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ICT Skill Gap and How to Deal with it!

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Content

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Best Practice – Examples from ICT Companies

The Challenge – ICT Skill Gap in Africa

The Solution – Integrated People and Skill Management

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Barriers to Africa‘s Growth

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5.0

2011

3.1

4.7

2010

2.9

5.0

2014f

3.5

5.2

2013f

3.4

5.3

2012e

2.7

Africa’s growth is slowing down, among other factors the lack of skills in the market imposes barriers on future growth.

* Source: Worldbank

South Africa Sub-saharan Africa

Barriers for Africa’s Growth GDP Growth Rate 2010 – 2014* ■  Infrastructure deficits (energy,

transportation and telecommunication) ■  Disadvantages in global trade

agreements ■  Deficits in market quality (e.g. ethnic

segmentation, high share of informal activity)

■  Poor regulatory environment (e.g. high administrative burden, unfavorable tax regulation)

■  Insufficient access to financing ■  Labor market rigidities ■  Lack of tertiary education

qualifications Skill shortage

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Effects of Skill Shortages on African Countries

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Africa’s growth increases significantly the need for skills; a qualitative and quantitative skill gap could block Africa’s path towards a true information society.

Nigeria ■  One of the continent’s

leader in ICT growth ■  Growth of technical

skills outpaced with industry growth and corresponding demand.

■  Educational curriculums are perceived as inadequate to fulfill business’ demands.

South Africa ■  Pace of change in the industry is

accelerating; skills base is not keeping up.

■  Trends such as the cloud, mobile technology and big data require up-/re-skilling or the learning of new skills.

■  Skill shortage severed by brain drain to other African countries.

Kenya ■  ICT sector out-performing other

economic sectors but fails to attract and retain highly skilled people.

■  Some 9,600 professionals will be needed to fill the Kenyan IT workforce by 2013.

■  Government has addressed ICT infrastructure bottlenecks but human resources are lacking

Uganda ■  Fast change of economic environment. ■  Required skills are not available yet;

especially technically skills are urgently required.

■  Massive expansion of higher education system but nevertheless shortages of skills especially in science and engineering.

1991 World Wide Web (WWW)

1993 Pentium

1994

1995

1995

1998

1997 IEEE 802.11

2007 iPhone

2010 iPad

2003

2004

2001

1990 GSM

Standard

1999

2006

1996

2009 Launch

1992 1998 1st MP3 Player

1997 IEEE 802.11

2000 1 GHz

1991 2002

1 Billion PCs shipped

2004 Firefox 1.0

2001 1st UMTS Network

2006 2008

1996 2010 Mobile Phone Users

>4bn.

2008 Internet

User

1.4bn.

1990 2000 2010 2020 2030

Particular Challenges for the ICT Industry

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Especially the rapidly changing ICT market requires corresponding continuous updates of the skill portfolio; to do nothing will just make you left behind.

■  Due to its complexity and pace of change the ICT industry is one of the most challenged in terms of skill management.

■  The growing scarcity of ICT key skills and people requires skill management to become top priority.

ICT Skill Management

ICT Market Africa and Skill Availability

ICT companies’ growth is affected by the mismatch of needed and available skills; they cannot merely rely on governmental initiatives to address this challenge.

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Draft

■  Mismatch between educational curriculums and business demands.

■  Rigidities due to unequal access to education

■  Brain drain to countries outside Africa ■  South African labor market:

l  Highest Turnover rate in SA: 12% (Pyramid Forecasts, 2006 - 2015, Q4 2010 - Africa & Middle East )

l  Lack of Engineers: ”…There are not enough engineers to meet the demand from business and there is an 11% pass rate among engineering and technology students," (Business Day South Africa - May 19, 2010)

■  Africa on the way from being an adopter of technology to develop it themselves further and to innovate.

■  Telecommunications: l  Revenue from voice services declines

l  Data services gain importance l  Shift to convergence – connected life

and work

l  Growing competition

ICT Market Africa Skill Availability

15 14 13 12 11 10 08 09

Voice Data

Relying on governmental measures is not enough, how to overcome skill

shortages has to become priority for ICT companies!

Skill Management Challenges for African ICT Companies

In order to become and to stay competitive it is vital for ICT companies to proactively manage their required skill base.

Challenges

Expanding Telco market, growing competition

Lack of transparency with regard to required and available skills

Lack of skilled resources

High fluctuation of skilled resources

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What skills/people do I need? Definition and management of required skills/people! 1

How do I get the people / skills? Obtaining and developing required people/skills! 2

How do I keep the people/skills I need it? Retention of required people/skills! 3

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Best Practice – Examples from ICT Companies

The Challenge – ICT Skill Gap in Africa

The Solution – Integrated People and Skill Management

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Skills – What Do I Need?

The business challenges the ICT industry is facing require an update of the skill portfolio; skill gaps have to be identified and closed in order to stay competitive.

Business Demands ■  Services as competitive factor ■  Micro segmented target groups / mass

customizing ■  Flexible design of service processes /

partner management ■  Customer service as competitive factor

Skill Requirements ■  Customer- and service-orientation ■  Flexibility with respect to operation ■  Creativity for a high rate of innovation ■  Readiness for learning and for personal

development ■  Self-determined daily business

Business Demands ■  Technology as basis of business

model ■  Unspecific mass business ■  Mastery of mass processes ■  Ensure basic service

Skill Requirements ■  Technology-affinity with deep and

detailed specific know-how

Past Future

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Facilitated by:

Skills – How do I get it?

Skills can be obtained externally (recruiting) or internally by developing the people and skills towards the desired direction.

Organization and processes

Information and communication technology

Change Management

Corporate strategy Driving demand for people and skills

Continuous people and skill management

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People and Skill Development Lifecycle

Recruiting Performance Management

Leadership Management

Training & Development

■  Consolidated approach for developing and managing skills ■  Alternative career models (e.g. dual career paths, expert careers) ■  Exclusive & demand oriented measures for high performer and

potentials

■  Annual target management and performance evaluation process ■  Transparent evaluation according together defined objectives ■  Systematic development based on individual strengths and areas for

improvement

■  Systematic development of employees’ careers ■  Wider range of new career opportunities:

l  Vertically and horizontally

l  Across functions, across divisions, across countries/regions

■  Communication and involvement: Embed corporate strategy, mission and values in employees’ mindsets

■  Employees understanding they are part of the corporate family ■  Employees committed to work together for the strategic objectives

Consequences Skills – How do I keep it?

Valuable skills need to be retained; monitoring continuously employee performance and ensuring employees‘ commitment ensure to keep the skill base up to date.

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Employee Engagement

Future Job Orientation

Continuous Dialogue

People Growth

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Content

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Best Practice – Examples from ICT Companies

The Challenge – ICT Skill Gap in Africa

The Solution – Integrated People and Skill Management

Example – Employee Engagement

By the One Company Project Deutsche Telekom achieved to create a shared mindset for 230,000 employees all over the world and ensured their strategic alignment.

Guiding Principles

Segment perspective

Efficiency targets

ScopeSHQ  in  bn.  €,  Budget  2011:6,1

0,7

0,6

0,01

0,2

0,1

4,3

0,010,4

Service  Units

0,21,1

1,1

0,3

0,1

Corporate  Functions

0,6

1,8

Total  GHS  Budget  2011 Not  in  Focus

0,6

e.g.§ Digital  Business  Unit§ T-­‐Venture§ TM  UK§ HfTL§ Arbeitnehmer  Vertretung

Vivento

Services  – Finance

GHS-­‐EU  

Services  –HR  

Services  – CTIO  Group  Bus.  Security

CTIO

GHS  – Finance

GHS  –DRC  GHS  – CEO

GHS  –HR  

SHQ  ScopeBudget  2011

GHS  Others

Group strategy

Deutsche Telekom : ONE COMPANY PROGRAMME

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Example – People Development

By creating a corporate university this client implemented a sustainable high performance culture and realized significant cost savings of their training activities.

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Content & Platform Corporate Culture

Achievements

Corporate

University

Mind Expansion

Business Insights

Leadership Behavior

Performance Culture

1

2

3

4

Strategic Concept

Learning Architecture

Normative Fundamentals

Operational Platform

■  Highly developed people with outstanding skills

■  Entrepreneurial spirit and motivation

■  Improved business success

■  Improved customer satisfaction

■  Utilization of existing experts ■  Improved confidentiality of own insights ■  Significant cost savings in the external

education (approx. 15%)

Example – People Development and Alternative Career Concepts

This European Telco provider systematically aligned the people development activities and implemented corresponding tailor-made alternative career concepts.

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Spec

ials

**

Bas

ic*

Know-How IP (advanced) Know-How IP

Project Management.

Business Success

Project Mgmt. (advanced)

ProDat (Optional)

Technical English (Optional)

Challenging client situations

Discussion with team leader / team to optimize working procedures

Job shadowing

Projects with lower complexity

Communication & Didactics

Market in Transition: Our chances Cross-and up selling

Projects with moderate complexity

Presentation Training

Presentation Training

Training Portfolio Target Group Oriented Trainings Horizontal Career

Service Engineer System Centre

Special Service Engineer

Exp.Gr. 2 Master

Horizontal Career

Customer Service Engineer

Service Engineer

Exp.Gr. 1 Expert

■  Special Service Engineer Consumer ■  Special Service Engineer Business Customers

■  Service Engineer Service Centre

■  Service Engineer Consumer ■  Service Engineer Business Customers

■  Customer Service Engineer Consumer

■  Customer Service Engineer Business Customers

Working Techniques and Methods

Operating Systems & Admin Leadership

Information Technologies

Network Technologies

Product and Services

This Price is hot

Master Expert Master

& Expert

* Basic: Provided trainings for the usual vertical career path (62 different courses offered)

** Specials: Provided trainings for the additional horizontal career path (17 different courses offered)

Qualification

Qualification

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Example – Evaluation of Competencies

Slovak Telecom implemented a systematic evaluation of competencies in order to identify strengths and weaknesses of top managers and to develop them accordingly.

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Evaluation of Competencies and Career Potential at Slovak Telekom

Detecon Assets

Detecon developed an unrivaled, comprehensive set of ICT skill management tools in order to ensure customized high quality project results for our international clients.

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Job Profile & Skill Tool Skill Tree

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Detecon Assets

The combination of ICT expertise and leading edge HR know-how is unique in the consulting market.

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Leading Intellectual Capital (Examples)

Corporate Culture & Telco Excellence

HR Maturity & Talent Management

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We make ICT strategies work

Thank you!

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