.per.cent.in.2003.and.2004.respectively.
In.Queensland,.first‑preference.applications.for.2006.were.down.12.2.per.cent.and.first‑round.offers.dropped.49.6.per.cent.between.2000–01.and.2003–04.
The.long‑term.trends.in.other.states.have.been.just.as.evident..For.example,.in.Victoria,.the.number.of.students.enrolling.in.IT.courses.at.Monash.University.dropped.from.4�16.in.2001.to.249�.in.2006,.a.decrease.of.close.to.48.per.cent..Similarly,.enrolments.at.Melbourne.University.dropped.from.2200.to.1608.between.2001.and.2005..Swinburne.University.experienced.a.drop.of.close.to.25.per.cent.during.the.same.period.
However,.some.universities.are.reporting.an.increase.in.students.applying.for.‘blended’.courses,.that.is,.courses.offering.a.mix.of.technology.and.business..For.example,.in.2006,.Deakin.University.recorded.an.increase.of.about.10.per.cent.in.demand.for.blended.courses.offering.majors.in.accounting.information.systems.and.other.business‑focused.areas.
While.there.are.not.official.projections.of.the.number.of.ICT.graduates.from.Australian.universities,.there.have.been.several.claims.of.pending.skills.shortages..
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ICT graduate employmentRecent.DEWR.analysis.of.data.on.graduate.outcomes,.drawing.on.GCCA.Graduate Destination Surveys,.shows.that.the.proportion.of.students.in.higher.education.‘computing’.courses.working.with.the.same.employer.before.and.after.graduation.has.fallen.markedly.in.the.past.decade..DEWR.noted.that.this.trend.is.not.conducive.to.strengthening.of.education–work.linkages.for.ICT.occupations..
Concern.has.been.expressed.that.off‑shoring.will.reduce.demand.for.ICT.graduates..Since.the.industry.contraction.in.2001,.ICT.graduate.employment.has.been.relatively.slow.to.recover..This.is.reflected.in.the.starting.salaries.for.computer.science.graduates,.which.fell.from.around.fifth.highest.in.2000.through.to.2002,.then.slipped.to.ninth.in.2003,.and.then.partially.recovered.to.seventh.in.2004.
The.salary.variances.can.be.tied.to.large.ICT.consultancies.which.cut.back.on.graduate.recruitment.in.downturns,.but.aggressively.seek.the.top‑tier.graduates.as.demand.for.services.is.expected.to.rise..In.the.current.upturn.in.demand,.this.factor.and.the.perception.that.there.has.been.some.shift.back.to.in‑house.delivery.of.ICT.services,.away.from.off‑shoring.and.outsourcing,.have.been.attributed.as.reasons.for.the.increased.demand.for.graduates..
Indeed,.data.from.the.Olivier.Group,.which.surveys.employment.in.the.ICT.market,.reported.that.graduate.opportunities.continue.to.rise..For.example,.in.March.2006.Olivier.reported.that.in.the.previous.twelve.months.vacancies.for.technology.graduates.had.risen.by.111.1�.per.cent.
The.falling.enrolments.in.ICT.courses.over.the.past.three.years.may.also.be.a.factor.in.improving.employment.opportunities.for.graduates.and.may.help.drive.up.graduate.salaries.(see.Olivier.Job.Index.November.2005).
4.4 Articulation of course pathways between university and VET sectorsThere.are.a.number.of.avenues.for.enhancing.connections.between.the.Higher.Education.and.VET.systems,.and.providing.improved.skill.development.pathways.and.outcomes:
•. Articulation,.usually.takes.the.form.of.students.completing.or.undertaking.a.VET.qualification(s).first.and.then.completing.the.university.qualification.to.obtain.the.degree;.
•. Credit transfer,.consists.of.either.a.full.or.partial.transfer.between.components.of.existing.awards;.
•. Joint courses.or.dual sector awards/programs,.require collaboration.in.development.of.the.course.between.the.two.institutions.
In.order.to.create.opportunities.for.students.to.articulate.from.TAFE.to.university.there.is.a.need.for.considerable.collaboration.between.the.sectors..There.are.many.courses.that.provide.opportunities.for.articulation..Articulation.requires.a.sequential.pathway.between.qualifications.in.VET.and.higher.education,.allowing.students.to.progress.from.one.qualification.to.the.next,.and.offering.multiple.entry.and.exit.points.This.usually.takes.the.form.of.2+2.years,.2+1.years.and.1+2.years,.where.a.VET.qualification.articulates.into.a.bachelor.degree.
In.2004,.DEST.agreed.to.fund.an.initiative.to.investigate.the.impediments.to.articulation.with.a.particular.emphasis.on.the.VET.(Vocational.Education.and.Training).and.HE.(Higher.Education).providers.in.the.ICT.industry.
The.project,.Impediments to Seamless Articulation,.commenced.in.January.2005,.with.the.final.report.and.recommendations.presented.to.DEST.in.August.2005..The.recommendations.included.further.research.into.existing.articulation.arrangements.with.HE.institutions.that.did.not.provide.input.to.the.study,.provision.of.a.database.tool.to.map.VET.and.HE.programs.to.each.other.and.a.number.of.pilot.projects.to.test.the.outcome.of.better.guidance.within.articulation.pathways..
5Skills development in the marketplace
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5. Skills development in the marketplaceVendor.training.and.training.validation.through.certification.is.a.critical.component.of.technology.skill.development..It.is.important.for.professionals.to.understand.the.technology.they.are.using.in.relation.to.business.planning.and.development..Working.with.industries.that.develop.the.technology.is.critical.to.the.formation.of.skills..
It.is.also.important.for.companies.who.are.purchasing.and.deploying.the.technology.and.services.to.understand.the.skills.required.to.protect.their.investment..For.professionals.it.is.critical.they.have.globally.recognised.ICT.industry.skills.with.a.direct.correlation.to.the.ongoing.development.of.technology.and.its.integration.within.diverse.industry.sectors.
The.Computer.Technology.Industry.Association.(CompTIA).launched.IT.Pro.Australia11.in.October.2005.to.raise.the.public.profile.in.Australia.of.vendor.training.and.to.offer.improved.information.and.support.to.ICT.professionals.seeking.to.upgrade.their.vendor.qualifications.
An.ongoing.challenge.for.the.ICT.industry,.in.particular.vendor.companies.and.CompTIA.Australia,.is.working.with.the.formal.education.and.training.sector.to.better.integrate.and/or.link.vendor.training.and.certification.with.university.curriculum.and.the.VET.National.ICT.training.packages.
5.1 The role of employersRetraining.is.an.ongoing.part.of.most.ICT.practitioners'.work.experience..ICT.is.dynamic.and.constantly.requires.the.upgrade.of.existing.skills.and.new.skills.to.work.with.the.periodic.introduction.of.new.technologies..A.great.deal.of.the.upgrading.of.skills.occurs.on‑the‑job..In.addition,.employers.may.support.formal.training.and.practitioners.can.seek.to.undertake.tertiary.studies.to.build.their.skills.base..ICT.courses.are.offered.by.TAFE,.universities.and.vendor.certified.trainers.
Some.ICT.professionals.who.have.been.in.the.IT.business.for.many.years.may.however.find.it.difficult.to.convert.their.skill.sets..The.reported.high.costs12.of.self‑financing.ongoing.skills.development.can.be.a.potential.barrier.to.skills.upgrading.for.some.IT.professionals.
ACS ICT staff training surveyThe.ACS.has.recently.undertaken.a.survey,.including.many.of.Australia’s.top.ICT.employers,.to.obtain.a.better.insight.into.attitudes.to.training.of.ICT.staff..Information.was.sought.on.issues.such.as.the.main.requirements.and.skills.currently.seen.to.be.important,.and.those.that.will.be.needed.within.the.next.three.to.five.years.
The.survey.has.revealed.a.gap.across.all.technical.and.non.technical.areas.surveyed,.between.training.identified.as.being.necessary.by.firms.and.that.being.planned..
�� www.itpro.comptia.com.au/
�2 Forexample,in(year),costsfortheCiscoCertifiedNetworkAssociateProgramwereapproximately$1000persemester.http://academy.ee.unsw.edu.au/schedule.htm#fees
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A.key.message.from.this.is.that.ICT.professionals.should.not.be.relying.on.their.employers.to.supply.all.their.training.needs..Because.there.is.a.consistent.gap.across.all.training.areas.surveyed,.it.is.reasonable.to.assume.that.employers.consider.that.employees.should.be.contributing.to.their.own.training.requirements—around.25.per.cent.of.their.own.technical.training.and.30.per.cent.for.training.in.non.technical.areas.
There.are.implications.in.this.for.ICT.employees.and.firms..For.employees,.unless.they.are.initiating.their.own.skills.update.their.skill.set.could.be.out.of.date.in.as.little.as.three.to.five.years.
Conversely,.employers.are.likely.to.have.to.undertake.major.retraining.programs.or.‘spill.and.fill’.over.the.same.time.frame.because.current.employees.will.not.have.the.full.compliment.of.skill.sets.they.need.for.their.business.needs.
The.majority.of.employers.surveyed.indicated.that.they.believed.employees.need.to.look.at.completely.overhauling.their.skill.sets.every.three.to.five.years,.suggesting.that.this.is.indeed.what.is.happening.
5.2 Outsourcing and off‑shoringGreater.focus.on.outsourcing,.and.in.particular.off‑shoring,.of.ICT.services.as.a.means.to.obtain.ICT.skills.has.emerged.in.recent.years,.driven.by.the.expectations.of.access.to.lower.cost.services.and.greater.flexibility..Outsourcing.to.Australian.based.ICT.service.companies.has.existed.for.decades.and.influenced.the.location.of.ICT.skills.between.service.providers.and.customers..Off‑shoring.has.been.enhanced.and.strengthened.by.the.development.of.digital.information.and.communications.technologies.and.the.fall.in.telecommunications.costs..However,.off‑shoring.is.susceptible.to.cultural.and.communications.issues.
The.ICT.related.activities.that.lend.themselves.to.off‑shoring.include.computer.programming,.back.office.functions.such.as.billing.and.processing.and.customer.services.such.as.call.centre.operations..The.current.levels.and.the.pace.of.growth.in.off‑shoring.are.unclear,.though.expectations.are.for.off‑shoring.to.continue.to.steadily.grow.for.the.foreseeable.future.
While.off‑shoring.has.the.potential.to.remove.skills.shortages.it.also.has.the.potential.to.reduce.demand.for.skills.in.surplus.
In.December.2004.the.Australian.Information.Industry.Association.(AIIA).released.the.report.Status of Off‑shoring Outsourcing in Australia: A Qualitative Study prepared.by.ITR.Principal.Mark.Hollands..The.report.canvassed.the.opinions.of.senior.executives.in.Australia’s.leading.companies,.software.and.application.developers.and.key.ICT.policy.influencers..
One.of.its.main.findings.was.that.despite.the.consistent.view.that.offshore.outsourcing.threatened.many.jobs,.the.potential.for.new.jobs.is.also.significant..Recommendations.of.the.report.focussed.on.assisting.displaced.workers.to.retrain.and.re‑enter.the.workforce,.to.ensure.a.supply.of.new.workers.with.the.skills.required.to.attract.offshore.outsourcing.to.Australia.
The.Australian.Computer.Society.has.also.commissioned.research13.in.this.area.which.concluded.that.the.dynamic.nature.of.the.ICT.industry.often.means.that.there.is.very.little.time.for.ICT.workers.to.identify.and.learn.new.skills,.and.re‑skilling.ceases.to.be.a.priority.for.some.employers..This.generally.places.the.onus.for.re‑skilling.and.up‑skilling.on.ICT.professionals.themselves..In.addition.the.report.concluded.that.much.of.the.unemployment.and.under‑employment.in.ICT.is.caused.by.people.not.having.appropriate.skills.mixes..While.there.are.some.ICT.professionals.who.have.not.maintained.the.necessary.skill.levels.or.learned.new.skills.required,.this.needs.to.be.weighed.against.years.of.valuable.practical.experience.and.managerial.expertise.
�� ACS Policy Statement on Off‑shoring,May200�andStudy of ICT Outsourcing and Off‑shoring in Australia,WhitehorseStrategicGroup,May200�
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More.recently,.one.of.the.world’s.leading.consulting.firms.McKinsey.&.Company.reviewed.the.impacts.of.off‑shoring.on.the.US.workforce14.and.concluded.that.while.the.US.economy.gains.from.off‑shoring,.companies.and.governments.should.do.more.to.help.workers.cope.with.the.faster.rate.of.job.change.
5.3 Skilled migrationObtaining.the.right.balance.in.the.numbers.and.capabilities.of.ICT.immigrants.to.meet.domestic.requirements.is.a.complex.question..There.are.a.number.of.factors.which.make.a.perfectly.tuned.immigration.program.difficult.to.achieve,.these.include:
• the.complexity.of.the.local.market.place;
• the.lack.of.current.information.about.skills.demands;
• inconsistent.nomenclature;
• lags.involved.in.immigrant.selection;.and
• the.difficulty.of.having.immigration.officials.with.sufficient.knowledge.and.experience.to.match.the.capabilities.of.individual.applicants.with.domestic.market.requirements.
However,.improving.arrangements.through.the.availability.of.more.accurate.and.current.information.would.allow.better.operation.of.immigration.arrangements.
�� US Off‑shoring: Rethinking the Response,December2005McKinsey&Company
6Future ICT skills demand
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6. Future ICT skills demand
6.1 Challenges and issues in ICT skills foresightingThe.concept.of.‘foresighting’.involves.identifying.possible.future.scenarios.and.the.impacts.of.influential.factors.over.time..It.offers.a.way.of.assembling.a.big‑picture.view.of.the.possibilities.presented.by.emerging.technology.set.in.broader.economic,.social.and.demographic.contexts..The.foresighting.becomes.very.useful.for.many.purposes,.such.as.to.aid.policy.development.to.help.education.providers.set.curriculum.and.academic.places;.to.help.people.manage.their.careers;.to.aid.employers.to.manage.professional.development.of.their.workforces;.and.much.more..
Foresighting.also.facilitates.the.development.of.a.shared.community.of.understanding.across.a.range.of.stakeholders..This.in.turn.facilitates.more.meaningful.dialogue.amongst.stakeholders.on.the.issues.that.will.influence.future.outcomes..As.was.noted.during.the.Vision.2020.process.conducted.by.the.former.Australian.Communications.Authority.(ACA),.creating.foresight.improves.our.capacity.to.deal.with.complexity.and.uncertainty.15
Effective.foresighting.facilitates.stakeholder.understanding.of.the.opportunities,.threats.and.challenges.faced,.stimulating.debate.and.further.research..Foresighting.complements.forecasting,.and.the.accuracy.of.foresighting.is.highly.influenced.by.the.quality.of.forecasting.available..Forecasting.assists.by.providing.more.accurate.knowledge.about.trajectories.and.related.trends.and.developments,.and.good.forecasting.is.a.highly.desirable.prerequisite.for.good.foresighting.
6.2 Forecasting and technology trendsAt.first.glance.using.technology.trends.to.forecast.future.demand.for.skills.may.appear.to.be.a.promising.approach.to.forecasting.future.demand.for.ICT.skills..However,.the.reality.is.that.the.research.and.analysis.task.is.difficult,.costly.and.remains.risky.as.one.seeks.to.develop.a.reasoned.assessment.of.what.is.likely.to.eventuate..Other.major.constraints.on.finer.forecasting.of.ICT.skills.demand.are:
• the.size.of.current.skill.pools.are.unknown.due.to.information.lags;
• specific.future.demands.for.related.skills,.and.the.time.frame.in.which.the.impacts.will.occur,.are.unknown;.and
• there.are.a.diverse.number.of.factors.that.influence.demand.for.particular.skills.(eg.firm.size,.industry.sector,.technological.environment,.immigration,.regional.location.and.globalisation).
In.addition,.two.major.hurdles.have.to.be.overcome:
• obtaining.representative.estimates.of.future.ICT.investment.(purchasing.plans).by.business.and.government;.and
• interpreting.the.new.skills.that.will.be.in.demand.and.the.other.impacts.on.the.ICT.skills.market..
The.purchasing.plans.will.encompass.a.wide.range.of.ICT..Some.ICT.will.be.new,.some.will.be.well.established.technologies,.and.others.will.be.upgrades.of.currently.used.products..Each.category.will.require.a.range.of.different.skills..They.will.largely.involve.the.several.hundred.ICT.skills.in.common.use..The.skills.relevant.to.a.specific.new.ICT.product.or.service.may.include.specialised.knowledge.as.well.as.more.broadly.established.skills..
�5 Vision 20/20: Future Scenarios for the Communications Industry—Implications for Regulation(FinalReport,April2005)www.acma.gov.au/acmainterwr/_assets/main/lib306/vision%202020%20final%20report.pdf
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Assessment.of.the.impact.of.investment.on.skills.demand.will.need.to.consider.capacity.of.the.current.skills.pool.to.supply.the.skills,.how.the.new.skills.required.can.be.obtained,.and.in.what.time.frame.they.will.be.available..The.make‑up.of.the.current.skills.pool.is.poorly.understood..Each.ICT.practitioner.has.their.individual.portfolio.of.skills.and.the.current.labour.market.data.collection.stops.at.a.measurement.of.occupational.groups..This.makes.it.impossible.to.estimate.the.dimensions.of.the.current.use.of.skills.and.how.practitioners.and.trainers.may.adapt.to.demands.for.new.skills..Without.a.sound.knowledge.of.the.current.skill.base.it.is.not.feasible.to.forecast.future.needs.
Interpreting.demand.requirements.related.to.both.old.and.new.technologies,.and.combining.this.with.forecasts.of.the.supply.of.new.skills.from.retraining.practitioners.and.new.entrants.to.the.ICT.workforce,.is.an.immense.task..It.is.unlikely.any.reliably.useful.forecasts.can.be.made.even.with.detailed.data.on.primary.and.secondary.ICT.skills.in.use.
The.United.Kingdom.and.Canada.have.both.tried.integrating.technology.forecasts.with.labour.market.statistics.to.attempt.to.forecast.future.ICT.skills.supply.and.demand..Both.studies.resulted.in.very.high.level.analyses.that.reflected.on.broad.technology.trends..The.level.of.analysis.did.not.facilitate.detailed.planning.to.respond.to.the.broad.trends..
Demand.for.the.diverse.technical.skills.that.make.up.the.ICT.labour.market.constantly.changes.and.it.successfully.adapts.in.the.longer.term..Although.shortages.appear.in.some.specific.skills.from.time.to.time,.the.market.does.work.to.even.out.supply.and.demand.of.ICT.skills..New.technologies.are.constantly.entering.the.market,.while.others.are.reaching.a.peak.of.utilisation..Other.technologies.are.progressively.outdated.over.long.periods,.but.some.residual.continuing.demand.for.older.ICT.skills.remains..More.commonly,.the.core.technologies.widely.in.use.are.progressively.upgraded.and.ICT.practitioners.upgrade.their.skills.concurrently..
6.3 ICT skills forecasting in AustraliaThe.issues.involved.in.forecasting.ICT.skills.supply.and.demand.were.thoroughly.examined.as.part.of.the.background.research.for.this.project..The.major.conclusion.drawn.is.that.the.complexity.in.dealing.with.rapid.changes.in.ICT.trends,.market.dynamics.and.economic.conditions,.combined.with.the.limits.of.available.data,.does.not.support.reliable.quantitative.forecasting.of.skills.demand.and.workforce.numbers..
Long.range.forecasting.is.limited.by.relatively.short.technology.planning.and.investment.cycles,.and.horizons.for.both.the.private.and.public.sectors..The.quality.of.the.foresighting.will.largely.depend.on.the.quality.of.information.available.and.modelling.based.on.incomplete.information.may.have.significant.weaknesses..
Long.range.forecasting.requires.not.only.complete.and.accurate.statistical.trend.data,.but.also.accurate.and.detailed.understanding.of.new.and.emerging.technologies,.products,.trends.in.ICT.goods.and.services.markets,.business.innovation.cycles,.and.social.and.demographic.trends..There.are.many.relevant.parameters.involved.in.any.sound.analysis.and.long‑term.forecasting..
However,.there.are.a.further.set.of.economic,.social.and.demographic.factors.which.also.impact.on.the.demand.for.and.supply.of.ICT.workers.and.on.the.structure.and.composition.of.the.ICT.labour.market,.such.as:
• economic.trends.and.cycles,.both.domestically.and.globally,.where.boom.and.bust.periods.impact.on.the.demand.for.skilled.labour;
• market.trends.and.investment.cycles,.which.impact.on.new.business.and.technology.developments.and.demand.for.skilled.ICT.labour;
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• population.dynamics,.including.intergenerational.impacts.on.labour.force.participation.rates,.migration.and.potential.labour.shortages;
• labour.market.re‑structuring.over.time.in.response.to.workplace.reforms,.the.productivity.benefits.of.ICT.adoption.and.changing.expectations.of.working.arrangements.(e.g..work/life.balance,.teleworking);.and
• environmental.and.societal.changes,.such.as.climate.change,.spiralling.living.costs.(eg.rising.fuel.prices),.urban.congestion.resulting.in.new.ways.of.working.(e.g..teleworking),.with.greater.emphasis.on.online/virtual.engagement.and.interactions.and.rising.consumer.expectations..
6.4 Modelling the futurePrimary.factors.influencing.possible.outcomes.for.skills.foresighting.include:
1.. directions.of.current.and.future.ICT.research.and.development;.
2.. directions.in.the.business.investment.cycles.and.level.of.investment.by.industries.and.governments;
3.. scope.for.emerging.technologies.to.form.the.basis.of.new.or.upgraded.products,.services.and.capabilities;
4.. pace.at.which.the.new.or.upgraded.products.and.services.are.taken‑up.by.consumers,.business.and.government;
5.. skills.required.in.association.with.these.products.and.services;
6.. current.availability.of.ICT.skills.(existing,.upgraded.or.new);.and.
7.. capacity.for.retraining,.immigration.and.new.graduates.to.meet.emerging.skills.demand..
6.5 Current modellingModelling.is.commonly.approached.from.the.top.down.by.extending.economic.models.to.identify.corresponding.growth.or.decline.in.demand.for.particular.industries.and.occupations.across.the.economy..The.Monash.University.economy‑wide.economic.model,.an.applied.general.equilibrium.model.that.includes.a.labour.market.extension.for.occupations,.contributes.to.DEWR’s.preparation.of.employment.projections.by.industry.and.occupation..
• DEWR.job.turnover.estimates,.part.of.the.occupational.information.available.on.Job.Outlook.online.(www.jobsearch.gov.au/joboutlook).are.based.on.projections.prepared.by.the.Centre.for.the.Economics.of.Education.and.Training.(CEET).at.Monash.University.16
DEWR.currently.prepares.projections.of.employment.growth.for.industries.and.occupations.to.the.year.2010–11..These.projections.are.based.on.several.factors,.including:.
• industry.and.occupation.employment.projections.provided.by.the.Centre of Policy Studies (CoPS).at.Monash.University.(from.the.Monash.University.economy‑wide.economic.model);.
• actual.employment.growth.in.recent.years;.
• occupational.factors.(for.example,.technological.change);.and.
• qualitative.information.on.industry.and.occupational.developments..
DEWR’s.employment.projections.are.for.Australia.as.a.whole..The.information.created.provides.a.broad.indication.of.likely.national.job.demand,.but.does.not.forecast.state.or.regional.skills.demand.or.the.prospects.for.specific.skills..One.key.dimension.missing.from.the.forecasts.are.the.likely.supply.and.the.specific.skills.of.these.positions.
�� DEWR Job Outlook,DepartmentofEmploymentandWorkplaceRelations,June200�.
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Industry.employment.projections.are.part.of.the.development.of.the.occupational.projections..Future.demand.for.ICT.occupations.in.Australia.is.‘driven’.by.the.combined.impact.of:
• projected.employment.growth.for.the.main.industries.employing.ICT.workers.(industry.growth.effect);.and
• changing.occupational.composition:.demand.for.an.occupation.resulting.from.a.higher.share.of.employment.in.industries.(occupational.share.effect).
The.occupational.employment.projections.are.at.an.aggregated.level,.especially.since.the.current.occupational.classification.groups.ICT.Professionals.into.just.two.unit.groups.(IT.Managers.and.Computing.Professionals)..Consequently,.DEWR.employment.projections.are.for.three.ICT.occupations:.IT Managers,.Computing Professionals and.Computing Support Technicians..The.latest.DEWR.projections.(2006.update).indicate.that.there.will.be.around.52.000.new.jobs.in.these.three.ICT.occupations.in.the.next.five.years.
It.has.been.suggested.that.modelling.technology.trends.could.provide.a.more.detailed.analysis.which.could.identify.specific.skills.that.will.be.in.demand..Work.is.being.undertaken.to.explore.the.upgrading.of.the.Monash.model.to.take.account.of.technological.and.social.change.on.future.labour.demand..A.complementary.supply.side.forecasting.system.is.currently.being.prepared.1�.
DEWR.undertakes.a.six.monthly.ICT.skill.shortage.survey.which.is.based.on.the.recent.recruitment.experience.of.employers.and.ICT.recruitment.agencies,.and.examines.whether.employers.have.been.able.to.find.suitable.workers..The.ICT.skill.shortage.research.focuses.on.specialised.ICT.skills,.not.just.occupations,.due.to.the.complex.nature.of.ICT.demand..The.survey.asks.employers.if.they.expect.these.skills.in.demand.to.get.easier.or.harder.to.find.over.the.next.12.months..
The.DEWR.ICT.skill.shortage.survey.provides.information.on.the.percentage.of.ICT.vacancies.filled.and.skill.shortages.and.recruitment.difficulties.for.around.80.specialised.ICT.skills,.for.each.State.and.Territory..DEWR.has.earlier.noted.that.“Australian.and.world.economies.are.experiencing.rapid.evolution.in.specialised.skill.needs.and.such.‘prediction’.(of.future.skill.needs).is.not.prudent..The.focus.is.therefore.rather.on.providing.information.on.prospective.skill.needs.that.will.help.to.guide.the.response.of.the.employment,.education.and.training.markets.”18
The.scope.for.reliable.ICT.skills.forecasting.in.Australia.is.at.present.severely.limited.by.the.difficulty.and.cost.of.obtaining.the.complete.and.accurate.detailed.information.required.to.develop.well.founded.forecasting.models..
�� CBoswell,SStillerandTStraubhaar,Forecasting Labour and Skills Shortages: How Can Projections Better Inform Labour Migration Policies,MigrationResearchGroup,HamburgInstituteofInternationalEconomics(HWWA),July200�
�� DEWRsubmissionofMay200�totheSenateInquiryBridging the skills divide
7The future ICT professional
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Building Australian ICT skills
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7. The future ICT professionalThere.is.increasing.speculation.about.the.changing.roles.of.ICT.professionals.and.how.to.best.describe.the.nature.of.their.work.to.help.students,.teachers,.parents,.career.advisers.and.the.wider.community.gain.a.better.understanding.of.the.modern.ICT.workforce.
In.launching.CompTIA.Australia’s.new.IT.Pro.Australia.organisation.in.October.2005,.the.Minister.for.Communications,.Information.Technology.and.the.Arts,.Senator.Helen.Coonan.noted.that:
The hallmarks of the ICT professional will soon include creative, interpersonal and project management skills, as well as expertise in specific areas such as health and education, and the ability to effectively mesh hard and soft skills.19
The.Working.Group.suggests.that.the.term.‘ICT.professional’.is.now.far.too.generic.and.fails.to.provide.the.necessary.context.for.the.ICT.work.that.is.performed..This.might.be.addressed.by.developing.a.new.hybrid.description.which.combines.the.essential.technical.aspect.of.their.work.i.e..being.a.‘technologist’,.with.the.industry.or.particular.discipline.in.which.the.technology.is.being.applied.e.g..communications,.financial.services,.health,.mining.etc..
This.would.generate.an.entirely.new.set.of.occupational.descriptions.for.ICT.such.as.financial.services.technologist,.communications.technologist.etc..Within.these.job.titles.there.could.also.be.scope.to.emphasise.their.particular.field.of.specialisations,.just.as.occurs.now.in.many.areas.of.medicine.and.the.law..For.example,.“I’m.a.financial.services.technologist.specialising.in.e‑security”..The.intention.would.be.that.this.new.shorthand.might.be.more.readily.understood.when.promoting.and.describing.ICT.careers.to.young.people,.parents.and.teachers.
The.new.ICT.nomenclature.developed.as.part.of.the.Australian.and.New.Zealand.Standard.Classification.of.Occupations.(ANZSCO).will.help.to.identify.occupational.clusters.within.ICT.Professionals.
Research.from.leading.industry.analyst.Gartner.presents.a.vision.of.the.future.ICT.professional.in.2010.as.the.‘versatilist’—one.who.has.numerous.roles,.assignments.and.experiences.and.creates.synthesized.knowledge.and.context.that.fuel.business.value..For.ICT.professionals.to.function.as.the.‘versatilist’.they.will.need.to.understand.business.realities—industry,.core.processes,.customer.bases,.regulatory.environments,.culture.and.constraints20.
Gartner.predicts.that.by.2010.the.ICT.profession.will.be.split.into.four.main.areas.of.expertise:
• technology infrastructure and services, with.growth.in.service,.hardware.and.software.companies..Network.design.and.security.will.remain.strong.everywhere,.with.routine.coding.and.programming.off‑shored.to.developing.economies;
• information design and management,.with.growth.in.business.intelligence,.online.consumer.services,.workplace.enhancement..Search‑and‑retrieval.practices.and.collaboration,.particularly.in.ICT‑user,.systems.integration.and.consulting.companies..In.this.area.Gartner.predicts.there.will.be.a.demand.for.professionals.with.linguistics,.language,.information.design.and.knowledge.management.skills;.
• process design and management, involving.standard.operational.processes.(for.outsourcing.vendors),.competitive.business.processes.(for.ICT‑user.companies).and.design.of.automation.software.(for.software.vendors);.and
�� ICT skills essential to international competitiveness,MediaRelease��October2005
20 The IT Professional Outlook: Where Will We Go From Here?GartnerResearchReportSept2005
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Building Australian ICT skills
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• relationships and sourcing management,.requiring.ICT.professionals.to.acquire.skills.in.this.area.which.demands.strengths.in.managing.intangibles,.negotiating.among.different.parties.and.coordinating.outcomes.among.geographically.distributed.parties.with.different.work.agendas.and.cultures..In.some.instances.ICT.professionals.in.this.area.will.serve.as.relationship.managers.between.overseas.service.providers.and.domestic.customers.
Gartner.goes.on.to.suggest.some.of.the.ways.in.which.ICT.professionals.and.employers.can.make.the.transition.to.this.new.environment.and.some.of.the.challenges.for.employers:
ICT Professionals
• start.now.to.assess.and.build.their.business‑specific,.core.process.and.industry.knowledge;
• choose.the.area.of.expertise.which.best.suits.them.and.what.appeals.to.them.and.place.increased.emphasis.on.learning.and.relationships.as.key.factors.for.their.success;
• look.outside.the.traditional.business.ICT.world.for.new.challenges.and.opportunities.and.new.emerging.roles.in.areas.such.as.in.leisure.and.entertainment,.not‑for‑profit.and.government;
• acquire.business.training.and.education.as.well.as.technical.proficiency;.and
• tap.into.professional,.personal.and.social.networks,.whether.to.face‑to‑face.or.virtual,.to.explore.options.and.opportunities.and.to.keep.an.objective.eye.on.their.career.paths.
Employers
• develop.and.redirect.professional.opportunities.for.staff;
• develop.growth.paths.and.careers.opportunities.within.each.of.the.four.areas.of.expertise;.and
• anticipate.that.some.ICT.professionals.will.want.to.move.out.of.technical.areas.into.new.more.business.focussed.areas.
Conclusion
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Building Australian ICT skills
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8. ConclusionThe.ICT.Skills.Foresighting.Working.Group.was.established.to.provide.advice.to.Government.on.a.range.of.issues.relating.to.the.information.and.communication.technology.(ICT).skills.market..In.addressing.these.issues.the.Working.Group.has.reviewed.current.trends.and.likely.future.developments.within.Australia’s.ICT.industry.and.their.implications.for.ICT.skills.development..This.included.forecasting.future.ICT.skills.demand,.the.fit.between.industry.skill.needs.and.existing.training,.and.options.for.better.meeting.the.future.skill.needs.of.industry.
In.contributing.to.the.preparation.of.this.report.the.Working.Group.acknowledges.that.the.recommendations.put.forward.are.not.an.overarching.solution.to.the.supply.and.demand.issues.surrounding.the.ICT.skills.market..However,.the.Working.Group.firmly.believe.that.a.coordinated.response.to.the.recommendations.from.government,.industry,.employers,.ICT.professionals,.students,.and.education.and.training.providers.will.form.the.basis.for.positive.change..Implementation.of.the.recommendations.in.this.report.is.critical.if.Australia.is.to.maintain.competitiveness.and.maximise.the.potential.of.ICT.generated.productivity.growth.across.all.sectors.of.the.economy.
Appendices
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Appendix A
ICT Skills Foresighting Working Group Membership and Terms of ReferenceThe.ICT.Skills.Foresighting.Working.Group.was.chaired.by.Mr.Keith.Besgrove,.Chief.General.Manager,.Information.Economy.Division.of.DCITA.and.supported.by.a.DCITA.secretariat..Mr.Andrew.Bray.and.Mr.Denis.Hart.of.the.Department.of.Workplace.Relations.and.Employment.also.attended.a.number.of.working.group.meetings.and.provided.information.such.as.that.presented.in.Appendix.C...
The.working.group.membership.was:
•. Ms.Danika.Bakalich,.CompTIA.Australia.
•. Mr.Michel.Hedley,.Australian.Information.Industry.Association.
•. Mr.John.Maddock,.Box.Hill.Institute.
•. Mr.Edward.Mandla,.Australian.Computer.Society.
•. Professor.Ron.Weber,.Monash.University.
•. Assoc.Prof.David.Wilson,.University.of.Technology.Sydney.
•. Mr.Norman.Lacy,.Executive.Director,.Information.Technology.Contract.and.Recruitment.Association.(ITCRA)
•. Ms.Megan.Lilly,.General.Manager—Education.and.Training,.Australian.Industry.Group
The.Terms.of.Reference.for.the.working.group.were:
1.. Work.with.DCITA.on.an.analysis.of.the.implications.for.possible.future.industry.skill.needs.of.technology.trends,.global.industry.changes,.current.and.future.challenges.in.the.domestic.economy.and.possible.emerging.markets.for.Australia’s.ICT.industry.
2.. Assist.DCITA.to.identify.possible.emerging.gaps.between.the.skill.requirements.of.industry.and.current.education.and.training.arrangements,.and.to.identify.possible.mechanisms.to.enable.the.ICT.skill.needs.of.industry.to.be.more.effectively.met.from.within.the.Australian.education.and.training.system..
3.. Work.with.DCITA.to.develop.possible.options.for.informing.the.design.of.university,.vocational.education.and.training.(VET),.industry.and.private.education.and.training.curriculum,.courses.and.programs,.including.on‑the‑job.training.programs,.and.the.training,.retraining.and.up‑skilling.decisions.made.by.employers.and.ICT.workers.
4.. Contribute.to.preparation.of.a.report.by.DCITA.on.the.main.findings.and.conclusions.from.the.analysis.and.possible.options.for.better.meeting.the.future.skill.needs.of.the.ICT.industry.
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Appendix B
Overview of the ICT industry in AustraliaThe.traditional.Australian.ICT.industry,.as.measured.on.the.basis.of.firms.deriving.at.least.50.per.cent.of.their.income.from.the.sale.of.ICT.goods.and.services,.accounts.for.only.some.40.per.cent.of.ICT.professionals..The.remaining.60.per.cent.are.spread.across.other.sectors.of.the.economy—for.example,.banking,.transport,.agriculture—reflecting.the.shift.of.the.ICT.industry.into.domains.in.which.it.operates,.the.integration.of.ICT.in.economic.activity.and.the.increasing.reliance.of.all.economic.sectors.on.ICT‑based.goods.and.services..
This.picture.is.confirmed.by.the.2005.Sensis.Business.Index.Special.Report,.ICT.Production.in.Australian.SMEs,.2005..Sensis’.survey.of.a.representative.sample.of.small.to.medium.enterprises.(SMEs).across.the.economy.estimated.that.85.per.cent.of.the.ICT.goods.and.services.produced.by.SMEs.in.Australia.are.produced.by.firms.outside.the.ICT.industry.as.traditionally.defined..Firms.outside.the.ICT.industry.were.producing.ICT.for.their.own.business.operations,.to.sell.as.ICT.or.to.embed.in.other.goods.and.services.that.they.sold.
Nevertheless,.the.traditionally.defined.ICT.industry.represents.Australia’s.core.capability.in.ICT.production..According.to.the.ABS.ICT.Satellite.Account21,.the.value.of.Australian.production.of.ICT.goods.and.services.by.ICT.specialist.firms.is.estimated.to.be.approximately.$58.8.billion:
• manufacturing. $1.8.billion
• wholesale.trade. $8.9.billion
• telecommunication.services. $32.6.billion
• computer.services. $15.5.billion
ICT.value.added.production.by.specialist.ICT.firms.only.is.4.1.per.cent.of.total.Australian.GDP.in.2002/03..However.this.estimate.does.not.take.into.account.the.full.contribution.of.ICT.tools.and.enhancements.across.the.economy.through.improved.operational.efficiency,.product.and.service.innovations,.and.new.business.models.and.markets.
The.Australian.ICT.industry.comprises.about.24.000.specialist.ICT.firms.which.employ.approximately.234.�00.people..As.shown.in.Table.1,.most.of.the.firms.are.micro‑firms.(0–4.employees).and.the.188.largest.firms.(100.or.more.employees).account.for.55.per.cent.of.total.employment.in.the.industry.
Table 1—ICT firm size and employment (2002–03)
Firm size (number of employees) Total number of ICT businesses (%) Total ICT industry employment (%)0–4 �9 15
5–99 20 30
100.or.more .1 55
2� ABS,ICTSatelliteAccount2002/03,Cat.No.5259.0,releasedMarch2006
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Building Australian ICT skills
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Australia.is.developing.strengths.in.computer.services.and.software.in.niche.high.end.applications.and.
markets,.reflecting.the.competitiveness.of.Australian.skills.and.the.demand.from.Australian.users..McKinsey.&.Company.identified.two.strands.of.major.opportunities.for.Australian.ICT.producers:22.
• providing.specialised.applications.and.services.to.global.markets—for.example,.for.the.mining.sector.and.computer.games.industry;.and.
• providing.specialist.skills.and.services.for.global.multinational.companies—for.example,.as.regional.hubs.for.high.end.research.and.development.work.
22 Australia:WinningintheGlobalICTIndustry,200�
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Building Australian ICT skills
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Appendix C
Overview of ICT employment in AustraliaIn.February.2006,.Australia.had.356.600.ICT.workers.spread.across.all.sectors.of.the.economy..While.it.is.difficult.to.draw.clear.boundaries.around.the.question.of.‘what.are.ICT.occupations’,.the.occupations.presented.in.Table.C.1.are.the.main.ICT‑specific.occupations.and.provide.a.guide.to.the.employment.base.for.ICT.
The.two.largest.occupations—Computing.Professionals.and.IT.Managers—together.comprise.‘ICT.Professionals’..In.February.2006.there.were.206.300.ICT.Professionals.employed.in.Australia..
Table C1: Employment in ICT occupations (February 2006)
ASCO code Occupation Employed ‘000 Share of ICT employment (%)2231 Computing.Professionals 163.0 45.�
1224 IT.Managers .43.3 12.1
3294 Computing.Support.Technicians .40.5 11.4
4315 Electronic.Trades .33.4 .9.4
2125 Electrical.and.Electronics.Engineers .30.1 .8.4
4316 Communications.Trades .25.1 .�.0
3124 Electronic.Engineering.Associates .10.8 .3.0
3123 Electrical.Engineering.Associates .8.4 .2.4
4314 Electronic.Instrument.Tradespersons .2.0 .0.6
Total employment in ICT occupations 356.6 100.0
..Source:.DEWR.trend.analysis.based.on.ABS.Labour.Force.Survey.data
ICT.represents.about.3.6.per.cent.of.the.total.workforce.and.is.higher.than.for.Europe.(about.2.5.per.cent).and.the.United.States.(about.2.8.per.cent)..This.is.likely.to.be.an.under‑representation.of.ICT.occupations.as.some.ICT.occupations.and.specialisations.are.not.explicitly.recognised.in.the.current.occupation.classification.used.by.the.ABS..Table.1.shows.the.occupation.code,.based.on.the.Australian.Standard.Classification.of.Occupations.(ASCO.2nd.edition),.for.each.ICT.occupation..
The.new.Australian.and.New.Zealand.Standard.Classification.of.Occupations.(ANZSCO).will.significantly.upgrade.the.quality.and.usefulness.of.data.collected.on.ICT.occupations..ANZSCO.will.also.provide.an.‘alternative.view’.of.ICT.occupations.that.will.reflect.a.more.inclusive.view.of.the.ICT.industry..The.ANZSCO.classification.will.be.implemented.in.the.August.2006.Census,.and.in.the.Labour.Force.Survey.from.August.2006..
• More.information.on.the.ICT.nomenclature.in.ANZSCO.is.available.in.the.Information.Paper.on.the.ABS.website.(www.abs.gov.au)—ABS.Cat.No..1221.0.
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ICT occupationsComputing.Professionals,.the.largest.ICT.occupation,.accounts.for.45.�.per.cent.of.all.employment.in.ICT.occupations.across.the.economy.(Figure.C.1)..The.next.two.largest.ICT.occupations.are.IT.Managers.(12.1.per.cent).and.Computing.Support.Technicians.(11.4.per.cent)..The.ICT.occupations.reflect.a.mix.of.skill.level.requirements,.based.on.ASCO.2nd.edition.definitions..
• Professional.and.managerial.occupations,.including.IT.Managers,.Computing.Professionals.and.Electrical/Electronics.Engineers.require.a.bachelor.degree.or.higher.qualification.(several.years.relevant.experience.may.substitute.for.the.formal.qualification).
• Trades.occupations,.such.as.Electronic.Trades,.require.an.Australian.Qualifications.Framework.(AQF).Certificate.III.or.higher.qualification.
• Associate.Professional.occupations,.for.example.Computing.Support.Technicians.and.Electronic/Electrical.Engineering.Associates,.generally.require.an.AQF.Certificate.IV,.diploma.or.higher.qualification..
Figure C.1 Employment in ICT Occupations—February 2006 (‘000)
Other occupations requiring high ICT proficiencyWhile.the.ABS.categories.focus.on.the.core.ICT.professional.roles,.the.data.do.not.adequately.reflect.jobs.that.require.a.combination.of.high.level.ICT.and.other.skills.or.knowledge.(for.example,.graphic.designers.in.the.multimedia.industry.or.business.analysts)..The.ongoing.development.and.uptake.of.ICT.applications.has.brought.growth.in.non‑ICT.occupations.which.are.increasingly.dependent.on.high.level.ICT.skills..
With.the.increasing.pervasiveness.of.ICT.in.all.sectors.of.the.economy,.expertise.in.other.technologies.and.industries.(for.example,.the.health.sector).is.becoming.increasingly.important..Business.management.skills.and.interpersonal,.communication.and.other.‘soft’.and/or.employability.skills.are.also.assuming.greater.importance.for.ICT.workers.in.all.industries..
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Some.leading.recruitment.firms.and.senior.IT.executives.consider.that.today’s.IT.professional:
• must.adopt.a.holistic.approach.to.business,.with.a.strong.business.and.administration.base.under‑pinning.their.technical.knowledge.and.skills;
• needs.to.offer.a.broader.range.of.skills.such.as.customer.service,.presentation.skills,.high.level.report.writing.ability,.high.level.management.and.interpersonal.skills;
• needs.to.be.less.purely.technically.focused,.given.the.ready.availability.of.off‑the‑shelf.software.packages;.and
• can.make.a.crossover.into.ICT.from.another.industry.so.long.as.they.possess.transferable.skills,.such.as.an.understanding.of.how.a.business.operates.and.end‑to‑.end.appreciation.of.business.processes..
ICT skills and entry to ICT professional careersAccording.to.data.provided.by.members.of.the.Information.Technology.Contract.and.Recruitment.Association.(ITCRA):
• 9.per.cent.of.IT.professionals.have.no.ICT.qualifications;
• 13.per.cent.have.TAFE.qualifications;
• 13.per.cent.have.an.industry.or.vendor.certificate;.and
• 52.per.cent.have.an.ICT.related.degree.
There.is.evidence.of.people.from.non‑ICT.backgrounds.moving.into.ICT.occupations..Ambit.Recruitment.has.identified.five.main.categories.in.which.non‑technical.professionals.enter.the.industry:
• project.managers,.with.the.most.successful.non‑IT.applicants.having.backgrounds.in.engineering,.accounting.and.consulting;
• IT.systems.testers.(in.areas.such.as.retail,.banking,.finance,.insurance.and.health),.with.non‑IT.applicants.generally.being.subject.experts.such.as.underwriters,.bank.officers.and.HR.personnel;
• IT.business.analysts,.with.non‑IT.applicants.frequently.being.accountants.with.analytical.experience;
• IT.project.coordinators,.with.non‑IT.applicants.generally.being.project.administrators;.and
• IT.commercial/contract.managers,.with.commercial.managers.with.MBAs.and.business.managers.with.legal,.financial.and.contracts.experience.being.a.feature.
Although.migration.from.non‑ICT.backgrounds.is.significant,.university.training.remains.the.key.source.of.new.ICT.professionals..TAFEs.and.private.training.organisations.are.also.significant.providers.of.specific.professional.ICT.courses,.but.the.data.tends.to.be.fragmentary.and.analysis.is.consequently.difficult..
• Educational.profiles.for.May.2005,.for.IT.Managers,.Computing.Professionals.and.Computing.Support.Technicians,.are.presented.in.the.Appendix.to.Attachment.C..
ICT employment trendsIT.Managers,.Computing.Professionals.and.Computing.Support.Technicians.are.the.three.dominant.ICT.specialist.occupations..Together.they.account.for.employment.of.235.300.persons.or.over.two‑thirds.of.employment.in.all.ICT.occupations..This.analysis.of.ICT.employment.trends.will.concentrate.on.these.dominant.ICT.occupations.
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In.the.past.decade.employment.for.ICT.Professionals.has.risen.strongly,.albeit.with.employment.declines.around.1999.and,.more.recently,.in.2004..While.the.employment.losses.in.2004.reflected.the.downturn.in.the.ICT.industry,.this.is.also.an.adjustment.following.the.very.strong.growth.in.the.past.10.years.
Figure C2: Employment trends for ICT occupations—10 years to Feb 2006 (‘000)
0
25
50
75
100
125
150
175
200
225
Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06
ICT Professionals
Computing Support Technicians
Information Technology Managers
Computing Professionals
Source:.ABS,.Labour.force.Survey,.Australia,.DEWR.trend.data
In.the.10.years.to.February.2006.employment.for.all.three.ICT.occupations.rose.strongly..Computing.Professionals.rose.by.54.600.or.50.4.per.cent,.including:.
• strong.growth.of.13.200.or.8.8.per.cent.in.the.year.to.February.2006;.
• employment.for.IT.Managers.rose.by.35.600.or.462.3.per.cent;.and.
• Computing.Support.Technician.employment.grew.by.1�.000.or.�2.1.per.cent.
Figure.C6.presents.employment.levels.for.ICT.Professionals,.the.combination.of.Computing.Professionals.and.IT.Managers,.for.the.period.February.1990.to.February.2006..The.number.employed.rose.strongly.between.1994.and.2003.to.204.�00,.before.levelling‑out.and.then.falling.to.188.600.in.February.2005..The.strong.rise.in.the.past.year.has.taken.employment.for.ICT.Professionals.to.206.300..
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Figure C3: Employment for ICT Professionals—Feb 1990 to Feb 2006
Employment.trends.for.ICT.occupations.mirror.developments.in.the.Computer.Services.industry.(an.Australian.and.New.Zealand.Standard.Classification.of.Industries—ANZSIC—three.digit.industry),.as.shown.in.Figure.C4..As.the.graph.shows,.employment.in.the.Computer.Services.industry.rose.very.strongly.in.the.late.1990s,.and.during.2000,.before.declining.in.the.following.years..
In.many.respects.this.decline.can.be.viewed,.in.part,.as.an.adjustment.following.the.previously.very.strong.growth,.as.well.as.reflecting.the.world‑wide.downturn.in.the.industry..There.is.evidence.of.a.turnaround,.with.employment.growth.in.the.past.year..In.the.10.years.to.February.2006,.employment.in.the.Computer.Services.industry.rose.by.88.�00.or.141.6.per.cent.to.151.400..
Figure C4: Employment in Computer Services—Indexed (February 1996 = 100.0)
50
100
150
200
250
300
Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06
Computer Services
Business Services
Telecommunication ServicesAll Industries
.Source:.ABS,.Labour.Force.Survey,.Australia,.DEWR.trend.data
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Graduate employment outcomesGraduate.Careers.Australia.data.(www.graduatecareers.com.au),.as.presented.in.Figure.C5,.show.employment.status.in.the.April.following.graduation..Employment.outcomes.(percentage.in.full‑time.employment).for.Electronic.Engineering/Computing.Engineering.and.Computer.Science.improved.in.2004.and.2005,.but.remain.below.the.average.for.all.graduates..
Figure C5: IT Graduates—Percentage in full‑time employment, 1990–2005
60
65
70
75
80
85
90
95
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Computer Science
All Graduates
Electronic/ComputingEngineering
UnemploymentThe.recent.improvement.in.the.ICT.labour.market.is.clearly.evident.in.the.unemployment.rates.for.ICT.occupations..For.IT.Managers.the.unemployment.rate.in.2005.(1.0.per.cent).was.around.one.fifth.of.that.in.2003.(4.9.per.cent)..The.unemployment.rate.for.Computing.Professionals.has.halved.from.4.1.per.cent.in.2003.to.2.1.per.cent.in.2005.
• Occupational.unemployment.rates.do.not.include.first.job.seekers.and.hose.unemployed.for.two.years.or.more,.and.are.typically.lower.than.the.overall.unemployment.rate.(currently.close.to.5.per.cent).
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Figure C6: Unemployment rates for ICT occupations
Source: ABS, Labour Force Survey, Australia, original data, annual averages
Prospects for the ICT labour marketIndicators.point.to.a.continuing.pick‑up.in.the.ICT.labour.market.in.Australia,.although.prospects.vary.for.skill.sets..ICT.vacancies.have.risen.strongly.in.recent.years.(see.Figure.C�).foreshadowing.short‑term.growth.in.jobs..Employment.levels.are.projected.to.rise,.albeit.not.as.strongly.as.in.the.past.decade..Prospects.for.ICT.are.linked.to.Australia’s.overall.economic.and.employment.growth.prospects..
DEWR’s.ICT.Vacancy.Index—a.count.of.vacancies.on.three.online.recruitment.sites—has.risen.consistently.and.strongly.in.the.past.three.years,.apart.from.seasonal.fluctuations.(the.ICT.vacancy.index.is.not.seasonally.adjusted).
Figure C7: DEWR’s ICT vacancy index, January 2002 to April 2006
300
250
200
150
100
50
Jan 02
Apr 0
2
Apr 0
3
Apr 0
4
Jul 0
2
Jul 0
3
Jul 0
4
Oct 02
Oct 03
Oct 04
Jan 03
Jan 04
Apr 0
5
Jul 0
5
Oct 05
Jan 05
Apr 0
6
Jan 06
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Attributes of ICT Employment in the Australian EconomyICT.employment.is.strongly.concentrated.(over.�0.per.cent).in.five.industries:.
• Property.and.Business.Services.(3�.2.per.cent);.
• Communication.Services.(12.8.per.cent);.
• Government.Administration.and.Defence.(�.�.per.cent);.
• Finance.and.Insurance.(6.�.per.cent);.and.
• Manufacturing.(6.�.per.cent)..
Table C2: ICT share of Employment by Industry—August 2005
Industry ICT Employment for Industry (‘000)
Share of total ICT Employment (%)
Property.and.business.services 124.0 3�.3
Communication.services 42.6 12.8
Government.administration.and.defence 25.6 �.�
Manufacturing 22.4 6.�
Finance.and.insurance 22.8 6.�
Education 16.3 4.9
Retail.Trade 14.9 4.5
Wholesale.trade 14.0 4.2
Construction 12.9 3.9
Electricity,.gas.and.water.supply 9.5 2.8
Transport.and.storage �.� 2.3
Cultural.and.recreational.services 6.� 2.0
Health.and.community.services 6.4 1.9
Mining 4.3 1.3
Personal.and.other.services 2.� 0.8
Agriculture,.forestry.and.fishing 0.5 0.2
Accommodation,.cafes.and.restaurants 0.4 0.0
All industries 333.6 100.0
Source;.ABS.collections;.Notes:.*data.not.collected.np.data.not.published
There.is.a.higher.proportion.of.male.ICT.professionals.in.every.industry.group..A.similar.picture.is.apparent.for.the.ICT.industry.(Table.C3),.where.women.constitute.18.to.26.per.cent.of.ICT.professional.employment..
Table C3: Share of Males/Females Employed in ICT roles in ICT industry sub‑sectors, 2004
Male (%) Female (%)Computer.services �4 26
Telecommunications.services 82 18
Manufacturing.and.other 81 19
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An.examination.of.the.distribution.of.ICT.workers.in.the.three.main.ICT.occupations.shows.that.around.one.in.five.ICT.Professionals.(IT.Managers.and.Computing.Professionals).are.women..While.only.a.small.proportion.of.the.workforce,.comments.from.female.IT.managers.indicated.that.the.skills.of.female.candidates.were.valued.and.competitive.in.the.higher‑end.jobs..Women.have.a.higher.share.of.employment.for.Computing.Support.Technicians.(28.3.per.cent.in.2005)..
Figure.C.8.also.highlights.the.high.proportion.of.full‑time.jobs.for.ICT.workers,.ranging.from.around.95.per.cent.for.IT.Managers.and.92.per.cent.for.Computing.Professionals,.down.to.88.per.cent.for.Computing.Support.Technicians..This.characteristic.may.impact.on.female.participation.in.the.ICT.workforce..
Figure C8: Employment in ICT Occupations by Gender—Percentage share of employment (2005)
In.the.internet.and.multimedia.sectors,.digital.industry.management.is.dominated.by.females.with.a.background.in.marketing.and.public.relations..ABS.Labour.Force.Statistics.indicate.that.females.are.well.represented.in.public.relations.and.marketing.professional.roles,.holding.about.56.per.cent.of.jobs..They.also.indicate.that.females.account.for.about.46.per.cent.of.graphic.designers.and.illustrators.
Assessment.by.the.Equal.Opportunity.in.the.Workplace.Agency.(EOWA).of.compliance.reports.submitted.by.IT.employers.with.over.100.employees.indicates.that.women.comprise.31.per.cent.of.employees.in.the.IT.sector..This.is.lower.than.the.average.of.4�.per.cent.for.all.industry.sectors..EOWAs.report.also.reveals.that.females.are.relatively.well.represented.in.management.positions.across.the.IT.industry.despite.the.low.proportion.of.female.employees..Table.C4.reveals.that.24.per.cent.of.females.occupy.such.positions.
Table C4: IT specialist firms and female managers, provided by the EOWA
IT specialist firms All%.female.employees 31 4�
%.female.managers 24 31
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Ageing of the ICT workforceAgeing.of.the.workforce.is.less.pronounced.in.ICT.occupations.than.for.the.workforce.as.a.whole..ICT.Professionals.have.a.younger.than.average.age.profile..The.median.age.for.Computing.Professionals.in.2005.at.35.years.(see.Figure.C3).compares.with.39.years.for.all.occupations..In.2005,.the.proportion.of.Computing.Professionals.aged.45.years.and.over.was.22.3.per.cent,.well.below.the.35.8.per.cent.share.for.all.occupations.
Figure C9: Computing Professionals—Percentage share of employment by age. Median age for this occupation = 35 years.
ICT skill shortagesThe.Department.of.Employment.and.Workplace.Relations.(DEWR).undertakes.research.on.ICT.skill.shortages,.based.on.recent.recruitment.experience.of.employers.and.ICT.recruitment.agencies..The.ICT.skill.shortage.research.focuses.on.specialised.ICT.skills,.not.just.occupations,.due.to.the.complex.nature.of.ICT.demand..
The.skill.shortage.findings.are.a.key.input.to.the.Skilled.Migration.Program,.especially.the.Migration.Occupations.in.Demand.List.(MODL)..ICT.skill.shortage.information.is.also.used.more.generally.to.facilitate.better.occupational.targeting.in.the.Migration.Program.
The.2005.ICT.survey.was.undertaken.in.each.state.and.territory.and.involved.contact,.by.telephone,.with.123.employers.and.90.ICT.recruitment.agencies.across.Australia..The.findings.of.the.survey.indicate.that.there.has.been.a.pick‑up.in.demand.for.ICT.skills.(around.�0.ICT.skills.were.examined)..The.ICT.skills.in.shortage.or.with.recruitment.difficulties.vary.across.the.states,.including.24.ICT.skills.in.shortage.in.New.South.Wales..This.is.important.as.New.South.Wales.has.about.53.per.cent.of.ICT.vacancies.and.40.per.cent.of.ICT.employment..
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Figure C10: ICT Vacancy Filling Rates—2004 and 2005
Source: DEWR ICT skills Shortage survey May 2005
The ICT survey findings indicate that nearly 84 per cent of vacancies advertised by employers were filled within six weeks of advertising, almost the same filling rate as the previous survey in May 2004 (see Figure C10). Of the larger states, between 2004 and 2005 vacancy filling rates rose in New South Wales, Victoria and South Australia, but fell sharply in Queensland.
The survey found that the ICT labour market has tightened (see Figure C9), a view consistently evident in the advice from ICT recruitment agencies that they were experiencing recruitment difficulties, and in many instances shortages, for some ICT skills.
Figure C11: Number of suitable applicants per ICT vacancy—2004 and 2005
0
3
6
9
12
15
2005
2004
AustraliaNTACTTASWASAQLDVICNSW
Source: DEWR ICT Skill Shortage survey May 2005
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Appendix D
Overview of ICT Skills Supply in the Higher and Vocational Education Sector
Definition of ICTInformation.and.communication.technology.occupations.have.constantly.evolved.and.expanded.over.the.last.10.years..Continual.redefinition.of.the.profession.over.this.time.has.meant.that.standards.for.data.collection.have.changed.periodically..These.changes.mean.that.the.supply.chain.can.be.mapped.more.accurately.over.the.last.five.years.than.for.any.longer.period,.and.the.data.presented.in.this.report.will.concentrate.on.analysis.over.this.time.
The Australian Qualifications FrameworkComparisons.between.qualifications.and.their.requisite.education.and.training.can.be.made.across.schools,.vocational.education.and.the.higher.education.sectors.through.the.Australian.Qualifications.Framework..This.framework,.implemented.fully.since.2000,.provides.for.articulation.and.standardisation.within.an.integrated.set.of.12.nationally.and.internationally.recognised.qualifications.across.Australia..It.gives.ICT.practitioners.flexible.pathways.between.different.education.and.training.choices.and.encourages.transitions.through.the.levels..Comparative.data.is.collected.23
ICT skills supply from Higher Education Participation.in.Higher.Education.can.be.measured.in.a.number.of.ways..Using.completions.as.a.measure.of.output,.this.analysis.provides.an.indication.of.trends.regarding.the.quantity.of.ICT.graduates..However,.it.takes.some.three.to.five.years.to.acquire.a.degree.in.ICT.fields.and.thus.the.level.of.commencements.will.continue.to.influence.the.level.of.output.some.years.down.the.track..DEST.annually.collects.and.collates.data.on.higher.education.students.on.award.course.completions,.commencing.students.and.field.of.study.classifications.from.those.institutions.which.receive.operating.grants.from.the.Commonwealth.
2� www.aqf.edu.au/aboutaqf.htm#why
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Figure D1: DEST Higher education statistics 2004: Time Series Award Course completions 1994 to 2003
Award Course Completions for All Students by Citizenship and Broad Field of Education (Information Technology), 1994 to 20031
1997 1998 1999 2000 2001 2002 2003Information.Technology 1994 1995 1996 .(b) .(a) .(a) .(a) .(b) .(b) .(b)
Domestic.students �508 �613 �863 8523 8�55 9062 9198 8268 9494 9093
Overseas.students 951 1159 1345 1554 1844 20�1 2580 6556 8993 10.013
Total students 8459 8772 9208 10 077 10 599 11 133 11 778 14 824 18 487 19 106
(a).Data.for.1992–2000.have.been.mapped.from.field.of.study.classification.to.field.of.education.classification...(b).The.data.takes.into.account.the.coding.of.Combined.Courses.to.two.fields.of.education..As.a.consequence,.counting.both.fields.of.education.for.Combined.Courses.means.that.the.totals.may.be.less.than.the.sum.of.all.broad.fields.of.education
Figure.D1.shows.that.there.has.been.more.than.a.doubling.in.the.number.of.students.studying.information.technology.between.1994.and.2003..Since.2001.this.growth.has.been.represented.by.the.large.increases.in.the.number.of.overseas.students.(by.more.than.one.thousand.percent)..Domestic.ICT.enrolments.steadily.climbed.until.2000,.when.there.was.a.sudden.fall.of.approximately.11.per.cent,.with.fluctuations.in.enrolments.since.this.time.
This.fall.in.ICT.completions.domestically.contrasts.with.a.continual.increase.in.student.numbers.overall.across.the.10.year.period.examined..In.2003,.IT.students.were.8.9.per.cent.of.broad.field.of.education.categories..IT.student.numbers.increased.by.3.3.per.cent.in.2003,.but.this.was.below.the.average.of.5.4.per.cent..However.this.does.not.reflect.the.students.of.other.fields.studying.aspects.of.IT.(i.e..creative.arts.has.the.highest.increase.of.14.per.cent.and.undoubtedly.contains.an.increasing.IT.or.digital.content.component).and.the.impacts.of.technology.convergence.blurring.distinctions.between.ICT.and.the.fields.of.endeavour.they.are.used.in.24
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ICT Skills supply from the VET sector
OverviewThe.administration.of.the.vocational.education.sector.has.changed.recently.with.the.abolition.of.the.Australian.National.Training.Authority.(ANTA).in.2004.and.with.the.transfer.of.its.function.within.DEST.and.specific.national.industry.skills.councils..The.industry.skills.council.of.most.interest.to.the.ICT.industry.is.the.Innovation.and.Business.Skills.Australia.(IBSA),.which.administers.the.ICT.and.telecommunications.training.packages..Within.IBSA,.ICT.areas.of.skills.development.focus.on.
• networking.and.network.security;.
• services.and.support;.
• testing;.
• project.management;.
• database.design.and.development;.
• software.development;.
• systems.analysis.and.design;.
• systems.administration.and.management;.
• web.and.multimedia.technologies;.
• customer.contact.centres;.and.
• programming..
The.cultural.and.creative.arts.sectors.are.also.increasing.their.ICT.components.through.units.in.multimedia.and.web.design,.and.moving.towards.managing.and.creating.more.digital.content.
National Training PackagesA.training.package.is.a.nationally.endorsed.and.recognised.set.of.integrated.training.and.assessment.components.for.a.specific.industry,.industry.sector.or.enterprise.that.can.be.used.for.developing.and.recognising.people’s.competencies..Each.training.package.must.consist.of.the.three.key.components.of.competency.standards,.assessment.guidelines.and.a.qualifications.framework..These.are.then.endorsed.by.the.National.Training.Quality.Council.(NTQC)..The.ICT.and.the.telecommunications.packages.are.the.ones.of.interest.to.the.Working.Group.
Information and Communications Technology Training Package (ICA05)The.Information.Technology.Training.Package.endorsed.in.October.2005.includes.22.qualifications,.ranging.from.Certificate.I.in.Information.Technology.to.higher.level.qualifications.in.a.range.of.specialisations.including.network.security.and.information25
25 www.ibsa.org.au/content/ict/tpica05_overview.html
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Overview of Information and Communications Technology Training Package (ICA05)
Level QualificationCertificate.I ICA10105.Certificate.I.in.Information.Technology
Certificate.II ICA20105.Certificate.II.in.Information.Technology
ICT20102.Certificate.II.in.Customer.Contact
Certificate.III ICA30105.Certificate.III.in.Information.Technology
Certificate.IV ICA40105.Certificate.IV.in.Information.Technology.(General)
ICA40205.Certificate.IV.in.Information.Technology.(Support)
ICA40305.Certificate.IV.in.Information.Technology.(Websites)
ICA40405.Certificate.IV.in.Information.Technology.(Networking)
ICA40505.Certificate.IV.in.Information.Technology.(Programming)
ICA40605.Certificate.IV.in.Information.Technology.(Testing)
ICA40�05.Certificate.IV.in.Information.Technology.(Systems.Analysis.and.Design)
ICA40805.Certificate.IV.in.Information.Technology.(Multimedia)
Diploma ICA50105.Diploma.of.Information.Technology.(General)
ICA50205.Diploma.of.Information.Technology.(Project.Management)
ICA50305.Diploma.of.Information.Technology.(Systems.Administration)
ICA50405.Diploma.of.Information.Technology.(Networking).
ICA50505.Diploma.of.Information.Technology.(Database.Design.and.Development)
ICA50605.Diploma.of.Information.Technology.(Website.Development)
ICA50�05.Diploma.of.Information.Technology.(Software.Development)
ICA50805.Diploma.of.Information.Technology.(Systems.Analysis.and.Design)
ICA50905.Diploma.of.Information.Technology.(Multimedia).
Advanced.Diploma ICA60105.Advanced.Diploma.of.Information.Technology
ICA60205.Advanced.Diploma.of.Information.Technology.(Network.Security
Telecommunications Training Package (ICT02)The.Telecommunications.Training.Package,.which.is.currently.under.review,.includes.18.qualifications.ranging.from.Certificate.II.to.Advance.Diploma.specialising.in.either.the.customer.contact.or.technical.aspects.of.the.industry26..
2� www.ibsa.org.au/content/ict/tpict02_overview.html
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Overview of Telecommunications Training Package (ICT02)
LEVEL QUALIFICATIONCertificate.11 ICT20102.Certificate.II.in.Customer.Contact.
ICT20202.Certificate.II.in.Telecommunications
ICT20302.Certificate.II.in.Telecommunications.Cabling
ICT20402.Certificate.II.in.Telecommunications.Access.Network
Certificate.111 ICT30102.Certificate.III.in.Customer.Contact
ICT30202.Certificate.III.in.Telecommunications
ICT30302.Certificate.III.in.Telecommunications.Cabling.and.Customer.Premises.Equipment
Certificate.1V ICT40102.Certificate.IV.in.Customer.Contact
ICT40202.Certificate.IV.in.Telecommunications.Engineering
ICT40302.Certificate.IV.in.Telecommunications.Computer.Systems
ICT40402.Certificate.IV.in.Telecommunications.Network.Planning
Diploma ICT50202.Diploma.of.Telecommunications.Engineering
ICT50302.Diploma.of.Telecommunications.Computer.Systems
ICT50402.Diploma.of.Telecommunications.Photonics
ICT50102.Diploma.of.Customer.Contact.Leadership
Advanced.Diploma ICT60202.Advanced.Diploma.of.Telecommunications.Engineering
ICT60302.Advanced.Diploma.of.Telecommunications.Computer.Systems.
ICT60102.Advanced.Diploma.of.Customer.Contact.Management
VET student and training dataVET.data.includes.information.on.training.provided.through.VET.in.schools,.pre‑apprenticeship.and.apprenticeship.programs,.national.training.packages.delivered.through.government.and.private.training.providers.and.certifications.and.niche.training.provided.through.industry.partnerships..The.VET.sector.also.collects.statistics.compliant.with.the.Australian.Standard.Classification.of.Education..Therefore.comparisons.between.data.can.be.made.at.the.broad.level.of.the.fields.of.education.classifications.(i.e..for.the.information.technology.designation)..Much.of.this.data.has.been.taken.from.that.compiled.by.IBSA.from.National.Centre.for.Vocational.education.research.(NCVER).data.drawn.from.their.draft.Industry.Skills.report..2�
VET Students and subject enrolments by major course field of education, 2002–04VET.data.includes.information.on.training.provided.through.VET.in.schools,.pre‑apprenticeship.and.apprenticeship.programs,.national.training.packages.delivered.through.government.and.private.training.providers.and.certifications.and.niche.training.through.industry.partnerships..The.VET.sector.also.collects.statistics.compliant.with.the.Australian.Standard.of.Education.
2� NCVER, Australian vocational education and training statistics Students and courses 2003,ANTA2004page3www.ncver.edu.au Downloaded200�
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The.following.table.shows.data.at.the.broadly.designated.information.technology.subject.area:
Table D1: VET Students and subject enrolments 2002–04
Information Technology 2002 2003 2004IT.students.by.major.course.field.of.education2
.82.300 .�2.500 .62.100
Subject.enrolments.by.subject.field.of.education–IT3
594.900 53�.900 444.200
As.can.be.seen,.there.has.been.a.substantial.fall.in.student.numbers.of.33.per.cent.between.2002.and.2004..This.is.set.against.an.overall.fall.in.VET.students.of.5.5.per.cent..
Female.students.represent.32.per.cent.of.students.in.2004..This.is.in.contrast.to.the.higher.education.sector.where.female.students.in.2004.represented.29.per.cent.and.18.per.cent.of.undergraduate.and.postgraduate.students.respectively..Female.students.are.therefore.less.likely.to.be.enrolled.in.IT.courses.as.their.levels.of.qualification.increase.
Figure D4: VET Students by major parent training package, 2000–0428
The.data.refers.to.the.national.training.packages.related.to.Information.technology.and.telecommunications.
Students by Information and Telecommunications Training Package 2000‑044
2000 2001 2002 2003 2004Information.Technology 25.800 52.800 59.900 63.400 55.200
Telecommunications .3.600 11.�00 12.500 12.300 10.500
The.number.of.students.completing.packages.with.the.VET.system.has.fluctuated.with.peaks.in.2000.and.2003.and.a.five.year.low.in.2004.
VET in SchoolsThe.subjects.undertaken.within.the.VET.in.schools.program.are.those.at.the.Certificate.I.and.II.levels..These.subjects.tend.to.be.IT.rather.than.telecommunications.based..
The.following.data.shows.a.fall.enrolment.in.VET.in.school.IT.courses:
VET in Schools Activity, 2002–04, Australia29
Field of Education 2002 2003 2004 2003–04 % change
IT 1�.800 1�.900 16.400 ‑5.8
2� ForagivenModule/UnitofCompetency,theparentTrainingPackagedenotestheindustrythatdevelopedthetrainingpackage.
2� Source:NCVERNationalVETProviderCollection,releasedJuly2005;PublicVETSystemTablesforAustralia
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Appendix endnotes1. Taken.from.www.dest.gov.au/NR/rdonlyres/3EA0FE6E‑B402‑45A6‑9C37‑3907844B16FE/7636/
12Appendices.xls,.Higher.Education.Statistics.2004,.Appendix.2.1
2. Source:.NCVER.National.Provider.Collection,.released.July.2005,.Table.20.available.at..www.ncver.edu.au
3. Source:.NCVER.National.Provider.Collection,.released.July.2005,.Table.29.available.at..www.ncver.edu.au
4. Source:.NCVER.National.VET.Provider.selection,.Released.July.2005,.Table.22..www.ncver.edu.au/statistics/vet/ann04/id04/s&c2004table22.xls
Further informationDepartment of Communications, Information Technology and the Arts www.dcita.gov.au [email protected]