Information Systems (IT), Electronics & Telecommunications Sector Education & Training Authority (ISETT SETA)
Sector Skills Plan, 2000/2001
Version 4.7
26 February 2001
Ground Floor, Block E, Central Park, 400, 16th Road, Midrand
PO Box 5585, Halfway House, 1685
Tel; (011) 805 5115 Fax: (011) 805 6833
e-mail:
1 Foreword 6
2 Introduction 8
2.1 How this plan was developed and Sources consulted 8
2.1.1 Data collection 8
2.1.2 Other consultations 10
3 CHAPTER THREE: Executive Summary 12
4 CHAPTER FOUR: Sector Profile 17
4.1 Information Technology 17
4.1.1 Introduction 17
4.1.2 Defining the sector 18
4.1.3 Types of Activities 18
4.1.4 Activities by SIC Code 19
4.1.5 Turnover and Size of the IT Sector 19
4.1.6 Geographic Distribution 20
4.1.7 Salary Data 20
4.1.8 NQF Levels 21
4.1.9 Race, Gender and Disabled distribution 22
4.1.10 HIV/AIDS in the Sector 22
4.1.11 Employer and Employee Associations 22
4.2 Electronics Sector 23
4.2.1 Introduction 23
4.2.2 Defining the sector 24
4.2.3 Types of Activities 24
4.2.4 Activities by SIC Code 25
4.2.5 Turnover and size of the Electronics Sector 25
4.2.6 Geographic Distribution 26
4.2.7 Salary Data 26
4.2.8 NQF Levels 26
4.2.9 Race, Gender and Disabled distribution 27
4.2.10 HIV/AIDS in the Sector 27
4.2.11 Employer and Employee associations. 28
4.3 Telecommunications 29
4.3.1 Introduction 29
4.3.2 Defining the sector 30
4.3.3 Types of Activities 31
4.3.4 Activities by SIC code. 32
4.3.5 Turnover and Size of the Telecommunications sub-sector 32
4.3.6 Geographical distribution 33
4.3.7 Salary Data 33
4.3.8 NQF Levels 34
4.3.9 Race, Gender and Disabled distribution 34
4.3.10 HIV/AIDS in the Sector 35
4.3.11 Employer and Employee Associations 35
5 CHAPTER FIVE: Factors Influencing Future Change 37
5.1 Policy Factors 37
5.1.1 Employment Equity and Skills Development 37
5.1.2 Telecommunications Review 38
5.1.3 The SAITIS Project and E-commerce Green Paper 40
5.1.4 Active Labour Market Policy 41
5.2 Economic Factors 41
5.2.1 New economy woes (Dot-com shake-out) 43
5.2.2 Globalisation 46
5.2.3 The effects of HIV/AIDS on the economy 47
5.2.4 DTI and Ntsika focus on SMME's 48
5.2.5 Summary of Economic Factors 48
5.3 Social Factors 49
5.3.1 Unemployment 49
5.3.2 Poverty 50
5.3.3 Rural development 50
5.3.4 Race and gender issues 51
5.3.5 HIV/AIDS 51
5.3.6 Conclusion 51
5.4 Technological Change 51
5.4.1 Introduction 51
5.4.2 Effects on business 52
5.4.3 Trends in the Electronics sub-sector 53
5.4.4 Human resource crunch 54
5.4.5 Foresight project 54
5.4.6 The effects of technology on how people work and play 55
5.4.7 The effects of technological change on competencies and values 55
5.4.8 Conclusion 56
5.4.9 Cellular telephone radiation 57
5.5 Legislation 57
5.5.1 E-commerce 57
6 CHAPTER SIX: Current Education and Training Supply 59
6.1 School output 59
6.1.1 Number of matric passes in mathematics and physical science:1997 59
6.1.2 Output from the Universities, 1992-1996 60
6.1.3 Output from Technikons, 1992-1996 60
6.1.4 Industry Suggestions 61
6.2 National Education & Training Initiative Appropriate to the Sector. 61
6.2.1 Schools, Technikons & Universities 61
6.2.2 Urban concentration of Education 63
6.3 Government & Private enterprise initiatives 63
6.3.1 Houwteq IT & Telecommunications Software Training and Development Centre 63
6.3.2 Technology enhanced learning initiative (TELI) 64
6.3.3 SchoolNet SA 65
6.4 In-company & branded training 66
6.4.1 Independent Training Providers 66
6.4.2 Education & Training Quality Assurance (ETQA) 66
6.5 Perspective from a developed country 66
6.6 Conclusion 67
7 CHAPTER SEVEN: Sector Development Strategy 69
7.1 Adopting the SAITIS Project analyses 69
7.2 Developing a skilled labour force 71
7.2.1 The environment 71
7.2.2 Enhancing public sector infrastructure 72
7.2.3 Utilising labour market information more effectively 72
7.2.4 Competing for foreign highly skilled workers 72
7.2.5 Improving skilled workers employment opportunities 72
7.2.6 Expanding the skills base 73
7.2.7 Decision making structures 73
7.3 Developing a culture for innovation 73
7.3.1 Creating ICT innovation awareness viz: 74
7.3.2 Facilitating ICT technology transfer 74
7.4 IT expenditure 74
7.4.1 Organisations by IT budget 74
7.4.2 Organisation by IT payroll 74
7.4.3 IT outsourcing 75
7.5 IT social investment 75
7.6 IT Research and Development 75
7.7 International revenue from IT products and services 75
7.8 IT products and services 75
7.9 IT training expenditure 76
7.9.1 IT training expenditure by staff size 76
7.9.2 IT training expenditure by revenue 76
7.10 ISETT SETA Objectives that support the SAITIS ICT Objective's Framework. 76
7.11 SAITIS project contact information 80
7.12 Conclusion; Sector development 81
8 CHAPTER EIGHT: Employment and Skills Needs 82
8.1 Employment Needs 82
8.1.1 Telecommunications forecast for Professional employment 83
8.1.2 Economic realities and employment in the sector 84
8.2 Skills Needs 84
8.2.1 Union input 85
8.2.2 SAITIS Baseline study findings 85
8.2.3 IT skills domains 86
8.2.4 IT skills domains by race and gender 86
8.2.5 IT skills by revenue size 86
8.2.6 Future skills needs 86
8.2.7 Findings of various surveys and other industry input 87
8.2.8 Electronics and Telecommunication, additional input 89
8.2.9 Skills oversupply 91
8.3 Grant "D" in the ISETT SETA 91
8.3.1 ELECTRONICS 91
8.3.2 TELECOMMUNICATIONS 92
8.3.3 INFORMATION TECHNOLOGY 92
8.4 Conclusion 93
8.4.1 The role of the ISETT SETA 93
9 CHAPTER NINE: Implications for Skills policy and Skills provision 94
9.1 Sector Profile 94
9.2 Factors Influencing change 94
9.2.1 Policy 94
9.2.2 The Economy 95
9.2.3 Social factors 95
9.2.4 Technological change 95
9.2.5 Environmental factors 95
9.2.6 Legislation 95
9.3 Current Education and Training Supply 96
9.4 Sector Development Strategy 96
9.5 Employment and Skills needs 97
9.5.1 The role of the ISETT SETA 97
9.6 ISETT SETA Action Plans and Special Projects 97
9.6.1 Equity 97
9.6.2 Learnerships 97
9.6.3 Influence government departments 98
9.6.4 Skills Incubators 99
9.6.5 General Re-Skilling within companies 99
9.6.6 Establish links to other SETA's 100
9.6.7 Take technology to rural areas 100
9.6.8 Dealing with the Brain Drain 101
9.6.9 The Skills Gap 102
9.6.10 Profiling the "star" employee who "came from nowhere" 103
9.6.11 SMME Support & Development 103
9.6.12 Mathematics & Science 108
10 CHAPTER TEN: Vision, Mission, Policy, Objectives, priorities & outcomes 110
10.1 Vision 110
10.2 Mission 110
10.3 Policy 111
10.4 Objectives 111
10.4.1 ISETT SETA alignment to NSDS 111
10.4.2 Sector alignment to the NSDS 112
10.5 Priorities 116
10.5.1 Operational priorities 116
10.5.2 Special programmes 116
10.5.3 Research initiatives, 117
10.6 Outcomes 117
11 CHAPTER ELEVEN: Monitoring, Reporting & Evaluating 119
11.1.1 Other Measurements 119
12 Appendices 121
12.1 Appendix A: South African Economic indicators, 2000 121
12.1.1 Various Indicators (Up to availability date) 121
12.1.2 Technology stocks continue roller-coaster ride. 122
12.2 Appendix B: Skills Data 123
12.2.1 HSRC Labour Market Analysis (1999)- Graduate BSC Electrical Engineers 123
12.2.2 Tertiary Education relevant to the sector. 124
12.2.3 Findings of various surveys and other industry input 126
12.2.4 Vacancies study by the ISETT SETA, 2000 130
12.3 Appendix C: SIC Codes 131
GOVERNMENT NOTICES 131
DEPARTMENT OF LABOUR 131
MINISTER OF LABOUR 131
12.4 APPENDIX D: Grant "D" Research Questionnaire 135
12.5 Appendix E: General issues affecting connectivity in South Africa 139
Satellite Internet Access 139
Township penetration and disadvantaged communities 140
Digital Villages 140
SOS Children’s Villages 140
Telecentres and the Universal Services Agency 141
Kiosks 142
Internet Appliances 143
The regulatory environment 144
Pulling the teeth of the SATRA watchdog 144
Changes in world ranking 148
12.6 Appendix F: Employment Equity in the Sector (DoL report) 150
12.7 Appendix G: Derivation of the number of persons that could be HIV/AIDS positive in the Sector 152
12.8 Appendix H: A Glossary of Acronyms 154
1 Foreword
The Information Systems (IT) Electronics and Telecommunications SETA was established by the Minister of Labour on release of the Government Gazette of the 20th March 2000
The ISETT SETA is tasked with the requirements as set out in the Skills development act. The scope of coverage addressed the convergence of the three sub-sectors, which make up the sector.
The ISETT Sector is categorised as one of the major strategic sectors for South Africa. The development of a globally competitive workforce in this segment of the SA Marketplace can be viewed as non-negotiable in terms of the successful development of the South African Economy.
Traditionally there has been no legislated or formal requirement for Labour skill reporting, or indeed sector information specifically targeted in our sector. A number of commercial initiatives from private survey organisations have been made available to vendor clients. The Government has also investigated aspects of the sector, generally from a particular point of view, such as the HSRC report and the DoC report on future skills needs. More recently, the DTI - SAITIS project, investigating the IT Strategy for the ICT industry in South Africa, has become available. During August 2000, the DoC released a discussion document on the ICT Sector titled “The South African Information and Communications Technology (ICT) strategy”.
The ISETT SETA is tasked under the Act with the production of a Sector Skills Plan.
The ISETT –SSP development team, has used input from a wide variety of sources in order to address the issues around skills development.
Reports from as many input sources as well as personal interviews and discussions with industry knowledgeable people has been assembled and the team must be complimented on the production of this document in such short a time, from the date of ISETT establishment.
Work place skill plans are expected from companies and organisations that have elected to join the ISETT SETA, however this input will not be available in any representative sample for the first deadline. The aggregation of work place skill's plans, will form a major comparative set of data for the future SSP.
The SSP in its draft form has been discussed with ISETT representative stakeholders for their input and comment. The SSP is seen to be a view of the Sector, not only for current skills needs but also as a forecast of future needs, which are required to intercept the fast moving technology trends in this strategic sector.
The ISETT SSP will be used to mature the view on ISETT Skills needs, as time moves forward.
Doug Heron
Chair ISETT SETA BOARD
2 Introduction
This Sector Skills Plan represents a “BEST EFFORT” due to a number of factors.
· The delay in appointing a CEO, critical employees and appointing volunteer members from the various stakeholders to perform committee work, including the Sector Skills Plan committee.
· The difficulty experienced in conducting effective meetings and getting the work done through the committee members. The problem here is the very busy work schedules of the volunteer committee members.
· The paucity of hard, reliable statistical information about the three sub-sectors.
· The delay in appointing Skills Development Facilitators (deadline now 30 September 2000) which means that few Workplace Skills Plans, containing vital demographic details, are available.
· The slow SARS registration and processing process which not only affected the flow of critical information but also of essential operating funds. This problem was further exacerbated by errors and omissions (e.g. no employee or salary numbers provided) by employers on the SARS documents.
On the positive side, the SETA had at its disposal some recent research data, e.g. SAITIS, BMI and the surveys done by its own contract personnel. Good information on the economy, the environment and current events within the sub-sectors was readily available in the daily and trade press and on the internet.
2.1 How this plan was developed and Sources consulted
Initial research for this Sector Skills Plan started at the end of 1999 during the run-up to the application to form a SETA. Various sources were consulted such as business reports and the stakeholders, especially companies, in the sector.
In order to determine the nature of the skills gap in the sector, 36 face-to-face and 22 telephone interviews were conducted with companies mainly in the IT sub-sector. A further study was commissioned and conducted by FSA-Contact, a research firm. The results of these two studies are contained in this plan in condensed form in chapter 8. The full reports are available on the ISETT SETA website, http://www.isett.org.za
2.1.1 Data collection
Economic data was collected from the press and recorded in spread sheets. It consisted of the following:
DAILY:
Currencies: The rand vs other key currencies.
Metals: The performance of gold, platinum and palladium
Movements on world bourses: JSE, NYSE (dow), NASDAQ, LSE, Nikkei, CAC-40, DAX, Hang Seng, SMI
MONTHLY:
CPI, PPI, M-3 money supply, Private sector credit, interest rates
New vehicle sales, Foreign trade, Gross reserves, the fuel price
In addition, articles dealing with economic issues were taken from newspapers and magazines in placed in a scrap book.
A second scrap book was created to keep articles on the sector, political events, social matters, SME's, HIV/AIDS and environmental issues.
Other sources of information include the following:
· Human Development Index- UND Report
· Economic Impact of AIDS in South Africa- Ing Barings report
· HSRC studies into University graduates 1992 -1998
· HSRC studies into sector skills need 1998 -2003
· US Dept of Commerce report on Skills shortages in ITC
· Australian report on Skills shortages in ITC
· The ICT Capacity Building handbook 1991- Forge ahead BMI-T
· A survey of the IT Industry and Related Jobs and Skills in South Africa- A SAITIS Baseline study.
· South African Information Technology Industry Strategy (SAITIS) Working Draft version 4.9, August 7, 2000
· Various issues of Financial Mail, Fortune, Time (articles on the New Economy, The effects of technology on jobs, skills gaps, shortages around the world of ICT skills, the environment, HIV/AIDS, social problems such as illiteracy and poverty, etc).
· STATS SA data on their 1998 household survey showing employment trends and other data on economic issues.
· A study be McConnell International into 42 countries participating in E-Commerce: Risk E-Business: Seizing the Opportunity of Global E-Readiness, August 2000.