South Africa must build work-ready IT talent pipelines to reduce the cost of importing skills, particularly in software development, and mitigate the impact of R8.5 billion in lost export revenue.
This is according to Jessica Hawkey, MD of redAcademy, a Cape-based technology skills and experiential learning hub.
Hawkey, who recently won the Top Tech Innovator award at the inaugural Wired4Women Awards, says South Africa currently imports software development skills due to a local shortage and this is costing the country billions in lost revenue opportunity.
She cites estimates by Harambee youth employment accelerator that R8.5 billion is lost in export revenue due to offshore recruitment – the equivalent of 66 000 ICT roles.
“Software plays a crucial role in both our personal lives and in business, driving demand far beyond what supply can meet. As the world digitizes at an unprecedented pace, this demand will only continue to grow,” says Hawkey.
This is undoubtedly why businesses are turning to offshore solutions, but recruiting from overseas, she warns, can lead to several business risks, including loss of IP, exposure to international market changes and exchange rate fluctuations.
“By demonstrating the viability of producing work-ready software developers much quicker than traditional channels, we aim to manage costs for businesses and keep rands in South Africa as opposed to offshore.”
Not fast enough
South African organisations are simply not producing the skills fast enough, says Hawkey.
“Now we have to resort to importing these skills or poaching the limited talent from a shrinking local market, driving up costs.”
The situation is exacerbated by a rise in unemployment, she notes.
According to Stats SA, South Africa’s unemployment rate is 33.5%, with youth unemployment at 60%.
By demonstrating the viability of producing work-ready software developers much quicker than traditional channels, we aim to manage costs for businesses and keep rands in South Africa as opposed to offshore.
There is a lack of skilled youth entering and filling the bottom-up supply in the job market, Hawkey continues.
“Evidence shows that real work experience is in high demand considering the number of unemployed graduates in our country.”
Hawkey adds that the market places a premium on tech-related experience, which reflects an understanding of the working environment and how to operate as a team. She advocates demand-led training inside the live environment and says this model has proven to be an effective way for candidates to enter the job market and secure employment.
She urges local businesses to take a long-term view on building work-ready local talent, she urges. “This is the only way to address the skills shortage businesses face and stimulate the economy.”