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Bigger demand for IT graduates - Survey

by Gamini Warushamana

In the event IT training institutions can keep supply up without compromising on quality, the industry is geared for growth.This is revealed in a survey on IT workforce conducted by the Sri Lanka Information and Communication Technology Association (SLICTA). The duration of employment with a single firm for an IT professional is three years.

Employers believe that better educated and trained employees stay longer in a job and they consider it a vital factor to improve the quality on skills. As far as the workforce is concerned there is stability in the industry and this is a good platform for the industry to develop to the next level, the report says.

According to the findings of the survey the size of the IT workforce is steadily rising every year. By the end of 2004, 20,276 persons were engaged in the IT sector, a 30% increase from 2003. In 2003 it was 15,586 and is projected to increase to over 31,000 by 2006. Low female participation in the IT workforce is another significant feature. It was 22% last year and only 17% in 1998. In the public sector female participation is relatively higher and the figure stood at 27%.

ICT products and service suppliers employ 47% of the IT workforce and is the largest employer. ICT users account for 44% and public sector employment is only 9%.

The demand for IT workers this year is estimated at 5,724 and in 2006 another 5,034 workers would be needed. Software engineers are the most demanded category and a 39% increase is estimated this year. Quality assurance, the fastest growing category grew 47% last year.

The overall attrition rate for the IT workforce has dropped from 19% in 1999 to 6.6% in 2004 and the survey said that it indicates the increasing loyalty of the workforce. According to the report, the attrition rate in India is 17% and is increasing.

The technical support category dominates the workforce and it accounts for 24%. Software engineers account for 21%. The other categories are; enterprise system consulting 10%, data base system administration and development 7%, IT management 7%, networking 7%, sales and marketing 7%, project management 5%, quality assurance 4%, web development 4%, digital media 3% and technical writing 1%.

The ICT sector acquired rapid development in the recent past and therefore the workforce has matured less. According to the survey, over 60% of the workforce has less than six years' experience. Only 3,000 or 15% of the employees have over eight years' experience. But the academic qualifications of the employees are at a satisfactory level. More than 7,200 or 36% of the employees are IT graduates and 65% have an advanced diploma or above qualifications.

At all levels of qualifications the supply of IT workers is growing. At present the demand for graduate IT workers is higher than the supply and this trend will continue.

The demand for graduates last year stood at 4,690 but supply was only 3,140. The demand and supply for IT graduates is estimated this year at 5,724 and 3,607. SLICTA has projected that by 2006 half of the IT workforce in Sri Lanka will be graduates.

However, the present shortfall of graduates is met by advanced diploma holders. There are many complaints against the skills levels of IT workers. In the survey, out of 359 many employers say that the new recruits lack soft skills in communication and presentation (205), creative thinking (180), interpersonal (158) and proficiency in English (103).

IT sector employees are more privileged than most of the other sectors. The survey revealed that IT workers earn handsome salaries. The average starting salary of an IT worker is around Rs. 20,000. Semi-government organisations have helped public sector salaries to look competitive at entry level. ICT suppliers pay better salaries than users and the public sector. The key factor that helps to retain IT workers at all levels of experience is high salaries.

The survey was implemented by MG Consultant, a survey specialist and it was funded by USAID.

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