SECTOR SKILLS PLAN
2005–2010
2006 UPDATE
Version 3
Isett Seta Sector Skills Plan 2006-2007 V 3.0
1
TABLE OF CONTENTS
FOREWORD......................................................................................................... 8
ABBREVIATIONS USED IN THIS DOCUMENT ................................................... 9
1 CHAPTER 1: SECTOR PROFILE .............................................................. 10
1.1
Industrial and Occupational Profile ....................................................... 10
1.1.1
Industrial Activities ......................................................................... 10
1.1.2
Employers in the Sector ................................................................ 10
1.1.3
Employees in the Sector ................................................................ 11
1.2
Drivers of Change ................................................................................. 15
1.2.1
Regulatory and Policy Issues ........................................................ 15
1.2.2
National and Provincial Priorities ................................................... 17
a) Provincial Representation ................................................................. 17
b) ICT and education ............................................................................. 18
1.2.3
Changes in Growth of the Sector .................................................. 19
a) Technical........................................................................................... 19
b) Non-Technical ................................................................................... 20
1.2.4
Other Changes impacting on the Sector........................................ 20
a) Technology ....................................................................................... 20
b) Business Environment ...................................................................... 21
1.2.5
Changes in the Labour Market ...................................................... 22
1.2.6
Social Issues ................................................................................. 24
a) ICT and Health .................................................................................. 24
b) Poverty .............................................................................................. 24
1.3
Conclusion ............................................................................................ 26
2 CHAPTER 2: DEMAND FOR SKILLS ........................................................ 27
2.1
Current Employment ............................................................................. 27
2.1.1
Distribution of Employees .............................................................. 27
a) Occupational Category...................................................................... 27
b) Employees with disabilities ............................................................... 28
c) Employee Profile Summarised .......................................................... 29
2.1.2
Current Skills Base ........................................................................ 29
a) Employees per Sub-sector per Function (Skill Areas) ....................... 29
b) Educational Profile ............................................................................ 34
2.2
Employment Trends ............................................................................. 35
2.2.1
Vacancies ...................................................................................... 35
a) Vacancies According to Sub-sector .................................................. 35
2.2.2
Vacancies According to Function by Sub-sector ........................... 36
a) Technical........................................................................................... 36
b) Non-Technical ................................................................................... 37
2.2.3
Vacancies According to Qualifications........................................... 38
2.2.4
Vacancies According to Function by Qualifications ....................... 39
a) Technical........................................................................................... 39
b) Non-Technical ................................................................................... 40
2.2.5
Reasons for Vacancies.................................................................. 40
2.3
Future Employment Signalling .............................................................. 42
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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2.3.1
Expected Growth per Functional Area ........................................... 42
a) Technical........................................................................................... 42
b) Non-Technical ................................................................................... 43
2.4
Skill Adequacy from the Employer's Perspective .................................. 43
2.4.1
Inadequacy in Trained Employees per Qualification...................... 43
2.4.2
Inadequacy in Trained Employees – Totals per Function .............. 44
2.4.3
Soft Business Skills ....................................................................... 45
2.5
Important Points Arising From This Chapter ......................................... 46
2.5.1
New Entrants to the Demand Market:............................................ 46
2.5.2
Changing landscape: ..................................................................... 46
2.5.3
Race and Gender: ......................................................................... 46
2.5.4
Disabilities ..................................................................................... 46
2.5.5
Common Employee Profile ............................................................ 46
a) Technical:.......................................................................................... 46
b) Non-Technical ................................................................................... 46
2.5.6
Technical Employees per Product and Services ........................... 47
2.5.7
AIDS .............................................................................................. 48
2.5.8
Inadequacies in Training ............................................................... 48
2.5.9
Soft and Business Skills ................................................................ 48
3 CHAPTER 3: SUPPLY OF SKILLS ............................................................ 49
3.1
Trends in Education and Training Supply for the Isett Sector ............... 49
3.1.1
Registered Students ...................................................................... 49
a) Registration per Qualification ............................................................ 49
b) Registration of Students per Sub-sector ........................................... 49
c) Registrations per Field per Sub-sector .............................................. 50
3.2
Qualifications of Graduates .................................................................. 53
3.2.1
Graduates per Qualification ........................................................... 53
3.2.2
Graduates per Sub-sector ............................................................. 54
3.2.3
Graduates per Field per Sub-sector .............................................. 55
a) IT Sub-Sector .................................................................................... 55
b) Telecommunications Sub-Sector ...................................................... 56
c) Electronics Sub-Sector...................................................................... 56
3.3
Soft and Business Skills Development ................................................. 57
3.4
Bridging Courses .................................................................................. 58
3.5
Cooperation with ICT Industry .............................................................. 59
3.6
Constraints to Future Development of ICT Courses ............................. 59
3.7
Important Points Arising From This Chapter ......................................... 59
4 CHAPTER 4: SCARCE AND CRITICAL SKILLS ........................................ 61
4.1
Introduction ........................................................................................... 61
4.2
Defining Scarce and Critical Skills ........................................................ 61
4.2.1
SCARCE SKILLS .......................................................................... 61
a) Absolute scarcity: .............................................................................. 61
b) Relative scarcity: ............................................................................... 61
4.2.2
CRITICAL SKILLS ......................................................................... 62
4.3
The Organising Framework for Occupations (OFO) ............................. 62
4.4
OFO Application for Isett Seta SSP development (App A) ................... 67
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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4.5
Scarce Skills List Development (App B) ............................................... 67
4.5.1
Project Scope ................................................................................ 67
4.5.2
INPUTS ......................................................................................... 67
4.5.3
Process ......................................................................................... 68
4.5.4
Output............................................................................................ 70
4.5.5
Process Feedback ......................................................................... 70
4.6
Chapter Summary and Recommendations ........................................... 70
4.6.1
Occupational Framework for Organisations .................................. 71
4.6.2
Scarce Skills Database and WSP ................................................. 71
4.6.3
Scarce Skills List ........................................................................... 72
5 CHAPTER 5: SMALL BUSINESS, ENTREPRENEURIAL OPPORTUNITIES
AND OTHER NSDS PRIORITIES....................................................................... 73
5.1
Information and Communication Technology Black Economic
Empowerment (ICT BEE) Charter ................................................................... 73
5.1.1
Main Objectives of the Charter ...................................................... 73
5.1.2
Skills Development ........................................................................ 73
5.2
SMME Opportunities ............................................................................ 75
5.2.1
The ICT BEE on SMME ................................................................. 75
5.3
Future Opportunities of Entrepreneurial Activity for SMME’s ................ 76
5.4
Non-Isett Sector Demand for ICT Skills ................................................ 77
5.5
Specific support to small levy paying firms ........................................... 78
5.6
Adult Basic Education and Training (ABET) provision .......................... 78
5.7
Stakeholder Capacity Building .............................................................. 78
6 CONCLUSION ............................................................................................. 79
7 Future Research .......................................................................................... 82
8 REFERENCES ............................................................................................ 83
8.1
Literature and Isett Seta Sources ......................................................... 83
8.2
Industrial Studies .................................................................................. 84
Appendix A : ICT Organising Framework for Occupations (OFO)....................... 85
Appendix B: Isett Seta Scarce Skills List ............................................................ 89
Appendix C: Proposed update to the Isett Seta Online WSP Submission System
............................................................................................................................ 91
Appendix D: Future Areas of Entrepreneurial Activity ......................................... 92
Appendix E: ICT TRENDS .................................................................................. 95
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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TABLE OF TABLES
Table 1-A Levy Paying Employers ...................................................................... 10
Table 1-B Employees by Company Size ............................................................. 11
Table 1-C Employees by Race ........................................................................... 11
Table 1-D Total Gender Distribution ................................................................... 11
Table 1-E Number of employees per job title and race ....................................... 13
Table 1-F Main driving legislation ....................................................................... 15
Table 1-G Expected Growth in Employees Performing Technical Functions per
Sub-sector and Field ........................................................................................... 19
Table 1-H Expected growth in Employees Performing Non-Technical Functions
per Sub-sector and Field ..................................................................................... 20
Table 1-I Expected Growth in Employees Performing Technical Functions........ 22
Table 1-J Expected Growth in Employees performing Non-Technical Functions 23
Table 1-K Total South African population per race ............................................. 25
Table 1-L Number of people per race with computer, telephone and cell phone 25
Table 2-A IT Sub-Sector - Employees Performing Functions ............................. 30
Table 2-B Telecommunications Sub-Sector - Employees Performing Functions 31
Table 2-C Electronics Sub-Sector - Employees Performing Functions ............... 32
Table 2-D Non-Technical: IT Sub-Sector - Employees Performing Functions .... 33
Table 2-E Non-Technical: Telecommunications Sub-Sector - Employees
Performing Functions .......................................................................................... 33
Table 2-F Non-Technical: Electronics Sub-Sector - Employees Performing
Functions ............................................................................................................ 34
Table 2-G Technical Vacancies According to Sub-sector by Function and
Qualification ........................................................................................................ 39
Table 2-H Non-Technical Vacancies According to Sub-sector by Function and
Qualification ........................................................................................................ 40
Table 2-I Expected Growth in Employees Performing Technical Functions........ 42
Table 2-J Employees performing Non-Technical Functions................................ 43
Table 2-K Inadequacy in Current Training of Employees .................................... 44
Table 2-L Technical – Inadequate Skills per Products and Services group ........ 44
Table 2-M 10 Worst Trained Qualifications per Product and Services ................ 45
Table 2-N Responses on soft and business skills inclusion in technical
qualifications ....................................................................................................... 45
Table 2-O Technical employees per product and services ................................. 47
Table 3-A Estimated Registered Students per Level of Qualification .................. 49
Table 3-B Low Level Skills per Sub-sector ......................................................... 50
Table 3-C Training: High Level Skills per sub-sector .......................................... 50
Table 3-D IT Sub-sector low level skills .............................................................. 51
Table 3-E IT Sub-sector high level skills ............................................................. 51
Table 3-F Telecommunications Sub-Sector Low Level Skills ............................. 51
Table 3-G Telecommunications Sub-Sector High Level Skills ............................ 52
Table 3-H Electronic Sub-sector Low Level Skills ............................................... 52
Table 3-I Electronic Sub-sector High Level Skills ............................................... 52
Table 3-J Estimated Graduate Students per Qualification – Low Level Skills ..... 53
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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Table 3-K Estimated Graduate Students per Qualification - High Level Skills .... 53
Table 3-L Percentage Growth in Low Level Graduates ...................................... 53
Table 3-M Percentage Growth in High Level Graduates..................................... 54
Table 3-N Graduates in Low Level Skills per Sub-sector .................................... 54
Table 3-O Graduates in the High Level Skills per Sub-sector ............................. 55
Table 3-P Graduates per Field per IT Sub-Sector – Low level skills ................... 55
Table 3-Q Graduates per Field per IT Sub-Sector – High Level Skills ................ 55
Table 3-R Graduates per Field – Low Level Skills .............................................. 56
Table 3-S Graduates per Field – High Level Skills ............................................. 56
Table 3-T Graduates per Field – High Level Skills .............................................. 57
Table 3-U Soft and Business skills...................................................................... 57
Table 5-A Non-Isett Technical: Projected Need for Technical Employees to Work
on Products and Services .................................................................................. 77
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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TABLE OF FIGURES
Figure 1-1 Distribution of companies by sub-sector ............................................ 11
Figure 1-2 Provincial spread of Companies ........................................................ 17
Figure 1-3 Provincial spread of Employees ........................................................ 17
Figure 1-4 HIV-Aids Policies of Isett Companies ................................................ 24
Figure 1-5 Percentage of population per race with computers ............................ 25
Figure 2-1 Total employee distribution per occupational category ...................... 27
Figure 2-2 Race and gender distribution of managers and supervisory staff ...... 28
Figure 2-3 Race and gender distribution of physical and engineering science
technicians .......................................................................................................... 28
Figure 2-4 Population analysis of disabilities ...................................................... 29
Figure 2-5 Number of personnel by qualification................................................. 35
Figure 2-6 Isett Technical: Number of vacancies by sub-sector ........................ 35
Figure 2-7 Isett Technical: Vacancies per function by sub-sector ....................... 36
Figure 2-8 Isett Non-technical: Vacancies per function by sub-sector ................ 37
Figure 2-9 Number of vacancies by qualification ............................................... 38
Figure 2-10 Reasons for vacancies: technical employees .................................. 41
Figure 2-11 Reasons for vacancies: non-technical employees ........................... 41
Figure 3-1 Soft and business skills offer per level of qualification ....................... 58
Figure 3-2 Average duration of bridging courses per level .................................. 58
Figure 3-3 Percentage of training institutions offering bridging courses.............. 59
Figure 3-4 Average ratings of cooperation with ICT industry .............................. 59
Figure 3-5 Rating of factors of constrain to future development of ICT courses . 59
Figure 4-1a Mapping of WSP to OFO ................................................................. 64
Figure 4-2b Comparison between skill levels covered by Major Groups in OFO
and NQF and NSDS levels ................................................................................. 65
Figure 4-3 An illustration of the Structure of the OFO ......................................... 66
Figure E-0-1 South African Value Matrix. ............................................................ 95
Figure E-0-2 Market Status: Enterprise Solutions ............................................... 96
Figure E-0-3 Market Status: Personal ................................................................. 97
Figure E-0-4 Market Status: Content .................................................................. 98
Figure E-0-5 Wireless Applications Market Segmentation .................................. 99
Figure E-0-6 Technology Impact Analysis Grid ................................................. 100
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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FOREWORD
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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ABBREVIATIONS USED IN THIS DOCUMENT
Abbreviation
ABET
ATR
IT
ICT
BEE
CEO
the dti
EE
GDP
HIV/AIDS
ICT
ITAC
Isett
ISCO
NSA
NSDS
NQF
OGS
OFO
PDI
PPP
SA
SAITIS
SAQA
SASCO
Seta
SIC
SITA
SMMEs
SSP
SSS
UNDP
US
UYF
WSP
WSPIR
Description
Adult Basic Education and Training
See WSPIR
Information Technology
Information and Communications Technology
Black Economic Empowerment
Chief Executive Officer
The Department of Trade and Industry
Employment Equity
Gross Domestic Product
Human Immune Virus / Acquired Immune Deficiency Syndrome
Information and Communication Technology
Information Technology Acquisition Centre
Information Systems, Electronics and Telecommunications
Technologies
International Standard Classification of Occupations
National Skills Authority
National Skills Development Strategies
National Qualifications Framework
On-line Grant System (Isett Seta system for electronic capturing
of WSP and WSPIR information)
Organising Framework for Occupations
Previously Disadvantaged Individual
Public, Private Partnership
South Africa
South African Information Technology Industry Strategy
South African Qualifications Authority
South African Standard Classification of Occupations
Sector Education Training Authority
Standard Industrial Classification
State Information Technology Agency
Small, Micro and Medium Enterprises
Sector Skills Plan
Sector Skills Survey (Joint research project between DTI, Isett
Seta and the NSA)
United Nations Development Programme
United States
Umsombomvu Youth Fund
Workplace Skills Plan
Workplace Skills Plan Implementation Report
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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1
CHAPTER 1: SECTOR PROFILE
1.1
Industrial and Occupational Profile
1.1.1
Industrial Activities
The Isett Seta is responsible for Skills Development in the following
three sub-sectors:



Information Systems (IT)
Telecommunication Technologies
Electronics
In terms of Regulation Gazette No. 8203, Vol. 477, No.27445, published
on 31 March 2005, there are 37 SIC codes allocated to Isett Seta. The
majority of these SIC codes involve skills of a technical nature like
manufacturing, maintenance, installation, technology integration, repairs
and also related research and development skills.
1.1.2
Employers in the Sector
It is of vital importance to note that the research study, jointly
commissioned by Isett Seta, the Department of Trade and Industry and
the National Skills Authority, was done inclusive of companies that have
since been exempted from paying Skills Levies. That explains possible
discrepancies in figures relating to numbers of companies in the Isett
Sector and numbers of employees reported in this document. The
sources of statistics are indicated as Isett Seta On-line Grant System
(OGS) or Sector Skills Survey (SSS).
The latest figures from the Department of Labour indicates that there
are 2 475 Levy Paying Employers in the Isett Sector. Based on WSP
data, they can be categorised by number of employees as follows:
Table 1-A Levy Paying Employers
Company by Employee Size
Levy paying companies
1-49
2,112
50-149
249
150+
114
Total
2475
Source: OGS and Dept. of Labour
The distribution of companies by sub-sectors is illustrated below.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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ISETT: Distribution per Sub-Sector
Electronics
22.38%
IT
58.86%
Telecom m unicati
ons
18.76%
Source: SSS
Figure 1-1 Distribution of companies by sub-sector
1.1.3
Employees in the Sector
The total number of employees in the Isett Sector according to the
Sector Skills Survey, categorised by company size, is as follows:
Table 1-B Employees by Company Size
Company size
1-49
50-149
150+
Total
Total Employees
47964
21983
131902
201849
%
23.8%
10.9%
65.3%
100.0%
Source: SSS
The following table and graph depict the racial spread of employees in
the Isett Sector:
Table 1-C Employees by Race
Race
Total
African
Indian/Asian
Coloured
White
%
61094
22548
32974
85232
30.27%
11.17%
16.34%
42.23%
Source: SSS
Table 1-D Total Gender Distribution
Gender
Technical %
Non%
Total
Technical
76.17%
34707
48.55%
133997
23.83%
36786
51.45%
67852
100.00%
71493 100.00%
201849
Male
Female
Total
99291
31065
130356
Source: SSS
The table below reflects employees in the Isett Sector, by race, gender,
disability status and occupational category. It needs to be understood
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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that these statistics were compiled from submitted Workplace Skills
Plans (WSPs) and Annual Training Reports (ATRs) for the financial year
2004/2005. Since not ALL Isett Seta Levy Paying Companies submitted
their WSPs, the number of employees reflected by this table is lower
than the actual number of employees in this Sector.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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Table 1-E Number of employees per job title and race
Occupational
Group
Senior
Officials/
Owners /
Managers
Job Title
F
D
F
D
M
F
WHITE
D
M
Total
F
D
M
F
D
61
1
74
18
1
111
26
2
1690
313
7
2053
418
11
Production and Operations Department managers
272
67
0
179
29
4
218
46
2
1821
394
19
2490
536
25
Other Department Managers
185
101
0
153
70
1
230
63
0
2049
821
19
2617
1055
20
97
41
0
38
21
1
69
24
2
885
242
19
1089
328
22
0
2
0
0
0
0
1
0
0
5
3
0
6
5
0
732
272
1
444
138
7
629
159
6
6450
1773
64
8255
2342
78
Computing Professionals-(Incl. IT Project Managers)
533
209
0
318
92
0
451
93 14
4336
1637
18
5638
2031
32
Business Professionals-(Sales)
314
165
5
136
124
1
189
115
1
1649
936
11
2288
1340
18
Engineers and Related Professionals
557
136
1
183
55
2
435
84
3
3178
534
12
4353
809
18
0
0
0
0
0
0
1
0
0
0
1
0
1
1
0
1404
510
6
637
271
3 1076
292 18
9163
3108
41
12280
4181
68
18 2958
405
13 1968
306 20
10564
2184
128
23328
4457
179
General Managers
Other Technical Professionals
Physical and Engineering Science Technicians
Computer and Associate Professionals
Teaching Professionals
Finance and Sales Associate Professionals
Business Services Agents & Trade Brokers
7838 1562
232
47
2
99
23
1765
712
5
889
228
97
7
3
766
60
5
1194
137
12
13 1058
2
245
5
6513
2194
49
10225
3379
72
47
28
1
18
10
1
10
11
0
131
101
1
206
150
3
333
341
3
142
227
11
249
203
2
866
969
36
1590
1740
52
59
17
0
22
4
1
29
7
0
167
65
2
277
93
3
Administrative Associate Professionals
224
304
2
140
216
11
133
114
3
356
794
14
853
1428
30
Electronics and telecoms engineering technicians
535
135
1
205
73
0
259
59
0
850
190
7
1849
457
8
1
0
0
0
0
0
0
0
Other
11034 3146
Clerical /
administrative
workers
M
INDIAN
178
Other
Technicians
and associate
professionals
M
COLOURED
Directors and Chief Executives
Other
Professionals
AFRICAN
0
0
0
0
1
0
0
32 4473 1186
52 3803
952 33
20213
6557
242
39523
11841
359
623
3001
24
2514
6076
83
1100
3374
63
2860
6420
Office Clerks
1041 1398
14
433
994
33
417
683 12
Secretaries and Keyboard Operating Clerks
1023 1703
53
470
917
23
267
426
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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13
Material Recording & Transport Clerks
Other
Service
workers
Other
Plant and
Machine
Operators and
Assemblers
Electrical and Electronic Equipment Mechanics
Other
362
51
0
80
60
0
45
14
0
81
60
2
568
185
1
1
0
3
0
0
0
0
0
1
3
0
5
4
2427 3153
67
986 1971
56
729 1123 15
1805
6438
89
5947
12685
227
1134 1099
16
598
628
48
359
268
9
1395
1423
54
3486
3418
127
657
136
3
207
238
0
81
64
0
240
28
4
1185
466
7
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
657
136
3
207
238
0
81
64
0
240
28
4
1185
466
7
Labourers
Other
1332
461
1
193
268
1
27
10
0
62
35
0
1614
774
2
Elementary
Occupations
Other
580
429
2
172
49
0
15
14
4
47
13
1
814
505
7
38
23
0
8
2
1
10
3
0
10
26
0
66
54
1
Craft and Related Trades
Craft and
Related Trades Other
Apprentices &
Section 18(2)
Learners
Temporary
Employees
Apprentices & Section 18(2) Learners
Other
Temporary Employees
Other
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
38
23
0
8
2
1
10
3
0
10
26
0
66
54
1
18
23
0
0
1
0
0
0
0
2
3
0
20
27
0
6
4
0
0
0
0
0
0
0
0
0
0
6
4
0
24
27
0
0
1
0
0
0
0
2
3
0
26
31
0
76
54
0
42
6
0
29
12
0
59
28
0
206
100
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
76
54
0
42
6
0
29
12
0
59
28
0
206
100
0
168 6758 2897 85
39446
19432
495
73402
36397
876
19438 9310
128 7760 4758
Source: Isett Seta On-line Grant System
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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1.2
Drivers of Change
1.2.1
Regulatory and Policy Issues
There are several legislative, regulatory and policy issues that have
a major impact on trends and growth in the Isett Sector. Government
is on record to encourage Public Private Partnerships, specifically to
benefit SMMEs and promote BEE Enterprises. The development and
implementation of the ICT BEE Charter also contributes to the
acceleration of Employment Equity in the Isett Sector.
The restructuring of the Department of Communications,
appointment of the Second National Operator (SNO) and new
legislation regulating Voice-Over-Internet-Protocol (VOIP) technology
further provides for increased employment opportunities and
entrepreneurial initiatives.
The Legislation and Regulations below have an impact on the ICT
industry:
Table 1-F Main driving legislation
Legislation/Policy
Aims/Objectives
Implications
Convergence Bill (2005)


ICT Charter



To promote convergence in
the broadcasting,
broadcasting signal
distribution and
telecommunications sectors
and to provide the legal
framework for convergence
of these sectors; to make
new provision for the
regulation of
communications and
network services; to provide
for the granting of new
licenses and for new social
obligations; to provide for
the control of the radio
frequency spectrum; to
provide for the continued
existence of the Universal
Service Agency; and to
provide for matters
incidental thereto.
To support the objectives of
the BBBEE Act and to
promote its effective
implementation in the ICT
sector;
Bridge the “digital divide” by
actively promoting access to
ICT’s; stimulate and support
growth in the ICT sector;
Advance economic and
social transformation in the
Isett Seta Sector Skills Plan 2006-2007 V 3.0





Self-provision of
facilities and re-selling
of bandwidth will
optimise capacity and
result in reduced
prices for users.
More effective
licensing and
regulation will be
enabled
Will promote the
acceleration in
development of
various application
services like VOIP and
electronic commerce
Increased involvement
of PDIs in the ICT
sector
Opportunities for stake
holding by PDIs in
established
businesses
Improved access to
ICT and thus
stimulation in growth
15




ICT R&D and
Innovation
Strategy




ICT sector;
Contribute towards the
reduction of unemployment
and poverty alleviation;
Support skills development
and training initiatives;
Foster equity and address
the legitimate economic
aspiration of all South
Africans; and
Provide an enabling
environment conducive to
transparency, fairness, and
consistency when
adjudicating on matters
related to BEE in the ICT
sector.
Achieve global leadership in
identified key scientific and
technological domains.
Develop multi-disciplinary
technologies, skills and
methodologies to address
areas of market neglect,
especially to eradicate the
Digital Divide.
An indigenous ICT sector
that is developed, growing,
innovative and competitive.
The smart proliferation of
ICT within other sectors of
the economy.
Closer monitoring of ICT
performance as an
industry through KPIs on
Human Research
Development, Research,
and Innovation
The following legislation also impacts on the Isett Sector although its
impact:




Telecommunications Amendment Bill, No. 65 of 2001
Interception and Monitoring Prohibition Act, No.127 of 1992
Interception and Monitoring Prohibition Amendment Act,
No.77 of 1995
Convergence Bill (To be published)
The State Information Technology Agency (SITA) is tasked with ICT
policy formulation and implementation. The responsibility for all
government IT procurement was given to Information the Technology
Acquisition Centre (ITAC) since 01 of April 2002. This is an attempt
by government to ensure that a certain percentage of the Rand value
of all government IT contracts is awarded to BEE companies. The
purpose of this strategy is to appoint vendors that supply government
ICT services and products, thereby addressing the growth of BEE in
South Africa.1
1
ICT in Government, Forge Ahead BMI-T and the Department of Communications, Vol. 1 Issue 1,
October 2002
Isett Seta Sector Skills Plan 2006-2007 V 3.0
16
The ICT Sector Development Framework was developed by the
South African Information Technology Industry Strategy (SAITIS), in
collaboration with stakeholders from government, industry, labour,
academia and civil society. The purpose of this document was to
address many initiatives and the impact that they might have in the
ICT Sector. Some of these initiatives relate to Governance, ICT
Cluster Development, etc.2
1.2.2
a)
National and Provincial Priorities
Provincial Representation
The following graph indicates the spread of Isett Levy Payers by
Province according to WSP data from the 2004/2005 financial year.
16%
7%
Eastern Cape
5%
Free State
3%
Gauteng
3%
Kw aZulu-Natal
2%
Mpumalanga
4%
Northern Cape
Limpopo
12%
48%
North West
Western Cape
Source: OGS
Figure 1-2 Provincial spread of Companies
4%
16%
2%
Eastern Cape
Free State
1%
1%
1%
2%
Gauteng
Kw aZulu-Natal
Mpumalanga
8%
Northern Cape
Limpopo
North West
Western Cape
65%
Source: SSS
Figure 1-3 Provincial spread of Employees
2
Turning Information into Business Value, Information Industry Quarterly, Volume 1/Number 2
Isett Seta Sector Skills Plan 2006-2007 V 3.0
17
The provincial spread of companies depicted here indicates a
serious challenge in developing ICT stakeholders in provinces like
Northern Cape, Limpopo, North West, Mpumalanga and Free State.
b)
ICT and education
There is no doubt that ICT is important and should be a nonnegotiable to a country’s education system. Rathgeber (2000)
argues that an illiterate or poorly educated people cannot wholly
embrace ICTs. From this argument, it follows that the country should
introduce ICT in school curricula so that children learn how to use
these technologies from an early age.
If the whole population is ICT literate, the country benefits as a
result. There is no argument that there is a relationship between ICT
and economy. ILO (2001) views ICT as a meta-technology revolving
around life at work in the information economy, characterised by key
issues such as change management practices, the nature of the
employment contract, and the quality of work.
The question that has been raised is whether the information
economy will be a job creation economy. Some people would argue
that in a highly technological country, jobs tend to be substituted by
technology. If this is true, it can be seen as affecting the country’s
economy negatively. It can result in retrenchment, increased
unemployment and a decline in economic growth. However,
technology can also increase the country’s economic growth.
Hawkins (2002) says there are vital issues to be considered by policy
makers, business and community leaders when planning to
incorporate the Internet in the educational process. These lessons
are:
 Computer Labs in developing countries take time and money,
but they work
 Technical support cannot be overlooked
 Non-competitive telecommunications infrastructure, policies, and
regulations impede connectivity and sustainability
 Lose the wires (basically wireless technology is most effective
for connecting schools in developing countries)
 Get the community involved
 Private-public sector partnerships are essential
 Link ICT and education efforts to broader education reforms
 The professional development of the teachers sits at the heart of
any successful technology and education programme
 Technology motivates students and energises classrooms
Isett Seta Sector Skills Plan 2006-2007 V 3.0
18
1.2.3
a)
Changes in Growth of the Sector
Technical
Expected growth in Technical employees per sub-sector per field is
displayed in the following Table
Table 1-G Expected Growth in Employees Performing Technical Functions per Sub-sector
and Field
Sub-sector
Fields
Hardware
Software
IT
Services
Hardware
Software
Telecomms
Services
Hardware
Software
Electronics
Services
Total
Current
29647
34975
38024
10951
7480
77364
13156
7060
9038
227694
In Two Difference %
Years
Growth
34900
5253 17.72%
44570
9594 27.43%
39996
1973
5.19%
13002
2051 18.73%
8764
1284 17.16%
67051
-10313 -13.33%
13872
716
5.44%
8220
1160 16.43%
10812
1773 19.62%
241185
13491
5.93%
Source: SSS
From the Table above, the following can be observed:

Percentage growth: The IT software field has the highest
expected growth rate (27.43%). The total estimated growth is
5.93%. In one field (Telecommunications services) a significant
negative growth of 13.33% was noted. This may be may largely
be subscribed to the migration of labour from the traditional large
Telecommunications companies to smaller outsourced, mostly
SMME businesses for whom information may not be available.
At the Aug 2006 Isett Seta Board meeting his change in the
industry was noted and an action noted to initiate additional
research into this migration of labour , and the impact that it as
on training and sustainability in this industry 3

Number of functions performed by employees indicates possible
future demands: The IT Field with the highest growth rate is
software (9594). The Telecommunications field with the highest
growth rate is hardware (2051). The Electronics field with the
highest growth rate is services (1773). These three functions
represent 95.01% of the total growth.
In the IT and Electronics Sub-Sectors, a steady positive growth is
predicted for all three fields. A definite decline in the services field is
predicted for the Telecommunications Sub-Sector, while the other
two fields may show slight growth. This trend will have a definite
3
This is an amendment to the Vukanikids Study and is based on the authors knowledge of the
Telecommunications industry
Isett Seta Sector Skills Plan 2006-2007 V 3.0
19
impact on the Isett Sector and will lead to migration to the Non-Isett
Sector. The impact of a second national wired telephone operator
has not been taken into consideration.
b)
Non-Technical
Table 1-H Expected growth in Employees Performing Non-Technical Functions per Subsector and Field
Sub-sector
Fields
Hardware
Software
IT
Services
Hardware
Software
Telecomms
Services
Hardware
Software
Electronics
Services
Total
Current
In Two Difference %
Years
Growth
9353
11141
1789 19.13%
12031
16479
4448 36.97%
19550
21804
2255 11.53%
2874
6195
53035
4079
2457
3954
113528
3726
5412
55845
3668
2984
3398
124458
851
-784
2810
-411
527
-556
10930
29.61%
-12.65%
5.30%
-10.08%
21.44%
-14.05%
9.93%
Source: SSS
From the Table above, the following can be observed:

Percentage growth: The IT software field has the highest
expected growth rate (36.97%). The total estimated growth is
9.93%. Negative growth was noted in three fields.

Number of functions performed by employees indicates possible
future demands: The IT field with the highest growth is software
(4448). The Telecommunications field with the highest growth
rate is services (2810). The Electronics field with the highest
growth rate is software (527). These three functions represent
71.22% of total growth. The IT Sub-Sector represents 77.69%
of total growth.
In the IT Sub-Sector, steady growth is predicted for all three fields.
For the Telecommunications Sub-Sector negative growth is
predicted for the software field with slight growth in the two other
fields. A definite decline in the electronic sub-sector services and
hardware fields is predicted.
1.2.4
Other Changes impacting on the Sector
a)
Technology
The boundaries between the ICT sub-sectors are increasing
becoming unobtrusive and seamless with a computing
Isett Seta Sector Skills Plan 2006-2007 V 3.0
20
environment that is becoming ubiquitous. There are three main
technology groups that will dominate the future ICT landscape4:
1. Mobile
technologies,
including
wireless,
wearables, Wi-Fi, ultra-wide band, smart phones
and location-based services.
2. Smart
networked
objects
which
include
technologies like Radio Frequency Identification
(RFID), Micro electro-mechanical systems MEMS,
smart dust, digital link and embedded computing.
3. Semantic connectivity, including technologies like
Semantic Web, eXtensible Business Reporting
Language (XBLR).
Note that the first group leans towards telecommunications (wireless
applications in particular), the second towards electronics, and the
third towards information systems (particularly software).
b)
Business Environment

Infra-structure
Availability, efficiency and cost are some of the biggest
challenges to both suppliers and users of ICTs. South Africa
seems to be far behind first world countries when it comes to
issues of affordability, bandwidth and dependability of
technology. This factor impacts negatively on ICT exposure to
average South African citizens at an early age.

E-commerce
According to Chris Gibbons (The Future of E-Business) the ‘e’
part is here to stay, provided the Internet performed according to
users’ expectations. What is important in e-business is security.
When there is security there is confidence. Users must be able
to rely on e-business in all transactions that they do. John van
Wyk (The Future of E-Business) believes that consumer
confidence is the lifeblood of e-commerce – if doubt surrounding
the safety of internet-based transactions persists, eentrepreneurs may as well start packing their bags.
The access of South African people to ICT, as presented later in
this chapter, constitutes a major obstacle for SMMEs to benefit
from e-business. This was also confirmed by Brandon Spear
(The Future of E-Business) who indicates that a major threat of
the digital economy is that those SMMEs already struggling in a
4
Benchmarking of Technology Trends and Technology Developments, Bluepeter, April 2004. Study
conducted for the dti.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
21
world of rapid globalisation will be further sidelined because of
poor access to ICTs.
Eddie van Rensburg (The Future of E-Business) emphasises
that spending on technology has to declare real, measurable
and deliverable business returns. South African businesses that
have access to e-business are currently enjoying these returns.
To analyse these returns, it is important to look at different sides
of business partners.
For buyers, e-marketplaces provide the following benefits:

Contract – Automated request for quote process.

Forecast – Communicate demands in real-time with
suppliers.

Purchase – Submit purchase orders to all suppliers in real
time with a single connection.

Receive – Status and confirmation, shipping, receipt,
invoice.

Pay – Link payment from accounts payable to suppliers via
e-marketplace.
1.2.5
Changes in the Labour Market
The tables in this section will be interpreted from two angles: (1) the
percentage growth and (2) the number of employees required to fulfil
possible future demands. The expected growth in the next two years
in the number of Isett functions performed by employees is displayed
in the Table below.
Table 1-I Expected Growth in Employees Performing Technical Functions
Function
Research
Design & Development
Procurement
Manufacturing/Production
Component/Module/Product
Test/Calibration
Assembly of modules into
products
Integration of products into
systems
Customisation/Configuring
Installation
Commissioning/Test
Maintenance
Repair
IT Infrastructure Support
Quality Assurance
Authoring
Sales and Marketing
Support (to clients)
Education & Training
Isett Seta Sector Skills Plan 2006-2007 V 3.0
Current
Difference
6084
10093
3169
3710
5247
In
2
Years
6743
11038
3320
4163
6486
659
946
151
453
1239
%
Growth
10.82%
9.37%
4.77%
12.21%
23.60%
4851
6416
1565
32.25%
8329
10186
1858
22.31%
7591
30822
9017
35954
32698
13688
7036
1652
6066
17992
2818
9347
29320
11334
34985
31245
15424
7317
2018
6767
18340
4021
1755
-1501
2317
-970
-1453
1737
281
366
701
347
1202
23.12%
-4.87%
25.70%
-2.70%
-4.44%
12.69%
3.99%
22.12%
11.55%
1.93%
42.66%
22
Project Management
Consultancy
Outsourcing
Service Provision - based on
ICT systems
Other
Total
7051
5193
2075
5725
7202
5981
2574
6123
151
788
498
399
2.14%
15.18%
24.02%
6.97%
834
227694
837
241185
3
13491
0.36%
5.93%
Source: SSS
From the Table above, the following can be observed:

Percentage growth: The education and training functions have
the highest expected growth rate (42.66%) although it is from a
fairly low base. Although the total estimated growth is 5.93%,
some of the functions do reflect a negative growth percentage.

Number of functions performed by employees indicates possible
future demands: The functional area with the highest estimated
growth in demand is commissioning/test functions (2317),
although these reflect only a growth percentage of 25.7%. The
integration (of products into systems) function indicate the
second highest need (1858) representing growth percentage of
22.31%. The third highest functions are customisation and
configuring (1755). These three functions represent 43.95% of
the total need for skills.
Isett expected growth in non-technical employees per function is
displayed in the Table below.
Table 1-J Expected Growth in Employees performing Non-Technical Functions
Function
Finance
Human Resources
Procurement
Stores and Despatch
Sales and Marketing
Support (to clients)
Education and Training
Project Management
Consultancy
Outsourcing
Other
Total
Current
9253
6783
5454
6793
35008
25174
4965
4429
4940
1031
9699
113528
In Two
Years
10489
7663
5158
7609
36045
30258
7397
4628
5736
1506
7968
124458
Difference
1237
880
-295
816
1037
5084
2431
199
797
475
-1731
10930
% Growth
13.36%
12.97%
-5.42%
12.01%
2.96%
20.20%
48.97%
4.50%
16.12%
46.11%
-17.85%
9.35%
Source: SSS
From the Table above, the following can be observed:

Percentage growth: The education and training functions have
the highest expected growth rate (48.98%) and the outsourcing
(46.11%) function has the second highest expected growth rate.
Although the total estimated growth rate is 9.35%, some of the
functions do reflect a negative growth percentage.

Number of functions performed by employees indicates possible
future demands: The function that will require the highest
Isett Seta Sector Skills Plan 2006-2007 V 3.0
23
number of qualified employees is support to clients (5084). The
education and training functions will require the second most
qualified employees (2431). The third highest need is in finance
(1237). These three functions represent 80.07% of the total
number of trained employees needed.
1.2.6
a)
Social Issues
ICT and Health
There have been arguments on HIV/AIDS challenges internationally.
Scientists and policy makers argue that people, who do not have
access to information, do not have sufficient knowledge on HIV/AIDS
issues. Many countries are spending big amounts of money on
HIV/AIDS awareness programs for this very reason.
Driscoll’s (2001) sees one of the roles of ICTs as being to address
the challenge of HIV/AIDS. If people can access HIV/AIDS related
websites, they can gain valuable knowledge on HIV/AIDS issues.
This will also be an introduction to the e-learning environment.
The Sector Skills Survey with the Department of Trade and Industry
discovered a concerning fact with reference to HIV/AIDS. The
Figures below clearly indicate the lack of AIDS Policies. In the Isett
Sector, 61.55% of companies indicated that they do not have an
HIV/AIDS Policy. Also note that 22.42% of Isett company
respondents indicated that they did not know whether they have a
policy. This means that only 16.03% companies have AIDS Policies.
This is an alarmingly low percentage compared to the enormous
projected effect that HIV/AIDS could have on the South African
labour force. It also indicates reluctance within companies to address
the seriousness of the problem.
ISETT: HIV-Aids Policies
Don't Know
22.42%
Yes
16.03%
No
61.55%
Source: SSS
Figure 1-4 HIV-Aids Policies of Isett Companies
b)
Poverty
There are alarming statistics revealing the impact of poverty on the
potential growth in the number of ICT users. Wresch (1996:58)
Isett Seta Sector Skills Plan 2006-2007 V 3.0
24
states: “The poor are excluded from much of the world’s information
and no one has begun to outline a solution to the problem”, said.
ICT development for socio-economic change needs huge state
support and financing, but ICT initiatives to combat poverty must be
suited to the low productivity environment in which they are applied.
It is consequently important to determine the total population in SA
and current status in terms of access to ICTs.
Table 1-K Total South African population per race
Black
African
35 087 973
Coloured
3 987 696
Indian or
Asian
1 101 703
White
Total
4 179 405
44 356 776
Source: Stats SA, Census 2001
The following numbers and percentages of households were found
to have access to computer, telephone and cell phone.
Table 1-L Number of people per race with computer, telephone and cell phone
Black
Coloured Indian or White
Total
African
Asian
Computer
158 267
83 520
79 070
647 884
968 741
Telephone 1 031 642
383 974
211 562
1 107 658 2 734 836
Cell2 121 276
275 554
166 564
1 051 846 3 615 241
phone
Source: Stats SA, Census 2001
46
50
40
27.9
30
Coloured
Indian or Asian
20
9.4
10
Black Africans
White
1.8
0
Source: Stats SA, Census 2001
Figure 1-5 Percentage of population per race with computers
While African Blacks make up 79% of the total population, only 1.8%
of these people have computers. Coloured people form 8.9% of the
population and 9.4% of this group has computers. White people
constitute 9.6% of the population and 46% of them have computers.
In the case of Indian and Asian people, they form 2.5% of the
population and 27.9% have computers.
Most arguments around poverty focus on insufficient nutrition,
inadequate shelter and other related aspects. It is only now that
Isett Seta Sector Skills Plan 2006-2007 V 3.0
25
people are starting to look at lack of access to ICT as an element of
poverty.
1.3
Conclusion
Significant information is available to the Isett Seta that defines the
industry, its trends and its status. It is clear from the data available
that there is significant growth in the industry and this growth will
continue as various new technologies is made available and the
general age and education level of consumers and business leaders
continue to stimulate the use of ICT skills in their daily tasks.
Negative employment growth in the Telecommunications sector as
reflected the figures in Table 1-G are not deemed a true reflection of
the employment in the industry and are rather due to a change in the
structure of the industry. Typically large employers like Telkom
Vodacom and MTN had been reducing their workforce and have
been outsourcing Telecommunication Installation and Support skills
to SMME companies. The negative employment figures therefore
reflect employment in the large companies, rather tan employment in
the sector. The challenge for the SETA is therefore to gather the
employment figures from the small, non levy paying companies in
future to be able to get a correct view on the trends.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
26
2
CHAPTER 2: DEMAND FOR SKILLS
2.1
Current Employment
The Demand figures reflected in the SSP research primarily reflects
the large formal side of the market. It should be noted that the
research conducted in 2005 / 2006 excludes the entry of the SNO
and any other new players to the market and therefore all
assumptions wrt their impact on the Demand side of the sector are
speculative. Given this the following could be anticipated;
1.
2.
3.
2.1.1
a)
The SNO will probably do like other large Telecommunications
by largely depending on SMME contractors for Installation,
Support and Maintenance tasks.
As they will be drawing from the same Pool of experienced
technical resources there may be a requirement for sourcing
skills from abroad.
Such skills are typically required during network construction
and roll out that do not lead to knowledge transfer or training.
Distribution of Employees
Occupational Category
The occupational categories for Isett Technical employees, as well
as, the percentages and numbers are illustrated in the Figure below.
ISETT: Total Employee Distribution per Occupational Category
(Total = 201849)
Administrative support staff
39176
19.41%
Low level technology users
6463
3.20%
Computing Professionals
(including IT professionals)
20801
10.31%
Electrical & Electronic
Equipment Mechanics & Fitters
5174
2.56%
Engineers & Related
Professionals (including
Telecommunications project
managers)
6218
3.08%
Other Technicians & Associate
Professionals
18384
9.11%
Computer & Associate
Professionals
8131
4.03%
Managers & Supervisory staff
36072
17.87%
Physical & Engineering Science
Technicians
53802
26.65%
Business Professionals (Sales)
7627
3.78%
Source: SSS
Figure 2-1 Total employee distribution per occupational category
Isett Seta Sector Skills Plan 2006-2007 V 3.0
27
The three major categories are physical and engineering science
technicians, administrative support staff and managers & supervisory
staff. These three categories represent 63.93% of the total
employees.
In the Figure below the race and gender distribution of managers &
supervisory staff is illustrated. While White male dominance is clear,
this is the only category where White males are still dominant.
ISETT: Managers & Supervisory Staff
(Total = 36072)
F
White
4415
12%
M
Af rican
5070
14%
M
White
17384
48%
F
Coloured
962
3%
F
Af rican
1796
5%
M
Indian/ Asian
2931
8%
M
Coloured
2764
8%
F
Indian/ Asian
752
2%
Source: SSS
Figure 2-2 Race and gender distribution of managers and supervisory staff
In the next Figure, although the physical & engineering science
technician category is still male dominant, the dominant race group is
African males at 35%.
ISETT: Physical & Engineering Science Technicians
F
White
2339
4%
M
White
17086
32%
F
Coloured
844
2%
M
Coloured
6832
13%
(Total = 53802)
M
Af rican
19346
35%
F
Indian/ Asian
572
1%
M
Indian/ Asian
3738
7%
F
Af rican
3045
6%
Source: SSS
Figure 2-3 Race and gender distribution of physical and engineering science technicians
b)
Employees with disabilities
The Figure below reflects an alarming state of affairs where
employment of people with disabilities is concerned.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
28
ISETT: Population Analysis for Disabilities
2.74%
Persentage
3.00%
2.00%
0.46%
1.00%
0.00%
% Disabilities employed
% Companies that employ Disabilities
Source: SSS
Figure 2-4 Population analysis of disabilities
c)
Employee Profile Summarised
The profile for the Isett Technical employees can now be
summarized as HDI (57.3%) dominant. This group still consists
mainly of males (76.17%). The biggest group of employees with
similar highest qualifications is the 36.19% with certificates.
The profile for the Isett Non-Technical employees may also be
summarised as HDI (58.67%) dominant. This group comprises
51.45% females. The biggest group of employees with similar
highest qualification is the 42.76% with matric.
An interesting fact in the total Isett Sector is that the biggest single
occupational category is physical and engineering science
technicians (26.65%) The second biggest group is administrative
support staff (19.41%). Union representation in the Isett Sector is at
a low 28.09%. Very few Isett employees are disabled (0.46%).
2.1.2
a)
Current Skills Base
Employees per Sub-sector per Function (Skill Areas)
In order to better understand the skills needs and requirements of
Isett stakeholders, employees have been categorised according to
the technical and non-technical nature of their skills requirements
Technical Employees
It is important to note that all Tables in this section refer to multiple
functions performed by employees. Although an average number of
functions per employee in each sub-sector can be calculated, a
specific function cannot be attributed directly to a specific number of
employees. The average employee fulfils more than one function.
Technical: IT Sub-Sector
The Table below reflects the Technical employees that perform
specific functions per field in the IT Sub-Sector. IT infrastructure
support shows the highest number of performed functions (11008 –
10.72%). In this case services take preference with 38024 functions
Isett Seta Sector Skills Plan 2006-2007 V 3.0
29
performed. It highlights that most employees Isett IT Sub-Sector are
in the services field. Companies in this sub-sector focus on service
delivery. In this sub-sector the average number of functions
(102646) performed by the technical employees (22907) is 4.48.
Table 2-A IT Sub-Sector - Employees Performing Functions
IT Sub-Sector - ICT Technical
Function
Software
1048
1405
1314
3767
3.67%
Design & Development
468
3099
3900
7468
7.28%
Procurement
444
556
752
1752
1.71%
Manufacturing/Production
Component/module/product
Test/Calibration
Assembly (of modules into
products only)
Integration (of products into
systems)
489
501
586
1577
1.54%
870
782
568
2220
2.16%
1420
976
583
2979
2.90%
Research
Services
Total
% of
Total
Hardware
1359
1846
1547
4752
4.63%
Customisation/Configuring
1921
2855
1054
5830
5.68%
Installation
2193
2722
2241
7156
6.97%
Commissioning/Test
1550
2492
1302
5344
5.21%
Maintenance
2882
3308
3846
10035
9.78%
Repair
2423
2069
2429
6921
6.74%
IT Infrastructure Support
4625
2118
4265
11008
10.72%
Quality Assurance
662
1184
1287
3133
3.05%
Authoring
184
257
553
994
0.97%
Sales and Marketing
746
1199
1347
3293
3.21%
Support (to clients)
3667
3220
3704
10591
10.32%
Education & Training
257
456
731
1444
1.41%
Project Management
532
964
1903
3398
3.31%
Consultancy
556
1664
1532
3752
3.66%
Outsourcing
Service Provision - based on
ICT systems
278
402
514
1193
1.16%
1066
900
1970
3936
3.83%
6
0
97
103
0.10%
29647
34975
38024
102646
100%
Other
Total
Source: SSS
Technical: Telecommunications Sub-Sector
In the Table below, the Technical employees that perform specific
functions per field in the Telecommunications Sub-Sector are listed
in detail. Maintenance has the highest number of performed
functions (22212 – 23.19%). Services take preference again with
77364 functions performed. In this sub-sector the average number of
functions (95794) performed by the technical employees (91623) is
1.05.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
30
Table 2-B Telecommunications Sub-Sector - Employees Performing Functions
Telecommunications Sub-Sector - ICT Technical
Function
Research
Design & Development
Procurement
Manufacturing/Production
Component/module/product
Test/Calibration
Assembly (of modules into
products only)
Integration (of products into
systems)
Customisation/configuring
Installation
Commissioning/Test
Maintenance
Repair
IT Infrastructure Support
Quality Assurance
Authoring
Sales and Marketing
Support (to clients)
Education & Training
Project Management
Consultancy
Outsourcing
Service Provision - based on
ICT systems
Other
Total
Hardware
387
211
151
157
Software
184
417
172
127
Services
665
689
293
187
Total
1236
1317
616
471
% of
Total
1.29%
1.37%
0.64%
0.49%
236
196
1072
1504
1.57%
263
227
296
785
0.82%
553
242
1664
828
1819
1746
399
181
136
447
631
76
363
208
127
779
305
420
257
761
489
381
278
94
311
819
121
320
251
100
1100
332
19714
791
19633
19781
994
2740
112
746
3335
659
2359
384
175
2432
879
21799
1876
22212
22016
1773
3199
341
1504
4785
855
3042
843
402
2.54%
0.92%
22.76%
1.96%
23.19%
22.98%
1.85%
3.34%
0.36%
1.57%
5.00%
0.89%
3.18%
0.88%
0.42%
127
0
10951
190
281
7480
903
405
77364
1220
686
95794
1.27%
0.72%
100%
Source: SSS
Technical: Electronics Sub-Sector
In the Table below, the Technical employees that perform specific
functions per field in the Electronics Sub-Sector are listed in detail. It
is important to note that “repair” has the highest number of
performed functions (3761 – 12.86%) and “other” the lowest number
of performed functions (45 – 0.15%). In this case hardware takes
preference with 13156 functions performed. In this sub-sector the
average number of functions (29254) performed by the technical
employees (15826) is 1.84.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
31
Table 2-C Electronics Sub-Sector - Employees Performing Functions
Electronics Sub-Sector - ICT Technical
Function
Research
Design & Development
Procurement
Manufacturing/Productio
n
Component/module/prod
uct Test/Calibration
Assembly (of modules
into products only)
Integration (of products
into systems)
Customisation/configurin
S
g
Installation
o
Commissioning/Test
u
rMaintenance
cRepair
IT Infrastructure Support
e
Quality Assurance
:Authoring
Sales and Marketing
S
Support (to clients)
S
Education & Training
S
Project Management
Consultancy
Outsourcing
Service Provision based on ICT systems
Other
S
Total
o
Hardware
486
375
287
Software
290
417
236
Services
305
517
278
Total
1081
1308
801
% of Total
3.70%
4.47%
2.74%
970
211
480
1661
5.68%
822
299
402
1523
5.20%
634
214
239
1088
3.72%
495
302
347
1145
3.91%
423
1084
1094
1770
1800
290
329
63
381
924
172
172
218
199
251
408
308
888
858
287
139
91
372
801
97
169
187
94
208
375
396
1048
1103
329
236
163
517
891
251
269
193
187
882
1867
1797
3707
3761
906
704
317
1269
2616
520
610
598
480
3.02%
6.38%
6.14%
12.67%
12.86%
3.10%
2.41%
1.08%
4.34%
8.94%
1.78%
2.09%
2.04%
1.64%
166
0
142
0
260
45
568
45
29254
1.94%
0.15%
100%
u
rce: SSS
Non-Technical Employees
In the Table below, the Non-Technical employees that perform
specific functions per field in the IT Sub-Sector are listed in detail. It
is important to note that IT infrastructure support has the highest
number of performed functions (8556 – 20.9%) and outsourcing the
lowest number of performed functions (520 – 1.27%). In this case
services take preference with 19550 functions performed.
It
highlights that most employees (282480 – 71.85%) in the IT SubSector are in the services field, where companies in this sub-sector
focus on service delivery. In this sub-sector the average number of
functions (40933) performed by the non-technical employees
(16405) is 2.49.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
32
Table 2-D Non-Technical: IT Sub-Sector - Employees Performing Functions
IT Sub-Sector - ICT Technical
Function
Hardware
Finance
Human
Resources
Procurement
Stores and
Despatch
Sales and
Marketing
Support (to
clients)
Education and
Training
Project
Management
Software
Services
Total
% of Total
1008
1294
2075
4378
10.69%
581
922
2094
3597
8.79%
450
421
893
1763
4.31%
1066
1028
1082
3176
7.76%
1615
2091
2874
6581
16.08%
2412
2769
3376
8556
20.90%
424
777
1037
2239
5.47%
462
761
1041
2264
5.53%
Consultancy
392
870
1214
2476
6.05%
Outsourcing
58
109
353
520
1.27%
Other
883
989
3510
5383
13.15%
Total
9353
12031
19550
40933
100%
Source: SSS
In the next Table, Non-Technical employees that perform specific
functions per field in the Telecommunications Sub-Sector are listed.
It is important to note that sales and marketing have the highest
number of performed functions (26760 – 43.09%) and outsourcing
the lowest (276–0.44%). Services take preference again with 53035
functions performed. It highlights that most employees (130113 –
96.35%) in this sub-sector are in the services field. The average
number of functions (62105) performed by the technical employees
(43418) is 1.43.
Table 2-E Non-Technical: Telecommunications Sub-Sector - Employees Performing
Functions
Telecommunications Sub-Sector - ICT Technical
Function
Finance
Human Resources
Procurement
Stores and Despatch
Sales and Marketing
Support (to clients)
Education and Training
Project Management
Consultancy
Outsourcing
Other
Total
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
Hardware
241
202
154
353
556
524
154
154
292
45
199
2874
Software
456
546
225
215
1201
1041
238
231
225
45
1773
6195
Services
2842
1558
2634
1802
25003
13602
1696
1089
1317
186
1307
53035
Total
3539
2306
3013
2370
26760
15166
2088
1474
1834
276
3279
62105
% of
Total
5.70%
3.71%
4.85%
3.82%
43.09%
24.42%
3.36%
2.37%
2.95%
0.44%
5.28%
100%
33
In the Table below, the Non-Technical employees that perform
specific functions per field in the Electronics Sub-Sector are listed in
detail. It is important to note that sales and marketing have the
highest number of performed functions (1667 – 15.89%) and
outsourcing the lowest number of performed functions (234 –
2.24%). In this case hardware takes preference, as in the technical
Electronics Sub-Sector, with 4079 functions performed. In this subsector the average number of functions (10489) performed by the
technical employees (11672) is 0.89.
Table 2-F Non-Technical: Electronics Sub-Sector - Employees Performing Functions
Electronics Sub-Sector - ICT Technical
Function
Finance
Human Resources
Procurement
Stores and
Despatch
Sales and
Marketing
Support (to clients)
Education and
Training
Project
Management
Consultancy
Outsourcing
Non-Technical other
(cleaners, drivers,
etc.)
Total
Hardware
Software
Services
Total
% of Total
424
411
270
350
157
141
562
312
267
1336
880
678
12.74%
8.39%
6.46%
597
270
379
1246
11.88%
752
668
337
312
578
472
1667
1452
15.89%
13.84%
218
212
209
639
6.09%
161
209
42
183
164
138
347
257
55
691
629
234
6.58%
6.00%
2.24%
328
193
517
1037
9.89%
4079
2457
3954
10489
100%
Source: SSS
b)
Educational Profile
This is a mere indication of the level of qualification of the employees
rather than a comparison of different qualifications. The qualifications
were recorded in relation to the different functions employees
perform and not in direct relation to the employee.
The Figure below indicates the highest qualifications of employees.
Most of the employees have certificates in technical fields, while
most employees in the non-technical field have matric. If the totals
are combined, more employees have matric as their highest
qualification. This could be an indication that the overall highest
qualification of all employees are not at a desirable level. A worrying
figure is the very low number of post-graduates in the technical
group of employees. This poses a question whether the ICT industry
may not have developed to a level where their services are required,
or whether the current employees are just under-qualified.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
34
Number of Personnel by Qualification
2017
7060
Non-Tech
14264
17576
30576
Post Degr
Degr
1699
11076
Tech
Dipl
31808
Certif
47182
38592
<= Matric
3716
18135
Total
46072
64758
69168
0
10000
20000
30000
40000
50000
60000
70000
80000
Number of Personel
N= 201849
Source: SSS
Figure 2-5 Number of personnel by qualification
2.2
Employment Trends
2.2.1
Vacancies
a)
Vacancies According to Sub-sector
Most vacancies are in the IT sector. There are more technical
vacancies than non-technical vacancies in all sub-sectors.
Source: SSS
Figure 2-6 Isett Technical: Number of vacancies by sub-sector
Isett Seta Sector Skills Plan 2006-2007 V 3.0
35
2.2.2
a)
Vacancies According to Function by Sub-sector
Technical
The Figure below illustrates the Technical vacancies per function by
sub-sector. The largest number of vacancies is again in the IT SubSector.
ISETT Te chnical:Vacancie s pe r Functions
by Sub-Se ctor
1000
800
600
400
200
0
1200
1400
1600
402
145
Resear ch
69
804
115
151
Design & Development
160
118
Pr ocur ement
42
163
42
Manuf act ur ing/ Pr oduct ion
94
236
Component / Module/ Pr oduct
69
100
Test / Calibr at ion
366
Assembly ( of modules int o
127
175
pr oduct s only)
305
Int egr at ion ( of pr oduct s int o
121
112
syst ems)
218
36
36
Cust omisat ion/ Conf igur ing
526
187
Inst allat ion
260
405
127
115
Commissioning/ Test
1513
278
236
Maint enance
637
227
187
Repair
749
115
IT Inf r ast r uct ur e Suppor t
69
127
21
21
Qualit y Assur ance
100
54
24
Aut hor ing
547
199
242
Sales and Mar ket ing
846
254
Suppor t ( t o client s)
157
196
21
27
Educat ion & Tr aining
604
148
Pr oject Management
69
643
169
Consult ancy
60
130
Out sour cing
63
0
88
Ser vice Pr ovision, based on ICT
33
39
Syst ems
Ot her ( please specif y over leaf )
27
24
0
IT = 9791
Telecomms = 2695
Electronics = 2287
Source: SSS
Figure 2-7 Isett Technical: Vacancies per function by sub-sector
Isett Seta Sector Skills Plan 2006-2007 V 3.0
36
b)
Non-Technical
The Figure below illustrates the Non-Technical vacancies per
function by sub-sector.
ISETT Non-Technical: Vacancies per Functions
by Sub-Sector
0
200
400
600
800
1000
1200
1400
344
157
Finance
74
360
80
74
Human Resources
854
96
Procurement
48
935
241
St ores and Despat ch
125
1147
302
Sales and Market ing
199
922
206
164
Support (t o client s)
376
80
84
Educat ion & Training
430
Project Management
100
100
Consult ancy
93
100
337
Out sourcing
Non-Technical Ot her
(cleaners, drivers, et c.)
26
39
22
283
77
100
IT = 6012
Telecomms = 1471
Electronics = 1089
Source: SSS
Figure 2-8 Isett Non-technical: Vacancies per function by sub-sector
Isett Seta Sector Skills Plan 2006-2007 V 3.0
37
2.2.3
Vacancies According to Qualifications
The Figure below indicates the number of vacancies by qualification.
It is clear that in both non-technical and technical areas there is a
demand for diploma qualifications. This trend indicates that the Isett
Sector has a growing demand for higher qualifications. The
vacancies for post-degree qualifications are very low. It poses a
question: Is the market saturated for post-degree qualifications, or
could it be that the focus of the ICT industry in the country is not on
the type of functions that accommodates highly skilled graduates?
ISETT: Number of Vacancies by Qualification
45
877
Non-Tech
2036
1387
604
Post Degr
88
Degr
2103
Tech
4918
Dipl
2296
Certif
761
<= Matric
133
2979
Total
6954
3683
1365
0
2000
4000
6000
8000
Source: SSS
Figure 2-9 Number of vacancies by qualification
Isett Seta Sector Skills Plan 2006-2007 V 3.0
38
2.2.4
a)
Vacancies According to Function by Qualifications
Technical
Table 2-G Technical Vacancies According to Sub-sector by Function and Qualification
Function
Research
Design & Development
Procurement
ICT: Technical
Manufacturing/Production
Component/Module/Product
Test/Calibration
Assembly (of modules into products
only)
Integration (of products into systems)
Customisation/Configuring
Installation
Commissioning/Test
<= Matric
Cert
Dipl
Degr
Post-degr
Total
30
57
151
115
3
356
6
94
444
335
15
894
36
30
76
27
6
175
0
36
112
33
0
181
12
124
169
21
9
335
33
91
266
24
0
414
36
106
121
54
3
320
9
91
97
9
0
205
94
221
227
97
15
653
54
148
151
24
3
381
118
320
828
308
3
1577
Repair
45
233
323
36
3
640
IT Infrastructure Support
54
242
272
148
3
719
Maintenance
Quality Assurance
6
15
27
33
3
85
Authoring
12
18
51
6
0
88
Sales and Marketing
79
121
257
100
3
559
Support (to clients)
45
236
474
106
0
861
Education & Training
0
6
91
79
0
175
Project Management
21
15
290
269
3
598
Consultancy
33
45
408
239
12
737
Outsourcing
Service Provision - based on ICT
systems
Other (please specify overleaf)
33
15
12
9
3
73
3
18
63
15
0
100
0
15
9
15
0
39
761
2296
4918
2103
88
10165
Source: SSS
The Table above shows detailed vacancies by function and
qualification. It indicates that the most common vacancies are in
maintenance, requiring a diploma as qualification. The table also
clearly shows that the most vacancies prefer a diploma as
qualification in the technical function area. This Table represents the
complete set of data on vacancies by function.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
39
b)
Non-Technical
ICT: Non-Technical
Table 2-H Non-Technical Vacancies According to Sub-sector by Function and
Qualification
<= Matric
Finance
6
87
151
141
6
392
Human Resources
87
51
87
157
19
401
Procurement
48
29
128
74
13
292
Stores and Despatch
90
260
231
6
0
588
Sales and Marketing
71
446
472
67
3
1060
Support (to clients)
80
299
357
26
0
761
Education & Training
13
58
234
35
0
340
Project Management
42
32
161
234
3
472
Consultancy
10
67
183
119
0
379
Outsourcing
3
6
13
0
0
22
154
51
19
16
0
241
604
1387
2036
877
45
4949
Non-Technical Other (cleaners, drivers, etc.)
Cert
Dipl
Postdegr
Function
Degr
Source: SSS
The Table above indicates that the most common vacancies are in
sales and marketing, requiring a diploma as qualification. The Table
also indicates clearly that the most vacancies prefer a diploma as
qualification in the non-technical function area. This Table represents
the complete set of data on vacancies by function for the nontechnical function area. Outsourcing has the lowest number of
vacancies.
2.2.5
Reasons for Vacancies
As indicated in the Figures below, the most recurring reason for
vacancies in all the positions is a “Loss to other organisations in
South Africa”. This shows clearly that the concept of “headhunting”
is a big concern for employers. This practice can even result in a
resistance of employers to spend money on training of employees.
They may consider it lest costly to “buy” readily trained personnel.
This indicates the migration of employees between companies.
Research results showed that hardly any companies in this ICT
sector lost employees to the overseas market.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
40
Total
ISETT: Reason for Vacancies: Technical Employees
(Total = 7761)
5637
6000
5000
4000
3000
2000
544
598
435
547
Loss to another
organisation
within SA
Retrenchments
Retirement
Death
0
Emigration
1000
Source: SSS
Figure 2-10 Reasons for vacancies: technical employees
ISETT: Reason for Vacancies: Non-Technical Employees
(Total = 7358)
5409
6000
5000
4000
3000
2000
446
324
427
752
Loss to another
organisation
within SA
Retrenchments
Emigration
Retirement
0
Death
1000
Source: SSS
Figure 2-11 Reasons for vacancies: non-technical employees
Not only technical, but non-technical employees in companies
operating in the ICT environment lose their employees to other
companies. More technical staff (10.81%) is lost in this manner.
Furthermore, it became evident that Isett companies retrench more
non-technical employees. This means that technical employees have
better job security.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
41
2.3
Future Employment Signalling
2.3.1
Expected Growth per Functional Area
a)
Technical
The expected growth in the next two years in the number of functions
performed by employees is displayed in the next Table.
Table 2-I Expected Growth in Employees Performing Technical Functions
Function
Research
Design & Development
Procurement
Manufacturing/Production
Component/Module/Product Test/Calibration
Assembly (of modules into products only)
Integration (of products into systems)
Customisation/Configuring
Installation
Commissioning/Test
Maintenance
Repair
IT Infrastructure Support
Quality Assurance
Authoring
Sales and Marketing
Support (to clients)
Education & Training
Project Management
Consultancy
Outsourcing
Service Provision - based on ICT systems
Other
Total
6084
10093
3169
3710
5247
4851
8329
7591
30822
9017
35954
32698
13688
7036
1652
6066
17992
2818
7051
5193
2075
5725
834
In Two
Years
6743
11038
3320
4163
6486
6416
10186
9347
29320
11334
34985
31245
15424
7317
2018
6767
18340
4021
7202
5981
2574
6123
837
227694
241185
Current
Difference
659
946
151
453
1239
1565
1858
1755
-1501
2317
-970
-1453
1737
281
366
701
347
1202
151
788
498
399
3
10.82%
9.37%
4.77%
12.21%
23.60%
32.25%
22.31%
23.12%
-4.87%
25.70%
-2.70%
-4.44%
12.69%
3.99%
22.12%
11.55%
1.93%
42.66%
2.14%
15.18%
24.02%
6.97%
0.36%
13491
5.93%
Source: SSS
From this Table above, the following can be observed:

Percentage growth: Education and training functions have the
highest expected growth rate (42.66%). Although the total
estimated growth is 5.93%, some of the functions do reflect a
negative growth percentage.

Number of functions performed by employees indicates
possible future demands: The commissioning/test functions
has the highest estimated growth in demand (2317), yet
reflects only a growth of 25.7%. Integration (of products into
systems) shows the second highest need (1858) representing
growth of 22.31%. The third highest functions are
Isett Seta Sector Skills Plan 2006-2007 V 3.0
% Growth
42

b)
customisation and configuring (1755). These functions
represent 43.95% of the total need.
Negative growth in installation , maintenance and repair
functions largely reflect outsourcing to small , non levy paying
SMME suppliers
Non-Technical
Expected growth in non-technical employees per function is
displayed in the Table below.
Table 2-J Employees performing Non-Technical Functions
Function
Finance
Human Resources
Procurement
Stores and Despatch
Sales and Marketing
Support (to clients)
Education and Training
Project Management
Consultancy
Outsourcing
Non-Technical other
Total
9253
6783
5454
6793
35008
25174
4965
4429
4940
1031
9699
In Two
Years
10489
7663
5158
7609
36045
30258
7397
4628
5736
1506
7968
113528
124458
Current
Difference
% Growth
1237
880
-295
816
1037
5084
2431
199
797
475
-1731
13.36%
12.97%
-5.42%
12.01%
2.96%
20.20%
48.97%
4.50%
16.12%
46.11%
-17.85%
10930
9.35%
Source: SSS
From the Table above, the following can be observed:

Percentage growth: The education and training functions have
the highest expected growth rate (48.98%) and outsourcing
(46.11%) has the second highest. Although the total estimated
growth rate is 9.35%, some of the functions do reflect a negative
growth mostly reflecting losses that are captured in the
“Outsourcing” growth area

Number of functions performed by employees indicates possible
future demands: The function that will require the highest
number of qualified employees is support to clients (5084).
Education and training will require the second most qualified
employees (2431). Finance is the third with (1237). These
three functions represent 80.07% of the total number of trained
employees needed.
2.4
Skill Adequacy from the Employer's Perspective
2.4.1
Inadequacy in Trained Employees per Qualification
Inadequacy of training is shown in the table below. The
office/business/ enterprise group reports high levels of inadequacy in
matric, certificate and diploma qualifications. The software
applications group reports high levels of inadequacy in certificates
Isett Seta Sector Skills Plan 2006-2007 V 3.0
43
and diplomas. It is important to note that the same groups that
reported the biggest need for skilled employees also reported the
biggest inadequacies in qualifications.
Table 2-K Inadequacy in Current Training of Employees
Products/Services
Matric
Office/Business/Enterprise
Subscriber/Consumer
Transport (>2 Mbits)
Access (<=2 Mbits)
Cable
Components
Cert
Dipl
Degr
Post-degr
2489
3030
2287
625
76
456
589
381
91
12
0
33
27
3
9
30
54
42
15
12
30
18
9
0
6
12
0
0
3
0
0
33
21
9
0
0
21
0
0
0
24
54
24
3
3
Test & Measurement
Process Control &
Instrumentation
Security & Surveillance
Transportation Monitoring &
Control
Power Electronics
Medical
Software Applications
27
57
109
6
0
0
0
701
6
0
1411
293
0
1263
21
0
547
0
0
27
Other
979
1954
1462
474
18
Total
4740
7292
5915
1803
139
Source: SSS
2.4.2
Inadequacy in Trained Employees – Totals per Function
The groups where inadequacy of skills was the highest are indicated
in the Table below. Office/business/enterprise is at the top of the list
(42.77%). The top three shows that 87.19% of technical employees
working in the products/services group were inadequately trained.
Table 2-L Technical – Inadequate Skills per Products and Services group
Products/Services
Office/Business/Enterprise
Other
Software Applications
Subscriber/Consumer
Power Electronics
Transportation Monitoring & Control
Cable
Security & Surveillance
Access (<=2 Mbits)
Components
Test & Measurement
Transport (>2 Mbits)
Process Control & Instrumentation
Medical
Total
Employees
%
8507
4888
3948
1529
320
199
121
109
76
76
63
33
21
0
42.77%
24.57%
19.85%
7.69%
1.61%
1.00%
0.61%
0.55%
0.38%
0.38%
0.32%
0.17%
0.11%
0.00%
19889
100.00%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
44
The Table below shows a further analysis of the above major groups
where respondents identified the ten worst trained products and
services fields. This list represents 46.13% of the 73 products and
services fields that form part of the research.
The Table below lists the 10 worst Technical trained qualifications
per product and services. The training of these product and services
requires a more in-depth analysis.
Table 2-M 10 Worst Trained Qualifications per Product and Services
Products/Services
PCs, Laptops & Portables
Packaged Software
Operating Systems Software
Internet
Servers
Call centres
Mainframes
LAN Operating Systems
Peripherals
Modems
Total
Total of all Products and Services (n=73)
Employees
% of Total
2172
1033
894
810
807
782
752
677
659
625
9211
19889
23.58%
11.22%
9.71%
8.79%
8.76%
8.49%
8.17%
7.35%
7.15%
6.79%
100.00%
% of Total
(All)
10.92%
5.19%
4.50%
4.07%
4.06%
3.93%
3.78%
3.40%
3.31%
3.14%
46.31%
Source: SSS
2.4.3
Soft Business Skills
Respondents were asked to indicate whether certain soft and
business skills should be included in all technical qualifications. It is
evident that the Isett Sector needs soft and business skills to be
included in training curricula of technical employees’. The responses
are shown below.
Table 2-N Responses on soft and business skills inclusion in technical qualifications
Soft Skills &
Business Skills
Financial Skills
Marketing Skills
Business Skills
Business
Communication Skills
Human Resources
Skills
Management Skills
Project Management
Skills
%Yes
76.21%
62.28%
77.85%
76.75%
67.32%
77.41%
76.64%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
45
2.5
Important Points Arising From This Chapter
2.5.1
New Entrants to the Demand Market:
The Impact of large entrants such as the SNO and the impact of
convergence are still unclear and will have to be taken into account
in future years
2.5.2
Changing landscape:
A trend to outsourcing of certain skills to SMME companies creates
the impression of a decrease in demand in certain sections. This is
not correct and research design needs to adapted to also capture
more accurate data from the 1-50 employee sector
2.5.3
Race and Gender:
The trend in the race and gender distribution in the Isett Sector
shows a rapid move away from the current generally accepted
perception of a White male dominant industry. Although White
males still comprise the biggest group (32.83%), African males are
catching up fast at 23.23%. On the technical side male dominance is
still clear at 76.17%, however on the non-technical side a female
dominance of 51.45% is apparent.
2.5.4
Disabilities
The highly disappointing figure of only 0.46% of employees suffering
from disabilities in the Isett Sector is far below the target of 4%. The
few companies that employ people with disabilities must be
applauded. The rest of the ICT industry will have to pay urgent
attention to this matter. Perhaps it is time to pay as much attention
to disabilities as happens to be the case with race and gender.
2.5.5
Common Employee Profile
The following interesting observations were made when the common
employee profile was examined:
a)
Technical:

The physical and engineering science technicians form
most common occupational category and that was
somewhat surprising.

The relative low qualification level of Technical employees,
being a certificate, definitely needs to be addresses. To
grow the ICT industry in the next five to ten years, it is
essential to up-skill current employees.
b)
Non-Technical
 The female dominance in the Non-Technical functional
area was a pleasant surprise.
 The common qualification >= matric was not such a
surprise but definitely needs attention.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
46
2.5.6 Technical Employees per Product and Services
Table 2-O Technical employees per product and services
###
982
###
###
###
###
###
860
215
402
863
243
843
265
###
281
298
604
885
500
293
###
###
248
570
263
200
175
833
564
###
###
289
###
###
###
###
###
###
###
###
268
575
923
397
###
387
###
462
499
717
###
547
390
###
###
355
656
384
321
251
###
581
###
###
340
445
231
53
137
38
70
35
59
574
445
82
259
70
90
41
92
32
133
235
12
###
###
###
###
###
###
663
402
220
299
109
76
###
682
655
160
698
561
387
378
###
###
860
###
212
92
< 33%
Isett Seta Sector Skills Plan 2006-2007 V 3.0
Legend
Between 33% & 66%
> 66%
47
Two
Years
Products/Services
Toll Plaza Systems/Parcades
Automotive Electronics
Power Electronics
Medical
Packaged Software
Operating Systems Software
Networking Software
Application Development Tools
Packaged Application Solutions
Information/Database System Applications
Satellite & VSAT
Radio Telemetry
Two-way radio
Broadcasting
Paging
Radio Trunking
Call Centres
Disaster Recovery
Processing services
Rental/Lease
Cellular
WAN data
Leased Line Network
Virtual Private Network (VPN)
Network Management
Network Monitoring
EDI (Electronic Data Interchange)
Internet
Other
Other
Now
Two
Years
Products/Services
PCs, Laptops & Portables
Mainframes
Servers
Peripherals
LAN Operating Systems
Modems
Routers, Hubs, Switches
Remote Access Servers/Concentrators
Multiplexers
Video Conferencing
Reprographic Equipment
PDAs
Answering Machines
Dictation equipment
Calculators
Electronic Cash Registers
Point-of-sale Terminals
Barcode Readers & Scanners
Banking ATMs & Terminals
Cheque Processing Equipment
PABXs
Wired Telephones
Wireless Telephones
Television Sets
Recorders/Players (tape, CD)
Cameras
Radios
Decoders
Monitors
Transport (>2 Mbits)
Access (<=2 Mbits)
Cable
Components
Design & Manufacture of T&M
Products
Provision of T&M Service
Process Control & Instrumentation
Security & Surveillance
Radar
Avionics Instrumentation
Railway Signalling
Road traffic controllers
Technical (continue)
Now
Technical
41
186
289
59
###
###
###
###
###
###
875
475
362
449
168
118
###
###
###
298
931
832
529
656
###
###
###
###
224
102
In the figure above the trends between the current situation and in two years'
time are graphically illustrated. No major shift in the current products and
services trends are predicted.
2.5.7
AIDS
The disquieting fact that only 16.03% of companies responded
positively to the question about AIDS Policies should be addressed
as a matter of urgency.
2.5.8
Inadequacies in Training
The high rate of inadequate training reported raises a question about
the extent of guidance from SETA to training providers. Another
factor to consider is that Unit Standards currently being developed
are all on a lower level. Hopefully this will be rectified soon. It is
advisable for Isett Seta to consult with higher education institutions
on the training they deliver and the skills needs identified in this
study, since these fall under another authority. The products and
services reported to pose the biggest problems due to inadequate
training are all on a high growth path and this was not unexpected.
2.5.9
Soft and Business Skills
The ICT industry showed an overwhelmingly positive reaction to the
inclusion of soft and business skills as part of training of students.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
48
3
CHAPTER 3: SUPPLY OF SKILLS
3.1
Trends in Education and Training Supply for the Isett
Sector
This chapter focuses on the present and future supply of skills and
qualifications to the ICT industry in South Africa.
3.1.1
a)
Registered Students
Registration per Qualification
The number of registered students for ICT courses in 2005 according
to the level of the qualification is presented in the Table below.
Table 3-A Estimated Registered Students per Level of Qualification
Qualification
Number
% Subtotal
%
Total
Pre-matric
4749
3.80%
2.38%
Matric
2778
2.22%
EUC
117364
93.97%
Sub-total Low level
124891
100.00%
3416
17156
13349
985
4.55%
22.87%
17.80%
1.31%
1.39%
58.71
%
62.48
%
1.71%
8.58%
6.68%
0.49%
6806
9.07%
3.40%
768
1.02%
Other A+, MCSD, etc.
32520
43.36%
Sub-total High level
75000
100.00%
0.38%
16.27
%
37.52
%
Post-matric
Certificate
Diploma
Post-diploma
Degree
Post-graduate
Total
199891
100%
Source: SSS
The estimated end-user computing registration numbers (58.71%)
represent more than half of all registered students in 2005. This
group also represents 93.97% of the registrations for the low level
courses.
b)
Registration of Students per Sub-sector
This section looks at the registration of students in the three subsectors - IT, Telecommunications and Electronics.
The low level skills registration and qualifications per sub-sector are
displayed in the Table below.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
49
Table 3-B Low Level Skills per Sub-sector
Low level skills only
Sub-sector
Registration
2003
2005
Difference
Total IT
Total Telecommunications
Total Electronics
Other ICT (e.g., computer science)
94299
1106
28
4526
118517
771
40
5563
24218
-335
12
1037
Total
99959
124891
24932
% Growth
25.68%
-30.29%
42.86%
22.91%
Source: SSS
From this Table, it is clear that the IT Sub-Sector is the largest
relating to the training of low level skills. There is a negative growth
in Telecommunications and although the growth of 42.86% in the
Electronics sector looks good, it sprouts from a very low base.
The high level skills registration and qualifications per sub-sector is
displayed in the Table below.
Table 3-C Training: High Level Skills per sub-sector
High Level Skills Only
Sub-sector
2003
2005
Registration
Difference
% Growth
Total IT
Total Telecommunications
Total Electronics
Other ICT (e.g., computer science)
42975
869
1176
3652
68177
1288
956
4579
25202
419
-220
927
Total
48672
75000
26328
58.64%
48.22%
-18.71%
25.38%
Source: SSS
From this Table it is evident that for high level skills training, most
students were registered for courses in the IT Sub-Sector. The
disquietingly low student numbers in Telecommunications can
probably be attributed to the fact that three regional training
branches of the national Telecommunications company, that were
randomly drawn to participate in the empirical study, refused to
participate, with the result that their students numbers are not
included in the above summaries.
c)
Registrations per Field per Sub-sector
IT Sub-Sector
The IT Sub-Sector for low level skills is displayed in the Table below.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
50
Table 3-D IT Sub-sector low level skills
Low Level Skills Only
Field of Qualification/Course
2003
Registration
Difference
2005
Hardware
Software
Hardware/Software combined
11396
51840
31063
15828
66288
36401
4432
14448
5338
Total
94299
118517
24218
% Growth
38.89%
27.87%
17.18%
Source: SSS
The IT Sub-Sector for high level skills is displayed in the Table
below.
Table 3-E IT Sub-sector high level skills
High Level Skills Only
Field of Qualification/Course
2003
Registration
Difference
2005
Hardware
Software
Hardware/Software combined
5277
9523
28175
11303
15239
41635
6026
5716
13460
Total
42975
68177
25202
% Growth
114.19%
60.02%
47.77%
Source: SSS
The growth in students that registered for hardware courses is more
than double (114.19%). It is notable that the smallest growth was in
the combined courses for both the low and high level skills.
Telecommunications Sub-Sector
The Telecommunications Sub-Sector for low level skills is displayed
in the Table below.
Table 3-F Telecommunications Sub-Sector Low Level Skills
Low Level Skills Only
Field of Qualification/Course
2003
Hardware
Software
Hardware/Software combined
Total
122
32
952
1106
Registration
Difference
2005
682
72
17
771
560
40
-935
-335
% Growth
459.02%
125.00%
-98.21%
Source: SSS
An enormous growth of 459.02% is apparent within the hardware
field, although it grew from a very low base. The decline of 98.21%
in combined hardware/software courses represents a possible move
towards specialisation. In total fewer students are expected to
register for the low level skills courses.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
51
The Telecommunications Sub-Sector for high level skills is displayed
in the Table below.
Table 3-G Telecommunications Sub-Sector High Level Skills
High Level Skills Only
Field of Qualification/Course
2003
Registration
Difference
2005
Hardware
Software
Hardware/Software combined
35
0
834
515
23
750
480
23
-84
Total
869
1288
419
% Growth
1371.43%
100.00%
-10.07%
Source: SSS
This confirms the idea that there may be a move towards
specialisation. In total a positive growth in high level skills is shown.
Electronics Sub-Sector
The Electronics Sub-Sector for low level skills is displayed in the
Table below.
Table 3-H Electronic Sub-sector Low Level Skills
Low Level Skills Only
Field of Qualification/Course
2003
Registration
Difference
2005
Hardware
Software
Hardware/Software combined
0
0
28
0
0
40
0
0
12
Total
28
40
12
% Growth
0.00%
0.00%
42.86%
Source: SSS
In contrast with Telecommunications where most registrations were
in the individual hardware and software courses, there were no
registrations in 2003 and no registrations were expected for 2005.
Only a small number of students registered for the combined course.
The Electronic sub-sector for high level skills is displayed in the
Table below.
Table 3-I Electronic Sub-sector High Level Skills
High Level Skills Only
Field of Qualification/Course
2003
Hardware
Software
Hardware/Software combined
Total
Registration
Difference
2005
660
40
476
670
70
216
10
30
-260
1176
956
-220
% Growth
1.52%
75.00%
-54.62%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
52
The trend for high level skills correlate with that of
Telecommunications in the sense that there is a positive growth
(1.52%) in the hardware and software courses but a negative growth
in the combined courses
3.2
Qualifications of Graduates
In this section, the tables are combined to show the students that
graduated in 2003, the expected qualifications for 2005 and the
percentage of growth for the two years.
3.2.1
Graduates per Qualification
The Graduate students in low level qualifications for 2005 are
displayed in the Table below.
Table 3-J Estimated Graduate Students per Qualification – Low Level Skills
Skills
Qualification
Pre-matric
Low Level Skills
Number
5490
% Sub-total
4.42%
% Total
2.87%
2631
2.12%
1.37%
EUC
116067
93.46%
60.61%
Total
124188
100.00%
Matric
Source: SSS
The estimated number of graduate students for high level
qualifications in 2005 is displayed in the Table below.
Table 3-K Estimated Graduate Students per Qualification - High Level Skills
Skills
Qualification
% Sub-total
% Total
Post-matric
2778
4.13%
1.45%
Certificate
15093
22.43%
7.88%
Diploma
11664
17.33%
6.09%
335
0.50%
0.17%
5358
7.96%
2.80%
510
0.76%
0.27%
31562
46.90%
16.48%
67300
100.00%
Post-diploma
High Level Skills
Number
Degree
Post-graduate
Other A+, MCSD,
etc.
Total
Source: SSS
The growth in low level graduates is displayed below.
Table 3-L Percentage Growth in Low Level Graduates
Qualification
Pre-matric
Matric
EUC
% Growth 2003 - 2005
17.81%
3.22%
44.72%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
53
The overall growth in low level skills is positive with 44.72% in EUC.
The percentage growth in high level graduates from 2003 to 2005 is
displayed below.
Table 3-M Percentage Growth in High Level Graduates
Qualification
% Growth 2003 - 2005
Post-matric
Certificate
Diploma
Post-diploma
Degree
Post-graduate
Other A+, MCSD, etc.
71.91%
3.67%
94.85%
0.30%
3.86%
33.86%
128.28%
Source: SSS
The growth in post-matric graduates is substantially high at 71.91%,
whilst diploma graduates exceed this growth rate at 94.85%. If a
similar growth of 54.92% in the registration of post-matrics and
64.42% in the registration of diploma students are taken into
consideration, the growth rate is particularly significant.
Although the overall growth rate for all the groups with high level
skills is positive, the high of 128.28% in “Other” must be noted. It is
important to compare this supply of skills with the demand, but
unfortunately this comparison cannot be done because this group of
qualifications were not recorded when collecting data from the
industry.
3.2.2
Graduates per Sub-sector
The number of graduates in low level skills per sub-sector is
displayed in the Table below.
Table 3-N Graduates in Low Level Skills per Sub-sector
Low Level Skills Only
Sub-sector
2003
2005
Qualify
Difference
% Growth
Total IT
Total Telecommunications
Total Electronics
Other ICT (e.g., Computer Science)
83025
558
0
3826
118383
711
0
5094
35358
153
0
1268
42.59%
27.42%
0%
33.14%
Total
87409
124188
36779
42.08%
Source: SSS
As expected from the number of registrations in the IT Sub-Sector,
most students graduated in the IT Sub-Sector and this will also be
the case in 2005 as shown in the Table below.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
54
Table 3-O Graduates in the High Level Skills per Sub-sector
High Level Skills Only
Sub-sector
2003
Qualify
Difference
2005
% Growth
Total IT
Total Telecommunications
Total Electronics
Other ICT (e.g., Computer Science)
38467
295
361
2737
62120
819
389
3972
23653
524
28
1235
61.49%
177.63%
7.76%
45.12%
Total
67300
67300
25440
37.8%
Source: SSS
The “Other” qualifications, (including computer science) show a
substantial growth in the number of graduates. The 177.63% growth
in Telecommunications came from a very low base.
3.2.3
a)
Graduates per Field per Sub-sector
IT Sub-Sector
The graduates per field per IT Sub-Sector for low level skills are
displayed in the Table below.
Table 3-P Graduates per Field per IT Sub-Sector – Low level skills
Low Level Skills Only
Field of Qualification/Course
2003
2005
Qualify
Difference
%Growth
Hardware
Software
Hardware/Software combined
10275
46669
26081
15568
66753
36062
5293
20084
9981
51.51%
43.03%
38.27%
Total
83025
118383
35358
42.59%
Source: SSS
The expected growth in low level skills graduates (42.59%) is
relatively high, with the major growth in hardware. Strangely enough,
this expected growth is substantially higher than the registrations for
this period (25.68%).
The graduates per field per IT Sub-Sector for high level skills are
displayed in the Table below.
Table 3-Q Graduates per Field per IT Sub-Sector – High Level Skills
High Level Skills Only
Field of Qualification/Course
2003
2005
Qualify
Difference
%Growth
Hardware
Software
Hardware/Software combined
4684
7417
26366
10644
13867
37609
5960
6450
11243
127.24%
86.96%
42.64%
Total
38467
62120
23653
61.49%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
55
In the high level skills hardware field, the growth of graduates
(127.24%) corresponds with the 114.19% growth in registrations for
this period.
b)
Telecommunications Sub-Sector
The graduates per field per Telecommunications Sub-Sector for low
level skills are displayed in the Table below.
Table 3-R Graduates per Field – Low Level Skills
Low Level Skills Only
Field of Qualification/Course
2003
2005
Qualify
Difference
% Growth
Hardware
Software
Hardware/Software combined
34
32
492
622
72
17
588
40
-475
1729.41%
125.00%
-96.54%
Total
558
711
153
27.42%
Source: SSS
The extreme growth in low level hardware qualifications of 1729.41%
comes from a small base of 34 graduates in 2003. In the low level
software field the graduate growth of 125% also comes from a small
base. The negative growth of 96.54% in the combined courses
indicates a shift from this type of course as recorded for registrations.
It seems as if these courses may be phased out in the near future.
The graduates per field per Telecommunications Sub-Sector for high
level skills are displayed in the Table below.
Table 3-S Graduates per Field – High Level Skills
High Level Skills Only
Field of Qualification/Course
2003
2005
Qualify
Difference
% Growth
Hardware
Software
Hardware/Software combined
39
0
256
503
23
293
464
23
37
1189.74%
100%
14.45%
Total
265
819
524
197.74%
Source: SSS
c)
Electronics Sub-Sector
No qualifications in low level skills in the Electronics Sub-Sector were
recorded in 2003 or predicted for 2005. This clearly indicates that
skills in this sub-sector are mainly classified as high level skills.
Graduates per field for high level skills are displayed in the Table
below.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
56
Table 3-T Graduates per Field – High Level Skills
High Level Skills Only
Field of Qualification/Course
2003
2005
Qualify
Difference
% Growth
Hardware
Software
Hardware/Software combined
210
40
111
260
70
59
50
30
-52
23.81%
75.00%
-46.85%
Total
361
389
28
7.76%
Source: SSS
The number of graduates in the Electronics Sub-Sector is very low.
If the country wants to become a major role player in the ICT sector
internationally, it is essential to address this issue.
3.3
Soft and Business Skills Development
The training of soft and business skills is displayed in the Table
below.
Table 3-U Soft and Business skills
Field of Qualification/Course
Financial Skills
Research Skills
Business Skills
Business Communication Skills
Human Resources Skills
Management/Leadership Skills
Total
Number of
Yes
responses
243
191
238
244
209
143
1268
% of Potential
(Total responses)
2.26%
1.78%
2.22%
2.27%
1.95%
1.33%
% of Offer
19.16%
15.06%
18.77%
19.24%
16.48%
11.28%
100%
Total responses = 10740 (“No” =9427; “Yes” =1268)
Source: SSS
Only 11.81% of the potential business and soft skills courses (10740)
are offered by the training institutions. This implies a low frequency
of soft and business skills being trained. This implies that soft and
business skills rarely form part of ICT Technical training.
The Figure below illustrates the low percentages of the different soft
and business skills offered per level of qualification by training
institutions. This is in contrast with the needs from industry.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
57
Soft - & Business Skills offered per Level
Potensial 1074 courses pe r Le vel
Matric/NSC,
Pre-Matric/NIC,
7.91%
3.26%
Post Matric N4N6,
6.24%
Other
A+,MCSD,ect,
7.91%
EUC,
29.80%
Certificate,
24.86%
Post Graduate,
4.66%
Degree,
9.22%
Post Diploma,
2.42%
Diploma,
21.79%
Source: SSS
Figure 3-1 Soft and business skills offer per level of qualification
3.4
Bridging Courses
It seems that the biggest need for bridging courses is to reach matric
level or to offer key matric subjects (Maths, Science & English) for
further training. Basic technology and computer skills have shorter
bridging courses than the matric focussed courses. The next Figure
3.7 illustrates the average duration of bridging courses per level.
Average Duration of Bridging Courses per Level
Other
3.24
Basic Technology
3.69
End-User Computing
6.08
Found. Comp. Skills
Level
5.25
English to Matric
4.19
Science to Matric
5.63
Maths to Matric
5.65
Matric
9.63
0.00
2.00
4.00
6.00
8.00
10.00
Months
Source: SSS
Figure 3-2 Average duration of bridging courses per level
The Figure below indicates that the majority bridging courses offered
by the training institutions focuses on EUC (34.08%) and foundation
computer skills (28.49%). Only a small insignificant group offers any
bridging courses for the matric groups.
Percentage of T raining Institutions Offering
Bridging Courses
34.08%
35.00%
28.49%
30.00%
25.00%
20.00%
15.08%
15.00%
10.00%
4.47%
5.59%
3.91%
4.47%
3.91%
Other
Basic Technology
End-User Computing
Found. Comp. Skil s
English to Matric
Science to Matric
Matric
0.00%
Maths to Matric
5.00%
Source: SSS
Isett Seta Sector Skills Plan 2006-2007 V 3.0
58
Figure 3-3 Percentage of training institutions offering bridging courses
3.5
Cooperation with ICT Industry
The average ratings of cooperation are displayed in the Figure
below.
Areas of Co-operations with ICT Industry
Conducting learnerships
2.59
Dev. of learnerships
2.58
Placement of graduates
Areas
2.44
Bursary or sponsorship
2.59
Input into curriculum dev.
3.38
3.88
0.00
1.00
2.00
3.00
In-service training
4.00
Ra ting (1-5)
Source: SSS
Figure 3-4 Average ratings of cooperation with ICT industry
It is of concern that placement of graduates is rated lower than 2.5.
3.6
Constraints to Future Development of ICT Courses
Evident in the Figure below, the major constraints are “lack of
government funding”, “poor economic environment” and “lack of
foreign investments”
Factors of Constrain to Future Development of ICT
Courses
Lack of partic. in curr./lship dev.
2.58
Competition: f oreign educ. Inst.
1.56
Competition: local educ. Inst.
2.31
Lack of Local ICT Businesses
Factors
2.46
Lack of Foreign Investment
2.86
Poor Economic Environment
3.07
Shortage of suitable students
2.29
2.35
Lack of S.A qualif ied staf f
4.01
0.00
1.00
2.00
3.00
4.00
Lack of Government f unding
5.00
Rating (1-5)
Source: SSS
Figure 3-5 Rating of factors of constrain to future development of ICT courses
3.7
Important Points Arising From This Chapter
The most important points arising form this Chapter are:

End-user computing has a high growth of 28.58% showing the
need for qualified employees in this field. With this growth in
mind, the group’s percentage of the total dropped from 61.41%
in 2003 to 58.71% in 2005. End-user computing also represents
93.97% of the registrations for the low level courses, as could be
expected due to the high demand for basic computer skills.

The growth of 122.65% in the “Other" (A+, MCSD, etc) group will
need to be considered. It could indicate an oversupply in these
popular qualifications since the growth is from an already high
number of registered students in 2003. In the high level
Isett Seta Sector Skills Plan 2006-2007 V 3.0
59






qualification group, “Other” represents 43.36% of registrations in
2005.
The negative trend in the registration of graduate and postdiploma students is disconcerting.
The very high growth of 54.92% in post-matric qualifications will
have to be analysed further for the contents of these
qualifications are not known.
The growth of 64.42% in registrations for diplomas shows an
interest in higher level qualifications, which is a positive sign and
in accordance with market demand.
The growth of 20% in post-graduate registrations can pave the
way for further growth in the ICT sector on a higher level.
The overall growth in registered students for high level courses
between 2003 and 2005 is 54.09%. Interesting to note is the
decline in post-diploma qualifications (-4.37%) and graduate
qualifications (-8.24%).
The largest growth in high level registered student numbers
between 2003 and 2005 with regards to the field of
qualification/course is in Telecommunications hardware
(1371.43%),
followed
by
IT
hardware
(114.19%),
Telecommunications software (100%), IT software (60.02%) and
Electronics software (75%). A decline is only expected in
Telecommunications
hardware/software
and
Electronics
hardware/software, probably due to a greater need for
specialisation. However, the relative low growth in Electronics
hardware needs attention.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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4
CHAPTER 4: SCARCE AND CRITICAL SKILLS
4.1
Introduction
The current and predicted supply of skills was discussed in detail in
Chapter 3 and the demand for skills by industry was presented in
Chapter 2. This Chapter are based on the requirements as set out
by the Scarce Skills Working Group appointed by the Department of
Labour: Quality Learning Forum and documented in the
“Framework for Identifying and Monitoring Scarce & Critical Skills”
See Ref 18.
4.2
Defining Scarce and Critical Skills
In the document (Ref 18) the working group provides a
comprehensive analysis regarding the uses of the terminology in
question and the different ways that it is being used and interpreted
by various stakeholders. The document submits that for the purpose
of completing the five-year SSP or Annual Update, the following
definitions are to be applied:
4.2.1
SCARCE SKILLS
Scarce Skills refer to those occupations in which there are a scarcity
of qualified and experienced people, currently or anticipated in the
future, either (a) because such skilled people are not available or (b)
they are available but do not meet employment criteria. This scarcity
can arise from one or a combination of the following, grouped as
relative or absolute:
a) Absolute scarcity: suitably skilled people are not available,
for example:
 A new or emerging occupation, i.e. there are few, if any,
people in the country with the requisite skills (qualification
and experience) and education and training providers have
yet to develop learning programmes to meet the skills
requirements.
 Firms, sectors and even the country are unable to
implement planned growth strategies and experiencing
productivity, service delivery and quality problems directly
attributable to a lack of skilled people.
 Replacement demand would reflect an absolute scarcity
where there are no people enrolled or engaged in the
process of acquiring the skills that need to be replaced.
b) Relative scarcity: suitably skilled people available but do not
meet other employment criteria, for example:
Isett Seta Sector Skills Plan 2006-2007 V 3.0
61



Geographical location, i.e. people is unwilling to work
outside of urban areas.
Equity considerations, i.e. there are few if any candidates
with the requisite skills (qualifications and experience) from
specific groups available to meet the skills requirements of
firms and enterprises.
Replacement demand would reflect a relative scarcity if
there are people in education and training (formal and
work-place) who are in the process of acquiring the
necessary skills (qualification and experience) but where
the lead time will mean that they are not available in the
short term to meet replacement demand.
4.2.2 CRITICAL SKILLS
Critical Skills on the other hand, in keeping with international trends
refers to specific key or generic and “top up” skills within an
occupation. In the South African context there are two groups of
critical skills:
a) Key5 or generic skills, including (in SAQA-NQF terminology)
critical cross-field outcomes. These would include cognitive
skills (problem solving, learning to learn), language and
literacy skills, mathematical skills, ICT skills and working in
teams.
b) Particular occupationally specific “top-up” skills required for
performance within that occupation to fill a “skills gap” that
might have arisen as a result of changing technology or new
forms of work organisation.
Both scarce and critical skills must be identified at the occupational
level, with scarce skills being considered against the occupation itself
and critical skills being reflected as specific skills within the
occupation. To be able to achieve this it is recommended that the
current WSP Online Submission system of the Isett Seta be
enhanced to provide for capturing Scarce and Critical skills. (See
Appendix C)
4.3
The Organising Framework for Occupations (OFO)
This framework was adopted by the DoL as a tool for identifying,
reporting and monitoring scarce and critical skills and the
background is discussed at length in the reference document (Ref
18). In principle the OFO is a skill-based coded classification system,
which encompasses all occupations in the South African context.
The classification of occupations is based on a combination of skill
5
This usage would be in keeping with the notion of critical or key skills in international usage
Isett Seta Sector Skills Plan 2006-2007 V 3.0
62
level and skill specialisation which makes it easy to locate a
specific occupation within the framework.
It is important to note that a ‘job’ and ‘occupation’ are not the same.
In line with ISCO and SASCO the following definitions are applied in
the OFO:
a. “Job” is seen as a set of roles and tasks designed to be
performed by one individual for an employer (including selfemployment) in return for payment or profit.
b. “Occupation” is seen as a set of jobs or specialisations whose
main tasks are characterised by such a high degree of similarity
that they can be grouped together for the purposes of the
classification.
The occupations identified in the OFO therefore represent a category
that could encompass a number of jobs or specialisations, e.g. the
occupation “ICT Customer Support” would also cover the
specialisations “ICT Helpdesk Officer” and “Network Support
Technician”.
Identified occupations are classified according to two main criteria:
skill level and skill specialisation, where skill is used in the context of
competency rather than a description of tasks or functions.
The skill level of an occupation is related to competent performance
of tasks associated with an occupation. Skill level is an attribute of an
occupation, not of individuals in the labour force and can
operationally be measured by:
a. the level or amount of formal education and/or training;
b. the amount of previous experience in a related occupation; and
c. the amount of on-the job training usually required to perform the
set of tasks required for that occupation competently.
It is therefore possible to make a comparison between the skill level
of an occupation and the normally required educational level on the
NQF as well as entry, intermediate and advanced levels referred to
in the NSDS. This comparison is illustrated in Figure 1.
The skill specialisation of an occupation is a function of the field of
knowledge required, tools and equipment used, materials worked on,
and goods or services provided in relation to the tasks performed.
Based on skill level and skill specialisation, occupations are divided
into Major (one digit), Sub-Major (two digits), Minor (three digits), and
Unit (four digits) groupings. Occupations (five digits) are subdivisions
of the unit groups and can further be broken down into
specialisations or jobs which are however not specified in the OFO
itself. Occupational descriptors are currently being developed and
Isett Seta Sector Skills Plan 2006-2007 V 3.0
63
will provide a description of the associated tasks for every
occupational grouping (up to the fifth digit level).
Within the current generic OFO there are 8 Major Groups, 43 Submajor Groups, 108 Minor Groups, 408 Unit Groups and 1171
Occupations.
From the OFO Figure 4-1a it can be seen that for the Isett Seta
related OFO sections there are 5 Major Groups, 6 Sub-major
Groups, 7 Minor Groups, 14 Unit Groups and 44 Occupations.
1
2
WORKPLACE SKILLS
PLAN
Legislators, senior officials
and Managers
Professionals
CORRESPONDING SUB-MAJOR
GROUPS FROM THE OFO
13
Specialist Managers
22
Business, Human Resource and Marketing
Professionals
Design, Engineering Science and Transport
Professionals
Information and Communication
Technology (ICT) Professionals
23
26
3
Technicians and associated
professionals
31
33
4
Clerks
51
5
Service and sales workers
62
63
Engineering, ICT and Science Technicians
Electro technology and
Telecommunications Trades Workers
Office Managers and Program
Administrators
Sales Assistants and Sales Persons
Sales Support Workers
Figure 4-1a Mapping of WSP to OFO
Figure 4.1b provides an estimated comparison of the skill level of the
Major Groups in relation to the NQF levels as well as entry,
intermediate and advanced level skills. It must be noted that the NQF
levels especially are a rough estimation and could vary as they are
an indication of qualification level and not necessarily the skill level
associated with competent performance. Schematically the structure
of the OFO is illustrated in Figure 4.2.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
64
NSDS
NQF
OFO
8
A
D
V
A
N
C
E
D
I
N
T
E
R
M
E
D
1
1. MANAGERS
2. PROFESSIONALS
7
6
2
5
3
4.
COMMUNITY
AND
PERSONAL
SERVICE
WORKERS
5. CLERICAL
AND ADMINISTRATIVE
WORKERS
4
3
E
N
T
R
Y
Major Occupational Groups in OFO
3.
TECHNICIANS
AND TRADES
WORKERS
6. SALES
WORKERS
4
2
5
7.
MACHINERY
OPERATORS
AND
DRIVERS
8.
LABOURERS
AND
ELEMENTARY
WORKERS
1
Figure 4-2b Comparison between skill levels covered by Major Groups in OFO and NQF
and NSDS levels
Isett Seta Sector Skills Plan 2006-2007 V 3.0
65
Figure 4-3 An illustration of the Structure of the OFO
Major Group 3
Technicians and
Trades Workers
Major Groups are:
The broadest level of the
classification

Denoted by 1-digit codes

Distinguished from each
other on the basis of skill
level and where necessary,
the broad concept of skill
specialisation

Sub – Major Groups are:

Subdivisions of major groups

Denoted by 2-digit codes (the
relevant major group codes plus
an additional digit)
Sub–Major Group
31

Engineering, ICT and Science
Technicians
Sub–Major
Group 33
Distinguished from other submajor group on the basis of
broadly stated skill
specialisation
Electrotechnology and
Telecommunications
Trades Workers
Minor Groups are:
Subdivisions of the submajor groups

Denoted by 3-digit codes

Minor Group 313
Minor Group 312
ICT and
Telecommunications
Technicians
Building and Engineering
Technicians
Unit Group 3131
ICT Support Technicians



Occupatio
n 31312
Occupation
31311
Unit Groups are:
Subdivisions of the minor
groups
Denoted by 4-digit codes
Hardware
Technician
Unit Group 3132
Telecommunications
Technical Specialists
Occupation 31313
Occupations are:



Specialisation / Job:






ICT Help Desk Officer
ICT Help Desk Technician
Help Desk Technician (ICT)
Help Desk Officer (ICT)
Systems Support Officer
Network Support Technician
Isett Seta Sector Skills Plan 2006-2007 V 3.0
Distinguished from other
minor groups in the same
sub-major group on the
basis of less broadly stated
skill specialisation
Distinguished from other
unit groups in the same
minor group on the basis of
a finer degree of skill
specialisation
Web Administrator
ICT Customer
Support
Officer


Subdivisions of the unit
groups
Denoted by 5-digit codes
Distinguished from other
occupations in the same
unit group on the basis of
detailed skill specialisation
Sets of jobs which involve
the performance of a
common set of tasks
66
4.4
OFO Application for Isett Seta SSP development (App
A)
Identification of both scarce and critical skills will be at the
occupational level with scarce skills being considered against the
occupation itself and critical skills being reflected as specific skills
within the occupation.
The OFO that should be used for the identification of scarce and
critical skills in this chapter and annual updates has been translated
into a template and is attached as Appendix A. Guidelines on how to
complete the template were provided in the Framework document ref
18.
It is important to note that the OFO is still at a developmental stage
and that changes may be published from time to time. The impact on
this and subsequent SSP’s is that the updated guidelines need to be
studied and applied when possible.
The purpose for using the OFO across the SETA’s and the DoL is to
ensure consistency in reporting and monitoring in order that trends
can be identified and aggregated across economic sectors.
4.5
Scarce Skills List Development (App B)
4.5.1 Project Scope
Based on the Workplace Skills Plan (WSP) template provided by the
DoL regulations the Isett Seta had over time built up a Scarce Skills
database. As not all fields, e.g. OFO based occupational Categories
were available in the supplied data some objective and scientific
interpretation was mandated with regard to the mapping of WSP
Skills requirements to “Occupations” as defined in the Organizing
Framework of Occupations (OFO) supplied by GTZ.
The next paragraphs describes the process followed to construct a
complete spreadsheet report on all 5 OFO levels which will enable
the Isett Seta and DOL to use the data on the level required.
4.5.2 INPUTS
The following was used as an input:
Document / Dataset
0608 Scarce Skills
Master List.xls
APPENDIX 4 SS
TEMPLATE 31
Description
An Example as to the intended use of
the Isett Seta Scarce Skills list by DoL
The latest Update of the OFO as
supplied by GTZ. Used in this analysis to
Isett Seta Sector Skills Plan 2006-2007 V 3.0
Source
DoL
GTZ
67
August.xls
OFO ICT MBV Ver
1.2.xls
Data.xls
APPENDIX 4 to Isett
Seta SSP.xls
check the validity and completeness of
the Isett Seta Appendix 4 Prepared by
MBV in March 2006 during the Meraka
study
The OFO updated by MBV during the
March 2006 Study to update the
2006/07 SSP. Used in this as the core
structure of the Appendix 4 Report
A Data dump from the Isett Seta WSP
database. This contains the source of all
quantitative data used in the report
This document provides the outline of
the report format as required by Isett
Seta for submission to the DOL. This
structure was used to compile the
Output Report Formats
MBV
Isett
Seta
Isett
Seta
4.5.3 Process
The following steps were followed:
1. The input documents were reviewed and an opinion formed as to the
process and feasibility
2. Clarification was obtained w.r.t. the handling of the following :
a. Level of Detail required in final report
b. Handling of Technical vs. Non Technical Occupations
c. Handling of anomalies i.t.o. data not easily identifiable to Isett
Seta Skills (e.g. Crane Driver)
3. After clarification the process of allocation was started. This process
consisted of :
a. Data Allocation and Mapping activities:
i. Entering an empty table into the “Data.xls” spreadsheet
that contained the WSP data provided by the Isett Seta
ii. Reviewing +-1700 skills / needs reported in the WSP and
mapping each of these to an OFO Level 5 Occupation.
The Criteria, utilising the researcher’s knowledge of the
ICT industry, was based on the Reported Skill Need, the
Intervention Description and the NQF level of the
intervention.
iii. During the review of the Technical categories additional
occupations not identified during the March 2006 OFO
review was identified as key Isett Seta occupations and
added to the reference list ( i.e. Electrical Engineer,
Aeronautical Engineer, Chemical Engineering Technician
etc. )
iv. End User Computing Skills were marked to be handled at
a later stage
v. Once completed the process was started on the Non
Technical skills, firstly eliminating the obvious errors in
classification, i.e.: BSc Qualification originally classified
Isett Seta Sector Skills Plan 2006-2007 V 3.0
68
vi.
vii.
viii.
ix.
b.
as Non Technical, changed to Technical. +- 50 such
errors were corrected.
The next step with the Non Technical Categories were to
identify and mark the EUC skills and to allocate the Non
technical skills to the required OFO occupations) as in b.
above.
Once completed the list of non allocated skills were
reviewed. As most of them were found numerically
insignificant (less than 10 “needs”), they were eliminated
from the report. A list of these excluded from the report
are available.
No allocation to other SETA’s were done
A list of all EUC skills requirements were compiled to be
handled separately to the occupations
Report Generation Activities
i. A Template was created using the “APPENDIX 4 to Isett
Seta SSP.xls” table provided.
ii. It was decided that there port shall always retain all core
data, and shall provide summary views of data rather
than simple tables. This will ensure that the work does not
have to be repeated, and that the reports provide for
multiple users.
iii. Tests were done using Pivot Tables, Single spreadsheet
with Sorted Columns and Multiple Sheets for the output
format. Eventually it was found that using one
Spreadsheet with multiple Worksheets gave the best
report from an end users perspective, whilst maintaining
all core data.
iv. Reports were generated using Excel macro programming
language.
v. Discrepancies were identified and corrected via
consultation.
vi. Once these draft reports were generated, the handling of
EUC skills (which can’t be clearly traced to a specific
occupation) it was agreed that due to the fact that
respondents to the WSP questionnaire most probably
completed the EUC requirements i.t.o. their own
Occupational NQF levels , the NQF levels could be used
as a key to classifying the EUC needs. The following wide
categorisation was decided upon based on the largest
numbers per category:



L8-L6 – Information and Communications
Technology (ICT) Managers (135)
L5 – Business and Systems Analysts and
Programmers (261)
L4 – Sales, Marketing and Public Relations
Professionals (225)
Isett Seta Sector Skills Plan 2006-2007 V 3.0
69



L3 – ICT and Telecommunications Technicians
(313)
L2 - Contract, Program and Project Administrators
(511)
L1 - Sales Assistants and Salespersons (621)
vii. As a final step the EUC data was incorporated into the
reports.
viii. Reported Non Technical Skills; Project Management and
New Venture Creation had been allocated to specific
Occupations and can easily be gathered from the report.
These occupations are :
 ICT Project Manager
 ICT Business Development Manager
4.5.4 Output
The Output of the process are captured in a Spreadsheet report
For example , the for the document to be submitted to DOL to
compile the updated 0608 Scarce Skills Master List, the Isett Seta
may decide to only use the data on the 3 rd OFO Level. The
Worksheet in Red, labelled “Minor” in provides this information.
The Spreadsheet named: “Appendix 4 Scarce Skills List_ Updated
Level 5 Aug 2006” has been attached.
4.5.5 Process Feedback
The fact that core data was not gathered with the correct OFO logic
during the WSP process could lead to large inaccuracies in the
figures reported. An example would be that where short courses are
concerned the fundamental assumption made during the analysis is
that each skill represents a separate person (Need). This may or
may not have been the intention of the person completing the
questionnaire. However as this is the best data available, the Isett
Seta was forced to follow the process as described above.
With very limited changes (and Cost) to the layout and logic to the
Scarce skills questionnaire in the WSP this problem can largely be
eliminated. This will be addressed in more detail in the WSP update,
and may still not give 100% good results but will significantly improve
the quality of data that were available to be used during this project
4.6
Chapter Summary and Recommendations
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4.6.1 Occupational Framework for Organisations
The OFO, as a comprehensive and generally accepted mechanism
for the classification and grouping of occupations, has been decided
on by the Dept. of Labour. As such the Isett Seta has embraced this
process are in the process of implementing the OFO to all areas
where applicable
4.6.2 Scarce Skills Database and WSP
The main constraint wrt being able to provide the DoL and other
interested parties with quality Scarce and Critical skills information
is the current data capturing mechanism used which does not
provide for capturing information on a Occupation level , but rather
on a higher OFO level.
As the “Framework for Identifying and Monitoring Scarce & Critical
Skills” requires the SETA’s to measure and report annual updates to
cover Critical and Scarce skills per occupation, replacement demand
and future scarce skills per occupation it, is essential that the Isett
Seta prioritise the updating of the online WSP during the future
reporting cycles to ensure that correct information is gathered.
One constraint in including more detail information in the Online
WSP is the ability and willingness of industry to supply such
information. Having considered the current submission of WSPs as
well as the experience gained in via the ICT Skills audit process it is
clear that:
1. Without the necessary regulatory support from DoL to enforce
reporting at the level required to provide Scarce and Critical
skills information the majority of Isett Seta members will not
comply with requests from the SETA for more detailed
information. It is therefore essential that the DoL provide the
Isett Seta with an indication of when regulations regarding the
WSP format and content will be brought in line with the SSP
reporting requirements
2. Even if the regulations are amended to require Isett Seta
members to provide the level of information required it should be
noted that most companies do not necessary categorise
Employees according to the SASCO or ISCO Occupational
categories and there will be significant effort and cost required
by large companies to reclassify and structure personnel
databases in order to provide the required information
It is therefore recommended that:
i. DoL considers the updating of WSP regulations to be
brought in line with the level of information required for the
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SSP as defined in the “Framework for Identifying and
Monitoring Scarce & Critical Skills”
ii.
A pilot project is initiated to update the current Isett Seta
Online Grant System to comply with the required SSP and
updated future WSP Template requirements. This could then
be used to request information on a voluntary basis until
regulations are amended, and will form the nucleus of an
updated WSP Template. Such a project will also enable the
Isett Seta to evaluate implementation problems that Industry
may have.
4.6.3 Scarce Skills List
The process and results of the scarce skills list has been discussed in
detail in this chapter and the appendices. The needs in the sector are
clearly visible and although the absolute figures may be questioned
wrt accuracy, the general trend can be accepted. For example the
following is evident:
1. The need for “Soft Skills”, identified in the demand chapter can
clearly be seen in the need for ICT Management and Sales
skills. ICT management skills include Project management and
Sales skills includes business development and
entrepreneurship skills
2. There a high need for technical Support and Testing skills as
well as a high need for applications development skills
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5
CHAPTER 5: SMALL BUSINESS, ENTREPRENEURIAL
OPPORTUNITIES AND OTHER NSDS PRIORITIES
5.1
Information and Communication Technology Black
Economic Empowerment (ICT BEE) Charter
The ICT BEE Council developed the Charter in order to:

advance economic transformation in the ICT sector;

provide an enabling environment for transparency, fairness and
consistency when adjudicating on matters related to BEE in the
ICT sector;

promote and support the objectives of the Broad-based Black
Economic Empowerment Act 53 of 2003;

bridge the “digital divide” in our society by actively promoting
access to ICTs and supporting skills development and training
initiatives in the ICT sector;

stimulate and support growth in the ICT sector and contribute
towards the reduction in the high unemployment rate and the
alleviation of poverty; and

foster equity and address the legitimate economic expectations
of all South Africans occasioned by the changed political
landscape.
5.1.1 Main Objectives of the Charter
The main objectives of this Charter, in compliance with the Broad-based
BEE Act, are to promote and facilitate economic empowerment in the ICT
sector by doing one or more of the following:
enabling meaningful participation of blacks in the growth of the ICT
sector and, by extension, in the national economy;

achieving a substantial change in the racial and gender composition of
ownership, management and control structures as well as in the skilled
and specialist positions of new and existing enterprises;

increasing the extent to which black women, communities, disabled
persons, workers, co-operatives and the youth participate meaningfully
in all areas of the sector;

facilitating access to ICTs by black people, the rural and urban poor as
well as other marginalised groupings, otherwise referred to as “bridging
the digital divide”;

providing skills development and training and thereby increasing
access to and participation in the national economy of South Africa by
black people; and

providing an enabling environment for transparency, fairness and
consistency when measuring and adjudicating on matters related to
BEE in the ICT sector.
5.1.2 Skills Development
In the section on Skills Development in the BEE Charter, the
following statement is made: “The development of skills in the ICT
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sector is identified as one of the major catalysts for transformation in
the sector. Currently, blacks occupy the overwhelming majority of
semi-skilled and non-skilled positions whereas whites occupy most
highly skilled and specialist positions in the sector.”
This demonstrates the emphasis being placed on training and
development by all stakeholders.
The Charter further states the following as its skills development
objectives: “In respect of the challenges enunciated in the preceding
Part B we, the parties to this Charter, commit ourselves to procure
our best endeavours and to also act in good faith in order to:
promote and support the aims and objectives of the Skills
Development Act as well as the Isett Seta, MAPPP SETA and
other relevant bodies;

increase the number of black skilled people, including black
women, the youth and black people with disabilities, at the
management, technical and specialist levels;

ensure that skills development and training programmes mirror
market demand in the sector;

ensure that the institutions that supply ICTs are on track in
providing what the labour market requires;

promote awareness of career opportunities in the ICT sector at
secondary and tertiary institutions;

ensure that BEE accredited ICT companies comply with the
requirements of the Skills Development Act, irrespective of size
of the enterprise;

co-operate with the relevant regulatory authority in the
commercialisation of training institutions and programs in the
ICT sector, especially those causing over-supply of specific skills
in the sector;

set clear and precise guidelines over and above the existing
statutory requirements, for effective skills development initiatives
specifically aimed at black people;

set annual guidelines for the number of learnerships required to
be registered in each sub-sector of the ICT sector;

assist the Isett Seta and other SETAs relevant to the ICT sector
in formulating tripartite partnerships between enterprises,
training service providers and itself to embark on learnerships,
internships and other relevant skills programmes that feed
directly into skill gap areas; and

help facilitate the creation of a database of contract workers by
the Isett Seta.
Companies aiming to achieve the targets set by the Charter can also
earn bonus points in terms of the Charter Scorecard by increasing
their commitment to skills development of Black beneficiaries or
support to SMMEs, Rural communities and Disabled Persons.
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5.2
SMME Opportunities
5.2.1 The ICT BEE on SMME
The ICT BEE Charter declares clearly that support of SMMEs is one
of the most important drives: “An entrepreneurial focus is key to the
success of any BEE strategy and it logically follows that all efforts
must be made to foster and encourage the development of an
entrepreneurial society. A new entrepreneurial class will ultimately
create jobs for their families and communities that will further
positively impact on socio-economic development and growth.”
“The creation of sustainable black SMME enterprises has succeeded
in creating a new group of black business leaders. The model, where
ownership and control are combined with entrepreneurial skills
training, resulted in the creation of sustainable business enterprises.
Although not at sufficient levels, this has, over the first 10 years of
democracy in South Africa, resulted in job creation in some of the
most under-serviced communities in South Africa.”
The parties to the Charter declares: “In respect of the challenges
enunciated in the preceding Part B we, the parties to this Charter,
commit ourselves to procure our best endeavours and to also act in
good faith in order to:

substantially increase participation by black entrepreneurs in the
sector;

create a supportive environment that will ensure the
development of a sustainable black entrepreneurship base,
including the targeting of entrepreneurial skills development for
black women, the youth and the disabled;

establish a viable, sustainable and globally competitive
entrepreneurial base;

promote and support better co-ordination and co-operation
between and amongst technology incubators, government, state
owned enterprises, the private sector and incubated companies,
ensuring that such activities are regional and engage with
marginalised communities;

encourage the creation and sustainability of SMMEs, especially
black SMMEs; and

create employment.”
The future areas of entrepreneurial activity in the ICT sector are
tabulated in Appendix C. Because of the pervasive nature of ICT, the
areas of entrepreneurial activity are listed in terms of applications
rather than sub-sectors of ICT. Note that the estimated number of
potential entrants in the next 5 years is not provided. Such
information would have to be gathered through primary research.
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5.3
Future Opportunities of Entrepreneurial Activity for
SMME’s
The dti has conducted a number of Customised Sector Programmes
in the Electro-technical Industry covering sub-sector such as ICT and
Electronics. Future opportunities of entrepreneurial activity identified
in this document (Appendices D & E) are based mostly on these
studies.
These areas are identified in terms of ‘Applications’ rather the ICT
sub-sectors. This is because of the pervasive nature of ICT and the
increasing convergence between ICT sub-sectors. The identified
areas are by no means exhaustive but are nevertheless regarded as
the most promising areas with regards to providing opportunities for
SMME’s. The identified applications are:




Wireless Application
 Enterprise Solutions: ERP, Telematics,/Data
Collection, etc
 Personal: Mobile Cash Personalised Interface, etc.
 Content: Video Downloading and streaming,
Geospatial, etc.
Human Language Technologies (HLT): Technologies that
assist the disabled like Automatic Speech Recognition
(ASR) and Voice-enabled access
Healthcare Applications: Telemedicine applications and
communication tools are but a few examples
Open Source Software: The appointment of vendors of
open source software by the State Information
Technology Agency (SITA) points to the concern by
government from being tied to proprietary
implementation.
Additionally there has been a tendency in the telecommunications
sub-sector to outsource various levels of their services capability as
can be seen in the negative growth employment figures presented in
chapters 2 and 3. In reality the requirement for these skills have not
decreased but has moved to the SMME parts of the industry, in line
with government BEE and SMME development requirements.
Specific occupations form part of the Major category Technicians
and Trade workers and specific occupations that maybe impacted
are:





Radio-communications Technicians
Telecommunications Field Engineers
Telecommunications Technical Officer or Technologist
Cabler (Data and Telecommunications)
Telecommunications Cable Jointers
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

Telecommunication Lines worker / Telecommunications Line
Mechanics
Telecommunications Technicians
The DOL Guidelines on the development of SSPs requires
quantification of these areas of entrepreneurial activities in terms of
the envisaged number of entrants in the next few years. This
requires that a survey be conducted to establish these quantities as
information of this is not readily available from secondary sources.
5.4
Non-Isett Sector Demand for ICT Skills
The Non-Isett Technical employees working on products and
services are displayed in the table below.
Table 5-A Non-Isett Technical: Projected Need for Technical Employees to Work on
Products and Services 6
Products/Services
Office/Business/Enterprise
Subscriber/Consumer
Transport (>2 Mbits)
Access (<=2 Mbits)
Now
Two Years
% Growth
Difference
178415
199770
21356
11.97%
31377
34418
3041
9.69%
1882
2057
175
9.30%
2779
2779
0
0.00%
Cable
3326
3807
481
14.47%
Components
3085
3479
394
12.77%
Test & Measurement
Process Control &
Instrumentation
Security & Surveillance
Transportation Monitoring &
Control
Power Electronics
Medical
3763
4617
853
22.67%
372
547
175
47.06%
1269
1750
481
37.93%
3807
3216
-591
-15.52%
831
1094
263
31.58%
66
88
22
33.33%
Software Applications
Other
95334
108309
12975
13.61%
83934
113254
29320
34.93%
Totals
410241
479187
68946
16.81%
This Table may be interpreted from two angles: (1) the percentage
growth in the products and services the employee may work on and (2)
the number of products and services that will meet future employee
demands. Also note that this table is a summary of the major groups
representing products and services. It is important to remember that
there were multiple responses to this question indicating that a single
employee could work on multiple products and services.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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

Percentage growth: The process control and instrumentation
group in the list of products and services has the highest expected
growth rate (47.06%), but it comes from a fairly low base and will
not have a major impact on the totals. In contrast with the Isett
Sector, the medical group shows a moderate growth of 33.33%,
still from a very low base.
Number of products and services needed to supply in possible
future demands: The group that will require the highest number of
qualified employees is the “other” group that comprises mainly
satellite, radio, cellular and similar products (29320).
The
office/business/enterprise products and services group has the
second highest need (21356). The group with the third highest
needs is, like the Isett Sector, software applications (12975).
These three groups represent 92.32% of the total need for trained
employees, way higher than that for the Isett Sector. Please note
that the transport monitoring and control group will have 591 fewer
employees working on products and services.
The limited supply of ICT Technical skills are currently in demand from
the Isett and Non-Isett Sectors. This fact could be interpreted as one of
the major contributors to skills shortages within the Isett constituency.
5.5
Specific support to small levy paying firms
Information on specific support required by small/non-levy paying firms cannot
be extracted or deduced from the WSP submitted by constituent Isett Seta
firms. It is therefore suggested that some form of data collation in this regard
is initiated.
5.6
Adult Basic Education and Training (ABET) provision
ABET in ICT refers mainly to basic computer training. The sector has no
pressing need for ABET as the skills levels required for the sector go much
beyond basic computer literacy. However, there is a need, across sectors, for
computer literacy for the end-user. This aspect of training falls under the ambit
of the ETDP SETA and each sector must address it through its appropriate
SETA.
5.7
Stakeholder Capacity Building
Stakeholders in the Isett Seta environment range from the SETA itself, to
constituencies covering levy payers, training providers, assessors, etc. The
stakeholder capacity building needs therefore vary. It is therefore imperative
to commission impact assessment studies from time to time, e.g. an impact
assessment of learnerships provided by service providers could identify areas
where service providers fall short and need capacity building.
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6
CONCLUSION
Education and Training

The pre-matric and matric registrations have a downward trend,
indicating that the industry may be maturing and therefore may
need higher level skills.

End-user computing has a high growth of 28.58% that shows the
need for qualified employees in this field. With this growth in
mind, this group’s percentage of the total has dropped from
61.41% in 2003 to 58.71% in 2005. End-user computing also
represents 93.97% of the registrations for the low level courses,
as can be expected due to the high demand for basic computer
skills.

The growth of 122.65% in the “Other (A+, MCSD, etc)” group
must also be considered. It is possible that this could indicate
an oversupply of these popular qualifications since the growth is
from an already high number of registered students in 2003. At
the time it represented 30.01% of all high level skills
registrations. In the high level qualification group, “Other” (A+,
MCSD, etc.) represents 43.36% of registrations in 2005.

The negative trend in the registration of graduate and postdiploma students is disconcerting. For future growth in the ICT
sector, this requires serious attention.

Also the very high growth of 54.92% in post-matric qualifications
will have to be analysed further for the content of this
qualifications is not known.

The growth of 64.42% in registrations for diplomas shows an
interest in higher level qualifications, that may be considered a
positive sign and it is in line with demand in the market.

The growth of 20% in post-graduate registrations can pave the
way for further growth in the ICT sector on a higher level.

The overall expected growth in registered students for high level
courses between 2003 and 2005 is 54.09%, with the largest
expected growth in “Other” (122.65%), diploma (64.42%), and
post-matric (54.92%). It is interesting to note the decline in postdiploma (-4.37%) qualifications and degrees (-8.24%). These
declines are alarming.

The largest growth in high level registered student numbers
between 2003 and 2005 with regards to the field of
qualification/course is in Telecommunications
hardware(1371.43%), followed by IT hardware (114.19%),
Telecommunications software (100%), IT software (60.02%) and
Electronics software (75%). A decline is expected only in
Telecommunications hardware/software and Electronics
hardware/software, probably due to a greater need for
specialisation. However, the relatively low growth in Electronics
hardware requires attention.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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
Race and gender:
The trend in race and gender distribution in the Isett Sector is
rapidly moving away from the current generally accepted
perception of a White male dominant industry. Although White
males still represent the biggest group (32.83%), African males
are catching up very fast at 23.23%. On the technical side
males still dominate at 76.17%, but in the non-technical side,
females dominate at 51.45%. If the gender and race trends
noticed in Chapter 3 are considered - particularly the female
dominance in registered students - the corrections should be in
place within the next few years to comply with the ICT Charter.

Disabilities
The highly disappointing figure of only 0.46% of employees
suffering from disabilities in the Isett Sector is far below the
target of 4%. The few companies that employ people with
disabilities must be applauded. The rest of the ICT industry
must address this issue as a matter of urgency. Perhaps it is
time to pay as much attention to disabilities as to race and
gender.

Employees per functions
Technical Employees per Function
The trends are graphically illustrated between the current
situation and the situation expected in two years' time. The
following could be observed:
o
The trend where emphasis falls on installation,
maintenance, repairs and client support is in line with the
preference for services in the fields. Current data shows
that there is a decline of activities in the ICT industry. As
discussed in the relevant section this is more likely due to
the subcontracting of these services to SMME companies,
not includes in the research figures, rather than a real
decline in employment. For long-term growth in the ICT
sector, other functional areas will have to be developed to
the same level and data capturing needs to be approved to
reflect the move of employees to SMME companies
o
No major shift in the current function profile trends is
predicted, although a few smaller shifts may be expected.
o
Within the Electronics Sub-Sector unexpected declines to
lower levels were be observed, including fields such as
design and development, procurement, manufacturing and
production, quality assurance and project management.
This is a matter for concern about future development and
growth. The reason for this decline is not clear.
o
Both the current situation and that expected in two years'
time in terms of education and training measured very low.
This is a huge concern for future growth in the industry,
despite the expected growth of 42.66% in education and
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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o
training. Unfortunately when expenses are cut back,
education and training is one of the first areas to be
affected. However, this is a short-sighted approach to
rectify long-term problems.
Another factor of some concern is the indication that
research does not form part of the highest group. Future
innovations will definitely be hampered by this trend.
Isett Seta Non-Technical Employees per Function
The trends between the current situation and that expected in
two years' time are graphically illustrated. The following could
be observed:
o
As expected, attention was drawn to the typical nontechnical functions: finance, storage and despatch, sales
and marketing and client support.
o
No major shifts are expected in the next two years.
o
In the Isett Sector, the overall growth rate per function for
the next two years is estimated at 5.93%. This growth rate
falls within the expected rate of 3% – 6% for the country.

Vacancies
The vacancy picture is in line with the current employee per
function trends. IT has the most vacancies with maintenance at
the top of the list.

Inadequacies in training
The high rate of inadequate training reported raises a question
about the extent of guidance SETA provides to training
providers. Another factor to consider is that the Unit Standards
currently being developed are all on a lower level. Hopefully this
will be rectified soon. It would be advisable for the Isett Seta to
consult with higher education institutions on the training they
deliver and the skills needs identified in this study, since they fall
under another authority. The products and services that posed
the biggest problems with inadequate training are all on a high
growth path and as such, the trend was not unexpected.
The
move
of
Artisans
and
Technicians
in
the
Telecommunications sector from large companies to SMME’s
puts a specific challenge to the training traditionally sponsored
by large organisations such as TELKOM, ESKOM and
TRANSNET. Without realistic incentives it is It is unrealistic to
expect SMME’s to invest in long term Tradesman training
without the financial stability that the larger organisations had.

Soft and Business skills
The ICT industry showed an overwhelmingly positive reaction to
the inclusion of soft and business skills as part of training
students.
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7
Future Research
A further research study should be considered, focusing on a long-term
strategic plan for the ICT sector to develop a master plan that will include not
only industry, but total development of ICT in the education system (including
primary and secondary schools). The content and NQF level of different
qualifications should be included in future research.
Additionally as Indicated in Chapters 4 and 5 a significant shortage in quality
detail information exists wrt. Scarce and Critical Skills , which needs to be
addressed via future WSP capturing mechanisms and addition research wrt
SMME’s and other organisations not currently required to submit WSP’s
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8
REFERENCES
8.1
Literature and Isett Seta Sources
1. Adeya, C. (2003) ICT and Poverty Literature review, IDRC/Acacia,
February 2003
2. Driscoll, L. (2001) ‘HIV/AIDS and Information and Communication
Technologies.’ Report for the IDRC, Nov. 2001.
3. Gibbons C. (2001) The Future of eBusiness
4. Hawkins, R. J. (2002) “Ten Lessons for ICT and Education in the
Developing World.” In CID (Centre for International Development)
(2002) The Global Information Technology Report 2001-2002:
Readiness for the Networked World. Oxford: OUP, Chapter 4
5. Heeks, R. (1999) ‘Information and Communication Technologies,
Poverty and Development’. Development Informatics Working Paper
Series, Paper No. 5, June 1999
6. ICT Charter(2004)
7. Isett Seta Learnership System (2004)
8. Isett Seta Online Grant System (2001-2002 and 2002-2003)
9. Isett Seta Skills Program System (2004)
10. Janczewski, L. (1992) “Factors of Information Technology
Implementation in Under-developed Countries: Examples of West
Africa Nations”. In S. Palvia et al (eds) (1992) The Global Issues of
Information Technology Management. Herahey PA: Idea Group
Publishing, pp. 187-211.
11. Khumalo, B. (2003), BEE in IT Conference, 13 August 2003, Gallagher
Estate, Midrand South Africa
12. Myers, J. (1998) ‘Human Rights and Development: Using Advance
Technology to Promote Human Rights in Sub-Sahara Africa.’ Case
Western Reserve Journal of International Law, 30, no.2/3, pp. 343-371
13. Rathgeber, E.M. (200) ‘Women, Men, and ICTs in Africa: Why
Gender is an Issue.’
14. Statistics South Africa, Census 2001
15. Van Rensburg E. (2001) The Future of eBusiness
16. Van Wyk J. (2001) The Future of eBusiness
17. Wresch, W. (1996) Disconnected: Haves and Have-nots in the
information age. New Bruswick: Rutgers University Press
18. Framework for Identifying and Monitoring Scarce & Critical Skills.
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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8.2
Industrial Studies
A Report on Research Conducted into the Security Electronics Sub-sector of the
Electro-technical Industry in South Africa, the dti, 2004
Benchmarking of Technology Trends and Technology Development, the dti,
2004
Investment Opportunities in SA Telecommunications Market, the dti, 2005
Report on the Research Study into the Defence-Electronics Sub-sector of the
South African Electro-technical Industry, the dti, 2004
Research Study into Niche Market Products in the Electrotechnical Industry in
South Africa, the dti, 2005
Research Study into the Contract Manufacturing Sub-sector of the Electrotechnical Industry in South Africa, the dti, 2004
Research Study into the Power Sub-sector of the Electro-technical Industry in
South Africa, the dti, 2004
Research study into the South African Software Market, the dti, 2004
South African BPO and Contact Centre Industry, 2005: Market Overview and
Value Proposition Analysis, the dti, 2005
Wireless Applications in South Africa, the dti, 2005
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Appendix A: ICT Organising Framework for Occupations (OFO)
Isett Seta Sector Skills Plan 2006-2007 V 3.0
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Appendix B: Isett Seta Scarce Skills List
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Appendix C: Proposed update to the Isett Seta Online WSP Submission System
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Appendix D: Future Areas of Entrepreneurial Activity
Brief description of most applicable
background, knowledge, skills or
expertise the entrant would need to
have or develop in order to be
successful
Area
Sub-area
Small Business Entrepreneurial
Activity
Wireless
Applications
(see Appendix
E)
Enterprise
Solutions
CRM, ERP, Knowledge
Management, SCI, UMA
Examples
Unlicensed Mobile Access (UMA) technology
provides access to GSM and GPRS mobile
services over unlicensed spectrum technologies,
including Bluetooth and 802.11. By deploying UMA
technology, service providers can enable
subscribers to roam and handover between cellular
networks and public and private unlicensed
wireless networks using dual-mode mobile
handsets. With UMA, subscribers receive a
consistent user experience for their mobile voice
and data services as they transition between
networks.
Asset Management
Tracking of medical equipment in large hospitals
Field Sales Automation
Mobile selling of airtime/electricity vouchers
Database design and development
Web-based CRM, object-oriented
programming, electronics design and
manufacturing
Data Collection/Telematics
Monitoring ARV patients in their respective areas.
Collation of information into a centralized database
Database design and development,
networks
Personal
Mobile Cash
Personalized Interface
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Using cellular phone as a debit/credit card
Personalization is a toolbox of technologies and
application features used in the design of an enduser experience. Features classified as
‘personalization’ are wide-ranging, from simple
display of the end-user’s name on a web page, to
complex catalogue navigation and product
customization based on deep model of user’s
needs and behaviours. Note that there are
generally 5 categories of personalization: link,
content, context, authorized and humanized.
UMTS architecture and services, ERP and
CRM systems, object-oriented
programming
Networks, wireless communication
technologies, privacy & security
User interface design, CRM, Databases,
web servers, real-time programming, data
mining tools, privacy & information
security
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Area
Sub-area
Small Business Entrepreneurial
Activity
Location-based Services
Healthcare
Mobile Payment
Ticketing/Reservations
Content
Human
Language
Technologies
(HLT) (see
Appendix E,
Figure E-0-6)
Spoken
Language
Input,
Language
Generation,
Multilingualism
Gaming, Video Downloading and
Streaming
Examples
An example would be someone using their
Wireless Application Protocol (WAP) based phone
to search for a restaurant. The LBS application
would interact with other location technology
components to determine the user's location and
provide a list of restaurants within a certain
proximity to the mobile user. Another example is
location-based emergency service application that
pinpoints your location and relays it the appropriate
authorities.
Sending an sms to an AVR patient to take
medication
Typical usage entails the user electing to make a
mobile payment, being connected to a server via
the mobile device to perform authentication and
authorization, and subsequently being presented
with confirmation of the completed transaction.
Enables customers to purchase, order, receive and
check tickets any time and anywhere. Mobile
ticketing makes the mobile phone the ticket. The
code received from the phone is decoded at
access control.
Brief description of most applicable
background, knowledge, skills or
expertise the entrant would need to
have or develop in order to be
successful
Wireless communication standards,
Databases, GIS, Position Technologies
(e.g. GSM, GPS, etc), Programming
platforms (e.g. Java, .NET, etc.)
Wireless communication standards,
Databases
Authentication and authorization
technology, Databases, wireless
communication standards, networks
Decoding, Databases, networks
Streaming media and servers, video
programming, media formats
Music
Streaming of live broadcast news or sports onto a
handheld device
Downloading of music onto handheld device like
cell phones
Information Services
Provision of directory information via sms.
Databases, media formats
Automatic Speech Recognition
(ASR)
The ability of a computer system to recognize a
speech signal (sound) and to identify the
phones/phonemes of an utterance. This can
particularly impact on illiteracy, language barriers
and disability.
Internet-Accessible Speech Recognition
Technology
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Media formats, data formats
93
Area
Healthcare
(See Appendix
E, Fig E-0-6)
Sub-area
Telemedicine
Other
Open Source
Software
(OSS)
(See Appendix
E, Figure E-01)
Middleware
Small Business Entrepreneurial
Activity
Examples
Brief description of most applicable
background, knowledge, skills or
expertise the entrant would need to
have or develop in order to be
successful
Voice-enabled access (to the
internet)
A system taking voice requests for internet
searches. This, also, can particularly impact on
illiteracy, language barriers and disability.
Internet-Accessible Speech Recognition
Technology
Voice activated e-mail response
A system developed to read e-mail messages upon
vocal request. This can particularly impact on
illiteracy, language barriers and disability.
Internet-Accessible Speech Recognition
Technology
Video and audio streaming
solutions
Streaming of live surgical operations for teleeducation purposes
Streaming media and servers, video
programming, media formats
Nursing Listserves can provide nurses with a
means to communicate and exchange relevant
information.
Listserves, databases
Monitoring of a pacemaker remotely
telemetry technologies
Consolidation of information (project information,
KPIs, etc) centrally by government for decision
support
Application programming interfaces
Communication tools such as
Listserves, Usenet News Groups,
and other web and internet-related
applications
Remote monitoring, particularly for
home-based care
There is a gap between principles
and practice. Many popular
middleware services use
proprietary implementations
(making applications dependent on
a single vendor's product) and thus
limiting interoperability. The costs
of using middleware technology
(i.e., license fees) in system
development are entirely
dependent on the required
operating systems and the types of
platforms. In this regards, OSS can
provide a cost-effective alternative
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Appendix E: ICT TRENDS
Source: Africa Analysis Team7
Note: Webservices and Opensource Software offer the best value
Figure E-0-1 South African Value Matrix.
The figure shows 7 quadrants – Government, Skills, Financial Markets,
Technology, Infrastructure, and Other Environmental Factors. The figure
shows levers that need to be pulled to improve South African economic
status. Under technology, webservices and opensource software are
one of the areas or levers that can unlock South Africa’s potential.
7
Research into the South African Software Market, Report Release 2, pg 106. Report conducted for the dti.
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WIRELESS APPLICATIONS
ENTEPRISE SOLUTIONS
Source: the dti
Source: Africa Analysis8
Figure E-0-2 Market Status: Enterprise Solutions
In the figure, the pointers above the graph illustrate various ICT
applications and where they are in terms of maturity. The [pointers
below are for the global market. The areas/applications with pervasive
opportunities are those at the early stages in the lifecycle i.e. in the
Development, Introduction and Growth phases. The applications in the
maturity phases are characterised by major players in the industry,
leaving very little room for SMME to enter the industry.
8
Report: Wireless Applications in South Africa, Africa Analysis Consortium, pg 63. Study conducted for
the dti.
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WIRELESS APPLICATIONS
PERSONAL
Source: the dti
Source: Africa Analysis9
Figure E-0-3 Market Status: Personal
In the figure, the pointers above the graph illustrate various ICT
applications and where they are in terms of maturity. The [pointers
below are for the global market. The areas/applications with pervasive
opportunities are those at the early stages in the lifecycle i.e. in the
Development, Introduction and Growth phases. The applications in the
maturity phases are characterised by major players in the industry,
leaving very little room for SMME to enter the industry.
9
Ibid.
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WIRELESS APPLICATIONS
CONTENT
Source: the dti
Source: Africa Analysis10
Figure E-0-4 Market Status: Content
In the figure, the pointers above the graph illustrate various ICT
applications and where they are in terms of maturity. The [pointers
below are for the global market. The areas/applications with pervasive
opportunities are those at the early stages in the lifecycle i.e. in the
Development, Introduction and Growth phases. The applications in the
maturity phases are characterised by major players in the industry,
leaving very little room for SMME to enter the industry.
10
Ibid.
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The table below show three drivers for advancement in wireless
applications – social responsibility, revenue, and necessity. What this
table suggest is that applications can be created by assessing
customer-needs (technology-pull) and thereby identifying various
market segments.
WIRELESS APPLICATIONS
MARKET SEGMENTATION
Source: the dti
Source: Africa Analysis11
Figure E-0-5 Wireless Applications Market Segmentation
The table shows three drivers for advancement in wireless applications
– social responsibility, revenue, and necessity. What this table suggest
is that applications can be created by assessing customer-needs
(technology-pull) and thereby identifying various market segments.
11
Ibid.
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Source: Bluepeter12
Notes: HLT, Mobile, Wireless, Telemedicine, Geomatics and OSS are the technologies with the
best economic potential
Figure E-0-6 Technology Impact Analysis Grid
The diagram below illustrates various applications and the potential
impact on the ICT industry as well as South Africa’s ability to respond in
adapting or employing these technologies. Technologies that are
pervasive in terms of their potential impact on the industry and South
Africa has the highest ability to respond to them are the have the most
potential for entrepreneurial activity. These are located in the 1st
quadrant (i.e. upper right corner of the diagram): Mobile, Wireless, HLT,
OSS, and to some extent Telemedicine and Geomatics.
12
Benchmarking of Technology Trends and Technology Development, the dti, 2004.
Report prepared by Bluepeter.
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