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SA’s IT skills gap sees employers prioritise skills over degrees

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 29 Oct 2024
Migration of skilled labour from SA contributes to skills shortages.
Migration of skilled labour from SA contributes to skills shortages.

South Africa’s growing ICT skills gap is seeing employers prioritise professional experience and skills, over tertiary degrees, as important attributes of potential recruits.

This is one of the key findings of the 2024 Institute of Information Technology Professionals South Africa (IITPSA) ICT Skills Survey, conducted by Africa Analysis and sponsored by Software One Experts SA.

The survey findings, revealed during a breakfast in Johannesburg today, are based on polled employers and ICT practitioners across SA.

The survey finds South African employers report significant skills shortages in the fields of information security/cyber security, artificial intelligence (AI) / machine learning (ML), big data/data science, data storage, DevOps and systems design.

Graduate degrees have given way to professional experience in 2024 compared to the 2022 ICT Skills Survey, with 47% of surveyed employers ranking experience as a key attribute for potential candidates, followed by 32% citing a graduate degree, according to the study.

Technological advancements and the evolution in SA’s digital economy is leading to a growing number of local companies putting greater emphasis on skills over formal qualifications.

Addressing guests at the event, Hloni Mokenela, MD of Africa Analysis SA, explained: “In earlier editions of the skills survey, corporates had indicated a preference for academic training as the main attribute they used when selecting new candidates.

“In recent years, however, professional experience was picked well ahead of the rest. This was partly due to graduates produced by the education system not being considered ‘job-ready’ and lacking some of the softer business, non-technical skills.”

Mokenela cautioned that this trend does not render tertiary qualifications less important today than they were a few years ago.

“Obviously academic qualifications remain important because they provide a solid foundation for any career. However, when an employer looks at the candidate’s profile, their work experience becomes the key criteria for their decision-making. Due to the frustration caused by the lack of skills from enterprises, they are looking to bridge this gap with good quality human resources and sometimes new graduates don’t meet the criteria of requisite skills,” added Mokenela.

Around 27% surveyed employers have current AI/ML skills shortages, with 32% expecting to have shortages in AI/ML skills in future. Some 19% reported current skills shortages in data science, 22% in data storage, 27% in information security/cyber security, 20% in DevOps, 19% in systems design and a further 19% in business intelligence.

Tony Parry, CEO of IITPSA.
Tony Parry, CEO of IITPSA.

Migration of skilled labour

According to the survey, emphasising skills rather than qualifications allows companies to tap into a larger pool of in-demand tech talent, as work-integrated learning and short courses and certifications for upskilling and reskilling employees take precedent over traditional educational pathways.

A lack of adequate training, an insufficient pool of new graduates and an ongoing brain drain are exacerbating the skills gap, the study finds.

Meanwhile, local ICT practitioners are increasingly looking for remote opportunities with clients and employers overseas. Among practitioners, 49% are considering working remotely for an employer or client overseas, 9% plan to do so, and 11% already do so. Another 8% describe themselves as digital nomads.

Some 24% of employers pointed to migration of skilled labour from SA as a factor contributing to skills shortages.

A further 24% cited insufficient numbers of new graduates, 26% said a lack of training and education at basic level was the cause of skills shortages, and 21% said rapid technological change was impacting skills demand and supply. Some 65% said skills gaps had a moderate or high impact on their businesses.

For new recruitment, 23% of employers look to universities of technology, 21% to universities, 19% use employment agencies and 9% seek new recruits from private training providers. A further 9% source new talent from Web/Internet platforms such as LinkedIn.

IITPSA CEO, Tony Parry, stated: “As we have seen in previous skills surveys, the lack of progress in broadening science, technology, engineering and mathematics education and training programmes not linked to employment continue to contribute to the skills gaps challenges.

“The latest survey indicates a need for coordinated efforts to make candidates more work-ready when they enter the labour force, as well as more qualified educators to help academic institutions produce a larger pipeline of ICT professionals.

“While there are numerous training and upskilling schemes and a large number of providers offering certifications and qualifications, it seems these initiatives are not creating the required skills resources.”

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