‘Inevitable’ ICT skills crisis looms

James Riley
Thursday, 30 July 2009 09:40

Business IT - Technology

Even as unemployment in the wider economy grows, Australia will face critical ICT skills shortages as soon as next year, with the public sector expected to be worst hit, according to research group Intermedium.

Huge back-office ICT projects in Defence that will go to market between now and 2012, coupled with the National Broadband Network and large-scale initiatives in departments like Health would coincide with the private sector economic recovery to put enormous strain in nation’s skills resources.

Intermedium head of research Tim Conway told iTWire that although tech skills shortages would be a national problem, the crisis would be especially severe in Canberra – the result of the number and scale of Federal ICT projects, as well as competition from private sector employers as the economy returns.

Conway said that recommendations contained in the Gershon Review of Federal procurement for improving career structures in the public service for ICT workers may not be enough to stave off the shortages – even if they are implemented by the end of the year as Finance Minister Lindsay Tanner wants.

And with taps turned off to the 457 short-stay skilled worker visa program as a result of the global financial crisis, the shortages are likely to run deep, he said.

“There will be a skills crisis Australia-wide, that is almost inevitable, but it will be especially bad in Canberra,” Conway told iTWire.

“In line with Gershon, IT contractors are joining the public service as a safe haven during the finciancial crisis. But there is still no real cross-service pay structures and career structures that apply to ICT skills,” he said.

“And the experience shows us that Commonwealth is typically the least competitive employer in the sector when good times return. That’s when public servants resign to become contractors again – and return to exactly the same Government job the next day as a contractor.”

As the economy picks up steam next year, large private sector employers that have reduced ICT investment in the past 12 months – in the banking and finance sector especially – would return to the market, and target public sector skills.

Conway said Defence would lead demand for skills, with the recently released Defence Capability Plan containing an ICT component worth a staggering $10 billion – half of which will come to market in the next four years.

Defence’s long-running JP 2077 Phase 2 logistics information system would be worth $100 million to $500 million, with decisions to be made in 2011-12, while its JP 2030 ADF Joint Command Support Environment will be worth up $500 million, with decisions expected this financial year or next.

The JP 2090 Combined Information Environment project is expected to be worth $100 million with decisions made this year or next, and Defence’s massive Geopspatial Information Instructure & Services project (JP 2064 – Phase 3) could be worth as much as $500 million.

Intermedium had identified 67 Defence projects with ‘very high’ or ‘high’ ICT content worth more than $8 billion in today’s dollars.

But there is up to $15 billion worth of further Defence projects that have net been released into the public sphere because of their classified or sensitive nature – all presenting further opportunities to the sector and putting heavy strain on skills resources.