Trends in the ICT Sector in Australia

ICT Sector and Skills Development in Australia Australia

Trends in the ICT sector in Australia ICT in Australia is a key driver of economic growth and contributes significantly to the creation of wealth in all sectors of the economy and in all regions.

The ICT industry is one of the fastest growing and innovative sectors in the Australian economy with a sustained growth approaching 12% over the last five years. It accounts for some $50 billion in sales with annual exports close to $4 billion.1

ICT is significant through the creation of jobs, products/services and exports, and also as an enabling technology through its impact on the productivity of virtually all other industries. According to the Australian Bureau of Statistics, at the end of June 1999, there were 195,580 persons working in ICT specialist businesses.

Segmentation of Australia’s IT Workforce The overall picture of the breakdown of Australia's IT workforce is shown in the figure below.

IT Workforce Segmentation -- Australia

N=335 Source: Asia/Pacific Technology Integration Panel Study, IDC, 2000

Functional Segmentation of IT Staff Categories When looking at a breakdown of the different job roles within the development staff category, the following breakdowns were found:

. Programmers - 48% . Analysts - 23% . Web developers - 9% . Testers - 12%

1 Australian Information Industry Association: http://www.aiia.com.au

42 . Document specialists - 8%

The presence of Web developers has become a significant trend, now making up close to 10% of the development staff workforce, in both Australia and Asia/Pacific.

The segmentation of the operations staff category is shown below:

. Database management - 36% . Network and systems management - 44% . Telecommunications - 21%

IT staff working on e-commerce-related activities totalled 14% of the workforce.2

There were 18,469 ICT specialist businesses in Australia in 1999, an increase of 36% since 1995-96. These businesses are found in the following sectors:

Industry sector No. of businesses % Computer consultancy services industry 14,546 79% Computer wholesaling industry 1,398 8% Telecommunication services industry 931 5% Other industries 1,594 9% (Australian Bureau of Statistics, May 2000).

Small businesses employing fewer than 20 persons made up 96% of the ICT specialist businesses in 1989-99. These businesses, however, accounted for only 24% of employment and 12% of total income.

There were 155 ICT specialist businesses with employment of 100 persons or more, accounting for 1% of ICT specialist businesses. These large businesses accounted for 65% employment and 76% of total income.3

For international ICT companies, Australia is claimed to be the strategic location for doing business in the Asia Pacific region. Australia is a highly cost competitive location with a technically skilled workforce. Australia's workforce and its institutions are advanced users of ICT and have an outstanding record of creativity, innovation and research and development.

Over 400 international companies have set up regional headquarters and operation centres in Australia, representing AU$6.9 billion in new investment.

International companies which have set in Australia, include AOL, Bluegum, BMC, Canon, Cisco, Dascom, ERG, Ericsson, Fujitsu, Hewlett Packard, Lexmark, Lucent, Motorola, NEC, Nortel Networks and Oracle.4

2 Asia/Pacific Technology Integration Panel Study, IDC, 2000 3 Australian Bureau of Statistics, 28th November 2000 4 Australian Information Industry Association: http://www.aiia.com.au

43 Research and Development Australia is home to sophisticated networks for innovation, with world-class R&D institutions that include universities, Cooperative Research Centres (CRCs), government research and testing institutions (eg CSIRO), and private research and development centres. There are approximately 15 CRCs devoted to technology development in ICT and multi-media applications. Australia's world-class research and development capabilities are attracting R&D projects of the highest order.

Total research and development expenditure in the ICT sector is estimated to be AU$936 million. This can be broken down to AU$330 million from manufacturing ICT, AU$189 million from telecommunications and AU$417 million from other ICT services.

Internet usage and e-commerce uptake in Australia Australia has a state-of-the-art Internet infrastructure, a regulatory regime geared to e- business, and an open competitive telecommunications market:

. More than six million adult Australians were accessing the Internet at November 1999, an increase of more than 100% since February 1998. . At the same time, nearly 1.8 million households (25% of all households) were connected to the Internet. . Australia is among the global leaders in terms of the percentage of homes connected to the Internet and total population online. . Large Australian businesses have nearly reached the saturation point in terms of Internet adoption and are nearing saturation in home pages. Australian Small business shows much lower levels of connections to the Internet, at 48%, than medium size firms at 82%. . 800, 000 adult Australians had purchased or ordered goods over the Internet in the 12 months to November 1999. This was a 183% increase over a year earlier. . 21% of SMEs connected to the Internet were engaged in Internet based sales, and 22% were actively placing orders for goods and services as of February 1999. . Australia is a major driver of business to consumer e-commerce in the Asia- Pacific.5 6

Skills shortages Demand for ICT skills in Australia has been strong for some time. The mix of skills required is also changing quickly as technology continues to change, and as quickly as the rate at which businesses are changing. For example, organisations seriously competing to satisfy increasing customer demand in the market place are striving to adopt customer relationship management (CRM) applications to grow closer to customers and anticipate their needs. This makes it difficult for educational providers to produce people in the right numbers and with the right skill sets to meet market requirements.

These different characteristics between demand and supply are largely the cause of the gap in the Australian market for ICT skills.7

5 http://wwww.noie.gov.au/projects/information_economy/ecommerce_analysis/ReportCard 6 The Current State of Play: Australia and the Information Economy, NOIE, November 2000 7 Market for Australian IT&T Skills 2000-2002: a survey carried out by the IT Skills Hub with the assistance of the Australian Bureau of Statistics (ABS), and the Department of Education, Training and Youth Affairs (DETYA) and the National Centre for Vocational

44 Employment growth: Although annual employment growth in Australian information technology and telecommunications (IT&T) has eased a little from the high rates (around 9%) experienced over 1999 and 2000, it remains strong and well above the average for all industries. Demand across all IT&T occupational groups is expected to grow by around 7.5% over this year and by around 8% in 2002. By contrast, total employment in the Australian economy has been growing during the last year at around 1.3%.

Demand: An estimated 24,000 additional people to work in core IT&T occupations and supporting roles will be required in 2001 and a further 27,500 in 2002. Most of this additional demand, around 20,000 in 2001 and 21,200 in 2002, will be for people with core IT&T skills (software and hardware developers, systems administrators, IT&T managers, technical advisers and consultants).

Of the 27,500 additional demand for IT&T people in 2002, around 25,000 of those will be required to have a relevant IT&T qualification (either a university degree; TAFE or equivalent; or industry or commercial qualification). Employers indicate that around 18,400 of that 25,000 will need to have a university degree or higher qualification. The rest will require vocational education and training (VET) qualifications (around 2,600), industry or commercial qualifications (around 4,000) or no formal qualifications at all (around 2,400).

Supply: Assessing the additional supply of IT&T skills is complicated by the fact that comprehensive data are only available for the publicly funded education system, i.e. universities and the vocational education and training (VET) system, and migration.

The available data show that an additional 10,400 university-level graduates will become available for employment in professional IT&T jobs in 2001 and 2002. There is also potential for up to an additional 1,000 university-level equivalent graduates from private providers and in-house training programs in each of these years. The number of new VET graduates is estimated at 2,900 in 2001 and 3,800 in 2002 although the numbers who complete part qualifications is substantially higher.

Market shortfall: Conclusions on the balance between supply and demand indicate:

. A shortfall of between 7,000-8,000 university-level graduates or equivalent in 2002 . No apparent shortfall for VET qualifications.

The significance of this skills mismatch will be that, in the short term, the IT&T industry and user industries will have to employ people with a lower level of skills than they would prefer if positions are to be filled.

Perceptions of skills shortages However, IDC research8 revealed a more serious picture. Interviews with a large sample of respondents found that a significant proportion of businesses in Australia, 82%,

Education Research (NCVER). http://www.itskillshub.com.au/render/exec/render_content.asp? subgroup=industryresearch&file=1%2E2studying+6%2E3research+article1%2Ehtml&title=Market+for+Australian+IT %26T+Skills+2000%2D2002

8 IDC AUSTRALIA IT Staffing Dynamics and Challenges in Australia July 2000 (Report #WAP34015G)

45 acknowledge a level of IT staff shortage in their country. The effects of IT staffing problems are also believed to be having a direct impact on productivity. Businesses indicating a strong sentiment of IT skills shortage also explicitly show that delays to application implementation are occurring as a result (75%).

The table below shows that expression of IT skills shortage by business size segments does not vary significantly. It is clear that small, medium and large businesses and all industry sectors acknowledge a firm sentiment of IT skills shortage.

End-User Measurement of IT Skills Shortage -- Detailed (Rank 1=Extreme shortage exists; 7=No shortage exists) 1-Extreme 7- No Total Australia 2 3 4 5 6 Shortage Shortage % 10-99 12% 17% 34% 16% 8% 6% 7% 100% 100-499 3% 28% 25% 28% 8% 5% 3% 100% 500+ 8% 29% 36% 16% 6% 6% 0% 100% Total 10% 21% 33% 18% 7% 6% 5% 100% Banking/Finance 5% 31% 22% 5% 36% 1% 0% 100% Manufacturing 10% 11% 35% 17% 7% 13% 6% 100% Distribution 33% 3% 40% 11% 0% 2% 10% 100% Telecommunications/ 8% 17% 20% 51% 3% 1% 0% 100% Utilities Services 3% 37% 35% 9% 13% 1% 2% 100% Other 3% 29% 25% 30% 5% 2% 6% 100% Total 10% 21% 33% 18% 7% 6% 5% 100% IDC Australia, July 2000

Longer-term supply outlook: Enrolments in university and VET IT&T courses are showing strong growth. This will increase supply substantially over the next three to five years. Recent Government decisions on skilled immigration and further support for innovation will also boost available supply of IT&T skilled people. This would suggest that the skills gap should continue to narrow.

Delays to new application implementations due to IT staff shortage: IDC9 found that among the 82% of businesses that indicate IT skills shortage in Australia, there is also firm sentiment that business productivity is already being affected as a result. 43% indicate a 1-30 days' delay to new application implementation experienced among this 82% and a further 32% indicate delay of more than 30 days.

The cost of ICT staff shortages: Creating and embarking on best practices for both recruiting and retaining IT staff will be a mandatory option for businesses that want to avoid the pitfalls of low productivity and high staffing costs due to IT staff shortage in their organisation. In Australia, the average cost incurred due to IT staff turnover is approximately US$5,000 per head, increasing total IT staffing costs by at least 4%.

Competing in the IT labour marketplace will also require increased emphasis on the training of internal IT staff, as formal IT training and increasing employees' level of skill

9 Asia/Pacific Technology Integration Panel Study, IDC 2000

46 enhancement is likely to be an important incentive for staff to remain within the organisation.

Currently in Australia, only 4% of IT staffing costs is attributed to the training of internal IT staff, at an average of approximately US$4,800 per head. As can be expected, this figure is higher among large businesses that tend to have more elaborate IT budgets.

A report by Accenture, ‘The High Performance Workforce: Separating the Digital Economy’s Winners From Losers’, 10based on a year-long study into personnel issues in the IT industry, has suggested that maintaining talented and satisfied staff is what sets successful companies apart. The vast majority (80%) of almost 500 senior executives interviewed felt ‘people issues’ had become more important over the last three years, with many nominating staff retention as one of the most complex issues affecting their future business success. Furthermore, 68% of respondents said that retaining talented staff was more important than luring new blood.

The issue is particularly pertinent in the IT sector, where personalities are the main differentiating factor between companies with similar functionality.

High staff turnover was attributed, in part, to the failure of most Australian companies to look beyond financial rewards to stop their staff heading to greener pastures. Less than 20% of companies in Australia currently consult with staff regarding future plans on a regular basis. People are increasingly keen to take charge of their own careers and to manage their own professional development. As a result, more and more workers are looking beyond their employers for career planning advice.

IT&T skills in greatest demand: The two areas of strongest demand for technical skills are applications skills (particularly database management, security, systems management, project management, business to consumer applications, customer relationship management, multimedia and exchange) and telecommunications network management (configuration, access and security, fault and performance, utilisation and accounting).

IT staffing in large-scale server environments generate the highest ratings for IT skill shortage levels, as seen in the figure below. Likewise, organisations operating in a Linux environment, with IT staffing influenced the least by factors, are experiencing the least IT skills shortage.

IT&T jobs in greatest demand: Over the next two years, most IT&T job categories will experience quite strong demand. Generally, it will be those jobs requiring most experience (systems administrators and managers), which will come under the most pressure. However, given the limited pool of existing skilled people and the supply shortfall this will inevitably create entry opportunities at lower levels as people move up the ladder to higher positions.

Long-term vacancies: At the end of 2000, there were around 9,000 core IT&T skills vacancies (positions that had remained unfilled for six months or more). This represented nearly 5% of total core skills employment. Highest long-term vacancies were analysts (around 1,650), systems administrators (1,600), project managers (1,500) and technical advisers and consultants (1,250).

10 http://www.accenture.com/xd/xd.asp?it=enWeb&xd=services\hp\hpne\hpne_home.xml

47 Employer-sponsored training: On average, 8.4 days per year is spent on employer- sponsored training of IT&T employees for technical skills, 11.9 days for business skills and 3.1 days for other skills.

Other skill requirements: Good business and personal skills for IT&T employees remain a high priority for employers.

Recruitment: By far, recruitment of ICT people working in Australia for other organisations is the preferred method of filling vacancies. Lack of experience is the main barrier to filling vacant ICT positions.

End-User Measurement of IT Skills Shortage by Server Platform Environment

IDC Australia, July 2000

Education and training status In its report on the Australian services market, IDC11 examines the IT training and education sector. In the forward 5-year period to 2005 IDC forecasts a CAGR of 9.9% for the discrete education and training market sector, with market value growing from AU$187 million in 2000 to AU$300 million in 2005.

At the same time, it should be noted that an increasing amount of business education would be delivered as a component element of a broader services arrangement, such as SI or outsourcing.

This positive forecast for future growth is primarily due to:

. The degree of market volatility anticipated across a diverse range of solutions and technology areas and the corresponding need for an expanded level of education and training. The key areas of identified volatility which will generate a need for

11 The Australian Services Market: Analysis and Forecast, 2000-2005 Report #WAU44604H - April 2001)

48 education and training include CRM and ERM solutions, security, and B2B technology solutions development activity will also drive education to a higher level in the area of Web-server software, network infrastructure management and middleware. The demand for both knowledge mining and legacy solutions re- engineering skills will also be sustained at near existing levels in the mid-term. . The increasing value being placed on technology "certification" as both a competitive differentiator and a career investment. . The greater recognition by corporate IS of the technical and process intellectual capital residing within their operation. . The implementation of education programmes that support staff retention and teaming objectives. . The opportunity for increased service delivery via the ASP medium. The latter trend could see the emergence of a new kind of training aggregator, to further enhance service accessibility and delivery. . The increased adoption of "integrated technologies" across the mobile and communication domains, especially with respect to their convergence with existing solutions/technologies. . The anticipated implementation of eLearning technology, to optimise a flexible education/training environment.

Education and Training Services in Australia ICT training occurs at many levels in Australia. Training courses are offered by TAFE (Technical and Further Education) institutes, by universities, by the corporate sector and by NGOs. In-house training is also part of the sector. Courses range from elementary introductory courses to post-graduate doctorates, and from focused certification to operate specific packages to broad-based courses that include general business skills. TAFE institutes may be registered to run certification courses for software companies. Such certification courses may be undertaken by school children, or as part of an apprenticeship programme, or through an e-learning channel.

Common threads running through the various programmes are:

. Incorporating ICT skills at school level . Connecting skills training with employment opportunities, i.e. vocational education . Encouraging innovation and entrepreneurship.

Common to all, also, is a high degree of organisation and control. Each province, or state, undertakes its own training promotion exercises, and conducts research and formulates skills policies. These however, all fall within certain state initiatives, some of which are given in the next section.

Skills x Knowledge = Growth An example of one of the state (provincial) government’s ICT training initiatives is the Victorian Government's policy on ICT skills. Victoria’s programme is based on the Victorian state’s Skills x Knowledge = Growth comprehensive ICT skills statement, issued in November 2000, as a result of the findings of the ICT Skills Taskforce.12

12 CT Skills Statement and ICT Skills Report, www.mmv.vic.gov.au

49 “Skills x Knowledge = Growth:

. $1 million awareness campaign targeted at young Victorians, supported by a range of measures to encourage ICT excellence and entrepreneurship in schools. . A secondary school-based ICT Excellence Fellowship Program enabling students to develop ICT skills in real-world entrepreneurial settings. . A $500,000 ICT Achievers Program to help 50 Victorian students learn entrepreneurship and the skills needed to commercialise new ideas. . An ICT careers pathways system that allows students to map their progression into high-tech careers. . An ICT skills tracking and monitoring system. . A 'Think Bank' where exceptional Victorians will establish new alliances for incubation and innovation.”

National strategy and government intervention Considerable effort and expenditure is exerted by both the Commonwealth and State13 governments in terms of both strategy and intervention in training initiatives. Some of these are given in the section above.

IT&T Skills Exchange The Federal Government has provided an AU$5 million grant over two years to seed the start-up of an IT&T Skills Exchange, provided similar backing is derived from industry. The key objectives:

. Awareness – Awareness of IT&T and the perception that it is just for geeks, nerds and propeller heads is the greatest inhibitor. Encouraging new people into IT&T careers is considered the highest priority for the Exchange . Market Intelligence – However there is a lack of in-depth knowledge of the particular areas of greatest demand and the competencies needed for people to fill those positions. The Exchange needs to conduct market research and analysis to identify these key skills areas. It needs to develop competency standards for positions in these skills areas that industry and individuals can target for development. Together with industry, it needs to develop strategies to fill these gaps mixing training and on-the-job experience to increase the skills resource base. . Course commissioning and brokering – the third role for the Exchange is to facilitate the matching of supply with demand. The current process is not sufficiently responsive to industry demands. The solution is considered to be a mix of better-targeted courses and establishing a broking role between industry and education service providers to match training requirements to individual organisation’s needs. The Exchange will commission the development of IT&T courses to meet industry demand identified through its market research. It will perform the role of broker either direct or through ‘agent brokers’. Agent brokers will act in the name of the Exchange to promote its brand. Agent brokers will also

13 In Australian terminology, the national government is referred to as the Commonwealth or Federal government and the provincial governments as State governments, or Territories, depending on their status.

50 promote the use the Electronic marketplace established by the Exchange as well as the courses commissioned by the Exchange to meet industry demand.14

Backing Australia's Ability and the ICT Centre of Excellence An AU$2.9 billion, five-year plan was unveiled on the 29th of January 2001 by the Prime Minister of Australia, which centres on education in its drive towards innovation. The plan, Backing Australia's Ability 15, centres on adding government funding to Australia's education, research, and communications markets.

The Information and Communication Technology Centre of Excellence16 was announced in the Federal Government's Innovation Statement, Backing Australia's Ability. The Centre will be a world-class institute undertaking leading edge ICT research. It will also help address the ICT skills shortage as it will attract and train high calibre researchers. The Centre is planned to increase the national capacity to create innovative information and communications technologies, increase Australia’s ability to exploit the intellectual property created and lead to the growth of new businesses.

The National Office for the Information Economy (NOIE) is managing the implementation process for the Centre, which will become a hub for innovative activity in Australia, and is expected to build a strong international profile.

IDC’s critique17 of the ICT Centre of Excellence presents some viewpoints that have universal applications:

. IDC Australia's general consensus is that it is too little and possibly too late. With these funds being stretched over a five-year period, the country may find itself struggling when faced with the other fast tracking digitally aware economies in Asia/Pacific. . While the focus on education creates an indigenous IT industry, in the long run this does not necessarily support economic growth. An ICT industry that is dependent on fast growing domestic demand, or expanding export market will be vulnerable within economic uncertainties. The answer is to use technology to create efficiencies, products and services, tailored to fit within current economic realities. . Education spending is always essential and welcome, but in reality it should be just a single aspect of a total IT plan. Will investment in education and research result in tangible, globally competitive product production, or simply add to the brain drain? . The pledge to start online education sounds like the backing of an idea that excites, rather than one that works. This is simply because online learning is more suited to specific courses in postgraduate education, such as technology or product certification. . Given the amount that is set to be spent on education and research, there is comparatively little business incentive for innovation. After all, the business, and

14 More Information: http://www.aiia.com.au/education 15 www.innovation.gov.au 16 http://www.noie.gov.au/projects/IndDev/CoE

17 Australian Government Announces Plans for Innovation: IDC Opinion IDCFlash #WAU21401H - January 2001

51 not the university, is where the actual creation of product occurs. A highly educated workforce is of little use if the technology needed to drive the system is not accessible, affordable, and reliable. Bright IT trained minds can only flourish and maximise their potential in environments that allow such ease of technological accessibility, free of bureaucracy, protectionism and other inhibiting legislation. . IDC would have liked to see more emphasis and money given to the Commercialisation of Emerging Technologies (ComET). At the end of the day, innovation is wasted if it cannot by commercialised. . The successful education of a workforce on leading 21st century skill sets must be followed by opportunity to actualise these skills. Therefore, a learning+ programme should be established that allows for innovation and entrepreneurial opportunities beyond education. To ignore human needs for success can only result in the searching for opportunities elsewhere - more than likely overseas.

Provincial (State) initiatives An example of an integrated ICT plan, the Victorian State Government in May 2000 allocated $22 million over the next four years for IT, including the support of SME ICT industries, and improvement of the state's ICT skills base. Making up the $22 million are:

. $9 million for improving public internet access, especially in regional and rural areas, and setting up of Government Net Access Centres . $800,000 for a new Electronic Export Assistance Centre to assist potential exporters . $1.3 million for the existing Victorian E-commerce Early Movers assistance scheme which promotes e-commerce at a community level . $3.5 million over three years to expand Skills.net, a community-based program that provides free or affordable Internet access and training. This will be especially targeted at people in remote locations . $550,000 for the existing Go for IT traineeship program . $2.5 million to extend the VicOne network to improve internal communication among government agencies . $5 million for Chipskills, an industry development program to support semiconductor related activities in Victoria.

Outside of the allocation to IT, the government has also committed $170 million, as part of the Regional Infrastructure Development Fund, to provide adequate telecommunications infrastructure in regional and rural areas.

Private sector initiatives The IT corporate sector is actively engaged in training, and works in co-operation with TAFE institutes and universities, as well as government. One of the areas where they co- operate is the New Apprenticeship programme (see below under Learnerships)

Below is a list of private companies in Australia who have IT-related traineeships:

. Accenture . BHP

52 . Canon . EDS Australia . Ericsson Australia . Getronics (Wang Global) . GIO . Hewlett-Packard Australia . Microsoft Corporation . Motorola Australia . Nortel Australia . Oracle Corporation Australia . St George Bank . Sun Microsystems Australia . Unisys Australia

Chipskills Victoria State has an industry/government/university co-operative skills development initiative in place called Chipskills. The Chipskills Project is a Victorian Government microelectronics skills programme to encourage the growth of the integrated circuit design industry and the broader microelectronics industry in Victoria.

The Victorian Government, together with a number of universities (RMIT University, LaTrobe University, Victoria University and Swinburne University of Technology) and key industry players (Ericsson, NEC, Fujitsu, Motorola, Bosch, Bandspeed and Semiconductor Technologies Australia), has developed a new Graduate Certificate, Graduate Diploma and Master of Engineering Programs in Microelectronic Engineering.

With strong industry backing, these are the first programs of their kind to be offered in Australia. 18

NGOs and international organisations

CiTt Communications and Information Technology Training Company The Communications and Information Technology Training Company (CITT) is a not- for-profit company established to obtain business and industry commitment to Traineeships.

CITT is a national company assisting and advising the information technology & telecommunications (IT&T) industries in implementing competency standards and training packages. CITT is not a registered training organisation, but rather a referral body for other government providers and agencies implementing New Apprenticeships.

CITT’s mission is:

. Promoting Traineeships in the Information Technology and Communications

18http://www.mmv.vic.gov.au/CA256985002E8DB7/All/CA244102C0FEE57CCA25699E003076DA? OpenDocument&1=10Careers+in_IT~&2=13Chipskills~&3=~

53 . Industry developing Australia's skills base creating employment . Opportunities within its industry, including opportunities for the disadvantaged

They assist enterprises to:

. Determine recruitment options and provide a recruitment process specific to the needs of the enterprise . Seek information on Federal Government programs . Obtain information on training incentives and how they apply . Locate training providers . Register Traineeship applications.

SME trends

Learning+ IDC 19makes the point that the successful education of a workforce on leading 21st century skill sets must be followed by opportunity to actualise these skills.

Therefore, a learning+ programme should be established that allows for innovation and entrepreneurial opportunities beyond education.

To ignore human needs for success can only result in the searching for opportunities elsewhere - more than likely overseas. If this happens, much akin to a company being unable to retain skilled staff, a country loses its human capital to a competitor - in this case another digital economy.

On the other hand, by offering tax abatements or deferments that allow entrepreneurial incubation countries can develop and attract human capital with opportunities for success.

Promoting Young Entrepreneurs Promoting Young Entrepreneurs 20 is a new initiative of the Federal Government to encourage a broader culture of entrepreneurship in the community. This initiative aims to help young people build and apply their entrepreneurial talent.

The Promoting Young Entrepreneurs initiative complements existing Government, business and educational sector initiatives aimed at promoting entrepreneurial activity in Australia. The initiative has two main themes:

. Promoting the achievements of Australia’s successful entrepreneurs . Assisting the development of the entrepreneurial capability of tertiary students.

19 Australian Government Announces Plans for Innovation: IDC Opinion IDCFlash #WAU21401H - January 2001 20 http://www.innovation.gov.au/iap/Inv_programs/index.html

54 ITOL- IT Online ITOL is a national government grants programme that it aimed at encouraging the use of IT in B2B activity, especially amongst SMEs. The objectives of the ITOL program are to provide assistance to a broad range of activities throughout Australia that:

. Encourage collaborative industry based projects that aim to accelerate the adoption of business-to-business e-commerce solutions across a wide range of industry sectors, especially by clusters of SMEs. . Foster the awareness and strategic take up of innovative e-commerce solutions within and across industry sectors which deliver sustainable economy wide returns and contribute to increased competitiveness.

ITOL provides grants on a competitive basis to support the development of collaborative B2B e-commerce projects. The ITOL grant is often a catalyst for industry groups to come together to solve common business problems on an industry wide basis, rather than working individually and developing multiple solutions and, in some cases, duplicating outcomes.

Applications must be consortium based, with at least three organisations involved, which may include companies, tertiary institutions, industry/business associations, government agencies, educational institutions and other not-for-profit organisations.

Learnerships

New Apprenticeships New Apprenticeships combine training and employment.21 The New Apprenticeship programme is mooted as providing: “Real benefits for your business. Your New Apprentice contributes to your bottom line with practical skills and knowledge acquired through their training.”

The programme targets both business and individuals in its promotional websites, providing easy access to information.

To accommodate the variety that is found in businesses, New Apprenticeships have been designed to be flexible, while at the same time providing nationally recognised quality training developed by industry for industry.

The New Apprenticeship programme is run by the Department of Education Training and Youth Affairs (DETYA).

The organisation of the New Apprenticeship training programme occurs through New Apprenticeship Centres. The Australian National Training Authority (ANTA) runs new Apprenticeship Centres.22 New Apprenticeships Centres are located in over 300 sites across Australia, with some 200 sites in rural and regional locations. New Apprenticeships Centre services include:

21 In some States and Territories New Apprenticeships are referred to as apprenticeships and traineeships. 22 http://www.anta.gov.au/tp/

55 . Providing information on New Apprenticeships options to job seekers, employers and other interested people . Marketing and promoting New Apprenticeships in the local area . Administering Commonwealth incentive payments to employers . Working with the State/Territory Training Authority to provide an integrated service . Establishing effective relationships with Commonwealth contracted Job Network Members, training providers, schools and other organisations.

Geographically, a list of New Apprenticeship Centres can be found by typing in a postal code. From an occupational standpoint, New Apprenticeships are available to businesses in more than 500 identified occupational categories nationally, in both emerging and well-established industries, including information technology and telecommunications.

The programme is clearly aimed primarily at the youth of the country. The New Apprenticeship website leads one to a website Take Off!! 23 which gives testimony about job experiences, etc. in specific industries, mooted as “the place to explore the many different pathways your future could take”.

New Apprenticeships attempt to combine practical work with quality structured training to give employees a nationally recognised qualification together with the required experience.

New Apprenticeships are 'competency based'. They extend the traditional concept of an apprentice to all industries and all levels of education. New Apprenticeship programmes can be undertaken at school level, or in conjunction with a university graduate degree. For example, Deakin University runs an undergraduate traineeship program called AHEADstart. "AHEADstart builds relationships prior to graduation through the employment of students under a part time traineeship." 24

ICT New Apprenticeships New Apprenticeships are available in general information technology, software applications, network administration, client support, database administration, network management, technical support, programming, and systems analysis and design, and a range of telecommunications areas.

The qualifications obtained depend on the level and the area in which the Training Agreement is formulated. For example:

. Certificate III in Information Technology (Software Applications) . Certificate III in Information Technology (Network Administration) . Certificate IV in Information Technology (Client Support) . Certificate IV in Information Technology (Database Administration) . Certificate IV in Information Technology (Multimedia) . Certificate IV in Information Technology (Programming) . Certificate IV in Information Technology (Systems Analysis and Design).

23 http://www.anta.gov.au/takeoff/ 24 http://www2.deakin.edu.au/career/

56 IGNITE25’s a programme designed specifically for New Apprenticeship in the IT and telecoms industries. In common with many other training initiatives, it has close links with recruitment and job opportunity information and websites.

The government uses an integrated approach to encourage the uptake of the New Apprenticeship programme, ensuring that their website is linked to job search websites, government department websites, in other words, is readily accessible, as well as being attractive.

Linked to the New Apprenticeship programme is the Victoria State’s Go for IT, aimed at assisting people, especially young people to gain employment through an IT, Communications or Multimedia Traineeship. The pilot program in 2000/2001 placed over 130 people. The State Government has recently expanded the program over two years to place 740 additional IT trainees within the IT industry sector.

Research and innovation A number of electronic hubs dedicated to training exist in Australia.

EducateU EducateU is a website that specialises in information regarding training in IT. It brings together all information on all courses and sources of training in Australia.26

Skills.net Skills.net27 is a community-based programme to provide free or affordable Internet training and access to people who wouldn't otherwise have access to the Internet. It is useful for adults wanting to be trained in basic to advanced Internet skills and web site design.

Skills.net is one of the State Government of Victoria's Connecting Communities 28initiatives.

Over 65,000 people have been provided with Internet training and access through Skills.net. By 30 June 2003, 80,000 citizens will receive Internet training and access through Skills.net projects across Victoria.

Skills.net projects, co-ordinated by community organisations such as neighbourhood houses, community centres and public libraries, are giving Victorians the skills and online services they need to understand the Internet.

In particular, Skills.net is assisting technologically disadvantaged communities, including those in rural and remote Victoria, people with disabilities, women, older Victorians, people from non-English speaking backgrounds, indigenous Australians and low income earners.

25 http://www.ignite.net.au/support/apprenticeships.asp 26 www.educateu.com.au 27 http://www.skills.net.au/ 28 http://www.mmv.vic.gov.au/CA256985002E8DB7/All/4B544948B1DD620C4A256A6F008139EA? OpenDocument&1=30Connecting_Communities~&2=~&3=~

57 The IT Skills Hub IT Skills Hub is, in part, a new electronic marketplace, conceived to address the need for a larger IT&T skills pool, bringing together some of the best resources and expertise in Australia’s IT&T industry. IT Skills Hub is a meeting space that links individuals and agencies with IT&T skills, opportunities and solutions. It has the backing of Australia's major IT&T players, as well as the federal and state governments.

IT Skills Hub provides information and resources on education, training, development and services for everyone involved in the sector - from users to suppliers, students to educators and employers to employees.

The Hub aims to provide:

. A virtual meeting point for everything IT . Possible solutions to the shortage of IT skills . Comprehensive links to IT jobs, training and education, chat, information and insights . A means for Australia to bolster its respected position in the global information and telecommunications industry . An outstanding example of the use of the IT industry’s own tools to provide a match between supply and demand for skills.

The IT Skills Hub mission statement “Our mission is to facilitate the matching of supply and demand, to ensure that people understand the breadth of IT &T career opportunities and how to make the most of education and training options in the sector. To achieve our mission we must:

. Clearly understand our target audiences . Assess the needs and wants of these audiences and fulfil them . Anticipate future needs and lay the groundwork for them progressively . Link our target audiences with the resources they need - education, training, skills and information . Foster just-in-time learning.

We can achieve our mission by providing timely information that responds to these needs.”

The IT Skills Hub is an open community of people interested in careers in IT. It is a rich source of information on issues, trends, events and other matters for students or job seekers as well as ICT professionals, seeking to up-skill or re-skill.

The IT Skills Hub has been established with the financial support of the Commonwealth Department of Education, Training and Youth Affairs and the National Office for the Information Economy.

58 Founding members IT Skills Hub was formed by 18 leading information technology and telecommunications companies, all of which are profiled briefly below:

. Adacel Technologies . Alcatel . Deloitte . Ericsson . Fujitsu Australia . Global Pacific Group . Hewlett-Packard Australasia . IBM Global Services, Australia . Lucent Technologies . Microsoft Australia . National Australia Bank . Nortel Networks . Novell Pty Ltd . Oracle Australia . Siemens . Spherion . Sun Microsystems Australia . Telstra