Impact of ICT Across the Economy

Description
The uptake and effective utilisation of ICT services by Australian businesses has facilitated a range of innovations, including technological solutions that enable efficient and streamlined business processes, advanced technological tools that open up new modes of production and new market sectors, and new ways to maximise staff productivity through mobile telephony and teleworking.

I
C
T

w
o
r
k
f
o
r
c
e

s
t
u
d
y

J
u
l
y

2
0
1
3

ICT
workforce
study
July 2013
Information and communications
technology workforce study
July 2013
ISBN 978-1-921916-35-9 (print)
ISBN 978-1-921916-36-6 (online PDF)
© Commonwealth of Australia 2013
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part
may be reproduced by any process without prior written permission from the Commonwealth.
Requests and inquiries concerning reproduction and rights should be addressed to the
Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education,
GPO Box 9839, Canberra ACT 2601.
Disclaimer: The material contained in this paper has been developed by the Australian
Workforce and Productivity Agency.
The views and recommendations do not necessarily re?ect the views of the Australian
Government, or indicate its commitment to a particular course of action.
The Australian Government and the Australian Workforce and Productivity Agency do not
guarantee or accept any legal liability or responsibility for the accuracy, completeness, or
usefulness of any information disclosed.
The Australia Government recommends that users exercise their own skill and care with
respect to their use of this paper and that users carefully evaluate the accuracy, completeness
and relevance of the material in the paper for their purposes and where necessary obtain any
appropriate professional advice relevant to their particular circumstances.
The paper can be accessed at www.awpa.gov.au.
Letter to the Minister
Dear Minister
On behalf of the Australian Workforce and Productivity Agency (AWPA), I am pleased to present
our ICT workforce study. This report is an important part of AWPA’s commitment to ensure that
Australia has the workforce it needs for the future.
Across our economy, ICT is driving innovation and productivity. From the productivity bene?ts
of cloud computing, to the transformative impact of mobile telephony and tablet devices,
businesses across every industry sector are utilising ICT to streamline business processes,
improve service offerings and simplify operations. The rollout of the National Broadband Network
will facilitate and strengthen these activities, and ICT-savvy businesses will also increasingly look
to emerging Asian economies for the provision of niche ICT services.
In turn, workers across the economy require a range of skills to support these developments. This
includes the specialist ICT skills required to develop, deliver and promote ICT services, products
and advice, and the generic skills and ‘digital literacy’ to facilitate and support these changes.
However, we face several challenges in preparing the domestic workforce for the ICT skills
demands of the future. Low engagement in ICT skills in schools leads to a less than satisfactory
pipeline of ICT skills, and many employers signal dissatisfaction with the quality and quantity of
domestic ICT graduates. Reform is required to boost perceptions of ICT careers, enhance the
work readiness of ICT graduates and improve industry engagement in upskilling and professional
development in an industry characterised by rapidly changing skill sets.
This report is informed by extensive consultation with industry, universities, vocational education
and training bodies, industry associations and unions. Following the release of an issues paper
in January 2013, AWPA received 19 submissions from stakeholders, and convened meetings
with stakeholders including an industry forum in November 2012 and a roundtable meeting in
February 2013.
I would like to express my gratitude to stakeholders across industry, the tertiary sector and
government who have provided their invaluable insights and guidance to the project. I would
particularly like to thank the chair of the ICT workforce study and AWPA board member,
Ms Marie Persson, my colleagues on the AWPA board, and our critical friends who have so ably
assisted in the development of this study.
I trust this report, and the recommendations featured in it, will assist decision-makers across the
sector to bolster the quantity and quality of the ICT skills which will be so crucial to our future
economic growth.
Yours sincerely
Philip Bullock
Chair, Australian Workforce and Productivity Agency
July 2013
4 ICT workforce study | Australian Workforce and Productivity Agency
Contents
List of ?gures 6
List of tables 6
Abbreviations and acronyms 7
Glossary 8
Overview 11
Recommendations 19
Part One: Pro?ling the Australian ICT industry—
economic impact, key trends and workforce pro?le 24
Chapter One: Global and national outlook for ICT 25
1.1 The global and national ICT industry 26
1.2 The impact of ICT across the economy 31
1.3 The impact of globalisation and the rise of Asia on the Australian
ICT industry 34
Chapter Two: Supply and demand picture for ICT skills 39
2.1 Snapshot of the ICT labour market 40
2.2 Demand for professional, technical and managerial ICT workers 46
2.3 Supply of skills for the ICT workforce 50
2.4 Pathways into ICT occupations 57
Part Two: Attraction, retention, development and utilisation of
ICT skills—what’s working and what can be improved 62
Chapter Three: ICT skills pipeline and the status of ICT careers 63
3.1 Perceptions of ICT and the status of ICT careers 64
3.2 The skills pipeline—the role of the schooling system 67
3.3 Developing positive, assertive and inclusive promotional vehicles
for ICT careers 81
5 ICT workforce study | Australian Workforce and Productivity Agency
Chapter Four: Ensuring the supply of high-quality ICT skills 85
4.1 Overview of tertiary provision 86
4.2 Perceptions and experiences of ICT tertiary education 89
4.3 The role of temporary and skilled migration 90
4.4 Improving the delivery and enhancing the contribution of
work-integrated and industry-based learning 92
4.5 Improving pathways to entry-level positions—establishing an
ICT apprenticeship/traineeship model 99
4.6 Broadening the pool of ICT skills 101
Chapter Five: Developing, retaining and effectively using
ICT skills in the workforce 105
5.1 The importance of continuing skills development for ICT workers
at all levels 105
5.2 High-performing workplaces investing in workforce and skills
development 106
5.3 Enhancing skills development for early-career ICT workers 112
5.4 Ongoing professional development for the ICT workforce 114
5.5 The National Workforce Development Fund 116
5.6 Improving the digital literacy of the broader workforce 118
Chapter Six: Increasing the diversity of ICT employment 121
6.1 Diversity and the ICT workforce 122
6.2 Engaging mature-aged workers in ICT 126
6.3 Indigenous participation in the ICT sector 129
6.4 Engaging women in ICT 133
6.5 Engaging people with disability in ICT 138
6.6 Engaging regional Australians in ICT 139
Chapter Seven: Strategies to improve data collection on ICT skills
supply and demand 143
Conclusion: Recommendations and responsibilities 147
Appendix One: AWPA modelling of future employment across key
ICT occupations 151
Appendix Two: Stakeholders in AWPA ICT workforce study 153
Bibliography 155
6 ICT workforce study | Australian Workforce and Productivity Agency
List of ?gures
Figure 1: Proportion of ICT employment in Australia by jurisdiction, as at
December 2011 28
Figure 2: Deloitte’s digital disruption map 32
Figure 3: ICT occupations—snapshot of employment, August 2012 41
Figure 4: ICT Professionals, ICT Managers and ICT Technicians, Trades Persons and
Sales Assistants—employment by industry, 2012 42
Figure 5: ICT occupations—employment growth, 5 and 10 years to August 2012 43
Figure 6: Unemployment rate for ICT Managers, ICT Professionals and ICT Support
Technicians 44
Figure 7: ICT Professionals—distribution of employment across selected age groups, 2011 45
Figure 8: Employment projections for six of the highest employing ICT occupations,
2012 to 2017 48
Figure 9: ICT Professionals—net replacement demand rates to 2017 50
Figure 10: ICT Professionals—higher education commencements in the ?eld of information
technology, 2001 to 2011 51
Figure 11: ICT Professionals—higher education completions in the ?eld of information
technology, 2001 to 2011 52
Figure 12: All VET commencements and completions for Information and Communications
Technology and Integrated Telecommunications quali?cations, 2008–11 54
Figure 13: Number of primary subclass 457 visa applications granted for selected
ICT workers 57
Figure 14: Proportion of ICT occupations holding the top three modal quali?cations,
20- to 29-year-olds, 2011 59
Figure 15: Vicious cycle of student perceptions of ICT education 68
List of tables
Table 1: Ratio of ages in working-age population compared to ratio of ages in
ICT workers, 2010 127
Table 2: Responsible body and partners for implementing the recommendations 147
Table 3: Employment in ICT occupations for three AWPA scenarios, as at 2025 152
7 ICT workforce study | Australian Workforce and Productivity Agency
Abbreviations and acronyms
ABS Australian Bureau of Statistics
ACDICT Australian Council of Deans of ICT
ACS Australian Computer Society
AGIMO Australian Government Information Management Of?ce
Ai Group Australian Industry Group
AIIA Australian Information Industry Association
ANZSCO Australian and New Zealand Standard Classi?cation of Occupations
APESMA Association of Professional Engineers, Scientists and Managers, Australia
APS Australian Public Service
AWPA Australian Workforce and Productivity Agency
CITT Communications and Information Technology Training
DEEWR Department of Education, Employment and Workplace Relations
GDP gross domestic product
IBSA Innovation and Business Skills Australia
ICT information and communications technology
IT information technology
ITCRA Information Technology Contract and Recruitment Association
ITPA Information Technology Professionals Association
NAGCAS National Association of Graduate Careers Advisory Services
NBN National Broadband Network
NICTA National ICT Australia
NVEAC National VET Equity Advisory Council
NWDF National Workforce Development Fund
OECD Organisation for Economic Co-operation and Development
SME small to medium-sized enterprise
STEM science, technology, engineering and mathematics
TAFE Technical and Further Education
VET vocational education and training
WIL work-integrated learning
WSIS World Summit on the Information Society
8 ICT workforce study | Australian Workforce and Productivity Agency
Glossary
big data High-volume, high-speed and diverse modes of information that require
advanced analytical techniques to organise, interpret and process.
cloud computing Enables on-demand and convenient access to computing resources
including but not limited to data storage and application services. These
services are usually sourced by enterprises from external service providers
and are located off premises. Cloud computing can result in savings for
enterprises as it enables outsourcing of specialised expertise across a
diversity of ICT needs.
cognitive
computing
Systems that learn and interact with people to enhance the capabilities
of the person or machine. Often used to assist decision making when
analysing big data.
collaborative
intelligence
The use of technology, such as social media, to engage broad
problem-solving networks.
cyber Relating to electronic communication networks and virtual reality.
1
data analytics* Analysis of internally generated and publicly available data and information
to predict outcomes and identify trends.
2
digital economy The global (or Australian) economic and social interactions and activities
enabled by platforms such as the internet, mobile appliances and sensors.
In its broadest de?nition it can include almost all of the activities in which
we engage including health services, online retail and education and online
government service delivery.
digital literacy Is concerned with enabling people and communities to become
‘cybercitizens’ by acquiring skills to effectively participate in the digital
economy. Digital literacy will become increasingly important as the NBN is
rolled out.
e-commerce Online, electronic transactions between businesses, consumers and/or
government organisations.
3

groupware* Electronic software and applications supporting communication,
coordination and cooperation between members of a group. These can
range from electronic mail to complex structured systems.
haptic
technologies*
Also known as tactile feedback technologies. Technological devices which
incorporate tactile feedback to develop virtual objects on the screen.
1 Department of Broadband, Communications and the Digital Economy, 2013, Advancing Australia as a Digital Economy:
an update to the National Digital Economy Strategy, Glossary, www.nbn.gov.au/?les/2011/06/Advancing-Australia-as-
a-Digital-Economy-BOOK-WEB.pdf, accessed 12 June 2013.
2 Adapted from Gartner, IT Glossary,http://www.gartner.com/it-glossary/groupware, accessed 17 June 2013.
3 Department of Broadband, Communications and the Digital Economy, 2013, Advancing Australia as a Digital Economy:
an update to the National Digital Economy Strategy, Glossary.
* These words are adapted from the source at footnote 2.
9 ICT workforce study | Australian Workforce and Productivity Agency
internet The global system of interconnected computer networks.
4
knowledge-based
industries
Refers to parts of the economy that deliver specialised, technical outputs
based on the production and customisation of information, rather than
traditional goods and services. The ICT services sector is often identi?ed as
a knowledge-based industry.
learning systems Technology programmed to use available information to make
real-time, evidence-based decisions.
online Connected to the internet and able to share data and information with other
computing devices.
5
QR codes* Quick response codes. Two-dimensional bar codes linked to a website
which can be read by a mobile phone or other device with the appropriate
software installed.
security Refers to technology that detects threats and responds to these
appropriately. It also deals with historical analysis of security issues,
compliance and investigation. Security demands analytical skills as well as
ability to correlate a diverse range of events and information.
social media Online technologies and practices that people use to share opinions,
insights, experiences and perspectives. Can take many different forms,
including internet forums, social networking, social blogs, wikis, podcasts,
pictures, video, rating and bookmarking.
6
software Programs used to operate computers and related devices.
7
teleworking Refers to ‘working from a distance’ and includes a range of modes such
as remote access, remote work, mobile work, e-work, telecommuting
and working from home. It does not only deal with technology although
technology can be a central mode in enabling telework. For enterprises
telework means a structure which supports employees working from
non-traditional locations.
T-shaped
professionals
Employees with broad knowledge and deep expertise, including technical
skills, subject matter knowledge and soft skills (such as communication and
business skills).
vendor
certi?cation*
Approval or licencing offered by technology retailers and manufacturers to
distribute services or to maintain their products.
work-integrated
learning
Occurs where students combine their formal studies with work in the
relevant industry. The work is usually structured and assessed as part
of their studies. It provides opportunities for students to practice in their
relevant professions and explore career options. Work-integrated learning
also provides enterprises with opportunities to identify new entrants for
entry-level positions.
4 Ibid.
5 Ibid.
6 Ibid.
7 Ibid.
11 ICT workforce study | Australian Workforce and Productivity Agency
Overview
Introduction
Information and communications technology (ICT) is arguably the key driver of productivity
growth and innovation in the twenty-?rst century. The uptake and effective utilisation of ICT
services has facilitated innovation across an increasingly diverse range of areas including, for
example, advanced environmental management solutions, new diagnostic and preventative
health techniques, and methods to detect, respond to and recover from natural disasters and
emergency situations.
8
And the future for technological innovation looks bright. Of course, it is dif?cult to predict
the future with certainty, but the diffusion of ICT across all industry sectors, and the pace of
technological change, will ensure that ICT continues to generate change and drive innovation
in our economy. Research conducted by IBISWorld indicates that a range of technological
trends including ‘ubiquitous high-speed broadband, analytics, learning systems and cognitive
computing’
9
will transform all aspects of Australian society.
Substantial growth in data usage will create huge demand for cloud computing services
as businesses try to store more information than ever before. The resulting proliferation of
information will increase demand for data analytics expertise to facilitate effective information
management, and information and cyber security services to ensure the safety of this data.
The next generation of technological change will also effect considerable change on the
way we live, work and play, as automation, remote sensing and robotics are applied to an
increasing range of activities, sophisticated haptic technologies (also known as tactile feedback
technologies) that respond to human senses are developed, and brain–machine interfaces are
created to enable neural control of ICT systems and devices.
10
As one of the key sectors in the knowledge-based industries grouping, the ICT sector is at
the coalface of fundamental changes to industry, work and skills needs. Knowledge-based
industries are concerned with processes that identify knowledge and utilise it to maximise
growth, and those processes that identify and gain new knowledge. Driven by technology
as their main vehicle, knowledge-based industries are shaped by global rather than local
in?uences. This has implications for the ways in which industry, government and training
providers can intervene in this sector to create local impacts.
The ICT sector is characterised by ?uidity in various domains including in organisational
structures, job designs and recruitment strategies. Themes inherent in this sector such as
knowledge management, groupware and collaborative intelligence will lead to organisational
8 Commonwealth Scienti?c and Industrial Research Organisation (CSIRO), 2013, ICT Centre,
www.csiro.au/ict, accessed 29 March 2013.
9 IBISWorld, 2012, A Snapshot of Australia’s Digital Future to 2050, p. 9, www-07.ibm.com/ibm/au/digitalfuture,
accessed 11 March 2013.
10 Ibid., p. 10.
12 ICT workforce study | Australian Workforce and Productivity Agency
restructuring and reengineering.
11
This creates a need for nonlinear organisational models
where production ?ows are idea driven and not always sequential.
12
It is thus inevitable that the same ?uidity that characterises organisational structures is re?ected
in the skills needs of the sector. The jobs and work of the future demand broad skills that are
increasingly dif?cult to place in existing categories of occupations as de?ned by the Australian
Bureau of Statistics (ABS). The skills needs of the future require capabilities to engage with
‘collaboration strategies, use of collaboration tools, and cross-cultural communication, to
collaborate with ICT professionals both in Australia and offshore’.
13
The impacts of these skill
requirements include continuous learning and ‘learning by doing’ to develop new kinds of ‘tacit
knowledge’. It also requires skills to handle codi?ed knowledge
14
and inter-?rm and interactive
learning to acquire new research, and to develop various stages of a technological process
which is key to technological progress and change.
15
Skill sets in this globalised sector have become global commodities and online talent sourcing
companies such as freelancer.com facilitate a global market for skills. Recruitment of ICT
workers is now often done through ‘non-traditional channels, in ways that can directly assess
capabilities rather than formal quali?cations or work experience’. Other examples of online
recruitment platforms include TopCoder, Gild, RemarkableHire and TalentBin, many of which
‘identify the highest potential ICT recruits on the basis of their contributions and recognition to
developer communities’.
16
These trends require countries like Australia to build clusters of specialised skills and talents,
which will create demand for specialised ICT skills in addition to the generic skills required for
organisational support tasks.
Many of these skills are developed outside of formal contexts, particularly for ICT-related skills.
The role of emerging modes of knowledge sharing such as mashups (collaborative events) and
online education forums such as massive open online courses are central to the facilitation of
upskilling and reskilling in the ICT workforce. The trend within the ICT sector is for self-directed
learning and lifelong learning. While structural support in organisations and in workforce policies
is required for the emerging need for lifelong learning culture, these channels of knowledge
acquisition are also widely accessed and directed by workers outside of work and formal
education channels.
Human capital is the key to realising the innovative potential of ICT. Whatever the future holds,
the challenge for industry will be to enable innovation by attracting workers with the specialist
skills and capabilities required to deliver and manage technological change, investing in ongoing
skills development to promote the deepening and broadening of skills, and committing to
?exible organisational practices to facilitate retention and the effective utilisation of skills
including, for example, job redesign, job rotation and employee participation in decision making.
11 Wood, J, 2003, ‘Australia: an underperforming knowledge nation?’, Journal of Intellectual Capital, vol. 4, no. 2,
p. 147.
12 Dzinkowski, R, 2012, ‘How to price human capital’, In the Black, October 2012, www.itbdigital.com/
opinion/2012/10/05/how-to-price-human-capital, accessed 24 October 2012.
13 Dawson, R, input provided to the AWPA ICT workforce study report, May 2013.
14 Organisation for Economic Co-operation and Development (OECD), 1996, The Knowledge-Based Economy,
p. 14, www.oecd.org/science/scienceandtechnologypolicy/1913021.pdf, accessed 18 June 2013.
15 Ibid., p. 12.
16 Dawson, R, input provided to the AWPA ICT workforce study report, May 2013.
13 ICT workforce study | Australian Workforce and Productivity Agency
Accordingly, the knowledge, skills and competencies required to engage with ICT have taken
precedence in early twenty-?rst century societies. Generic ICT skills and ‘digital literacy’ have
emerged as prerequisites or highly desired skills for jobs across the economy, and are also
central to the process of learning, as primary, secondary and tertiary educational institutions
increasingly utilise technology in the delivery of educational programs. At the higher end of the
skills spectrum, advanced ICT skills offer career prospects across a range of sectors as ICT
moves from the backroom to the forefront of enterprise activity. As a result, the skills required
to understand and use ICT have emerged as a fundamental concept in all levels of education,
from the foundational years through to senior schooling and across a range of tertiary education
offerings both in ICT and non-ICT disciplines.
Many Australian businesses and workers are integrating ICT into their day-to-day activities.
This adoption is not new, but the standardisation of hardware and software has shifted
business demand from customised hardware and software, to a range of sophisticated
ICT services. In particular, companies are increasingly seeking to utilise cloud computing
services to facilitate shared access to a range of ICT resources. Demand for data analytics has
also increased in recent years, as companies across the economy seek to generate, utilise
and manage an array of complex information related to business processes and consumer
behaviour. The rollout of the National Broadband Network (NBN) is expected to accelerate the
effectiveness and use of these services.
At the same time, however, many Australian businesses, particularly small to medium-sized
enterprises (SMEs), are still not engaging effectively with ICT. For example, in a 2010–11 ABS
survey, 46 per cent of small businesses (5–19 persons) and 26 per cent of medium-sized
businesses (20–199 persons) reported that they did not have an online presence.
17
In addition,
small, medium-sized and large businesses report lack of access to ICT-related knowledge
and/or technology as a barrier to innovation.
18
Finally, several recent surveys suggest a lack
of capability related to computer-based and/or technological skills acts as a key inhibitor to
enterprises seeking to improve their digital pro?le.
19

Many businesses also report dif?culty recruiting capable, con?dent, work-ready ICT
specialists.
20
In some cases business demands very speci?c skills that are generally held by
very few job candidates. Enrolments and completions in ICT-related disciplines in the tertiary
education sector have declined for much of the last decade, although there has been some
recent improvement in enrolment ?gures.
21
Accordingly, the focus needs to be on increasing
both the number of enrolments and completions in ICT-related disciplines as well as the
number of entry-level opportunities available in the industry.
17 ABS, 2011, ‘Summary of IT Use and Innovation in Australian Business, 2010–11’ (cat. no. 8166.0), www.abs.gov.
au/ausstats/[email protected]/mf/8166.0, accessed 15 March 2013.
18 Department of Industry, Innovation, Science, Research and Tertiary Education, 2012, Australian Small
Business: Key Statistics and Analysis, p. 64, innovation.gov.au/SmallBusiness/KeyFacts/Documents/
AustralianSmallBusinessKeyStatisticsAndAnalysis.pdf, accessed 18 March 2013.
19 See Sensis, 2012, e-Business Report: The Online Experience of Small and Medium Enterprises, p. 27, about.
sensis.com.au/DownloadDocument.ashx?DocumentID=423, accessed 13 March 2013; MYOB, 2012, MYOB
Business Monitor—National Report July 2012, p. 21, myob.com.au/myob/backing-aussie-business/myob-
business-monitor-1258090877325, accessed 13 March 2013..
20 Australian Learning and Teaching Council and University of Wollongong, 2009, Managing educational change in
the ICT discipline at the tertiary education level, p. 22, www.olt.gov.au/project-managing-educational-change-ict-
uow-2006, accessed 20 March 2013.
21 DEEWR, 2013, ICT Labour Market Indicators, www.skillsinfo.gov.au/documents/ict-labour-market-powerpoint-
presentation, accessed 20 March 2013.
14 ICT workforce study | Australian Workforce and Productivity Agency
Throughout this period, skilled migrants have played a signi?cant role in ?lling skilled ICT
positions. However, over the longer term, as Australia competes with emerging economies
for this skilled labour and the requirement for ICT specialists increases in concert with the
implementation of the NBN and other developments, a substantial increase in the domestic
supply of ICT specialists will be required. Part One of this report examines this demand, and
assesses the potential supply of skills from all sources.
Challenges related to ICT skills supply
Part One of this report pro?les the Australian ICT workforce. The Australian Workforce and
Productivity Agency (AWPA) ?nds that increasing the supply of domestic ICT specialists is a
dif?cult task for four key reasons.
First, the ICT industry carries a legacy of negative perceptions of desk-bound, repetitive,
isolating jobs, perceptions that do not bear a close relationship to the contemporary emergence
of dynamic, creative, ?exible, interdisciplinary ICT jobs. These perceptions have implications
for the pipeline of ICT skills from schools to tertiary education. They have to change if Australia
is to take full advantage of the digital opportunities of the future. In addition, a range of
stakeholders have suggested to AWPA that the provision of ICT education in schools often
reinforces these negative perceptions by presenting an outdated view of the industry.
Second, skills supply is limited by the low levels of female and mature-aged workers in the
ICT workforce. Women occupy less than 20 per cent of positions in the majority of ICT
occupations, well below the percentage of women employed in all occupations (just over
45 per cent).
22
And a high proportion of workers in ICT Professional occupations are aged
between 25 and 44 years (67.8 per cent compared with 45.5 per cent for all occupations).
23

Third, many students who pursue an ICT education experience dif?culty in ?nding employment
in the sector upon graduation, and many graduates use their quali?cations to pursue other
careers outside ICT. Despite the young age pro?le of the ICT workforce, there appears to be a
limited number of entry-level positions for persons in the 20 to 24 years age group, with many
employers complaining that tertiary graduates do not possess the desired combination of
technical and complementary business and communication skills to contribute effectively in the
workplace. The apparent shortage of entry-level opportunities contributes to the relatively high
level of occupational wastage for ICT graduates. In 2011, 37 per cent of ICT graduates aged
20 to 29 years were employed as ICT Professionals, and a further 51 per cent were employed
in other occupations.
24
Issues of wastage and attracting students to ICT courses may improve
with stronger pathways for graduates at entry level.
Fourth, despite the increasing complexity of ICT services and the growing demand for these
skills, the engagement and investment of industry in ICT skills development remains low.
25

While many multinational ICT organisations have put in place highly effective workforce
22 ABS, 2013, ‘Labour Force, Australia, April 2013’ (cat. no. 6202.0), www.abs.gov.au/AUSSTATS/[email protected]/
productsbyCatalogue/F756C48F25016833CA25753E00135FD9?OpenDocument, accessed 27 May 2013.
23 DEEWR, 2013, ICT Labour Market Indicators, slide 13.
24 Ibid., slide 26.
25 IDC, 2012, ‘ICT Skills in the Workplace Forum: Market Overview’, unpublished presentation for the Australian
Government ICT Skills in the Workplace Forum, 21 November 2012.
15 ICT workforce study | Australian Workforce and Productivity Agency
development strategies, there is limited collaboration between large ICT organisations to build
the general pool of skills all employers draw from, and there are issues as well with skills
development for contractors. In relation to SMEs, submissions provided to AWPA indicate that
many of these organisations have limited capacity to support skills development.
26
However,
there is also evidence that SMEs often collaborate to meet shared skills needs. For example,
Google and a range of innovative start-up companies have convened a small group to consider
strategies for ‘build[ing] the tech start-up ecosystem in Australia’, with a focus on education
and training.
27

Of course, the responsibility for ICT skills development extends beyond mainstream ICT
organisations. As enterprises across the economy increasingly draw on ICT services for a range
of business needs, managers and leaders will be required to acknowledge the importance of
ICT skills to their organisations, and position the acquisition and development of ICT skills as
a high priority. In some cases, enterprises will outsource the majority of ICT requirements to
third-party providers, but the successful management of this outsourcing, and the achievement
of quality outcomes that represent value for money, will depend on the cadre of basic and
intermediate ICT skills that these organisations can draw on.
There is some evidence that graduates securing employment go on to experience rewarding,
secure careers in ICT. Low employment rates, for ICT professionals in particular, suggest that
graduates who manage to get the right foothold in the labour market experience positive longer
term employment outcomes marked by varied and challenging job roles. ICT career pathways
are suited to resilient, highly motivated self-starters who take a degree of responsibility for their
own ongoing training and career development, since ICT industry investment in training and
skills development is low compared to other industries. However, there are many examples
of ICT organisations that demonstrate an enduring, organisation-wide commitment to staff
development. In particular, many large multinational organisations with operations in Australia
have put in place sophisticated workforce development plans that facilitate high levels of
worker satisfaction and productivity.
26 NICTA and AIIA, 2013, submission to AWPA ICT workforce study.
27 Fox, M, 2013, ‘Growing Australia’s Tech Startup Ecosystem—I’d Love Your Thoughts’, 22 Michaels (8 February),
www.22michaels.com/2013/02/growing-australias-tech-startup.html, accessed 29 April 2013.
16 ICT workforce study | Australian Workforce and Productivity Agency
Potential solutions—workforce development strategies for the
ICT workforce
Part Two of this report proposes some potential solutions to these challenges, through a set
of workforce development strategies to stimulate the attraction, retention, development and
effective utilisation of ICT skills. These strategies, which have been identi?ed in collaboration
and partnership with industry, the education and training sectors and government, seek to:
? Change and improve perceptions of ICT careers—AWPA recommends collaboration
between stakeholders to develop a suite of targeted careers promotion products for
different cohorts and audiences to promote career opportunities in ICT.
? Improve the quality of ICT teaching in schools and tertiary education institutions,
and excite students in ICT careers—AWPA supports greater investment in the
professional development of ICT teachers, enhanced industry engagement in schools
and improved promotion for ICT career opportunities.
? Improve the suitability of tertiary graduates for entry-level positions—AWPA
recommends a more strategic approach to work-integrated learning and the consideration
of an apprenticeship/traineeship model for ICT skills.
? Increase the quantity of workers with ICT-intensive skills—AWPA recommends an
intensive skills conversion program aimed at recent graduates from other disciplines.
? Increase the quantity of workers with the functional knowledge of ICT required to
work with ICT specialists—AWPA supports the development of a cross-disciplinary unit
to support the integration of a digital literacy component into all undergraduate degrees,
and a suite of approaches to improving the engagement of under-represented groups in
the ICT workforce.
? Ensure that employers of ICT workers, including employers of ICT contractors,
support ongoing skills development and the effective utilisation of skills in a fast-
moving and rapidly changing sector—AWPA supports the expansion of the Australian
Computer Society professional development program to domestic students, and
highlights the National Workforce Development Fund as a key enabler for organisations
to identify and address their workforce development needs.
Improving the ICT skills pipeline—and ensuring the currency, development and retention of
generic and specialist ICT skills—will require schools, tertiary education providers, workers
and employers to develop the adaptive capacity required to ?exibly and creatively respond
to changing circumstances. Individuals require adaptive capacity to adjust to changes in the
organisation of work, including the growing proportion of contract work in some areas of ICT,
and to ensure ongoing skills development in a climate of skills obsolescence. Schools and
tertiary education providers must ensure that graduates are equipped for a world of work that
is constantly changing, including the development of complementary soft skills alongside
technical competencies. And employers must adapt by developing innovative approaches to
the organisation of work and job roles to maximise both skills utilisation and the lifestyles of a
diverse employee cohort.
17 ICT workforce study | Australian Workforce and Productivity Agency
There are many examples of approaches to ICT skills development that maximise this form
of adaptive capacity, and AWPA is pleased to feature these approaches in a series of case
studies that appear throughout this report. Examples of approaches to skills development that
confer bene?ts on both individuals and employers include successful schooling programs such
as Queensland’s Group X program and Victoria’s Digital Divas program, the various forms of
work-integrated learning put in place by tertiary providers in collaboration with industry, and
approaches to engage groups that are under-represented in the ICT workforce including the
Australian Government Information Management Of?ce’s Women in IT Executive Mentoring
program.
AWPA notes that many of the strategies featured in this report may not require substantial
additional funding. For those strategies that do require additional resourcing, funding could
be obtained through a variety of avenues, including through changing the priorities of existing
programs, funding by industry and employers, or through the use of Australian Government
programs such as the National Workforce Development Fund.
AWPA notes that the Australian Government’s recently announced update to the National
Digital Economy Strategy states that ‘the Government will also facilitate the formation of a
group of industry representatives and tertiary education stakeholders to take ownership of
the ICT workforce development agenda. It will implement strategies to promote and broaden
the attractiveness of ICT as a digital career, share best practice models and work with tertiary
education providers to ensure that graduates have appropriate skill sets.’
28
AWPA suggests that
this group could consider taking forward the recommendations of this report.
AWPA’s vision for this report is to contribute to the development of an innovative, productive
and competitive Australian ICT workforce by highlighting the essential role of business and
innovative workforce development practices in driving the industry forward. If Australia
is to maximise the potential of the NBN and move con?dently into the digital century, we
need to ensure that the possibilities of ICT careers are effectively communicated, and that a
greater proportion of the population is motivated to engage in ICT during their education and
throughout their careers.
28 Department of Broadband, Communications and the Digital Economy, 2013, Advancing Australia as a Digital
Economy: an update to the National Digital Economy Strategy, p. 18, www.nbn.gov.au/?les/2011/06/Advancing-
Australia-as-a-Digital-Economy-BOOK-WEB.pdf, accessed 12 June 2013.
19 ICT workforce study | Australian Workforce and Productivity Agency
Recommendations
The ICT skills pipeline and the status of ICT careers
Recommendation 1
That the Australian Council of Deans of ICT, National ICT Australia and Education Services
Australia develop and pilot a semester-long ICT module for secondary students that can be
delivered online, administered centrally and assessed via an automated marking system to
augment existing and future secondary school technology curriculums.
Recommendation 2
That the Australian Government, state and territory governments, tertiary education institutions
and relevant industry bodies enhance the quality of ICT teaching in schools. Strategies should
include the following:
a) that scholarships and/or VET FEE-HELP support be introduced to enable teachers and pre-
service teachers to acquire additional quali?cations and/or skill sets in ICT education, such
as the nationally accredited Vocational Graduate Certi?cate in Digital Education
b) that the ACS Foundation broaden its focus on schools from its school visit matching service
to the development of comprehensive support for technology teachers, including through
the provision of relevant curriculum materials, the connection of students with relevant
tertiary education providers, and the establishment of business mentors for interested
students
c) that the Australian Government establish a program dedicated to enhancing the training
of ICT teachers based on the existing Enhancing the Training of Mathematics and Science
Teachers Program.
Recommendation 3
That strategies be adopted to improve the exposure of school-aged students to ICT careers.
Strategies should include the following:
a) that the Australian Computer Society and the Australian Information Industry Association
promote the bene?ts to ICT professionals of participating in the Australian Government’s
recently announced extension of the Scientists and Mathematicians in Schools program
to showcase ICT careers, and encourage ICT professionals to visit schools to discuss their
exciting careers and engage with students and teachers in ongoing discussion through
social media, blogs and forums
b) that the Australian Computer Society include visits by ICT professionals and ICT researchers
to school career nights and expos—and other innovative engagement strategies such
20 ICT workforce study | Australian Workforce and Productivity Agency
as the use of social media—on the schedule of activities for the continuing professional
development of ICT professionals.
Recommendation 4
That National ICT Australia, the Australian Information Industry Association and the Australian
Computer Society develop a suite of targeted careers promotion products for different cohorts
and audiences (for example, youth, mature-aged workers, women and parents) to demonstrate
how ICT skills can be an enabler across a range of careers, and make a difference in a range
of sectors. These products should have a presence across all media and platforms, including
widely adopted tablet and smartphone apps, gaming and social media.
Ensuring the supply of high-quality ICT skills
Recommendation 5
That the Australian Government, tertiary education providers and industry expand and improve
work-integrated learning and other professional experience programs by:
a) increasing funding support for work-integrated learning and facilitating the expansion of
these programs to a greater proportion of the student population
b) improving the integration between various forms of work-integrated learning and course
learning objectives to ensure a balance between employability skills and lifelong learning,
building on the work-integrated learning outcomes project funded by the Australian
Government’s Of?ce for Learning and Teaching
c) engaging more small to medium-sized enterprises in work-integrated learning programs by
promoting the mutual bene?ts of these programs
d) supporting a thorough, longitudinal evaluation of the various models of work-integrated
learning and professional experience, with a focus on the contribution of these programs to
employment outcomes and career progression.
Recommendation 6
That the Australian Government and industry associations monitor the outcomes of the
Australian Government ICT Apprenticeship Program and the Australian Information Industry
Association and Victorian Government’s ICT-VET Pathways project, and if successful, develop
and pilot a national apprenticeship/traineeship model for ICT technicians and trades workers.
Recommendation 7
That the Australian Council of Deans of ICT and other deans’ councils promote the incorporation
of digital literacy into all undergraduate degrees by developing and piloting a cross-disciplinary
unit that could be customised for particular disciplines.
21 ICT workforce study | Australian Workforce and Productivity Agency
Recommendation 8
That the Australian Council of Deans of ICT, the Australian Computer Society, the Australian
Information Industry Association and other industry associations develop a pilot ICT-intensive
skills conversion program aimed at recent graduates from other disciplines. This program could
be delivered at Australian Quali?cations Framework Level 9 (master degree by coursework).
Developing, retaining and effectively using ICT skills in the workforce
Recommendation 9
That the Association of Professional Engineers, Scientists and Managers, Australia, the
Australian Information Industry Association and the Australian Computer Society develop a
pilot cross-sector program highlighting high-performing workplaces using ICT-intensive skills by
featuring case studies, testimonials and instructional guides for other organisations.
Recommendation 10
That the Australian Computer Society and the Australian Information Industry Association
introduce a one-year professional experience program for entry-level ICT professionals. This
experience is already available to international students seeking employment in Australia, and
could be extended to domestic students.
Recommendation 11
That the Australian Computer Society, the Australian Information Industry Association and
Innovation and Business Skills Australia work with industry bodies and ICT organisations,
particularly ICT small to medium-sized enterprises, to promote the National Workforce
Development Fund as a key enabler for organisations to identify and address their workforce
development needs, including in relation to the National Broadband Network.
Increasing the diversity of ICT employment
Recommendation 12
That industry and professional associations build employer commitment to improving the
attraction and retention of mature-aged workers. Strategies should include the following:
a) that Innovation and Business Skills Australia, industry bodies and ICT organisations develop
and pilot short online modules to provide retraining opportunities for mature-aged workers
wishing to enter the ICT workforce
b) that industry associations, organisations and recruitment ?rms develop a register of ?exible,
part-time ICT positions targeted to mature-aged workers.
22 ICT workforce study | Australian Workforce and Productivity Agency
Recommendation 13
That industry and professional associations and the Australian Government build employer
commitment to improving the attraction and retention of Indigenous Australians, including
by promoting the development of enterprise-level Reconciliation Action Plans and through
assistance and tools available from Reconciliation Australia.
Recommendation 14
That industry associations and women within IT organisations build employer commitment to
improving the attraction and retention of female workers, including by:
a) developing a code of best practice for women in ICT in collaboration with female academics
and industry leaders
b) promoting mentoring services for female ICT workers, and providing advice on how to set
up an in-house mentoring service.
Recommendation 15
That the Australian Computer Society, the Australian Information Industry Association, relevant
employment services organisations and tertiary education providers develop place-based
approaches to matching job seekers with ICT employers and recruitment organisations,
building on existing regional networks, including Local Employment Coordinators and Regional
Education, Skills and Jobs Coordinators.
Strategies to improve data collection on ICT skills supply and demand
Recommendation 16
That the Australian Bureau of Statistics (ABS), together with the Australian Computer Society,
the Australian Information Industry Association and other key ICT industry bodies, review ABS
ICT-related collections to help ensure accurate, comprehensive and up-to-date measurement of
the ICT workforce and ICT activity in the economy.
The table on page 147 details responsibilities for implementing these recommendations.
23 ICT Workforce Study 2013
Glossary and acronyms
23 ICT Workforce Study 2013
Glossary and acronyms
Part One: Pro?ling the Australian ICT
industry—economic impact, key
trends and workforce pro?le
24 ICT workforce study | Australian Workforce and Productivity Agency
25 ICT workforce study | Australian Workforce and Productivity Agency
Chapter One: Global and national outlook
for ICT
Introduction
This chapter sets the context for this report by providing an overview of the Australian ICT
industry, examining the impact of ICT across the economy, and assessing the impact of
globalisation and the rise of Asia on the Australian ICT sector.
ICT is a vital enabler of productivity and innovation in a range of industry sectors across the
Australian economy, and many of these sectors are set to be transformed by ICT in coming
years. However, there are a number of issues that limit the potential of the digital economy in
Australia.
First, Australia’s ICT infrastructure is still poorer than many other comparable Organisation for
Economic Co-operation and Development (OECD) countries.
29
Considerable progress is being
made on this front, however, through the rollout of the NBN.
Second, many Australian businesses, including many SMEs, are yet to engage effectively with
ICT, and the evidence suggests that many do not possess the skills or capacity to change the
situation.
Third, the potential for Australian-based ICT ?rms to bene?t from export opportunities in
emerging Asian economies is yet to be fully realised.
The attraction, development and utilisation of high-quality ICT skills will assist businesses
across the economy to prosper in the digital economy. Part Two of this report details a set
of workforce development strategies that seek to improve the availability of these skills to
Australian businesses.
29 OECD, 2012, Internet Economy Outlook 2012, www.oecd-ilibrary.org/science-and-technology/oecd-internet-
economy-outlook-2012_9789264086463-en, accessed 19 March 2013.
26 ICT workforce study | Australian Workforce and Productivity Agency
1.1 The global and national ICT industry
Overview
The ICT industry includes the production, distribution and maintenance of goods and
services, such as computer hardware and software, and the development and provision of
specialised computer and telecommunications services.
30
ICT thus involves much more than
the development and provision of desktop and laptop computers, smartphones and software
packages. These technologies are now thought of as enablers that facilitate an ever-expanding
array of networked communications. Cisco forecasts that, globally, there will be 10 billion
networked devices in 2017, exceeding the world’s population.
31
Mobility is expected to be a key feature in the ICT sector in the years to come. More than
50 per cent of mobile data traf?c will be via smartphones in 2013, and 10 per cent via tablets.
Global mobile data traf?c is predicted to grow thirteenfold by 2017, with tablets responsible
for more data traf?c in 2017 than the entire mobile network in 2012. Mobile video will also
consume more than two-thirds of mobile data traf?c by 2017. Meanwhile, the consulting
?rm IDC anticipates that the rise of ‘third platform technologies’ (mobile devices and apps)
will drive 98 per cent of information technology industry growth to 2020.
32
It predicts public
cloud services platforms will grow tenfold, converged systems (combining server, storage and
network systems) will account for more than one-third of enterprise cloud computing and more
than $20 million will be spent on ‘big data’ technologies.
The World Bank estimates that 2.4 billion people use the internet around the world, and it
puts the number of ?xed broadband subscriptions at 600 million at the end of 2011.
33
As the
internet continues to grow and ICT devices become increasingly mobile, rapidly developing ICT
technologies will have an impact on how and where people work, and how they shop, socialise
and live in Australia. In her 2013 Internet Trends report, US technology analyst Mary Meeker
stressed the rapid shift in internet use from desktop personal computers to smartphones and
tablets and a corresponding increase in personal digital-media uploads as more people share
more of their lives online. Meeker predicts that the next internet trends will be the development
and increased use of wearable computing devices, connected cars, remotely piloted drones and
QR (quick response) codes.
34
The June 2013 Ericsson Mobility Report likewise emphasises the
impact that increased mobility will have on society: ‘In the Networked Society connectivity will
be key to how people innovate, collaborate, and socialise.’
35
30 IBSA, 2013, Information and Communications Technology Industry Environmental Scan—2013, p. 3, www.ibsa.
org.au/Portals/ibsa.org.au/docs/Research%20&%20Discussion%20Papers/Escan/EScan2013/Escan%20
2013%20Information%20&%20Communication%20Technology%20Industry.pdf, accessed 3 April 2013.
31 Cisco, 2013, Cisco Visual Network Index: Global Mobile Data Traf?c Forecast Update, 2012–2017, www.cisco.
com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html, accessed
4 June 2013.
32 IDC, 2012, ‘Top 10 Predictions’, IDC Predictions 2013: Competing on the 3rd Platform, www.idc.com/research/
Predictions13/downloadable/238044.pdf, accessed 4 June 2013.
33 World Bank and International Telecommunication Union, 2012, The Little Data Book on Information and
Communication Technology 2012, p. v, www.itu.int/ITU-D/ict/publications/material/LDB_ICT_2012.pdf,
accessed 25 March 2013.
34 Meeker, M, and Wu, L, 2013, Internet Trends, D11 Conference, 29 May 2013, Kleiner Perkins Cau?eld Byers,
www.kpcb.com/insights/2013-internet-trends, accessed 4 June 2013.
35 Ericson, 2013, Ericsson Mobility Report, June 2013: On the pulse of the Networked Society, www.ericsson.com/
res/docs/2013/ericsson-mobility-report-june-2013.pdf, accessed 4 June 2013.
27 ICT workforce study | Australian Workforce and Productivity Agency
Increased mobility and access to cloud computing will allow opportunities for ?exibility
and agility through teleworking and secure virtualised work environments. The Australian
Government’s National Cloud Computing Strategy (May 2013) stresses the need for ‘a highly
skilled and capable ICT workforce … able to create as well as adopt cloud services’, and calls
for ongoing dialogue between government, industry and the tertiary sector to ensure that
graduates have the right skill sets to provide a strong and sustainable skills base.
36
The potential
of telework was also highlighted in the Australian Government’s update to its National Digital
Economy Strategy, which includes a commitment to continuing the coordination of the National
Telework Week and to engaging ‘private sector leaders in telework’.
37
The digital economy is becoming a key generator of wealth across the globe. Oxford
Economics estimates the total size of the digital economy at $20.4 trillion, which represents
approximately 13.8 per cent of all sales across the world economy.
38
The Australian ICT sector
is diverse and includes multinational companies that base their Asia–Paci?c operations in
Australia, and a range of small, medium-sized and large enterprises that provide computer
and telecommunications services, hardware sales and services, ICT support, digital media
and various other services and products. ICT end users including banks and government
departments are among the biggest employers of ICT workers.
39

Figure 1 shows that New South Wales and Victoria dominate ICT industry employment,
together making up 70.7 per cent of total national ICT employment.
36 Department of Broadband, Communications and the Digital Economy, 2013, The National Cloud Computing
Strategy, pp. 26–7, www.dbcde.gov.au/digital_economy/cloud_computing, accessed 31 May 2013.
37 Department of Broadband, Communications and the Digital Economy, 2013, Advancing Australia as a Digital
Economy: an update to the National Digital Economy Strategy, p. 73.
38 Oxford Economics, 2011, The New Digital Economy, p. 9, www.pwc.com/gx/en/technology/publications/assets/
the-new-digital-economy.pdf, accessed 20 March 2013. ‘Sales’ includes the sale of digital products and services
together with e-commerce (de?ned as online business-to-business and consumer transactions).
39 McLeod, P, 2011,
‘
Skills shortage to become critical’, The Australian (28 May), www.theaustralian.com.au/
careers/skills-shortage-to-become-critical/story-fn717l4s-1226063877709, accessed 22 March 2013.
28 ICT workforce study | Australian Workforce and Productivity Agency
Figure 1: Proportion of ICT employment in Australia by jurisdiction, as at
December 2011
0
5
10
15
20
25
30
35
40
Northern
Territory
Tasmania ACT South
Australia
Western
Australia
Queensland Victoria New South
Wales
P
r
o
p
o
r
t
i
o
n

o
f

n
a
t
i
o
n
a
l

t
o
t
a
l

(
p
e
r

c
e
n
t
)
Source: CIIER Whitehorse Top 250 ICT Industry Survey and Model December 2011, cited in Australian Computer Society,
2012 Australian ICT Statistical Compendium, p. 43, www.acs.org.au/_data/assets/pdf_?le/ 0014/13541/2012_Statcompendium_?nal_
web.pdf.
While the eastern states dominate the employment pro?le, it is important to note the
different industry specialisations across jurisdictions. The ICT software and services,
telecommunications, and wholesale and trade sectors are much larger in New South Wales
than in other states, due to the high proportion of Australia’s population in New South Wales.
40

ICT investment in manufacturing is strong in both Victoria and South Australia, re?ecting the
signi?cant role of manufacturing in those economies.
41
Western Australia and Queensland
have demonstrated the strongest growth in ICT employment since 2003, re?ecting the strong
performance of those economies over this period, and the increasing importance of ICT to
the mining and resources industry. Both states recorded cumulative ICT industry employment
growth of 50 per cent between 2003 and 2011.
42
40 IBSA, 2013, Information and Communications Technology Industry Environmental Scan—2013, p. 7.
41 Ibid.
42 ACS, 2012, Australian ICT Statistical Compendium 2012, p. 43, www.acs.org.au/__data/assets/pdf_
?le/0014/13541/2012_Statcompendium_?nal_web.pdf, accessed 10 February 2013.
29 ICT workforce study | Australian Workforce and Productivity Agency
Across the jurisdictions, a signi?cant proportion of Australian ICT organisations are SMEs.
Looking at the two Australian and New Zealand Standard Industrial Classi?cation divisions that
capture the majority of ICT organisations, SMEs constitute:
? 96.9 per cent of organisations in the Professional, Scienti?c and Technical Services
industry division
? 93.8 per cent of the Information Media and Telecommunications industry division.
43

Chapter Two provides additional information on the distribution, demographics and skills pro?le
of the Australian ICT workforce, which comprises 18 occupations at the Australian and New
Zealand Standard Classi?cation of Occupations unit group (four-digit) level that fall across
Australia’s 19 industry divisions.
Recent developments and future prospects for Australian ICT investment
In recent years, the Australian ICT industry has changed substantially. Demand has shifted
from bespoke ICT hardware and software products to a range of increasingly sophisticated
ICT services, as consumers and businesses engage with a range of digital media and services
and bene?t from advances in connectivity and internet speeds. In this climate, ICT is no longer
relegated to the ‘back room’ of business operations but, rather, takes precedence at the
forefront of business activity.
At the same time, the types of services in demand are changing rapidly. Companies are
increasingly seeking to utilise cloud computing services to facilitate shared access to a range
of ICT resources. In recent years, demand has also increased for data analytics, as companies
across the economy seek to generate, utilise and manage an array of complex information
related to business processes and consumer behaviour. It is expected that the rollout of the
NBN will accelerate the effectiveness and use of these services.
The outlook for ICT investment is positive. Whereas global ICT investment and utilisation
was de?ned by a series of peaks and troughs over the past decade, strong growth is likely
in the period ahead as technological capability continues to improve, and the connections
between ICT, innovation and productivity in all industry sectors become increasingly apparent.
In the short term, Gartner Research estimates a 5 per cent increase in enterprise IT spending
in Australia, from $69 billion in 2012 to $73 billion in 2013.
44
In the medium to long term,
IBISWorld predicts that ‘ICT, enhanced with the inclusions of ubiquitous high-speed broadband,
analytics, learning systems and cognitive computing’ will ‘evolve from a “value add” to
becoming Australia’s new utility’.
45
43 Department of Innovation, Industry, Science and Research, 2011, Key Statistics—Australian Small Business,
p. 10, www.innovation.gov.au/SmallBusiness/KeyFacts/Documents/SmallBusinessPublication.pdf, accessed
29 March 2013.
44 Gartner, Inc., 2012, ‘Gartner Says Consumer-Facing Industries Will Drive IT Investment in Australia During
the Next Five Years’, press release (19 November), www.gartner.com/newsroom/id/2244515, accessed
20 March 2013.
45 IBISWorld, 2012, A Snapshot of Australia’s Digital Future to 2050, p. 10.
30 ICT workforce study | Australian Workforce and Productivity Agency
Contribution to productivity
Across all parts of the Australian economy, the use of innovative digital technologies and
services has transformed business and household practices, from the comprehensive use of
smartphones and personal computing devices, to the streamlining and automation of business
processes by tailored applications and software.
However, calculating the precise contribution of ICT to Australian labour or multi-factor
productivity is a dif?cult exercise. To estimate the contribution of ICT to productivity, a reliable
?gure on the contribution of ICT to gross domestic product (GDP) is ?rst required. This ?gure
is dif?cult to generate, since the use of ICT is spread throughout the economy. The most
authoritative research on the contribution of ICT to GDP national productivity is the ABS
satellite account on ICT, which was last produced in 2002–03. The satellite account isolates the
economic value of ICT products
46
from within the Australian System of National Accounts. This
publication estimates that in 2002–03 ICT products accounted for $36.2 billion or 4.6 per cent
of total GDP.
47
Research by economic consulting ?rm ACIL Tasman estimates that ICT-related technology
factors are responsible for 33 to 65 per cent of multi-factor productivity growth, and this ?gure
increases to 45 to 75 per cent for the manufacturing industries.
48
Another estimate puts the
contribution of ICT to all Australian business productivity at 50 per cent.
49
While these ?gures
provide a useful point of comparison with the 2002–03 satellite account, they are not as
authoritative as the ABS approach. Indeed, ACIL Tasman concedes that ‘many industry-level
studies are affected by problems of aggregate industry data and statistical biases’.
50
AWPA sees value in the ABS producing an updated satellite account for ICT products. Another
option is for the Australian Computer Society (ACS) to adopt the ABS methodology for its
productivity estimates published in its annual statistical compendium. An updated ?gure would
provide a useful point of comparison with the 2002–03 ?gure, and a useful baseline to enable
comparisons with future measurements of the contribution of ICT to productivity.
46 ICT products include ‘computer hardware and their peripherals, parts, components and consumables, computer
software, telecommunication assets, computer services, telecommunication services and wholesale and retail
margins on ICT products’. See ABS, 2006, ‘Australian National Accounts: Information and Communication
Technology Satellite Account, 2002–03’ (cat. no. 5259.0), www.abs.gov.au/AusStats/[email protected]/MF/5259.0,
accessed 20 March 2013.
47 Ibid., p. 7.
48 ACIL Tasman, 2009, ICT as a Driver of Productivity, white paper prepared for Telstra, www.telstrabusiness.com/
business/ShowProperty?nodeId=%2FBEA+Repository%2F10392%2F%2F?le.binary&versionId=4, accessed
26 November 2012.
49 National ICT Industry Alliance and ACS, 2007, Energising Australian Innovation: a 10-year Strategic Vision
for the Australian ICT sector, p. 3, nictia.org.au/joomla/index.php?option=com_docman&task=doc_
download&gid=7&Itemid=26, accessed 13 February 2013.
50 ACIL Tasman, 2009, ICT as a Driver of Productivity, p. 4.
31 ICT workforce study | Australian Workforce and Productivity Agency
1.2 The impact of ICT across the economy
The impact of ICT on speci?c industry sectors
The uptake and effective utilisation of ICT services by Australian businesses has facilitated a
range of innovations, including technological solutions that enable ef?cient and streamlined
business processes, advanced technological tools that open up new modes of production and
new market sectors, and new ways to maximise staff productivity through mobile telephony
and teleworking.
IBISWorld predicts that 13 out of Australia’s 19 industry sectors will be either transformed
or derive signi?cant bene?ts from ICT, with key bene?ciaries including public administration
and safety, retail trade, mining, health care and social assistance, professional, scienti?c and
technical services, education and training, and transport, postal and warehousing.
51

In addition, Deloitte Access Economics has examined each of Australia’s 19 industry divisions
in relation to the potential impact (or ‘bang’) of digital innovation, and the timing (or length of
the ‘fuse’) required for this impact to take effect. The report notes:
For some [industries], digital disruption will be explosive and immediate—a force that
rocks the foundations of their business. For others less vulnerable to digital trends, the
changes will be slower and more subtle. For others again, digital innovation will be the
cornerstone for future value creation.
52
Figure 2 details the outcomes of this analysis. Some sectors, including manufacturing, mining
and construction, are not expected to experience dramatic change as a result of digital
innovation. The majority of sectors, however, can expect signi?cant change in either the
short or long term, with ICT and media, ?nance, retail trade, education, transport and post,
professional services and health likely to experience the most signi?cant impact.
51 IBISWorld, 2012, A Snapshot of Australia’s Digital Future to 2050, p. 12.
52 Deloitte, 2012, Digital disruption—Short fuse, big bang?, Building the Lucky Country: Business imperatives for a
prosperous Australia series, no. 2, www.deloitte.com/au/digitaldisruption, accessed 10 March 2013.
32 ICT workforce study | Australian Workforce and Productivity Agency
Figure 2: Deloitte’s digital disruption map
Source: Deloitte, 2012, Digital disruption—Short fuse, big bang?, p. 9.
Business engagement in ICT
Evidence suggests that businesses across the economy are engaging with ICT. The ABS
estimated that in 2010–11, 91.2 per cent of businesses had internet access, 43 per cent of
businesses reported some kind of web presence, and more than 50 per cent of businesses had
placed orders on the internet.
53
This is comparable to OECD ?gures which show that in 2010,
94 per cent of businesses with 10 employees or more had access to broadband; however, on
average, only 18 per cent used the internet for selling and 35 per cent used the internet for
purchasing.
54
The numbers in Australia were particularly strong for large businesses surveyed.
Nearly 74 per cent of medium-sized businesses (20 to 199 people) and 97 per cent of large
businesses (more than 200 people) reported a web presence.
55

However, the evidence suggests that many SMEs are not con?dent users of technology,
and do not possess the skills or capabilities to change the situation. In 2010–11, 46 per cent
53 ABS, 2011, ‘Summary of IT Use and Innovation in Australian Business, 2010–11’.
54 OECD, 2012, OECD Internet Economy Outlook 2012, pp. 135–40.
55 ABS, 2011, ‘Summary of IT Use and Innovation in Australian Business, 2010–11’.
33 ICT workforce study | Australian Workforce and Productivity Agency
of small businesses (5 to 19 persons) and 26 per cent of medium-sized businesses (20 to
199 persons) reported that they did not have an online presence.
56
In addition, a 2012 Sensis
e-Business Report noted that 67 per cent of SMEs identi?ed a lack of expertise and knowledge
in computers as a major or minor concern about engaging in e-commerce.
57
Meanwhile, the
MYOB Business Monitor found that 35 per cent of surveyed businesses without a website
agreed they ‘wouldn’t know where to start in setting up a business website’.
58
Innovation and
Business Skills Australia, in a recent report titled Digital literacy and e-skills: participation in
the digital economy, suggests that SMEs ‘should be considered at risk of digital exclusion’.
59

As business owners are ‘typically time poor and operating on thin margins’, there is a need
for customised, digital literacy training focused on vocational, business-related needs, with an
emphasis less on what technology is available and more on the development of skills required
to use the technology.
60
If the bene?ts of digital innovation are to be realised, the uptake and
effective utilisation of digital technologies by SMEs—and greater representation by Australian
SMEs in the national and international supply chain related to ICT—will be vital.
A range of Australian Government programs are in place to support SMEs to engage in ICT.
In particular, the Australian Government is providing $10 million over two years for the Digital
Enterprise Program, which provides free group training and face-to-face support for SMEs and
not-for-pro?t organisations to help them improve the way they do business online. Services
have been available in 44 communities around Australia since February 2012. At March 2013,
6,209 participants had taken part in the program.
61
In addition, Enterprise Connect offers
comprehensive advice and support to eligible Australian SMEs to help them transform and
reach their full potential. This includes business reviews which may offer advice on the use of
digital technology, and links to technical expertise.
The engagement of individuals in ICT
The engagement of individuals with digital technologies in Australia is signi?cant. According
to a 2012 Australian Communications and Media Authority report, Australians spent an
average of 81 hours online during June 2012. The report also demonstrates that online
participation is increasing across all age groups and suggests that, during June 2012, 7.8 million
people performed shopping-related activities online, an increase of 27 per cent compared to
June 2011.
62
For many individuals, this engagement continues in the workplace. As the in?uence of ICT
is felt in each and every industry sector, the skills and capabilities required to utilise and
56 Ibid.
57 Sensis, 2012, e-Business Report: The Online Experience of Small and Medium Enterprises, p. 27, about.sensis.
com.au/DownloadDocument.ashx?DocumentID=423, accessed 15 March 2013.
58 MYOB, 2012, MYOB Business Monitor—National Report July 2012, p. 21.
59 IBSA, 2013, Digital literacy and e-skills: participation in the digital economy, p. 1, www.ibsa.org.au/Portals/ibsa.
org.au/docs/Research%20&%20Discussion%20Papers/Digital%20Literacy%20and%20e-skills.pdf, accessed
2 May 2013.
60 Ibid., pp. 32–3.
61 Department of Broadband, Communications and the Digital Economy, 2013, Advancing Australia as a Digital
Economy: an update to the National Digital Economy Strategy, p. 60.
62 Australian Communications and Media Authority, 2012, Australia’s progress in the digital economy: Participation,
trust and con?dence, Communications report, 2011–12 series, Report 2, www.acma.gov.au/ WEB/
STANDARD/675484/pc=PC_600063, accessed 22 March 2013.
34 ICT workforce study | Australian Workforce and Productivity Agency
engage with ICT in the workplace form an essential part of lifelong learning and human capital
development. The increasing economic importance of ICT services demands specialists with
the business and communication skills to explain, promote and support service provision,
and the integration of technology into a broad spectrum of jobs and industry sectors requires
workers across the economy to master digital competencies and skills.
The OECD identi?es three tiers of ICT competencies:
? ICT specialists who develop, operate and maintain ICT systems
? advanced users of ICT, who are competent users of advanced, and often sector-speci?c,
software tools
? basic users of ICT, who are called to use a range of generic tools in the process of
their work.
63
Skills development is essential for each of these groups:
? For ICT specialists, a tertiary quali?cation in ICT is an entry requirement for most
occupations, and postgraduate quali?cations are often required for higher-level positions.
Ongoing training and skills development is essential, given the frequent changes in skills
requirements for contemporary ICT roles. However, many ICT specialists also acquire
essential skills through informal learning including, for example, competency in the use
of additional programming languages.
? For advanced and basic users of ICT, a ?rm grounding in digital literacy is a signi?cant
part of the skill set required across many occupations.
This report examines the best ways to provide these skills and competencies to the businesses
and individuals that require them.
1.3 The impact of globalisation and the rise of Asia on the Australian
ICT industry
The global digital economy
The use of ICT by businesses and individuals in Australia is shaped by global trends. As
mentioned earlier, the Australian ICT sector forms a small part of a massive global industry.
In recent years, the divide between developed and developing countries in relation to
technology diffusion and utilisation, sometimes called the ‘digital divide’, is closing as citizens
across the globe access and use technology. The OECD identi?es a ‘global restructuring of
ICT production’ that positions China and India as the largest exporters of ICT goods and
computer and information services respectively.
64
In addition to production, many developing
countries as well as the OECD’s ‘enhanced engagement’ partners—Brazil, Indonesia, India,
63 OECD, 2010, OECD Information Technology Outlook, p. 136, www.oecd.org/internet/ieconomy/
oecdinformationtechnologyoutlook2010.htm, accessed 10 March 2013.
64 Ibid., p. 14.
35 ICT workforce study | Australian Workforce and Productivity Agency
China and South Africa—are emerging as growth markets for the consumption of ICT goods
and services.
65
Australia’s place in the global ICT marketplace
These global shifts have important implications for the Australian economy, as Australia
transitions to the Asian century. Opportunities to move baseline ICT services offshore to
emerging Asian markets offer substantial cost bene?ts, but also carry implications for domestic
workers. At the same time, the Asian economies offer an emerging marketplace for Australian
businesses across a range of industries that utilise sophisticated technologies to deliver high-
end services. In this context, ‘onshoring’—the delivery of niche services to overseas markets
by Australian ICT companies—has become an attractive proposition.
One of the biggest economic opportunities for Australia is in the provision of professional
services to Asia where Australian businesses are well placed to target niche markets in
the delivery of specialised, high-end services, many of which will include ICT elements, for
example, mining data analysis. The delivery of all of these professional services will require ICT,
often of a high degree of sophistication.
66
The Australian Government’s Australia in the Asian
Century white paper identi?es key areas for Australia to best garner the opportunities presented
by the growth of Asian economies. The white paper states that to bene?t from the Asian
century, Australia will need ‘new capabilities, new business models, open mindsets, greater
investment in skills and education and a higher degree of specialisation in areas where Australia
has a distinct comparative advantage’.
67

In relation to offshoring, there are a range of views on its contribution to productivity. In
October 2012, former Treasury secretary and lead author of the Australia in the Asian Century
white paper, Ken Henry, suggested that offshoring business operations would provide ‘the
key source of productivity growth in the Asian Century’ and that a more positive perspective
on offshoring is required.
68
Ash Truscott, managing director of outsourcing ?rm Microsourcing
Australia, concurs, suggesting that ‘offshore staf?ng can be an innovative solution for cash-
strapped small businesses looking to kick-start their growth phase’ and argues that the cost
and dif?culty of hiring domestic expertise is often prohibitive for these ?rms.
69
Truscott
suggests that ?rms that outsource well and thus ‘kick-start their growth’ can afford to hire
skilled workers domestically down the track.
Some commentators argue that these potential bene?ts are outweighed by the decreasing
stability of existing jobs in the service industries, including ICT jobs. A 2012 report for the
Australian Services Union and the Finance Sector Union estimates that 80,000 jobs have
moved overseas in the past four years and that 700,000 to one million jobs will move offshore
65 Ibid., p. 97.
66 Dawson, R, input provided to the AWPA ICT workforce study report, May 2013.
67 Australian Government, 2012, Australia in the Asian Century, white paper, Commonwealth of Australia, Canberra,
p. 109.
68 Lane, B, 2012, ‘Get over antagonism to offshoring: Henry’, The Australian (7 September), www.theaustralian.
com.au/business/get-over-antagonism-to-offshoring-henry/story-e6frg8zx-1226466825773, accessed 10 March
2013.
69 Truscott, A, 2012, ‘Shifting jobs overseas gets bad press but in the Asian Century, it’s the path to business
success and survival’, The Age (17 October), www.theage.com.au/opinion/politics/offshoring-is-not-the-
bogyman-20121016-27ovt.html, accessed 10 March 2013.
36 ICT workforce study | Australian Workforce and Productivity Agency
in the next three decades.
70
Several ICT occupations are identi?ed as being at risk of offshoring,
including ICT managers, support technicians, business and systems analysts, security
specialists and computer network professionals.
71
There are also views that offshoring has negative implications for the skills pipeline. For
example, it is estimated that ‘up to half of call centre employees in Australian ?nancial
organisations are university-quali?ed and may likely be suited to progressing to higher level
positions in the ?rm’. The organisational bene?ts arising from such progression may not accrue
if these call centre functions are offshored.
72
The rollout of the NBN offers opportunities for Australia to develop domestic capacity through
leveraging regional workforces which could come at a lower cost than workforces based in
large metropolitan areas where the ICT industry is mostly concentrated. Part Two of this report
captures some examples of large enterprises partnering with regional education providers
to develop workforce skills and drawing on them for their business needs such as IBM’s
partnership with the University of Ballarat. While regional labour costs may not match the lower
price points in Asia and Eastern Europe, they are often comparable, and through better training
and management often deliver cost-effective solutions. Overall, there is no simple answer,
given that ICT is a globalised industry. However, focusing on the development of domestic
skills and competitive capacity is better both for regional jobs and for the Australian ICT sector
as a whole.
Whatever decisions ?rms make about offshoring, it is evident that high-level management
and leadership skills are vital to making these decisions work. Rosemary Howard from the
University of New South Wales suggests that ‘Australian organisations often send offshore the
functions that may not be working for them. But you cannot offshore what you cannot manage
well yourself.’
73
The growth of demand for ICT services from emerging Asian economies offers great potential
for ICT companies based in Australia. Australia is the ?fth-largest ICT market in the Asia–Paci?c
region, after Japan, China, India and Korea.
74
However, the export of ICT services has trended
downward in recent years—the cumulative value of Australian ICT services exports in 2011–12
was $1.93 billion, a 2.5 per cent decline over the past ?ve years.
75
Nonetheless, the outlook for
ICT services exports is positive, given estimates from IBISWorld that the value of the digital
economy will increase by up to eight times its current level to $1 trillion per annum by 2050.
76

In this context, it is increasingly important for Australian ICT ?rms to identify and specialise
70 National Institute of Economic and Industry Research (NIEIR), 2012, Off-shore and off work: The future of
Australia’s service industries in a global economy: An update, report for the Australian Services Union and the
Finance Sector Union, p. 1, www.fsunion.org.au/Upload/Campaigns/Offshoring/NIEIR_2012_report_SPE004_
SSU_offshoring_update_?nal_011012.pdf, accessed 10 April 2013.
71 Ibid., p. 4.
72 Howard, R, 2013, ‘Impact of offshoring jobs from Australian ?nancial institutions’, The Conversation (5 March),
theconversation.edu.au/impact-of-offshoring-jobs-from-australian-?nancial-institutions-12484, accessed 30 April
2013.
73 Ibid.
74 Australian Trade Commission (Austrade), 2012, Australian Industry Capability: Information Communications
Technology (ICT), www.austrade.gov.au/Buy/Australian-Industry-Capability/ICT/default.aspx, accessed
30 April 2013.
75 Department of Foreign Affairs and Trade, 2013, Trade in Services Australia 2011–12, www.dfat.gov.au/
publications/stats-pubs/trade-in-services-australia-2011-12.pdf, accessed 30 April 2013.
76 IBISWorld, 2012, A Snapshot of Australia’s Digital Future to 2050, p. 7.
37 ICT workforce study | Australian Workforce and Productivity Agency
in niche capabilities for export to Asian markets. For example, the Information Technology
Industry Innovation Council has sought to position Australia as the leading ICT cloud computing
solutions provider for the Asian market.
77
Conclusion
This chapter has provided an overview of Australia’s place in the global ICT industry. It is
imperative that Australian businesses across all industry sectors engage effectively with ICT,
and look to emerging opportunities in Asian economies. To make the most of the opportunities
?owing from ICT, businesses require a range of skills, from the specialist capabilities needed to
develop, operate and maintain ICT systems and services, to the digital literacy needed to use
sector-speci?c ICT tools in a range of industries. To shed more light on the availability of these
skills, the next chapter provides a comprehensive pro?le of the skills base of the Australian ICT
workforce.
77 Information Technology Industry Innovation Council, 2012, ‘Response to Australia in the Asian Century issues
paper’, asiancentury.dpmc.gov.au/sites/default/?les/public-submissions/IT_Industry_Innovation_Council.pdf,
accessed 15 April 2013.
38
Glossary and acronyms
ICT Workforce Study 2013 38
Glossary and acronyms
ICT Workforce Study 2013
39 ICT workforce study | Australian Workforce and Productivity Agency
Chapter Two: Supply and demand picture
for ICT skills
Introduction
This chapter surveys relevant data from a range of sources to capture the current state of
play in the demand for, and the supply of, ICT skills in the Australian economy.
78
The overall
picture for the supply and demand of ICT skills in Australia is complex and nuanced, and is
in?uenced by a range of factors including global economic and labour market trends, industry
restructuring, student choices and the increasing prevalence of ICT across all industry sectors.
While the outlook for the ICT workforce is positive, and the demand for ICT skills is projected to
rise in the next ?ve years, there are also a number of signi?cant challenges that will need to be
addressed if Australia is to meet future demand for specialist ICT skills.
First, demographic data indicates that the ICT workforce is predominantly young and male.
The participation rates of women and mature-aged workers in the ICT workforce are lower
than the national average. The potential of the ICT sector to engage Indigenous Australians and
people with disability also remains largely untapped.
Second, while recent enrolment trends in both higher education and vocational education and
training (VET) have marginally improved since 2008, high drop-out rates from courses, and
graduates reporting dif?culty ?nding employment, are causes of concern. Skilled and temporary
(subclass 457 visa) migration programs have emerged as a key source of supply for the ICT
sector since the mid-1990s and continue to play a signi?cant role in addressing the demand for
specialist skills not available in Australia.
Third, employers consistently express dif?culties in ?nding suitable candidates quickly for job
openings. Employers increasingly demand so-called ‘T-shaped’ professionals with both broad
knowledge and deep expertise, including technical skills, domain knowledge and soft skills
which include communication and business skills. Employer demand for experienced workers
means that there are fewer entry-level positions available for new graduates. Graduates who
are successful in ?nding employment, however, ?nd the experience rewarding and career
enhancing.
While the available data on the ICT sector provides a good indication of the general state of
demand and supply of skills in the sector, there are some gaps in the information as noted in
submissions received in response to AWPA’s ICT Workforce Issues Paper which was released
as part of the work for this report. Accordingly, Chapter Seven in Part Two of this report
discusses this issue and includes a recommendation for improving the collection of data on the
ICT workforce, which will hopefully better inform future workplace development policies and
strategies.
78 This chapter uses the classi?cation of the ICT workforce developed by the ABS. This classi?cation identi?es
18 ICT occupations, and is termed the ‘alternative view’ of the ICT workforce as it provides data on a range of
related occupations which span different industry sectors.
40 ICT workforce study | Australian Workforce and Productivity Agency
2.1 Snapshot of the ICT labour market
Employment pro?le
According to the ABS, 460,800 workers were employed in the 18 primary ICT occupations in
August 2012, as shown in Figure 3. The ICT workforce accounts for 4.1 per cent of the total
workforce in Australia.
79
The three occupation groups with the most workers were:
? ICT Professionals (233,300 workers)
? ICT Support Technicians (57,000 workers)
? ICT Managers (53,100 workers).
According to the Department of Education, Employment and Workplace Relations (DEEWR),
the ICT Professionals grouping includes a number of different occupations. Ninety-one per cent
of these were further classi?ed into the following groups:
? Software and Applications Programmers (90,400 workers)
? Database and Systems Administrators and ICT Security Specialists (35,500 workers)
? ICT Business and Systems Analysts (32,800 workers)
? Computer Network Professionals (25,400 workers)
? Telecommunications Engineering Professionals (11,500 workers)
? Multimedia Specialists and Web Developers (9,700 workers)
? ICT Support and Test Engineers (6,900 workers).
80
In the 10 years to 2012, the employment growth was highest among ICT Support Technicians
(27,700) and ICT Managers (23,500). The growth in the employment of ICT Support
Technicians suggests opportunities exist at the entry level for new VET graduates with ICT
skills and perhaps highlights the role of VET in the supply of such skills, a view supported in
AWPA consultations with stakeholders.
79 ABS, 2013, ‘Labour Force, Australia, Detailed, Quarterly, February 2013’ (cat. no. 6291.0.55.003), www.abs.gov.
au/ausstats/[email protected]/mf/6291.0.55.003, accessed 3 April 2013.
80 DEEWR, 2013, ICT Labour Market Indicators, slide 4.
41 ICT workforce study | Australian Workforce and Productivity Agency
Figure 3: ICT occupations—snapshot of employment, August 2012
0 10 20 30 40 50 60 70 80 90 100
Telecommunications Technical
Specialists
ICT Trainers
Electronics Engineers
ICT Support and Test Engineers
Electronic Engineering Draftspersons,
Technicians
Multimedia Specialists and
Web Developers
Telecommunications Engineering
Professionals
Web and Multimedia Designers
ICT Sales Professionals
ICT Sales Assistants
Telecommunications Trades Workers
Computer Network Professionals
ICT Business and Systems Analysts
Electronics Trades Workers
Database and Systems Administrators
and ICT Security
ICT Managers
ICT Support Technicians
Software and Applications Programmers
Employment ('000)
90.4
57.0
32.8
33.7
35.5
53.1
25.4
19.0
15.5
12.6
11.8
11.5
9.7
9.0
6.9
6.7
3.9
5.1
Source: DEEWR, ICT Labour Market Indicators, February 2013, www.skillsinfo.gov.au/sites/skillsinfo.gov.au/?les/documents/
ict_labour_market_february_2013_0.zip.
The ICT workforce is employed in all industries in varying numbers. Figure 4 shows the
numbers of ICT Professionals, Managers and Technicians, Trades Persons and Sales Assistants
employed by industry in 2012. Professional, Scienti?c and Technical Services employed by
far the most ICT workers of any industry. Other industries that had a substantial number of
ICT workers include Information Media and Telecommunications and Public Administration
and Safety.
42 ICT workforce study | Australian Workforce and Productivity Agency
Figure 4: ICT Professionals, ICT Managers and ICT Technicians, Trades Persons and
Sales Assistants—employment by industry, 2012
0 20 40 60 80 100 120 140 160 180
ICT Technicians, Trades Persons
and Sales Assistants
ICT Professionals ICT Managers
Agriculture, Forestry and Fishing
Accommodation and
Food Services
Rental, Hiring and Real Estate
Services
Arts and Recreation Services
Mining
Transport, Postal and Warehousing
Administrative and Support Services
Electricity, Gas, Water and
Waste Services
Health Care and Social Assistance
Construction
Other Services
Wholesale Trade
Retail Trade
Manufacturing
Education and Training
Financial and Insurance Services
Public Administration and Safety
Information Media and
Telecommunications
Professional, Scientific and
Technical Services
Employment ('000)
Source: AWPA analysis of ABS, ‘Labour Force, Australia, Detailed, Quarterly, February 2013’ (cat. no. 6291.0.55.003).
Figure 5 details employment growth for ICT occupations over the past 5 and 10 years to
August 2012. While some ICT trade occupations (including Telecommunications Trades
Workers and Electronics Trades Workers) have declined over the past 10 years, others have
grown. The occupation of ICT Support Technicians has shown the largest growth over the
10 years to August 2012. Other ICT occupations showing growth for the same period include
ICT Managers and ICT Business and Systems Analysts.
43 ICT workforce study | Australian Workforce and Productivity Agency
Figure 5: ICT occupations—employment growth, 5 and 10 years to August 2012
-15 -10 -5 0 5 10 15 20 25 30
10-year growth 5-year growth
Electronics Trades Workers
Telecommunications Trades Workers
Electronic Engineering Draftspersons, Technicians
Telecommunications Technical Specialists
ICT Sales Assistants
Web and Multimedia Designers
ICT Trainers
Electronics Engineers
Computer Network Professionals
Database and Systems Administrators
and ICT Security
ICT Sales Professionals
Telecommunications Engineering
Professionals
Multimedia Specialists and
Web Developers
ICT Support and Test Engineers
Software and Applications Programmers
ICT Business and Systems Analysts
ICT Managers
ICT Support Technicians
-10.1
-7.8
-2.8
0.2
-1.1
0.4
1.6
3.3
7.0
0.4
1.1
3.3
3.1
4.0
5.4
5.5
7.3
5.3
Employment ('000)
-6.9
-5.2
0.1
0.3
0.4
0.8
1.2
4.2
4.2
2.2
4.2
4.9
6.1
6.0
8.4
8.8
23.5
27.7
Source: DEEWR, ICT Labour Market Indicators, February 2013, www.skillsinfo.gov.au/sites/skillsinfo.gov.au/?les/documents/
ict_labour_market_february_2013_0.zip.
Figure 6 shows the unemployment rate in the three main ICT occupational groups—ICT
Managers, ICT Professionals and ICT Support Technicians—from 2009 to 2012. The rates are
lower than the overall unemployment rate.
81
The ICT unemployment rate was highest for all
groups in 2009, probably as a result of the global ?nancial crisis. Since then it has declined
each year, except in 2012 when it increased for all groups except for ICT Support Technicians.
In a market with continued growth in demand, a high unemployment rate can be an indication
81 Ibid., slide 27.
44 ICT workforce study | Australian Workforce and Productivity Agency
of skills gaps in the workforce.
82
The Australian Computer Society’s submission noted that
the employment of ICT Support Technicians is more susceptible to the business cycle than
other ICT occupations because a large proportion of these jobs are entry-level positions.
83

Stakeholder feedback suggests an apprenticeship/traineeship model for training technically
skilled ICT workers could improve entry-level opportunities.
However, there is a high degree of occupational wastage for ICT graduates in the 20 to
29 years age cohort, which suggests that employment prospects for ICT graduates may not
be as positive as they appear. In 2011, 51 per cent of all ICT graduates aged 20 to 29 years
were not employed in ICT Professional occupations.
84
This may suggest that the market for
new ICT graduates is soft, or that working conditions are not as competitive as in other similar
professional occupations.
Figure 6: Unemployment rate for ICT Managers, ICT Professionals and ICT Support
Technicians
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2012 2011 2010 2009
ICT Support Technicians ICT Professionals ICT Managers
3.3
1.3
1.2
2.3
2.8
2.2
2.0
3.0
5.7
3.8
2.6
2.5
U
n
e
m
p
l
o
y
m
e
n
t

(
p
e
r

c
e
n
t
)
Source: DEEWR, ICT Labour Market Indicators, February 2013,