“developing the north” northern territory economic
TRANSCRIPT
“Developing the North”
Northern Territory Economic
Development Strategy
Discussion Draft
12 December 2014
Submission by the
Australian Computer Society Inc
2
CONTENTS
SECTION 1 -‐ SUMMARY & RECOMMENDATIONS 3
1.1 SUMMARY 3
1.2 RECOMMENDATIONS 5
SECTION 2 – INTRODUCTION 7
2.1 WHO IS THE AUSTRALIAN COMPUTER SOCIETY (ACS)? 7
2.2 WHY ICT SKILLS ARE IMPORTANT 7
SECTION 3 – DEVELOPING THE NORTH 11
3.1 RESHAPING THE EDUCATION SYSTEM 11
3.1.1 PRIMARY & SECONDARY SCHOOL 12
3.1.2 THE VET SYSTEM 13
3.1.3 THE TERTIARY EDUCATION SECTOR 14
3.2 ESTABLISHING A TERRITORY WORKFORCE DEVELOPMENT PLAN 15
3.3 ICT ADVISORY COUNCIL 17
3.4 ICT PROFESSIONALISM AND ACCREDITATION 17
3.5 INDIGENOUS COMMUNITIES AND ICT LITERACY 18
SECTION 4 – CONCLUSION 20
3
SECTION 1 -‐ SUMMARY & RECOMMENDATIONS
1.1 Summary
The Australian Computer Society (ACS) welcomes this opportunity to provide input to the Northern
Territory Government’s Discussion Draft on its Economic Development Strategy, “Developing the
North”, and commends the Government for undertaking such a comprehensive review into the
Territory’s economic future.
As the leading national professional association representing Information and Communications
Technology (ICT) professionals, ACS input to the Government’s Discussion Draft will focus on the
Human Capital and associated skills issues set out in the document. The higher level Human
Capital objectives outlined in the Draft include:
• Creation of jobs for underemployed living in remote communities to improve social and
economic circumstances and reduce reliance on welfare
• Expand the capacity of education and training sectors to ensure the workforce has the
appropriate skills
• Create a larger and more skilled workforce including through international migration
• Maximise local skills and retention opportunities
• Increase capacity and capability of indigenous Territorians.
This discussion on the Territory’s economic development strategy is timely. It comes at a critical
time in the Territory’s growth. The Territory’s Treasury forecasts that by 2020, gross state product
will be 17.9 percent above the usual due to major (resource-related) projects and consequent
investment by the private sector. But there are risks to this growth, and one of the most critical is
ensuring the adequate supply of human capital.
In today’s increasingly digitally powered global economy, it is critical that economies have access to
an adequate supply of appropriately skilled ICT professionals as well as having a generally digitally
literate workforce. As the Discussion Draft itself notes - “An undersupply of skilled labour will
constrain economic growth prospects.”1 A shortage of appropriate ICT skills looms as perhaps the
most significant of the human capital “growing pains.”
Successfully responding to the Human Capital challenge, particularly as it relates to ICT skills, will
not be easy. And there are three particular issues which the Territory Government needs to
urgently address.
First, there is a global shortage of ICT skills. This will have an impact on the Territory economy. A
January 2014 report by the European Commission forecasts that by 2015 vacancies in ICT roles in
Europe will be around 500,000 “unless more is done to attract young people into computing
degrees and to retrain unemployed people2”. Similar shortages are being experienced in all
1 http://dcm.nt.gov.au/__data/assets/pdf_file/0005/62879/Economic_Development_Strategy.pdf -‐ page 31
2 http://www.eskills-‐international.com/files/e-‐Skills_The_International_Dimension_English.pdf
4
developed economies. So the Northern Territory is operating in a global market for ICT talent
where there is simply not the quantity of ICT skills being demanded.
Second, there are major shifts occurring in the mix of skills required in a modern workforce. The
exponential growth in computing power and the evolution of technologies means tasks are
increasingly being automated. The result is that jobs are moving up the supply chain, meaning
there are fewer lower skill jobs and greater demand for jobs requiring high technology and ICT
related proficiencies. This “hollowing out” of the workforce applies across all industries, including
those which are significant to the Northern Territory economy such as mining, energy resources,
tourism, and agribusiness.
McKinsey and Company estimates that in the US between 2001 and 2009, 4.8million high capability
jobs were added, but 2.7million “production” jobs were lost and 700,000 “transactional” jobs lost3.
A 2013 study by Dr Carl Benedikt Frey and Dr Michael Osborne at the University of Oxford
examined 702 professions in the United States and found that 47 per cent were at risk of being
replaced with computerized systems4. The challenge therefore is to successfully transition workers
out of the roles being automated, and help reskill them for higher skill roles. These roles
increasingly require some minimum level of ICT proficiency.
The third issue relates to the quality of ICT skills, rather than just the quantity. In today’s world
where ICT is a fundamental driver of productivity growth, competitiveness and innovation, and
where ICT sits at the core of so many of our products and services, we need to be sure that those
building the ICT elements of our products and services are suitably qualified and operate in a
professional and ethical manner.
“The most important reason to examine and build ICT professionalism stems from the extent to
which the increasing pervasiveness of ICT has the potential to harm our economy and society. The
extent to which ICT is embedded in our lives is inevitably growing. If we fail to take steps to
mature the ICT profession, it is likely that the risks to society from ICT will grow to unacceptable
levels.”5
We would not let a doctor who was not suitably qualified and accredited by a professional body
operate on us And nor would we be represented in court by a lawyer who was not suitably qualified
and accredited. The same principle must start to apply for workers in certain areas of ICT. We
need to ensure that only suitably qualified and accredited people are building the ICT systems that
are critical to the effective operation of our health and education products and systems, our modes
of transport, our social services, or our ability to engage and transact with governments and
private sector organisations. The consequences of substandard, inferior ICT work can result in
significant financial, brand and reputation damage and in some cases can have catastrophic
outcomes. There is emerging recognition globally of the importance of this issue and the need to
3 http://www.bca.com.au/publications/building-‐australias-‐comparative-‐advantages
4 http://www.futuretech.ox.ac.uk/news-‐release-‐oxford-‐martin-‐school-‐study-‐shows-‐nearly-‐half-‐us-‐jobs-‐could-‐be-‐risk-‐computerisation
5 http://ipthree.org
5
address it. However it is a longer term issue and the response must be driven by collaboration
between Governments, the profession, the industry and user groups. Nevertheless in the short
term there are things that individual governments can do to take us some way along this path.
Recent ICT management issues experienced by the Territory Government itself have made these
concerns clear.
An additional issue which is quite specific to the Northern Territory relates to the digital literacy of
indigenous Territorians. A recent study by The Australian Council for Educational Research on
International Computer and Information Literacy Study (ICILS) found that indigenous students
achieved significantly lower results than non-indigenous students6. The ACS has, to date, had only
limited experience in engaging with indigenous communities on ICT literacy issues. However we
are keen to change that and become more engaged. We would like to work in collaboration with
the relevant stakeholder groups on a program to address the issues of concern. In particular, the
ACS has a significant library of ICT learning material (from very basic through to quite advanced IT
concepts) and we have large numbers of knowledgeable and passionate ICT professionals. We
would like to explore how these resources might be usefully applied to address the indigenous
issue.
So how does the ACS suggest the Northern Territory Government respond to these challenges?
1.2 Recommendations
The ACS recommends the following initiatives;
1. Changes to the education and training system to help ensure it delivers the necessary supply
of skilled ICT professionals as well as high levels of ICT literacy in the workforce. Specifically
ACS recommends;
a. Including a Digital Technologies subject as a mandatory element of primary and secondary
school curriculum;
b. Working with VET providers to ensure all courses place a greater emphasis on ICT skills
and competencies. There should also be less emphasis on delivering training packages
directed at particular qualifications or occupations, many of which may or may not exist in
5 years; and
c. Establish a Forum of Government, industry, employer and education stakeholders to work
up initiatives to help ensure ICT students (tertiary and VET) have greater exposure to
work-integrated learning (WIL) through initiatives like internships. This helps graduates
work-readiness by ensuring they have a mix of not only the deeper technical skills but also
the critical ‘soft skills’ like project management, problem solving, stakeholder
management and strategic and creative thinking.
6 ICILS International Computer and Information Literacy Study 2013 -‐ Australian students’ readiness for study, work and life in the digital age
6
2. Developing a Territory wide workforce development plan with a 5 -10 year horizon. ACS
suggests this should be a joint initiative of Government, industry, the education sector,
community groups and relevant professional societies and would involve three key elements;
a. Identifying plausible trends and scenarios for employment in the Northern Territory in light
of accelerating advancement of digital technologies;
b. Identifying the types of jobs at risk, the types of jobs likely to become more important,
what new jobs will be created, and impacts on demographic sectors within the Northern
Territory; and
c. Identifying and proposing transition pathways which will help achieve better employment
outcomes for individuals and the Territory economy.
3. The Northern Territory Government considers adopting mySFIA or some similar tool for ICT
workforce planning within its agencies, as well as implementing a program to promote mySFIA
and similar tools to businesses in the Northern Territory.
4. Expanding the remit and membership of the recently established ICT Advisory Council to
include providing advice to the Government on how the Territory can ensure it has the range
and quality of ICT skills needed across all industries in the Territory, not just the ICT industry.
5. The Government works with the ACS and the ICT Advisory Council on establishing a system to
ensure that (i) people filling senior ICT roles in the Government; and (ii) people working as ICT
contractors on a Government contract, meet an agreed accreditation standard which ensures
they meet minimum levels of competency and an awareness and understanding of standards
of professional and ethical conduct which is expected of them.
6. The ACS in partnership with Government and relevant indigenous stakeholder groups develop
a program to help improve the digital literacy of indigenous communities and indigenous
students.
7
SECTION 2 – INTRODUCTION
2.1 Who is the Australian Computer Society (ACS)?
The ACS was formed in 1966 and is Australia’s peak body for ICT professionals with over 22,000
members and a national footprint. Like all professional bodies, a core function of the ACS is the
assessment and accreditation of its members as Certified Technologists or Certified Professionals.
Assessments are conducted against an internationally accepted framework called Skills Framework
for the Information Age (SFIA). To retain professional status ACS requires certified members to
undertake ongoing professional development activities. For more information about the ACS,
please see www.acs.org.au.
ACS is also member of key international ICT bodies including;
• the International Federation for Information Processing (IFIP) which represents IT
Societies from 56 countries or regions, covering all 5 continents with a total membership
of over half a million. See
http://www.ifip.org/index.php?option=com_content&task=view&id=160&Itemid=480
• South East Asia Regional Computer Confederation (SEARCC) which is a forum of national
Information Technology professional societies in the Asia Pacific region. See
http://www.searcc.org/
ACS also conducts research-based advocacy on behalf of members on ICT and skills related issues,
and is increasingly working more with Australian workplaces (public and private) to help them with
their ICT workforce planning and training needs.
ACS is responsible for the professional accreditation of ICT degrees in Australia. It has accredited
950 education programs at a range of Australian universities and a number of registered training
organisations (RTOs) that provide higher education degrees in ICT. ACS works closely with the
Tertiary Education Quality Standards Agency (TEQSA) to align courses with national standards. It
also works with the Australian Council of Deans of ICT in the accreditation process.
2.2 Why ICT Skills are Important
ICT and computing skills - which are part of the Science, Technology, Engineering and Mathematics
(STEM) set of skills - are core to successful economies in an era where digital technologies
dominate. Yet it is estimated that in Europe, while STEM occupations are expected to grow by 14%
by 2020 (compared to 3% for other occupations), the supply of workers with education
qualifications in STEM subjects is projected to actually fall7. In the United States, employment in
these STEM occupations is projected to grow almost as fast between 2008 and 2018 as
employment in all other occupations combined8. Further, the European Commission estimates that
7 http://www.cedefop.europa.eu/en/publications-‐and-‐resources/statistics-‐and-‐indicators/statistics-‐and-‐graphs/rising-‐stems
8 http://www.esa.doc.gov/sites/default/files/reports/documents/stemfinalyjuly14_1.pdf
8
by 2020, there will be 900,000 jobs in the European ICT sector unfilled due to a lack of
appropriately skilled workers.9
A 2013 report by the Australian Workforce and Productivity Agency (AWPA) estimated Australia
faces similar challenges in relation to its supply of skilled ICT workers. The AWPA analysis indicates
total ICT workforce growth is expected to be 33,200 or 7.1 percent growth between 2012 and
2017. Employment of ICT professionals is expected to grow by 9.5 per cent, or 21,400 workers
during the same period.10
However, domestic supply to this market will most likely not match this demand. This is due in
large part to a combination of falling ICT enrolments in both the VET and tertiary sectors11
compounded by high drop-out amongst those that do enrol 12. Further, the ACS believes there has
been significant long term underinvestment by employers in upskilling and reskilling the existing
workforce in relevant ICT competencies. The result is a growing reliance on skilled and temporary
migration schemes as a key source of ICT worker supply1314
Charts 1 and 2 below, reproduced from the AWPA Report referred to above, clearly highlight the
trend in Australia in terms of tertiary IT Commencements and Completions respectively.
Chart 3 shows a similar trend in relation to VET commencements and completions.
9 http://ec.europa.eu/digital-‐agenda/en/grand-‐coalition-‐digital-‐jobs
10 AWPA, ICT Workforce Study July 2013, page 47
11 http://www.acs.org.au/__data/assets/pdf_file/0014/13541/2012_Statcompendium_final_web.pdf (pages 17 -‐ 19)
12 http://acs.org.au/__data/assets/pdf_file/0004/28570/Australian-‐ICT-‐Statistical-‐Compendium-‐2013.pdf (page 33)
13 http://www.acs.org.au/__data/assets/pdf_file/0014/13541/2012_Statcompendium_final_web.pdf (page 21)
14 http://acs.org.au/__data/assets/pdf_file/0004/28570/Australian-‐ICT-‐Statistical-‐Compendium-‐2013.pdf (page 37)
9
Chart 1 – ICT Professionals – Higher Education Commencements in Information
Technology, 2001 – 2011
Chart 2 – ICT Professionals – Higher Education Completions in Information Technology,
2001 – 2011
51ICT workforce study | Australian Workforce and Productivity Agency
ICT skills supply. Between 50 and 77 per cent of workers in key ICT occupations hold higher education qualifications.100
As noted in figures 10 and 11, domestic higher education completions in information technology courses marginally improved in 2011, when domestic completions accounted for 35 per cent of all completions in these courses. According to DEEWR analysis, the peaking of higher education completions coincided with the dot-com crash of 2000. Poor employment outcomes during this period led to a decline in enrolments.
Commencements in ICT-related higher education courses by domestic students show signs of recovery following close to a decade of contraction from 2001 to 2008. The number of commencing students in such courses increased by 11 per cent in the two years to 2011 to 9,235, and course completions increased by 4 per cent over the same period.101 As a result, the supply of domestic graduates is expected to further improve in the future. While commencements for overseas students in ICT courses have tended to fluctuate in recent years and declined by about 18 per cent from 2009 to 2011, completions remain strong and have been close to double the completion rate of domestic students.102
Figure 10: ICT Professionals—higher education commencements in the field of information technology, 2001 to 2011
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
InternationalDomestic
20112010200920082007200620052004200320022001
Stu
den
t n
um
bers
Source: DEEWR, ICT Labour Market Indicators, February 2013, www.skillsinfo.gov.au/sites/skillsinfo.gov.au/files/documents/ict_labour_market_february_2013_0.zip.
100 DEEWR, 2013, ICT Labour Market Indicators, slide 14.101 Ibid., slides 18 and 19.102 Ibid.
52 ICT workforce study | Australian Workforce and Productivity Agency
Figure 11: ICT Professionals—higher education completions in the field of information technology, 2001 to 2011
0
2,000
4,000
6,000
8,000
10,000
12,000
InternationalDomestic
20112010200920082007200620052004200320022001
Stu
dent
num
bers
Source: DEEWR, ICT Labour Market Indicators, February 2013, www.skillsinfo.gov.au/sites/skillsinfo.gov.au/files/documents/ict_labour_market_february_2013_0.zip.
The Australian Government introduced a demand-driven funding model for undergraduate places at universities from 2012. While it is too early to draw conclusions on the impact of this policy on student demand for ICT courses, preliminary data indicates an increase in commencements in ICT courses, with an increase of about 2.3 per cent in 2012.103
Skills from vocational education and training
The VET sector plays a critical role in the supply of ICT-related skills. Its role extends to upskilling and providing access to specific skill sets for those already in work, which is more important in a sector like ICT where technology changes are faster than in other sectors. The VET sector’s role is also substantial in meeting the demand generated through the rollout of the NBN. In addition, there is a trend for graduates from higher education courses to use VET qualifications for reskilling and upskilling purposes.104
103 Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education, 2013, Higher Education Statistics 2013, www.innovation.gov.au/highereducation/HigherEducationStatistics/StatisticsPublications/Pages/default.aspx, accessed 3 April 2013.
104 IBSA, 2013, submission to AWPA ICT workforce study.
10
Chart 3 – VET Commencements and Completions for Information and Communications
Technology and Integrated Telecommunications qualifications 2008-2011
The Northern Territory is not immune from these trends. It too faces the challenge of lifting the
mix, number and level of ICT skills in its economy and making the appropriate investments now to
guard against future shortages. It must do this against the backdrop of globally connected world
where the movement of labour is relatively free and more and more economies are chasing scarce
ICT skilled resources. So there is no room for complacency.
54 ICT workforce study | Australian Workforce and Productivity Agency
Figure 12: All VET commencements and completions for Information and Communications Technology and Integrated Telecommunications qualifications, 2008–11
Stu
dent
num
bers
0
10,000
20,000
30,000
40,000
50,000
60,000
CompletionsCommencements
2011201020092008
Source: National Centre for Vocational Education Research VOCSTATS, Students and Courses, accessed 12 June 2013.
In 2011, the top five qualifications with the highest enrolments (representing 74.5 per cent of total enrolments in the training package) in Information and Communications Technology were:
1. Certificate II in Information Technology (13,978)
2. Certificate I in Information Technology (10,875)
3. Certificate III in Information Technology (10,692)
4. Certificate IV in Information Technology (3,404)
5. Diploma of Information Technology (Networking) (2,290).108
About 37 per cent of students enrolled in 2011 had not completed Year 12. While most did not have a prior post-school qualification, about one-quarter held a Certificate III or higher level qualification. Most students were aged 19 years or younger and almost all were male. Female numbers continue to decline.109
108 Ibid., p. 21.109 Ibid.
11
SECTION 3 – DEVELOPING THE NORTH
CommSec’s October 2014 “State of the States” reports indicates that the Northern Territory
economy is now Australia’s third-best performing economy behind only NSW and Western Australia.
CommSec analyses how each economy is performing compared with “normal”, and like the Reserve
Bank does with interest rates, it uses decade-averages as the measure of “normal.” On this basis
the Northern Territory is top in five indicators with low unemployment and equipment investment
driving growth.15 Mining equipment investment has risen 20.5 percent above ‘normal’ in the June
quarter and Gross State Product is 41 percent above decade-average levels of output. So the
economy is thriving, but it is a small economy and as such is heavily influenced by trade and major
projects and a small shock can have a considerable impact.
Notable differences between the Territory and the national economy include a (relatively) greater
contribution from mining, construction, government services and defence, and a “comparatively
smaller contribution from professional service industries such as finance, insurance and information
technology.”16 ICT contribution to the Territory’s output is less than 2 percent while the national
contribution is just less than 4 percent. In addition, ICT employment as a share of total
employment in the Northern Territory is only 3.7 percent, the second lowest of any State or
Territory in Australia after Tasmania (2.73 percent). The national percentage is close to 6 percent.
The cumulative ICT employment growth in the Northern Territory in the period 2003 to 2011 has
been 16.4 percent17, better only than the comparable number for ACT and South Australia and
compares to a national figure of 31 percent.
The unemployment rate for the Northern Territory is consistently below the national rate, and at
October 2014 was 4.0%18 compared to the national figure of 6.2%.
The picture painted by these statistics is of a strong, growing economy that has been very
successful in attracting business investment, but is potentially at risk of being unable to fully
convert that investment into sustained long term growth due to skills shortages, particularly in the
critical area of ICT skills.
As the Australia’s national, peak body accrediting, representing and promoting the ICT profession,
the ACS is eager to work with the Northern Territory Government to assist it develop strategies to
address these skill challenges and set up a path to economic prosperity, higher living standards and
sustainable communities.
3.1 Reshaping the Education System
Tackling the ICT skills shortage issue will require a mix of short and long term initiatives. One of
the key longer term initiatives is to include ICT competencies as a mandatory element in the
education system, and particularly in primary and secondary schools and VET.
15https://www.commsec.com.au/content/dam/EN/campaigns/stateofstates.pdf?icid=123848:commsec:m:public:Public_Home:::State_of_the_States:D
ownload_Top
16 http://www.treasury.nt.gov.au/ntbudget/Pages/default.aspx pages 11-‐12
17 http://acs.org.au/__data/assets/pdf_file/0004/28570/Australian-‐ICT-‐Statistical-‐Compendium-‐2013.pdf
18 http://lmip.gov.au/default.aspx?LMIP/LFR_SAFOUR/LFR_UnemploymentRate
12
3.1.1 Primary & Secondary School
With ICT being a fundamental driver of productivity growth and innovation, some basic level of
proficiency in and understanding of ICT now sits alongside numeracy and literacy as a foundation
skill for all students. Although using ICT as a learning tool – for example, use of Powerpoint, Word,
wikis, iPads etc - is generally promoted in most school curricula today, our students need to move
beyond knowing how to consume and use technology, and now learn how to create and build new
digital technology solutions.
The Business Council of Australia noted the following in July 2014 when discussing our education
systems;
“These systems need to produce skilled and capable people with the ability to manage their careers
in a rapidly changing world and labour market. This entails a shift away from training for a
particular job, to a system that equips people with the capabilities and skills required to compete in
a technology-enriched, globally traded labour market, regardless of their qualification.”19 In the
same report, the BCA called for the introduction of “computing coding as a compulsory subject as
part of the national curriculum”, calling it one of Australia’s “immediate priorities.”
The B20 Human Capital Taskforce issued a report in July 2014 calling on Governments of the G20
nations to ensure “coverage of new skills in school curricula relevant to the digital age: particularly
technology/digital literacy, problem solving, critical thinking, collaboration and inter-personal
communications.”20 The Taskforce also highlighted the essential path to success in the education
sector, including increasing the alignment and responsiveness between the learning ecosystem and
the workforce needs by, amongst other things, “aligning curricula with workforce and industry
needs, utilising multiple learning pathways and models” and “building basic skills for the digital
age.”
In this context it is significant to note that the United Kingdom in September this year introduced
computer coding as a mandatory subject in primary schools. In January 2014, Michael Gove,
former UK Secretary of State for Education, explained the initiative by observing that:
"ICT used to focus purely on computer literacy – teaching pupils, over and over again, how to
word-process, how to work a spreadsheet, how to use programs already creaking into
obsolescence; about as much use as teaching children to send a telex or travel in a zeppelin. Our
new curriculum teaches children computer science, information technology and digital literacy:
teaching them how to code, and how to create their own programs; not just how to work a
computer, but how a computer works and how to make it work for you".21
ACS expects more countries will soon follow the UK example given the growing and widespread
realisation globally that an adequate supply of ICT skills is a prerequisite for economic success and
19 Building Australia’ Comparative Advantage, Business Council of Australia, July 28 2014, page 18.
20 http://www.b20australia.info/Documents/B20%20Summit%20Documents/B20%20Human%20Capital%20Taskforce%20Report.pdf
21 https://www.gov.uk/government/speeches/michael-‐gove-‐speaks-‐about-‐computing-‐and-‐education-‐technology
13
growing living standards. We need to make sure Australia and individual States and Territories are
not laggards in this regard, but rather are at the front of the ICT wave. Jurisdictions which do so
can create a competitive advantage vis a vis other States/Territories and nations.
Another example of early stage education in creativity and innovation foundation is Estonia, a
country of only 1.29 million people, where publicly educated students are required to learn coding
at ages 7-8 and continue to the final year of school.22
The ACS therefore recommends that the Northern Territory adopts as soon as practicable
mandatory Digital Technologies curriculum for Foundation to Year 10. This curriculum has been
developed over recent years by the Australian Curriculum Assessment and Reporting Authority
(ACARA) in deep and close consultation with relevant stakeholders including State and Territory
curriculum authorities, teachers associations, universities and leading educators, industry groups
and ourselves as the ICT professional society. This curriculum is now gaining international
attention as being world leading edge. It therefore presents the Territory with an opportunity to
gain a competitive edge on many of its competitors.
The ACS has recently written to the Hon Peter Chandler MLA, Deputy Chief Minister of the Northern
Territory and Minister for Education on this issue.
3.1.2 The VET System
ACS recommends our VET sector place a higher priority on;
• delivering vocational training based more on skills and competencies, particularly ICT
skills, rather than ‘industrial age’ skills and qualifications which have a particular
occupation in mind as the end point; and
• ensuring graduates are genuinely job ready through having access to, and being taught,
some of the softer skills such as project management, leadership, creativity, teamwork
and effective communication.
The disruption to job roles, workforces and indeed entire industries brought about by the digital age
means that vocational training has taken on a new urgency. The VET sector has far more students
than the tertiary sector – approximately 4 million VET compared to 1.3 million for tertiary 23- and is
generally that part of the education system which does much of the “heavy lifting” in terms of
providing the pathway to employment for those leaving school or equipping people to move from
lower to higher value jobs.
So the Northern Territory needs a VET system that helps build agility and flexibility into its
workforce and is responsive to the needs of employers. The ACS itself has not traditionally had
strong engagement with the VET sector, but we increasingly see a role for ourselves given the
growing importance of ICT skills in a modern, successful economy. In particular, ACS can bring to
the table considerable ICT course content; we can assist with the ongoing professional
22 www.innovatsioonikeskus.ee/en
23 https://go8.edu.au/sites/default/files/docs/article/profile_of_australian_education_2012_final.pdf
14
development of teachers in the system; and we have also developed a work-readiness program,
elements of which could be incorporated into the VET system. The ACS Professional Year program
runs for 44 or 52 weeks and aims to equip students with the professional skills needed to succeed
in the Australian workforce. These include communication skills, business skills and workplace
culture awareness, internships and online professional development courses. ACS would be very
happy to work with the Northern Territory VET institutions to configure and transfer components of
this program to make then suitable for Territory VET students.
3.1.3 The Tertiary Education Sector
The ACS has ongoing dialogue with employers and employer groups. The area of concern most
consistently raised in relation to tertiary ICT graduates is that they are not considered to be work
ready. This is generally a reference to deficiencies in the softer skills such as project management,
effective communication skills, customer relationship and stakeholder management skills,
teamwork capabilities and entrepreneurial thinking.
Addressing this concern goes to two closely related issues;
1. the suitability of tertiary course content, and
2. the lack of focus and priority around work integrated learning (WIL). WIL is a term for a range
of approaches and strategies that integrate theory with the practice of work within a
purposefully designed curriculum. It is typically done through industry internships and
placements. The placements would be an accredited unit within the course of study. In many
study disciplines (eg law, medicine, psychology, etc) it is a mandatory element of study and a
pre-requisite for graduation. Not so in ICT. So integrating WIL into VET and tertiary ICT
courses is aimed at improving the employability of ICT graduates by giving them valuable
practical experience which is directly related to their study. Much of this “practical experience”
is directed at addressing the softer skills issues highlighted earlier. WIL improves the
transition from study to work and can considerably improve the productivity outcomes for the
employer and the economy.
The ACS is playing an active role in addressing both issues.
In terms of course content, the ACS accredits university ICT courses, with the primary reference
document for that accreditation being the Core Body of Knowledge (CBOK). There are currently 45
institutions nationally (primarily universities but also some TAFEs) whose ICT courses are based on
the ACS CBOK. This puts the ACS in a strong positon to exert some influence on the content and
structure of ICT courses. To this end the ACS will, from early 2015, commence a review of its
CBOK. A key element of the review will be a consultation process with industry and employers
seeking their input on deficiencies and weaknesses in the current courses. The intent is to
complete the review by mid 2015.
As part of this review the ACS will work closely with employers in the Northern Territory, including
the Government itself as an employer.
In terms of addressing the WIL issue highlighted above, at a national level, the ACS is in dialogue
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with the large employer groups (Business Council of Australia, Australian Industry Group and
Australian Chamber of Commerce and Industry) and Universities Australia who in January of this
year collectively identified WIL as a significant issue and have embarked on a work program to
address the issue.
However the ACS urges the Northern Territory Government to itself embark on initiatives to
address the issue in the Territory as well.
In particular the ACS recommends the Government establish a Forum which builds partnerships
and collaboration between Northern Territory employers, the education sector (both tertiary and
VET) and the ACS as the ICT professional body. The successful, rapidly transforming economies of
the world are building deep relationships between universities and VET equivalents, industry and
the relevant professional bodies. So too in the Territory, the Government needs to encourage and
facilitate these alliances between its capacity-building education and professional institutions and
employers. Future growth prospects will be shaped in large part by how well the Territory can
develop a culture of understanding, trust, partnership and engagement on a scale that bolsters
competitiveness.
In practical terms, ACS suggests the work program for this group focuses initially on:
• Establishing a profile and baseline of what WIL is happening now and what is working well;
• Promoting and disseminating best practice;
• Exploring ways for participants - employers, educators and students - to find and work with
the right people;
• Providing financial support for research which helps develop the evidence base to improve WIL
effectiveness and the outcomes for participants;
• Developing means for better informing students of opportunities through WIL.
3.2 Establishing a Territory Workforce Development Plan
Technology change, driven largely by ICT, together with the exponential growth in computing
power is having a significant transforming impact on the global economy and the job roles in the
coming decades. Fundamentally, jobs are moving up the supply chain, meaning fewer low skill
jobs and more demand for jobs requiring high technology and ICT related proficiencies.
McKinsey and Company estimates that in the US between 2001 and 2009, 4.8million high capability
jobs were added, but 2.7million “production” jobs were lost and 700,000 “transactional” jobs lost24.
A 2013 study by Dr Carl Benedikt Frey and Dr Michael Osborne at the University of Oxford
examined 702 professions in the United States and found that 47 per cent were at risk of being
replaced with computerized systems25. And a 2012 report by Cedefop found that Science,
Technology, Engineering and Mathematics (STEM) occupations in Europe are expected to grow by
24 http://www.bca.com.au/publications/building-‐australias-‐comparative-‐advantages
25 http://www.futuretech.ox.ac.uk/news-‐release-‐oxford-‐martin-‐school-‐study-‐shows-‐nearly-‐half-‐us-‐jobs-‐could-‐be-‐risk-‐computerisation
16
14% by 2020 compared to 3% for other occupations.26
This trend creates significant challenges on multiple fronts. Educators are trying to understand the
job roles they should be seeking to prepare future graduates for. Employers want to know future
workforce requirements so they can develop appropriate recruitment and training programs.
Students are trying to decide what career provides them with the best employment prospects. And
for existing workers, they are now confronted by the reality that entire industries and career
pathways are now being digitally disrupted. Jobs for life really don’t exist anymore and lifelong
learning is now almost mandatory.
For the Northern Territory, a small export oriented economy located on the edge of the largest and
fastest growing markets in the world, having an agile, skilled, digitally literate and flexible
workforce will be critical. To achieve this will require all stakeholder groups to work collaboratively
and strategically to develop a plan. This plan needs to be underpinned by thorough, evidence
based research.
The ACS recommends the Government commission research which seeks to identify the skills and
qualifications the Territory is likely to need in the next 5-10 years. The project, to be done as a
joint initiative of Government, industry, the education sector, community groups and relevant
professional societies, would involve three key elements;
1. Identifying plausible trends and scenarios for employment in the Northern Territory in light of
accelerating advancement of digital technologies;
2. Identifying the types of jobs at risk, the types of jobs likely to become more important, what
new jobs will be created, and impacts on demographic sector in the Northern Territory; and
3. Identifying and proposing transition pathways for industry, government and community sectors
to achieve better outcomes.
Whilst this project will help the Northern Territory Government with long term workforce planning,
other initiatives need to be taken to address shorter term, “here and now” issues.
The ACS has in the last 12 months witnessed a growing urgency around workforce development
planning across both public and private sector organisations, with a particular focus on ICT
workforce planning. The ACS itself has a workforce development program called MySFIA,
www.acs.org.au/sfia-certification/mysfia) which is based on the globally recognised Skills
Framework for the Information Age (SFIA). SFIA was established in July 2003 and is a system for
IT Professionals to match the skills of the workforce to the requirements of the business. It is a
logical two-dimensional skills framework defined by areas of work on one axis and levels of
responsibility on the other. It has been proven as an effective resource that benefits both
individuals and businesses by facilitating all aspects of the management of ICT capability. In
essence mySFIA allows organisations to map the existing ICT skill set of their workforce, identify
the skills gaps, then use this analysis to plan their training programs. Using this tool ACS is now
working with a range of organisations, including some top 10 ASX companies, to assist them with
26 http://www.womenandtechnology.eu/digitalcity/servlet/PublishedFileServlet/AAAIXYRG/STEMskills-‐Europe-‐2013.pdf
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their ICT workforce planning. Other similar tools are also available in the market.
The ACS recommends the Northern Territory Government
• Consider adopting mySFIA or some similar tool for ICT workforce planning within its
Government agencies
• Implement a program which promotes mySFIA and similar tools to businesses in the Northern
Territory and, within certain eligibility criteria, provide some level of subsidy for those wanting
to utilise the tool.
3.3 ICT Advisory Council
The ACS congratulates the Northern Territory Government on the recent establishment of the ICT
Advisory Council. ACS believes it is important that Governments call on the expertise, experience
and insights of those in the ICT industry to help advise it on appropriate policy and program
settings.
However ACS recommends expansion of the remit of the Council beyond providing advice on
barriers to development of the local ICT industry to also providing advice on ICT skills issues across
all industries and sectors in the Territory. In particular the Council should be asked to;
• monitor demand and supply conditions
• provide advice on options to ensure an adequate supply of an appropriately skilled ICT
workforce
• provide advice on ways to increase the general digital literacy of individual businesses,
particularly SMEs and NFPs, and of the workforce generally.
Membership of the Council should also be expanded to include appropriate representatives from the
education sector.
3.4 ICT Professionalism and Accreditation
As part of the ICT skills equation, the role of professionalism in risk mitigation is underestimated.
The Territory Government itself recently experienced the outcome of sub-optimal IT
implementation with an external review of the whole of government Asset Management System
finding it would cost another $120 million to complete.
While a licence is needed to change a power point or to be a bouncer in a nightclub, no similar
credential or accreditation is required to take charge of IT security, or to program robots or other
safety-critical technology ranging from avionics to amusement park rides. The value of
professionalism, which by definition puts the public interest above self-interest, has to be seen as
desirable if not mandatory in a world where ICT is so pervasive.
Currently there is no national or globally mandated ICT accreditation framework. In large part this
is a reflection that ICT is a relatively young profession – unlike, law, medicine, etc – and as such,
much of the professional infrastructure and governance arrangements around the profession are
still in their infancy. But globally there is growing recognition this must change. There is a
recognition that there needs to be processes and systems in place which provide consumers of ICT
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based products and services with confidence that they are built by suitably competent and
professional ICT practitioners. There is much to do in this space and it requires collaboration
globally. However there are some things that individual governments can do to take us some way
along this path.
The ACS recommends the Government work with the ACS and the ICT Advisory Council on
establishing a system to ensure that (i) people filling senior ICT roles in the Government; and (ii)
people working as ICT contractors on a Government contract, meet an agreed accreditation
standard which ensures they meet minimum levels of competency and an awareness and
understanding of standards of professional and ethical conduct which is expected of them.
3.5 Indigenous Communities and ICT Literacy
The Discussion Draft makes it clear that one of the Government’s objectives in terms of its human
capital is to “increase the capacity and capability of Indigenous Territorians.” Improving their ICT
digital literacy must be a key element of the Government’s strategy to achieve this objective.
Worryingly, but not surprisingly, the digital literacy of indigenous Australia’s is significantly less
than that for non-indigenous Australians.
The Australian Council for Educational Research (ACER) recently released The International
Computer and Information Literacy Study (ICILS), the first international comparative study
examining students’ acquisition of computer and information literacy (CIL). ACER noted that;
“Information and communication technologies (ICT) are an essential part of 21st-century society.
As a result, it has become increasingly important for citizens to understand and be able to use ICT
in order to effectively participate in life in the digital age. Although students use ICT at home and
other places, school is an appropriate place to develop essential competencies in ICT. This report
examines the CIL achievement for participating ICILS countries, for the Australian jurisdictions and
for particular groups of students, and explores the influence of student characteristics and students’
use of computer technologies in and out of school on CIL achievement.”27
At a jurisdiction level, the key findings from the study were as follow;
• By jurisdiction, the proportion of students achieving Level 3 or 4 (the highest) were Victoria
(39%), the Australian Capital Territory (38%), New South Wales (37%), South Australia
(36%), Western Australia (33%), the Northern Territory (31%), Tasmania (30%) and 27% of
students in Queensland.
• The proportion of students placed at Level 1 (lowest) or below was 31% in Queensland, 29% in
Tasmania and the Northern Territory and 23% of students in New South Wales. In three
jurisdictions—Western Australia, the Australian Capital Territory and Victoria—the proportion of
students was 20% or just below.
For indigenous students the key findings were;
• Indigenous students achieved significantly lower than non-Indigenous students in CIL, with an
27 ICILS International Computer and Information Literacy Study 2013 -‐ Australian students’ readiness for study, work and life in the digital age
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average difference of 66 score points, which is equivalent to around two-thirds of a standard
deviation.
• 12% of Indigenous students achieved Level 3 or 4, with only 1% of Indigenous students
achieving Level 4. This is compared to the 36% of non-Indigenous students who achieved
Level 3 or 4.
So what can be done about this?
The ACER study referred to above examined what factors were the key influencers on digital
literacy outcomes. Their findings indicated the key factors were;
a) the availability of ICT resources at home as measured by the number of computers at home
and having the internet at home
b) students’ ICT familiarity as measured by years of experience with computers and regular use
of computers
c) school level indicators of ICT as measured by school ICT resources and school ICT learning
contexts.
The ACS itself has to date had virtually no experience in engaging with indigenous communities on
ICT literacy issues. However we are keen to change that. We would like to work in collaboration
with the relevant stakeholder groups on a program to address the issues of concern. Based on the
ACER findings immediately above, the areas we believe we can best assist with are in relation to
(b) and (c). In particular, we have significant library of ICT learning material (from very basic
through to quite advanced IT concepts) and we have large numbers of knowledgeable and
passionate ICT professionals. We can draw on these resources and expertise to:
a) work with indigenous communities to increase their understanding and experience with
computing programs;
b) work with teachers and schools to help lift their own digital literacy and learning contexts,
including perhaps establishing ICT mentors for individual teachers.
The ACS therefore recommends the Government invite the ACS to join a project team
comprising representatives from government, relevant indigenous stakeholder groups and the
education sector to develop a program to improve the digital literacy of indigenous communities
and indigenous students.
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SECTION 4 – CONCLUSION
The Northern Territory economy is growing strongly and with its proximity to the large and rapidly
expanding Asian markets it is presented with enormous opportunities to establish itself as
Australia’s boom economy. This outcome is achievable but it will require action on a number of
fronts. Undoubtedly one of the biggest challenges is to ensure the Government plans for, invests in
and delivers an adequate supply of human capital, particularly in the area of skilled ICT
professionals and a digitally literate workforce.
The ACS, as the peak body for ICT professionals, would like to offer its support and resources to
partner with the Northern Territory Government to help it address this key issue. And the
challenge is not just to ensure the requisite quantity of ICT skills, but to also ensure those working
in ICT meet minimum standards of competence, professionalism and ethics. The latter issue is
critical but not yet widely understood or appreciated. Inferior ICT work can result in significant
financial, brand and reputation damage and in some cases can have catastrophic outcomes. The
ACS is particularly keen to work closely with the Northern Territory Government to address this
important issue because not only will it result in cost savings and better outcomes, it would also be
world leading and setting professional governance standards for others to follow.