Management Skills in Information Communication Technology ITC

1
Management Skills in Information Communication
Technology (ITC)
2
Purpose of workshop

• To examine the issues regarding management skills
  and their importance to the IT industry
  development
• To consider the adequacy of existing management
  programs and their applicability to the industry

3
This presentation will address the following

• 1. THE SA ICT INDUSTRY CONTEXT AND
  BACKGROUND
• 2. MANAGEMENT SKILLS DETAILED FOCUS

4
Section 1 Overview of SA ICT Industry Context
and Background

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• SA Telecomms industry
• SA IT industry
• size, key growth areas and trends
• The macro context
• economy
• liberalisation
• legislation

5
Section 2 Management Skills in the South
African ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

6
Section 1 Overview of SA ICT Industry Context
and Background

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• SA Telecomms industry
• SA IT industry
• size, key growth areas and trends
• The macro context
• economy
• liberalisation

7
What is the ICT sector?

• Manufacturing
• office, accounting and computing machinery
• Insulated wire and cable
• Electronic valves tubes and other electronic
  components
• TV and radio transmitters, apparatus for line
  telegraphy and telephony
• TV and radio receivers, sound and video recording
  and associated goods
• Instruments and appliances for measuring,
  checking, testing, navigating etc and industrial
  process control equipment

• Services
• wholesaling of machinery, equipment and supplies
• renting of office machinery and equipment and
  computers
• Telecommunication services
• Computer and related services

8
Key ICT trends that will affect management skills

• Convergence - IT, Telecommunications and Media
• Rapid technological change speed of innovation
• outsourcing
• Globalisation
• time based competition
• development and attraction of resources
• remote application hosting/ application service
  providers
• Highly competitive market locally and globally
• long term relationships with customers are
  crucial
• mass customisation and CRM key

9
Key ICT Trends cont.

• Internet and e-commerce (internet has become a
  commercial tool )
• new business paradigms
• web access in retail stores/ live phone support
• companies must deliver solutions, not products
• skills shortage and therefore high price of
  skills
• Alliances and product integration
• Power of ISPs
• New internet access devices
• -Thin clients, Net TVs, kiosks, cellular phones

10
Changes In User Demands

• Maturation and change in end user demands
• maximising value add
• risk sharing
• integration of IT and business competencies and
  skills
• focus on security
• emphasis on supply change management/ logistics

11
Where is the ICT industry going? 1 Billion Users
Online
IT Users (M)
IT Spending (B)
5,000
1,000
100
500
Automate Customers
50
10
Automate Front-Office
Automate Back-Office
2000
1970
1990
1980
2010
Source International Data Corporation, 1997
12
The Available Market Will Mushroom (Users and
Devices on the Net Millions WW at Yearend)
13
Overview of SA ICT Industry

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• SA Telecomms industry
• SA IT industry
• size, key growth areas and trends
• The macro context
• economy
• liberalisation

14
The Big Picture
15
World Telecommunications

• Ranks 1/3 in world market capitalisation behind
  banking and health
• Enabling technology - vital for other industries
• 1997 World Telecommunications Development report
  estimates
• Info -communications industry 1340b per year
• international trade/cross border trade gt 120b
• Exports account for more than 1/3 of telecomms
  equipment market
• Increase in demand for telecommunication
  services
• cross border provision
• establish foreign commercial presence
• consumption abroad - movement of customers and
  staff

16
World IT Market By Category
BMI-T
17
SA IT Market by Category
Total R18.8 Billion
Total R35.7 Billion
BMI-T
18
Global Internet Consumers(WWW Home Users)
Millions
120
100
U.S.
80
W. Europe
60
Japan
Asia Pacific
40
ROW
20
0
1996
1997
1998
1999
2000
2001
2002
19
Total Web Commerce By 2000
R Billion
Billion
420
500
20
15
400
15
300
10
200
0.3
7
5
100
0
0
1997
2002
1997
2002
Worldwide
Source IDC/BMI-T 1998
South Africa

• 50 - fold increase overall
• Bus - Bus e-commerce overtakes consumer purchases
  in 1997, 4x greater by 2002

BMI-T
20
Information Society Index 1998
Source IDC
21
Overview of SA ICT Industry

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market
• What is driving growth
• Who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• size
• key growth areas and trends
• The macro context
• economy
• liberalisation

22
Demand Factors Driving Growth in SA - What are
implications?

• Globalisation
• global expansion local companies - running out of
  track in SA
• new entrants
• internet purchasing options
• Mergers and Acquisitions
• Government and Parastatals
• SME sector growth
• Telecommunications deregulation
• New segments - Internet, Interactive Media, Call
  Centres, CRM
• Rise of industry associations and pressure groups
  
• Flurry of IT listings in past 2-3 years
• 125 new black IT companies in 4 years
• 300 Black investment consortia

23
IT Industry on the JSE
24
IT Industry on the JSE
25
IT Industry on the JSE
26
SA ICT Market Capitalisation

• Market capitalisation Rm 10/9/99 11/1/2000
• Electronics and Electrical 9 722 10 941
  12.5
• Information and technology 56 280 88 015
  56.3
• Telecommunications 2 729 38 318
  1304.1
• Total 68 731 137 274 99.7
• M-Cell R35b
• Venture Capital about R1b
• Listed companies grew from 69 to 88 27

27
Market capitalisation gt R1b Jan 2000

• M Cell 35 061 Telecoms
• Dimension Data 31 729 IT
• Comperex 15 399 IT
• Datatec 13 677 IT
• Softline 4020 IT
• Ixchange 3677 IT
• Computer Configuration Holdings 2415 IT
• Advanced Software rechnologies 2383 IT
• Altron (incl Altron pp) 2253 Elec
• Reunert 1795 Elec
• MB technologies 2383 IT
• Altech 1574 Elec
• MGX Holdings 1555 IT
• PowerTech 1372 Elec
• Delta 1293 Elec
• Shawell 1275 telecom
• Idion technology 1119 IT
• Prism 1033 IT

28
Concentration of power

• Four companies account for 70
• M-Cell, Dimension Data, Comperex and Datatec
• Eight companies account for 80
• Altron and subsidiaries, Comperex, M-Cell,
  Dimension Data, Comperex, Datatec, Ixchange and
  Softline
• Of significance
• High degree of revenue derived and distribution
  of products manufactured overseas

29
Telecommunications Services Players
30
ISP Operators

• Internet Solution (Didata)
• GIA (Mustek)
• MWeb
• SAIX (SA Internet exchange) (Telkom)
• UUNET Internet Africa (Datatec)
• World Online/ Yebonet - (Vodacom)
• Intekom
• OpenNet is the Government service provider
• UniNetZA is the academic and research internet
• There are nearly 80 second tier ISPs who all have
  a very small share and all obtain their links
  through one of the big players

31
Key Multinationals

• Arthur Anderson
• BEA systems
• Compaq
• Deloitte and Touche
• Hewlett Packard
• IBM South Africa
• ICL South Africa
• Lucent Technologies
• Microsoft SA
• Nortel Networks

• Novell
• Pricewaterhouse Coopers
• SAP Southern Africa
• SAS Institute
• SCO Africa
• Siemens SA
• Symantec SA
• Unisys SA
• Xerox SA

32
Overview of SA ICT Industry

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• SA Telecomms industry
• SA IT industry
• size, key growth areas and trends
• The macro context
• economy
• liberalisation
• legislation

33
SA Telecomms Industry

• 1999 value about R28b
• International expansion
• approx 65 of telecomms traffic passes through SA
• telecomms equipment - pockets of innovation 1996
  export orders of about 63mEquipment supply side
• several factories have closed
• local manufacturers tend to be sales and
  distribution arms of imported equipment
• Telkom dominates SA
• vision is to establish itself as a link between
  east and west and the gateway into Africa in
  terms of communications traffic
• specific focus on sub saharan Africa
• Internationa Players also see see SA as gateway
  to Africa
• Ericsson, Nortel, Lucent, Motorola, British
  Telecom, ATT

34
Telecommunications Associations in SA

• The Electronics Industries Federation
• The Electronics Industries Federation (EIF)
  represents many of the local
• manufacturers.

Affiliated Companies/Association/Institute Altec
h, ATIO Corporation (PTY) LTD, Automatic Systems
Manufacturing (PTY) LTD (ASM), DataFusion Systems
(Pty) Ltd, Grintek Group Ltd, Hewlett Packard,
Mikomtek (CSIR), Protea Electronics, Reunert Ltd,
SA Micro Electronic Systems ( Pty) Ltd (SAMES),
SALBU (Pty) Ltd, Siemens Ltd, Spescom Electronics
Ltd, Telecoms Manufacturers Association (TMA),
Telephone Manufacturers of SA (Pty) Ltd (TEMSA),
Tellumat (Pty) Ltd, 3M South Africa

• The Telecoms Manufacturing Association (TMA)

Aberdare Cables (Pty) Ltd, Alcatel Altech
Telecoms (Pty) Ltd, ATC (Pty) Ltd, Grinaker
Electronics Ltd., Plessey Corporation Ltd,
Siemens Telecommunications (Pty) Ltd, Telephone
Manufacturers of South Africa (Pty) Ltd TMA
represent at least 70 of telecoms equipment
sales in SA and at least 90 of telecom equipment
are manufactured locally. It employs over 8000
people.
35
SA IT Market overview
Source BMI-T
36
SA IT Services Market
37
Shifting Concentration of Spending Power
Implications for managers?
1997
2000
CAGR 97 - 01
26.3
31
Top 18 10
22.7
Next 18218
21
Others - Non-Top 20020
51.0
48
Total R18,8 Billion
Total R29.8 Billion
Source BMI-T
38
SA Web Commerce Potential 2002 Where will SA
require ICT managers?

• RBn
• E-Banking Asset Management 10 - 20
• Reservations 1 - 2
• Bus-Bus Trade 10 - 20
• Consumer Trade 2,5 - 5
• Advertising 0,25 - 0,5
• Facilitation, Infrastructure 1 - 2

39
Overview of SA ICT Industry

• Definition
• Key ICT trends What will affect management
  skills?
• The Global Picture How does South Africa Stack
  up
• The SA market who are the key players
• overview of listed companies
• the telecomms players
• key multinationals
• How big is the SA ICT market
• SA Telecomms industry
• SA IT industry
• size, key growth areas and trends
• The macro context
• economy
• liberalisation
• legislation

40
Key Economic Indicators
41
SA Demographics

• 1996 census 40.4b - estimates 44b
• 58 access to electricity, 45 running water
• Official literacy 61
• 54 live in urban areas
• 46 live at or below subsistence
• AIDS growing 23-32 - population decrease by
  0.8 in 2005
• Unemployment rates between 33.8 and 38. Highest
  unemployment is Eastern and Northern Cape.
• Community, social and personal service sector
  together with public sector accounts for 31 of
  total formal employment

42
RD Investment

• SA currently spends about 0.8 of GDP - in line
  with Taiwan and Mexico and ahead of most African
  countries
• Difficult to estimate total IT RD spending as
  much is the innovative application of IT in any
  other sector
• Business sector funding accounts for almost 2/3
  and includes research into adaptation of software
  for local conditions

43
Liberalisation

• Multilateral agreements
• World Trade Organisation (WTO)
• General Agreement of Tariffs on Trade (GATT)
  Marakesh Agreement
• tariff reduction program
• Affects gt 80 of world trade in IT and
  telecommunications products
• General Agreement on Trade in Services (GATS)
• Information Technology Agreement (ITA)
• SA is not signatory, but observes developments
• Agreement on Basic telecommunications (ABT)
• SA has made an offer
• Entry of 3rd cellular player
• Entry of TELKOM monopoly
• Offer includes details on value added services
• SADC - protocol on telecommunications
• EU Agreement

44
Implications For South Africa

• Emerging markets competition grew international
  traffic by subscriber by by more than 2X rate of
  mature markets -
• benefits of trade liberalisation greater for
  emerging markets
• Triggers improvements in productivity
• Initial increase in suppliers - later contraction
• Boosts economic efficiency and productivity
• Hardware comes from abroad - negative balance of
  trade

45
SA Telecomms Legislative Framework

• SA Telecommuncations Act 1996
• Established SATRA as the regulatory body
• 1993- 2 cellular operators - MNT and Vodacom -
  delayed till 2000- Add about R6b over 5 years
• 1993 wireless data licence to Swiftnet - 60
  owned by Telkom
• 1993 licenses to radio trunking operators -
  Fleetcall, Q trunk One to One
• 1997 sale of 30 in Telkom to Thintana
  Communications (SBC and Mayalsia0
• control over PSTS, radio frequencies and VANS
• established Telkom - 5 year exclusivity - 2002
• 1998 Introduction of GMPCS (Global mobile
  Personal Communication Systems) policy
• key players ICO, Global Star , Iridium
• SATRA declares ISPs a value added service but
  need to apply for VAN licence
• 3 of key focus areas
• Affordable telecommunication services
• Fair competition
• Accelerated development of human resources
  capacity

46
SA Telecomms Legislative Framework

• Broadcasting Act
• Green paper review to ensure policy development
  remains with Government
• Merger of SATRA and IBA ?
• Signal distribution infrastructure - Orbicom and
  Sentech
• CPE (Customer Placement Equipment) largely
  deregulated

47
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

48
Management Skills in the South African ICT
SectorCurrent Situation

• For SA ICT sector to be sustainable in long term
  as well as to compete on better terms in the
  global information economy focus must be given to
  stimulate, there need to be a national focus on
  innovation, education and training.
• The HSRC and Department of Communication estimate
  that there will be about 200 000 more posts than
  skilled people to fulfil the needs of the ICT
  sector by 2000. According to International Data
  Corp more than 1 million IT jobs exist worldwide
  with no-one suitable, or willing to fill them)
• This lack of managerial, technical, research and
  policy skills will seriously impact SA
• 1999 all institutions offering higher education
  had to register with Department of Education - 4
  did!

49
Management Skills in the South African ICT
SectorCurrent Situation

• Skills shortage is recognised, market is growing
  faster than the pool of skills
• IT industry employment turnover rate estimated to
  average between 20-30 and increasing
• More than half of all graduates with computer
  qualifications leave the country within the first
  year of their qualification. (Smart Office
  Computing)
• Major reasons for turnover
• Emigration (It is estimated that more than 200
  IT workers leave SA per month)
• Problems with management - perception of old
  style
• Limited career growth in SA IT companies
• Trained employees become independent
  contractors
• Headhunting - better packages
• Burnout
• High middle management turnover - this carries a
  very high cost
• Experienced / trained personnel are very mobile,
  and have the option to earn overseas currency

50
Where and why has SA been losing ICT skills?

• CPL survey 1997
• Of those who leave only 15 return
• Most popular destination is US, followed by UK,
  Australia, Canada and New Zealand
• UK in particular attracts Adabas/ Natural skills
• SA s 2 main trade journals are full of
  advertisements luring IT skills away
• Y2k pushed up salaries - unlikely to decline
• FNB offers separate salary structure and
  additional perks to IT staff
• Foreign IT professionals are hampered by outdated
  requirements for SA work permits
• labour market information in SA so poor that the
  extent of shortages in particular categories
  cannot be determined
• Internet technology is increasing job fluidity at
  an international level

51
Expenditure on IT Training by Economic sector
Source SAITIS Jobs and Skills Scan 1999
52
IT Vacancies v.s Turnover vs. Recruitment Rate
Source SAITIS Jobs and Skills Scan 1999
53
Empowerment in the South African ICT Sector

• In 1998 there were approximately 70 black
  majority owned IT companies

Forge Ahead BMI-T IT and Telecommunications
Handbook, 1998
54
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

55
Management Skills in the South African ICT
SectorICT Industry Lifecycle and Requirements
of Management
56
Management Skills Trends of the ICT Sector

• Development of skills and training is considered
  important, but not urgent versus the growth and
  pace of change in the industry
• The impact of training needs to be taken into
  account.

Significant Pressing Low
Monitor constantly Periodic reviews Drop
from list
Refocus/Adapt Adapt Periodic reviews
Attend to immediately Plan delayed response
Urgency
Monitor constantly
Low Significant Major
Impact
57
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Devlopment and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

58
Management Skills Trends of the ICT
SectorSkills Needed

• Skills are needed for all round development,
  these include the areas of
• Strategic direction and vision
• Project management
• Project implementation Software
• Spec Development
• People Management
• Leadership
• Time Management
• Personal Development.

59
Future IT Skills Needs
Source SAITIS Jobs and Skills Scan 1999
60
Management Skills Trends

• Management skills
• In general management norms are changing, but
  more so in the ICT sector, in that organisations
  are becoming far less hierarchical, employees are
  increasingly becoming responsible for their own
  career path development, companies are offering
  remuneration packages which employees mange as
  they see fit
• Strong move to empower employees
• Performance appraisal moving towards peer review
  and 360 degree appraisal
• This means that there is less of a need for some
  of the traditional management skills and a
  greater emphasis on leadership

61
Important Attributes of ICT Managers - Industry
Sources

• Managers need to understand technology and be
  able to look at it from a management perspective
• Ability to deal with constant change and
  innovation is key
• Leadership skills and interest in dealing with
  employees
• Ability to identify and offer total solutions
• Authority is needed - maximise flexibility
• Balance between customer and production focus
• Personal customer relationships, focused on the
  long term
• Must understand clients business
• Be a team player
• Project management
• Lateral thinking
• How does this differ from other service
  industries?

62
ICT Managers can be segmented into 4 categories
Each with specific challenges and needs

• 4 key segments
• IT Suppliers
• large international and local players
• SMMEs
• IT Users
• large corporates
• SMMEs

63
Segmentation of ICT Managers ICT Suppliers

• Large international and local suppliers
• Separate but parallel career paths for people
  managers and technical staff and technical
  project managers
• Greater emphasis placed on understanding business
  in general as well as specific industries
• Training generally in house senior management
  skills courses often abroad
• Ratio of people managers to staff about 121
• SMMEs
• Greater need for managers to have some technical
  competence
• Entrepreneurial and financial skills becoming
  increasingly important

64
Segmentation of ICT Managers Users

• Large corporates
• Senior management traditionally drawn from the
  business (HR or Finance) as opposed to IT
• Increasing cross pollination as IT Execs move
  into other areas of business
• SA Corporates moving into IT - Nedcor, Wooltru,
  Old Mutual
• Understanding IT as an enabling technology for
  competitivess key
• SMME
• Either managers are also technically competent
• or, companies move to outsourcing, in particular
  application hosting / ASP

65
Management Skills Trends General Observations

• Move to outsourcing and application packages has
  reduced the need for in depth technical
  competency in ICT managers
• Move to e-commerce, supply chain management and
  ERP has increased need for business knowledge
• Only one in five IT employees will make good IT
  managers, according to a leading training and HR
  company
• Some techies are so technology driven and
  logical that they are not interested in dealing
  with the human/emotional side of the job
• Trend in companies, such as Dimension Data and
  IBM, to find external managers from other
  industries, and train them on the technology and
  required product knowledge
• Many are utilising the relatively inexpensive and
  very good quality training in SA to work overseas

66
Attracting and Retaining Skills

• Recruit direct from university
• Emphasize global nature of IT industry
• Exploit industry image (cutting edge, fast paced)
• Target expertise in low wage countries
• Offer above average packages, money is not the
  only factor
• Reward loyalty and offer share options that lock
  people in
• Provide variety of challenges
• Utilise training continuous development
  opportunities
• Rate of change / Threat of redundancy
• Develop a flexible organisational culture and
  values to balance the high stress levels of the
  work
• Pay detailed attention to environmental issues
• High intensity interviewing to ensure fit with
  the company culture and value system
• Identify that appropriate aptitude exists
• Wants to be a manager, not completely technology
  driven

67
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

68
Skills Development and Employment Equity Act

• The Skills Development and Employment Equity Acts
  demonstrate that the government is taking an
  assertive approach to making broad-based,
  effective skills development a reality.
• Takes effect April 2000
• Companies must pay SARS 0.5 of total payroll
  towards skills development
• SARS receives a 2 collection fee
• Remaining amount is divided between the National
  Skills Fund (20) and the companys choice of a
  Sector Education and Training Authority (SETA).
• SETAs Sector Education and Training Authorities
  replace the industry and apprentice boards
• Training levy refunds depend on whether in house
  training programs are in line with the SETA
  skills development plan or fit the national
  skills development strategy
• SETAs will need to market their services to
  their own industries
• Most companies are unsure how these could affect
  their in house training programmes
• The IT SETA would be in a strong position to
  ensure industry cooperation and establish
  valuable partnerships

69
Key initiatives Government or PPP

• IT NQF Forum Standards generating Body
• Physical, Mathematics, Computer and Life
  Sciences, Computer Sciences and Technology
• Potential key issue is that no vendor specific
  training can be registered eg. Microsoft MCSE
• Implications for training rebates
• DACST National System of Innovation NSI
• System wide review of Public Sector Science,
  Engineering and Technology Institutions
• identify generic issues to facilitate the
  restructuring of institutions
• National Research and Technology Foresight
  Project
• aims to enable government to identify specific
  tehnologies and technology trends that will best
  improve the quality of life for all South
  Africans
• coordinate research efforts
• identify key actions

70
Key initiatives Government or PPP

• ICDL
• basic computer literacy
• aim is to raise the general level of competency
  in IT and enable employers to invest more
  efficiently in IT
• Acacia Project
• Led by the International Development Research
  Centre it aims to empower sub Saharan African
  communities to apply information and
  communication technologies to enhance their own
  social and economic development
• Currently operational in Mozambique, Senegal,
  South Africa and Uganda
• A key output is establishment of telecentres
  within communities which includes
• basic communication services such as voice, fax,
  email and internet
• telemedicine,
• distance education
• municipal governance services
• news distribution

71
Strengths and Weaknesses of South Africa in
Developing / Growing the ICT Sector Management
Skills Base Other initiatives

• Houwteq IT Telecoms Software Training and
  Development Centre
• Run by the Department of Communications at the
  Denel Aerospace Division facility
• Technology Enhanced Learning Initiative (TELI)
• Initiative focuses on the implementation of
  various projects
• SchoolNet SA
• National NGO

72
Key Private Initiatives

• LINK Centre - Learning Information Networking and
  Knowledge
• Established at the Graduate School of Public and
  Development Management and funded by Vodacom it
  aims to assist in the training and development of
  black SMMEs in the ICT sector
• Literary and certificate courses, Academic
  degrees, short Executive courses
• Microsoft
• Worked with 40 local training institutions to
  secure their accreditation as Microsoft Certified
  Technical Education Centres (CTECS). These
  centres offer trainers of a high calibre
• Opened up five Digital Villages to help increase
  technical literacy amongst less privileged
  communities.
• Mustek
• Acquired the national training division of
  Connection Group Holdings
• Incorporating Training Connection and The Zone
  Computer Career Campus
• Mustek also involved in training and education
  through its subsidiary Intersekt, which has
  developed courseware in line with the Department
  of Education's Curriculum 2005 project

73
Key Private Sector Initiatives

• Telkom Centres of Excellence
• Established since 1996
• Develop national expertise of the national
  information infrastructure
• IBM Institute for Electronic Government
• Launched in 1997
• EducationNet
• Distance education Network
• Executive and Management education
• Wide variety of courses offered, mainly by
  private institutions
• Almost all include elements of ICT and in
  particular the impact and application to business
  in the future

74
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

75
Management Skills Issues cannot be divorced from
general education

• Systemic problems in the education system
• Not enough science and maths students are coming
  through at matric level due to a shortage of
  teachers in these subjects
• fewer than half of pupils finishing school passed
  mathematics (44.2)
• just over a third passed with Science (34.7)
• In both cases less than 10 were on higher grade
• The poor performance at school level puts a
  restriction on what can be expected from higher
  education.

The Average annual growth rate over the period
1992-1996 was 6,5
76
Strengths and Weaknesses of South Africa in
Developing / Growing the ICT Sector Management
Skills Base

• Lack of science and maths teachers is limiting
  the number of students qualifying in these
  subjects at school level
• The NQF (National Qualifications Framework) and
  other new legislation has strong implications for
  the IT sector which has traditionally focused on
  product-related and technically-oriented
  competencies
• Outsourced training is set to become a trend in
  business with the introduction of the Skills
  Development Act
• In terms of the new act the value of training
  will be determined by whether or not it adds
  value to the skills development plans and career
  path of individual employees
• Vendor specific education does not

77
Section 2 Management Skills in the South African
ICT Sector

• The current situation
• expenditure
• vacancies
• empowerment
• Where is the ICT sector in terms of management
  requirements
• Is there a potential crisis?
• What skills do successful managers need in the
  future?
• General attributes
• Requirements by market segment
• Industry trends
• Attracting and retaining critical skills
  lessons from leading players
• Broad overview of current Initiatives and
  programs
• Skills Development and Employment Equity Acts
• Government initiatives
• Private initiatives
• Assess strengths and challenges of SA in growing
  its management skills base
• General recommendations

78
Recommendations Some Pointers

• Home Affairs to review policy on the employment
  of foreign ICT professionals
• capacity building and transfer of knowledge
• Sponsor young ICT professionals to work overseas,
  but build in return clauses
• Companies will need to offer globally competitive
  packages
• Review the NQF regarding vendor specific training
  particularly in the ICT sector
• Focus on building entrepreneurial and leadership
  skills

79
Sources

• SAITIS Baseline Studies
• Financial Reports
• BMI TechKnowledge
• ITWeb
• SA Computer Society
• Press clippings
• DTI
• Customs and excise
• IDC, Gartner, Dataquest
• AMPS
• Reuters
• Interviews with key industry players