The Growing Demand for IT Skills in South Africa: Insights from the IITPSA Skills Survey
In an era where the digital economy is rapidly expanding, the demand for IT skills is surging globally. This trend is particularly pronounced in South Africa, where the local market faces significant skills challenges. The latest Skills Survey and Research report from the Institute of IT Professionals of South Africa (IITPSA) sheds light on these pressing issues, revealing the urgent need for skilled professionals in various IT domains.
The Digital Economy’s Impact
According to Hloni Mokenela, Managing Director of Africa Analysis, the global digital economy is projected to account for a staggering $16.5 trillion by 2030, representing 17% of the global GDP. This growth is fueled by several key trends, including advancements in artificial intelligence and machine learning (AI/ML), cybersecurity, and data science. By 2030, AI/ML alone is expected to reach a market size of $1.6 trillion, while cybersecurity is projected to grow to $270 billion by 2019, and data science is anticipated to hit $470 billion.
Skills Shortages in South Africa
Despite the promising growth of the digital economy, South African employers are grappling with significant skills shortages in critical areas such as information security, AI/ML, big data, data storage, DevOps, and systems design. The IITPSA survey indicates that 46% of organizations are prioritizing information security, 32% are focusing on AI/ML, and 19% are emphasizing big data and data science. Alarmingly, 27% of employers report current shortages in AI/ML skills, with 32% expecting future shortages.
The Shift in Recruitment Preferences
The survey reveals a notable shift in recruitment preferences, with employers increasingly valuing professional experience over academic qualifications. In 2024, 47% of employers ranked experience as the most important attribute for potential candidates, while only 32% prioritized a graduate degree. This change reflects a growing frustration with the perceived lack of job readiness among graduates, who often lack essential soft skills and practical experience.
Factors Exacerbating the Skills Gap
Several factors contribute to the widening skills gap in South Africa. A lack of adequate training, an insufficient pool of new graduates, and ongoing brain drain are significant challenges. The survey highlights that 65% of employers believe skills gaps have a moderate to high impact on their businesses. The industry’s frustration stems from the fact that many graduates enter the job market unprepared, necessitating extensive training by employers.
The Remote Work Trend
As the global skills gap continues to widen, South African ICT practitioners are increasingly seeking remote opportunities with international clients and employers. The survey indicates that 49% of practitioners are considering remote work, with 11% already engaged in such arrangements. This trend underscores the allure of global opportunities for local talent, further complicating the skills landscape in South Africa.
Addressing the Skills Gap
To combat the skills shortage, employers are implementing various strategies to attract and retain talent. The survey found that 44% of employers offer flexible schedules, while 41% provide professional development programs. Online training platforms, such as Coursera and Udemy, have become popular among practitioners, with 38% relying on them for skill enhancement.
Despite these efforts, the percentage of organizations recruiting from overseas has decreased from 50% in 2022 to 36% in 2024. This shift suggests a growing emphasis on developing local talent, although many companies still struggle to find suitable candidates.
The Role of Education and Training
The IITPSA report emphasizes the need for coordinated efforts to enhance the quality of education and training in STEM fields. With less than 20% of graduates in 2021 coming from STEM disciplines, there is a pressing need to broaden the pipeline of skilled professionals. The report calls for improved training programs and a greater focus on producing job-ready graduates.
Conclusion
The IITPSA Skills Survey highlights the urgent need for skilled IT professionals in South Africa, driven by the rapid growth of the global digital economy. While employers are increasingly prioritizing professional experience over academic qualifications, significant challenges remain in addressing the skills gap. To ensure a competitive ICT sector, South Africa must invest in education and training initiatives that produce a larger pool of qualified professionals. As the digital landscape continues to evolve, both practitioners and corporations must commit to continuous learning and adaptation to remain relevant in this dynamic environment.