Offshore Outsourcing World:   home | resume post | email courses | archives | links | about | offshoring digest |
Offshore Outsourcing World: Skills Shortage in South African Software Sector
outsourcing world covers news articles and commentary related offshore outsourcing, software development, and international business
Offshore Outsourcing World is intended to be a daily news magazine focused on offshore outsourcing - or offshoring. This publication will explain the process of offshoring.

Readers will learn how to select an offshore provider, what countries are leading the offshoring revolution, what business processes, in addition to software development, can be outsourced (BPO), and even how to help an outsourcing team perform at a high level.

Offshore Outsourcing World is sponsored by the Eversun Software Corp. and is edited by Danny Sullivan. We eagerly invite reader feeback to any and all content published on this site.

Current Feature Content
Email course - Introduction to outsourcing →What can be outsourced?
Search Offshore Outsourcing World:
Google Enterblog
Offshore Outsourcing World Archives:
09/30/05  Gecis Global reborn as Genpact  Genpact: New name backed by old school outsourcing expertise
09/29/05  SME cinches top UK top outsourcing award  SME Wax Info Ltd wows UK outsourcing association
09/28/05  Alban: Work from home - cure for India's call center attrition  Father of call center industry tells India to consider working from home
09/26/05  PWC: Companies slow in reaping outsourcing benefits  Price Waterhouse Coopers survey shows slow first year offshoring benefits for financial service companies
09/23/05  Indian students: BPO jobs prestigious but short-lived  BPO hip and hot with Indian students
09/22/05  India's outsource workers snub unions  Indian outsource workers content without unions
09/21/05  Knowledge-based outsourcing: Australia's fresh offshoring prospect  Australia urged to enter the knowledge-based outsourcing arena
09/20/05  Datamonitor: Outsourcing activities moving from US contact centers to India  American contact center landscape fast changing with job flow
09/19/05  Israel's answer to outsourcing: Hiring Haredi women  Israel's haredi women rise to outsourcing challenge
09/16/05  PWC: China prime financial services outsourcing spot  China and India top offshoring destinations, India threatened by labor costs
09/15/05  PWC: Rise in offshoring, drop in satisfaction  
09/12/05  India's courts in session - overseas  
09/09/05  India's BPO regains lost ground  
09/08/05  A Dim Future for US IT Workers  
09/07/05  Outsourcing from India instead  
09/06/05  Forrester: Process change outsourcing posts biggest growth  
09/05/05  Outsourcing Pharma R&D to India and China  
09/01/05  Gartner: FSPs should boost outsourcing  
08/31/05  Nudging Australia into deeper offshore waters  
08/30/05  Security programs for India's contact centers  
08/29/05  Outsourcing spurs education diversification  
08/26/05  Microsoft-Nasscom Certs for Indian IT firms  
08/25/05  Gartner: India could lose hold on outsourcing market  
08/24/05  India steps up offshore staff quality control  
08/23/05  Next US outsource target: Russia  
Complete Offshore Outsourcing World archives

Thursday October 14, 2004 at 2:58PM - Offshore Outsourcing World Staff

Skills Shortage in South African Software Sector

The South African Broadcasting Corporation tells us of an interesting study compiled by ITWeb in association with Software Futures. The results of the Software Skills 2004 Survey, conducted on over 700 ITWeb readers, were released yesterday at a business briefing held in Johannesburg.

The study revealed that "a significant number of companies are ignoring the need to address a shortage of skills in the software sector in SA."

Respondents indicated that shortages exist in terms of business analysis skills (23%), project management (14%), process management (10%) and team leadership (10%). A further 14% indicated their companies have skills gaps, but did not identify which competencies these covered.

In reaction to a query as to what their companies were doing to address skills gaps, 23% of respondents said "nothing".

Releasing the results, Ranka Jovanovic, ITWeb editorial director said it was safe to assume that the 13% of respondents that did not specify what their companies were doing to address this problem, worked for employers that had not yet implemented any initiatives to address shortages.

On a more positive note, 22% of respondents said their companies were sponsoring training and development programmes, and a further 14% said skills analyses were being done at their workplaces. Some 15% indicated their companies were recruiting in an attempt to solve the problem.

Shane Radford, IBM's Business Consulting Services managing consultant, spoke at the event. He acknowledged that over 90% of organizations said professional skills were "critical" to their strategies.

Radford's data came from a study conducted by Forrester research earlier in the year. He also added that "strategically-oriented respondents rated skills development as critical to business strategies more often than IT-oriented respondents."

He noted, however, that over 30% of the organisations covered by this survey did not have a dedicated skills development programme, while 45% had no related strategy in place.

South Africa is still being explored as an outsourcing destination, though many companies have seen the value of its Application Support and Development (AS&D) providers. Accenture reports:

South Africa has made significant strides in terms of economic and political stability, as evidenced by better credit and investment ratings from the global business community. As one of the world’s newest and most progressive democracies, South Africa also satisfies the requirements of reliability and sustainability. Specifically, South Africa boasts first world IT and telecommunications infrastructures. Its legislative environment affords the protection needed to ensure that corporate assets are safe while being flexible enough to accommodate business needs.

Recently, IBM also stated it prefers South Africa as a "back-up" outsourcing destination, an alternative to India.

Weekly Newsletter: Is outsourcing important to your business? Use information as a competitive advantage!
Email
I prefer to receive emails in Text format

related stories, by category:

Ferguson: Offshoring Impact on US Employment Exaggerated
US Federal Reserve Board Vice Chairman Roger W. Ferguson Jr. said very few jobs are being offshored.
Kerry says outsourcing inevitable
Sen. Kerry does not aim to stop outsourcing, seeks instead a "fair playing field."
Gates does not consider India and China "threats"
Bill Gates says India and China are not going to take jobs away from the US.
California governor vetoes three anti-offshoring bills
Three anti-offshoring bills all but junked in California.
Many European IT Directors Don't Outsource
Of 700 IT directors in Europe, 97% plan to keep their IT strategy management in-house.
Poll ranks TCS, Infosys and Wipro as leaders of India's IT
Premier Indian finance portal Equitymaster rates three key players in the Indian IT industry.
Australia divided on IT offshoring issue
Two Australian officials openly support offshore outsourcing.
India's IT industry shows hand of steel
India's IT industry launches a full-blown campaign to prove it is serious about security.
China gunning for the US software outsourcing market
Already strong in Japan, China looks to do software outsourcing for US based companies
India on the Rise, Salary-wise
In 2003, programmers in India received the highest salary increases among Asia-Pacific countries.
Many European IT Directors Don't Outsource
Of 700 IT directors in Europe, 97% plan to keep their IT strategy management in-house.
EU ministers oppose punishment proposal
The EU junks a proposal to discourage offshoring.
Malaysia poised to compete in offshoring market
Malaysia will lower its business costs and develop its high-tech zone to remain competitive among other offshoring countries.
Poll ranks TCS, Infosys and Wipro as leaders of India's IT
Premier Indian finance portal Equitymaster rates three key players in the Indian IT industry.
Losing faith in Indian IT
Despite India's efforts to remain attractive to businesses overseas, faith seems to be crumbling on the home front.