Bankseta Skills Conference 26 October 2007 – Gallagher Estate

1. Bankseta Skills Conference26 October 2007 – Gallagher Estate Demand for ICT Skills Neil HarperStandard Bank Group IT – HR Director Inspired. Motivated. Involved.

2. Content • Background • How does the supply of IT skills look? • What is causing shrinkage of the IT skills pool? • What is being done to address the gap? • What can business / industry do? • Questions “The jobs are there, and they are high-paying jobs, but we are just not seeing the pipeline of people coming through the system.” – Neil Harper, 2007 Media release

3. Background • Standard Bank is a leading emerging markets bank • We have a significant investment in Information Technology • We require ongoing talent infusion, development & retention www.standardbank.co.za/aboutus/careers The challenge … we are a rapidly growing organisation and to meet shareholders expectation we need access to a skilled pool of candidates for employment … the pool is too small !

4. We are committed to skills development in South Africa & participate in the following initiatives: • Annual graduate recruitment & development programme • ITBLP (IT Business Learnership Programme) • Focussed University relationships • The Innovation Hub – post graduate study programme • Soweto Festival Day – Information about IT careers • Transformation committee social relevance Background “South Africa's IT industry is facing a huge skills shortage and unless radical changes are implemented in its resourcing strategy, the industry will soon be left high and dry.” - Rudi Jansen, CE MWeb

5. The challenge is to put the ‘WOW!’ into IT !!!! How does the supply of IT skills look? • New registrations for IT related studies • New IT Graduates • Size of skills pool shrinking at entry level “IT has never been a more exciting career than it is today.  Whether you are interested in business, music, marketing, art, publishing, technology, games, teaching, medicine, etc. you cannot escape the influence of information technology.” – Prof. Carina de Villiers, Head Dept. Informatics University of Pretoria

6. South AfricaComputer Science Graduates  18% 2000 2005 Source: ICT Skills in South Africa: 19 March 2007 (Andrew Paterson – HSRC)

7. South AfricaComputer Science Graduates 2000 2001 2002 2003 2004 2005 Source: ICT Skills in South Africa: 19 March 2007 (Andrew Paterson – HSRC)

8. How does the supply of IT skills look? • School leavers are not interested in studying IT • “Current generation of young people have no idea of what working in IT is about.” • “It’s not so much a case of demystifying the industry as changing negative perceptions, which may come from bad experiences with IT systems that the parents of prospective students may be exposed to” • “… because of a lack of skilled teachers, the material is offered in such a way that learners lose interest.” • (Source: Prof. Basie Von Solms, President-Elect:IFIP Academy of Information Technology, University of Johannesburg) “There are just not enough young adults coming out of school with the ability to move on into the tertiary level and undertake IT, engineering or science-focused degrees or diplomas." “ - Business Report, March 2007

9. How does the supply of IT skills look? • International trends: • “Growth within computer-related occupations from 2004 through 2014 will continue to put a strain on the pool of available talent.” – USA & Canada • “Limited resource pool for global sourcing centres.” – Asia Pacific & Japan • “… growth in demand will continue through 2010 and those who can conquer the squeeze for skills will gain competitive advantage.” • (Source: Gartner – Skills shortages and their impact on IT services providers, 17 April 2007) “The question of whether there is a skills shortage should not really be subject to debate. There is unquestionably a shortage of certain types of IT skills.” – Chris Wilkins, Computing SA

10. How does the supply of IT skills look? The most difficult to hire positions are: • Project manager • Database administrator • Enterprise architect • Network engineer • Internet/Web architect • Web application programme • Business analyst • Internet / Web System Administrator • Security analyst • Gartner: Here We Go Again: A CIO’s Guide to Employee Retention & Engagement – 3 November 2006 “The IT industry, big business and the country’s educational institutions all have a role to play in building the pipeline of IT skills.” - Neil Harper

11. What is being done to address the gap?Birchwood Declaration “Gathered at the invitation of the Minister of Education, Mrs Naledi Pandor, and called as a result of the recognition of the existence of a significant ICT skills gap between the workplace demand and the current rate of production of the tertiary sector….” “…an ICT Skills Development conference was held in March 2007 including members of the national department of education, formal and informal ICT education sector, the ICT industry and other employers of ICT graduates…” Source: Birchwood Declaration for Tertiary Level Information and Communications Technology (ICT) Skills Development – 25 July 2007

12. What is being done to address the gap?Birchwood Declaration – 5 Year Plan • University intake: • Advocating ICT as a Career Choice • Engaging with Schools • Improving Success Rates • University curriculum review • Graduate production • Infrastructure funding (human and physical) • Involvement in “Grand Challenges” – e.g. Karoo Array Telescope & Square Kilometre Array Source: Birchwood Declaration for Tertiary Level Information and Communications Technology (ICT) Skills Development – 25 July 2007

13. What can business / industry do? • Establish & enhance relationships with universities & other academic organisations • Expand and innovate your on-campus selection • Engage with & support industry learnerships • Transition skills from other industries • Leverage your existing in-house talent • Build communities of interest • Develop a comprehensive retention programme • Keep our skills in South Africa • Bring our skills back to South Africa “We have to increase the size of the pool – and we have to do it in the face on increasing competition from other organizations and industries. This is a challenge which goes to the sustainability of the IT industry as we know it.” - Neil Harper

14. What can business / industry do?Building the Skills Pool Matriculants Learnerships&Short courses Vendor academy support Schools of Technology University Graduates Re-skilled employeesInternal & External Skills Source Skills Resource Pool • Skills Pool Leakages: • Baby boomers retire • Change of lifestyle required • Immigration • Change in career Enterprise Architect Business & SecurityAnalysts Data Administrator Internet/WebArchitect Project Manager Network Engineer Other Skills Output Effective leadership engagement for retention “With the exception of companies that are making genuine efforts to develop new skills, the majority of ICT companies and their partners need to do much more with regard to investing in and developing human capital.” – Kaunda Chama, IT Web, 10 July 2006

15. What can business / industry do?Retention What does a retention programme consist of? • The relationship an employee has with their direct Line Manager is critical for retention • The extent to which employees are engaged determines the individuals’ intention to stay or leave • Retention is the result of effective & integrated People Management practices Other factors to consider: • Retention and employee engagement have no magic formula • The quality and the promise of the work solidify commitment • The calibre of peers matters • Connect retention tactics to people's future value • Workforce biases today will affect retention tomorrow • Flexible work arrangements must be on the agenda “The IT industry, big business and the country’s educational institutions all have a role to play in building the pipeline of IT skills.” - Neil Harper

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