The Media, Information and Communication Technologies Sector Education and Training Authority Sector Skills Plan

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1 The Media, Information and Communication Technologies Sector Education and Training Authority Sector Skills Plan November 2012 Version 1.3

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3 FOREWORD TABLE OF CONTENTS Abbreviations Used in this Document 2 Layout of this Document 4 1 Executive Summary Overview of the MICT Sector Scarce and Critical Skills Scarce Skills Critical Skills MICT SETA Strategy 11 2 Introduction Background Purpose of the Sector Skills Plan Methodology Desk Research Qualitative Stakeholder Research Focus and Working Groups Personal Interviews Contracted Research Houses ATR and WSP Research Assessment Inputs on the August 2012 Sector Skills Plan Defining the MICT Sector and its Subsectors Caveats The MICT SETA SSP Target Stakeholders 19 3 The MICT Sector Specific Profile and Economic Outlook Introduction The MICT Sector Profile Key Organisations in the MICT Sector The MICT Sector Company Profile Number of Employees in the MICT Sector Race Segmentation of Employees in the Sector Gender Segmentation of Employees in the Sector Disability Segmentation of Employees in the Sector OFO Major Group Segmentation of Employees in the Sector Age and Race Segmentation of Employees by Major Category and Subsector Competency Level of Employees by Major Category and Subsector Employment by Province Trends in Priority Skills The MICT Sector Economic Outlook Overview Advertising Electronic Media and Film Electronics Information Technologies Telecommunications Remuneration Trends The Sector Economic Outlook MICT Sector Qualitative Considerations Introduction Simplification of the MICT SETA Processes and Information The MICT SETA Employee Database Training Interventions Access into the MICT Sector Success and Progression in the MICT Sector Equity New Ventures Capacity Building Assessment of Graduate Skills from Formal Education Institutions Summary and Strategic Considerations 51 iii MICT Sector Skills Plan, , Version 1.3, November 2012 Page i

4 3.8.1 The MICT Sector Stakeholders FET and HET and Rural Learning Institutions Government Institutions ISOEs, Incubators and Training Providers The MICT SETA Other Institutions 53 4 Environmental Factors (Drivers of Change) Economic Outlook Global Perspective National Economic Growth Outlook Consumption Analysis MICT Sector contribution to the GDP Unemployment in South Africa The South African National Skills Accord South Africa`s Economic Contending Views Business Confidence Index Government Imperatives Methodology The SA Government s Medium Term Strategic Framework (MTSF) The Human Resource Development Strategy of South Africa (HRDSSA) The Industrial Policy Action Plan (IPAP) The Integrated Sustainable Rural Development Strategy (ISRDS) National Industrial Policy Framework (NIPF) Sectoral Contribution to the President s Outcomes Approach to Planning Government s Work Sectoral Contribution to the Minister of DHET s Performance Agreement with the President The Department of Communications The South African e-skills Council ICT Charter Other Legislation Summary and Strategic Considerations FET and HET and Rural Learning Institutions Government Institutions The MICT Sector Stakeholders ISOEs, Incubators and Training Providers Other Institutions 85 5 Sectoral Skills Development (Scarce and Critical Skills) Sector Specific Skills Development Needs Introduction MICT SETA Involvement in Types of Training Programmes Demand for Scarce Skills Demand for Critical Skills National Demand for MICT Skills MICT SETA Qualifications Trends in the Supply of MICT Skills Introduction and Methodology Supply of MICT Skills versus Demand for MICT Skills The MICT SETA Strategy Introduction Methodology The MICT SETA Strategy and Targets The MICT SETA Budget 131 Appendix 1: Employment by Occupation and Province 135 Appendix 2: The MICT SETA SSP Continuous Improvement Plan, September 2012, Version The MICT SETA SSP Continuous Improvement Plan, September 2012, Version Introduction Background Continuous Improvement Plan 145 Appendix A 146 Page ii MICT Sector Skills Plan, , Version 1.3, November 2012

5 FOREWORD South Africa is in the third phase of its National Skills Development Strategy, known as NSDS III. It is with confidence that the MICT SETA feels that it will continue to service its stakeholders as well as it has in the past. Notwithstanding the hurdles that must be cleared as we move forward, the MICT SETA Sector Skills Plan (SSP) for provides the indicators against which our efforts will be evaluated. The need for technical, professional and management skills is clearly identified and we will work together with employers, providers, government and the community to channel appropriate resources into creating the pool of talent that will meet the need. Integrating this skills plan into our own business plan and those of our partners will provide the formula for success. The combined efforts from all stakeholders to produce this document are gratefully acknowledged. The following deserves special reference: The Ministerial representatives on the MICT SETA s Board; Industry, via representation on the MICT SETA s Board; Organised Labour, also through representation on the MICT SETA s Board. Our thanks go to all the stakeholders whose collective wisdom has been incorporated into this document. This sharing of knowledge is the catalyst for reaching South Africa s potential. Oupa Mopaki CEO: The MICT SETA Zandile Mbele Chairperson of the MICT SETA Board MICT Sector Skills Plan, , Version 1.3, November 2012 Page iii

6 Abbreviations Used in this Document Abbreviation ABET ACA ASGISA ATR BBBEE BEE BER BITF BPO BRIC CAGR CEPD DBE CRASA CSIR CSSA CV CWU DoC DHET DoL dti DTT DVB-T EASSy EE EIF ETQA FET F.I.L.M. FOSS GDP HEMIS HET HIV/AIDS HRD HRDSSA HSRC ICASA ICT ILO IPAP ISOE IT ITA ITAC JCSE JIPSA KPA M&E MDDA MICT MTN MTSF NAB NAIRU NEPAD NEMISA NGO NIPF NQF NSA NSDS NSF Description Adult Basic Education and Training Association for Communication and Advertising Accelerated and Shared Growth Initiative for South Africa Annual Training Report Broad-Based Black Economic Empowerment Black Economic Empowerment Bureau for Economic Research Black Information Technology Forum Business Process Outsourcing Brazil, Russia, India and China Compound Annual Growth Rate Centre of Education Policy Development Department of Basic Education Communication Regulators' Association of Southern Africa Council for Scientific and Industrial Research Computer Society South Africa Curriculum Vitae Communication Workers Union The Department of Communications The Department of Higher Education and Training The Department of Labour Department of Trade and Industry Digital Terrestrial Television Digital Video Broadcasting - Terrestrial Eastern Africa Submarine Cable System Employment Equity Electronics Industry Federation Education and Training Quality Assurance Further Education and Training (Institution) Film Industry Learner Mentorship Free and Open-Source Software Gross Domestic Product Higher Education Management Information System Higher Education and Training (Institution) Human Immune Virus / Acquired Immune Deficiency Syndrome Human Resource Development Human Resource Development Strategy of South Africa Human Sciences Research Council Independent Communications Authority of South Africa Information and Communications Technology International Labour Organisation Industrial Policy Action Plan Institute of Sectoral Occupational Excellence Information Technology The Information Technology Association Information Technology Acquisition Centre Joburg Centre for Software Engineering Joint Implementation Project of South Africa Key Performance Area Monitoring and Evaluation Media Development and Diversity Agency Media and Information Communications Technologies Mobile Telephone Networks Medium Term Strategic Framework National Association of Broadcasters Non-Accelerating-Inflation Rate of Unemployment New Partnership for Africa's Development National Electronic Media Institute of South Africa Non-Governmental Organisation National Industrial Policy Framework National Qualifications Framework National Skills Agency National Skills Development Strategies National Skills Fund Page 2 MICT Sector Skills Plan, , Version 1.3, November 2012

7 Abbreviation OECD OFO OGS PC PDI QCTO SAAF SABC SAPO SAQA SARB SDF SDL Seta SIC SIP SITA SME SMMEs SSP Statssa STB the dti USAASA USD WITSA WSP Description Organisation for Economic Co-operation and Development Organising Framework for Occupations On-line Grant System (the MICT SETA system for electronic capturing of WSP and ATR data) Personal Computer Previously Disadvantaged Individual Quality Council for Trades and Occupations South African Advertising Research Foundation South African Broadcasting Corporation South African Post Office South African Qualifications Authority South Africa Reserve Bank Skills Development Facilitator Skills Development Levy Sector Education Training Authority Standard Industrial Classification Strategic Integrated Partnership State Information Technology Agency Small and Micro Enterprises (less than 50 employees in the MICT SETA s context) Small, Medium and Micro Enterprises (less than 150 employees in the MICT SETA s context) Sector Skills Plan Statistics South Africa Set Top Box The Department of Trade and Industry Universal Services and Access Agency of South Africa United States Dollar World Information Technology and Services Alliance Workplace Skills Plan MICT Sector Skills Plan, , Version 1.3, November 2012 Page 3

8 Layout of this Document This document comprises six Chapters. The Chapters are: Chapter 1 is the Executive Summary presented below. Chapter 2 provides the perspective used in developing this SSP. Chapter 3 focuses primarily on the profile of and trends within the MICT Sector. This chapter looks at the size of the MICT Sector in terms of the number of organisations in the sector and the number of employees in the sector segmented by equity factors. The economic outlook for the sector is presented. Various qualitative issues affecting the sector are also presented. Chapter 4 presents an overview of environmental factors impacting on the MICT Sector, including economic factors and government imperatives. Chapter 5 provides insight into sectoral skills development needs, addressing scarce and critical skills that are in demand from MICT Sector stakeholders, and also reviews the supply of MICT skills from tertiary institutions, concluding with a comparison of supply versus demand. Chapter 6: The issues identified in previous chapters are presented in this chapter, as well as the methodology used to develop the MICT SETA s strategy. Page 4 MICT Sector Skills Plan, , Version 1.3, November 2012

9 1 Executive Summary 1.1 Overview of the MICT Sector It should be noted that the data presented for the Electronic Media and Film subsector is understated because the MICT SETA still needs to assess the magnitude of employment in this subsector, as well as assist with skills development as explained in Section 2.3 below. The MICT SETA serves five subsectors in its sector. In terms of establishing a baseline for the number of employees in the MICT Sector in 2011, this is estimated at The following graph presents the Subsector segmentation of the MICT Sector, segmented by number of employees. Figure 1: Number of Employees by Subsector, as at 31 st March 2012 Source: The MICT SETA OGS The following table shows that, while the Advertising subsector is ahead in terms of female equity, and the Electronic Media and Film subsector is close to target, while the remaining subsectors are lagging. All subsectors are severely lagging regarding people with disability. The following figure presents the race distribution of employees in the MICT Sector, by subsector. In terms of race equity, the DoL is striving for a target of 85% Black (African, Coloured and Indian). The following figure shows that the Electronic Media and Film Subsector and the Telecommunications Subsector are progressing well in this regard. Figure 2: Race Distribution of Employees, 2012 Source: The MICT SETA OGS MICT Sector Skills Plan, , Version 1.3, November 2012 Page 5

10 The following figure presents the gender distribution of employees in the MICT Sector. The figure shows that the Advertising subsector in particular and the Electronic Media and Film subsectors both appear to be favoured by women. The remaining three subsectors have some way to go before achieving the required 54% women in their sectors. Figure 3: Gender Distribution of Employees, 2012 Source: The MICT SETA OGS There are an estimated people with disability employed in the MICT sector in 2012, up from the 844 people with disability in 2011, representing a mere 0.5% of total employment in both years. The following table presents the people with disability distribution of employees by subsector. Table 1: Number and Percentage of People with Disability Employed in the MICT Sector, by Subsector as at 31 st March 2011 and 2012 Number of People with Disability % People Number of Total with People with Total Employment Disability Disability Employment % People with Disability Advertising % % Electronic Media and Film % % Electronics % % Information Technology % % Telecommunications % % Grand Total % % Source: The MICT SETA OGS In terms of disability equity, the DoL is striving for a target of 4% people with disability to be employed within the country. The following figure presents the Major Group number of employees in the MICT Sector, segmented by gender. As may be observed, the sector is very male dominant at the managerial, professional and technical occupational levels. Page 6 MICT Sector Skills Plan, , Version 1.3, November 2012

11 Figure 4: Major Group by Gender, 2012 Source: The MICT SETA OGS The following figure presents the Major Group number of employees in the MICT Sector, segmented by race. Figure 5: Major Group by Race, 2012 Source: The MICT SETA OGS Whites are dominant in the managerial and professional categories. 1.2 Scarce and Critical Skills Scarce Skills Inputs received from respondents indicate that to March 2015, there is demand for some potential vacancies in the sector. Furthermore, demand for learners undertaking Learnerships over the next three years represents only 1.5% of all types of Training Interventions. It is expected therefore that very few, if any, requests for cofunding sponsorship from the MICT SETA can be expected for Learnerships over the next three years. Instead, about half of the training programmes stated would be amenable to bursaries. MICT Sector Skills Plan, , Version 1.3, November 2012 Page 7

12 The MICT SETA is required to focus primarily on the development of scarce and critical skills in the sector, as identified from the WSP submissions of MICT stakeholders. The following table presents the level of demand for the top twelve scarce skills (potential vacancies occupations) in the Advertising subsector, in order of decreasing demand. OFO Code Occupation Description Total Scarce Skills, Multimedia Designer Advertising Specialist Graphic Designer Copywriter Web Designer Classified Advertising Clerk Illustrator Production Coordinator Multimedia Specialist Pre-press Technical Worker Proof Reader Electronic Originator 3 The following table presents the level of demand for the top twelve scarce skills (potential vacancies occupations) in the Electronic Media and Film subsector. OFO Code Occupation Description Total Scarce Skills, Author Radio Journalist Director (Film, Television, Radio or Stage) Photographer Continuity Person Sound Technician Radio Station Operator Financial Accountant Camera Operator (Film, Television or Video) Broadcast Transmitter Operator Film and Video Editor Finance Manager 4 The following table presents the level of demand for the top twelve scarce skills (potential vacancies occupations) in the Electronics subsector. OFO Code Occupation Description Total Scarce Skills, Electrical Engineering Technician Computer Network and Systems Engineer Software Developer Mechanical Engineer Telecommunications Technical Officer or Technologist Electrical Engineer Civil Engineer Applications Programmer Sales and Marketing Manager Electronics Engineer ICT Communications Assistant Energy Engineer 26 Page 8 MICT Sector Skills Plan, , Version 1.3, November 2012

13 The following figure presents the level of demand for the top twelve scarce skills (potential vacancies occupations) in the Information Technology subsector. OFO Code Occupation Description Total Scarce Skills, Software Developer Developer Programmer Computer Network and Systems Engineer ICT Systems Analyst Computer Network Technician Call or Contact Centre Agent ICT Communications Assistant Quality Assurance Analyst (Computers) Database Designer and Administrator Programmer Analyst Management Consultant ICT Project Manager 63 The following figure presents the level of demand for the top twelve scarce skills (potential vacancies occupations) in the Telecommunications subsector Critical Skills OFO Code Occupation Description Total Scarce Skills, ICT Business Development Manager ICT Sales Assistant Computer Network and Systems Engineer ICT Project Manager ICT Trainer ICT Security Specialist Financial Markets Practitioner Developer Programmer Telecommunications Technical Officer or Technologist Training and Development Professional Call or Contact Centre Agent Telecommunications Technician 11 In terms of satisfying the demand for Critical (Top-Up) Skills, the greatest demand for type of learning programme lies with Workshops which account for 44% of total demand over the next three years, followed by Skills Programmes at 27% and Short Courses at 21%. The MICT SETA is required to focus primarily on the development of scarce and critical skills in the sector, as identified from the WSP submissions of MICT stakeholders. The following figure provides a summary of the types of critical skills required across all subsectors. MICT Sector Skills Plan, , Version 1.3, November 2012 Page 9

14 Figure 6: Types of Critical Skills Required Source: The MICT SETA OGS In greatest demand are sales skills, accounting for 37% of all skills interventions over the next three years, with respondents indicating the majority of need relating to the development of sales techniques. Second behind sales skills is the need for technical skills development, accounting for 34% of all skills interventions over the next three years. The next two categories of skills that are in high demand are software development (the development/ customisation of existing software applications) and software programming (the development of new applications). There are a sufficient number of skilled people produced by the tertiary institutions than are required by both the Advertising subsector and the Electronic Media and Film subsector. There is estimated to be a slight undersupply of degree graduates for the three year period 2012 to 2015 for the ICT subsector, particularly when compared to the oversupply of diploma and degree graduates in the Advertising and the Electronic Media and Film subsectors, and the Diploma graduates in the ICT subsector. It should also be noted though that in a report by the Sunday Times 1, it was reported that: The African Institute for Mathematical Sciences reported that only 10% of its graduates were South African. The University of Cape Town reported that 25% to 30% of its post-graduates in the science faculty were draw from other countries. If 25% of the 6,000 students that graduate over this period return to their home countries, the remaining 4,500 graduates will not meet demand in South Africa. Reviewing and summarising the analysis of where the MICT SETA can contribute to the national imperatives presented under Scarce and Critical Skills, the MICT SETA, in its strategy for the next five years, plans to adopt the following tactics. The MICT SETA continues to receive numerous requests for funding of Learnerships from employer organisations. Learnerships also present benefits to employers in the form of improved BBBEE scorecards and tax relief in the form of tax rebates. The MICT SETA also intends to increase End User Computing Learnerships in the rural areas. The MICT SETA will also continue funding Internships and Skills Programmes. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 21. A further point to note is that the majority of MICT Learnerships address NQF level 4 and 5, which in essence compete with University of Technology diplomas. The establishment of the QCTO presents an opportunity for the MICT SETA to develop occupationally based qualifications up to NQF level 10. This will give the Seta a platform to address the scarce and critical skills as mentioned in this document. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 32, 101, 102, 105 and SA Brains choose dosh over degrees, The Sunday Times, 8 th August 2010, Page 8. Page 10 MICT Sector Skills Plan, , Version 1.3, November 2012

15 Increase the number of bursaries for university students for Media, Advertising, and ICT sub sectors. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 9 and 10. Focus on the Scarce and Critical Skills needs of the sector through bursaries, Learnerships, internships, skills programmes and short courses, the latter being of high importance in an industry experiencing ever changing technology. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 9, 10 and MICT SETA Strategy The Outputs that the MICT SETA will be seeking to achieve over the period 1 st April 2013 to 31 st March 2018, based on all the issues raised in this document, are presented in Chapter 6 of this document. For further consideration, please refer to The MICT SETA Strategic Plan for the Fiscal Period 2013 to MICT Sector Skills Plan, , Version 1.3, November 2012 Page 11

16 2 Introduction 2.1 Background On the 1 st April 2011, South Africa moved into the third phase of the National Skills Development Strategy, (NSDS III), covering the period 1 st April 2011 to 31 st March In order to successfully develop the skills required by stakeholder companies in the Media, Information and Communication Technologies Sector Education and Training Authority (the MICT SETA) Sector, the MICT SETA is required each year to develop and present its five-year strategy, now covering the period Purpose of the Sector Skills Plan The purpose of the Sector Skills Plan is to: Review national skills development imperatives to determine how the MICT SETA can contribute to these imperatives. These imperatives include the National Industrial Policy Framework and Industrial Policy Action Plan; the Land Restitution and Rural Development Strategies; new sector-specific plans that emerge; and the HRD Strategy for the Public Sector, as well as the Medium Term Strategic Framework s strategic priorities. Provide an overview of the trends in employment and other factors in the MICT Sector, so that the MICT SETA can forecast trends that will impact on what it will be able to achieve over the next five years. Understand the supply of skills into the MICT Sector so that the MICT SETA can further identify those areas to which it needs to focus its training intervention attention. In this regard, the MICT SETA needs to develop a national understanding of the supply and demand of MICT skills, since these skills are also in demand in other sectors outside of the MICT Sector. Determine the scarce and critical skills demand of the MICT Sector, at 6-digit Organising Framework for Occupations (OFO) level, so that the MICT SETA can direct resources to assist in satisfying this demand. Based on a synthesis of the above information, the MICT SETA must then develop and present its five-year strategy for the period 1 st April 2013 to 31 st March 2018, within which it will identify a set of sector specific priorities that will meet sector needs, including the scarce and critical skills in the sector. 2.3 Methodology Several approaches have been used in compiling this Sector Skills Plan Desk Research In April 2010, the Department of Higher Education and Training (DHET) provided excellent guidance on what documentation to review regarding various Government policies and strategies. This was covered in a document entitled Framework for the National Skills Development Strategy, 2011/ /16, First Draft for Consultation, 29th April This was followed in June 2011 by a document entitled Proposed Guidelines for Terms of Reference for the Development of Sector Skills Plans, made available by the DHET at Indlela on the 14 th June These documents required SETAs to review the following documents to identify where the SETAs could make a contribution to Government imperatives. The analysis of these documents provided input into the economic profile and drivers of change sections of this document: o Human Resource Development Strategy of South Africa (HRDSSA) , as approved on 18 March o Medium Term Strategic Framework, ( ) Minister in the Office of the Presidency: Planning, July o Industrial Policy Action Plan, the dti, August o Integrated Sustainable Rural Development Strategy (ISRDS), November o National Industrial Policy Framework (NIPF), the dti. In addition to the above, the MICT also reviewed and obtained insight from the following sources: o The Department of Communications (DoC) website, regarding the e-skills Institute o Government Gazettes, such as the Government Notice, No , Government Gazette, 11th November 2010, regarding the SIC allocation to the MICT SETA o Department of Higher Education and Training Strategic Plan 2010 to 2015 o The requirements of the Minister of the Department of Higher Education and Training s performance agreement with the President o Accenture research report o Statistics South Africa (Statssa) Labour Force Survey Report o The South Africa Reserve Bank (SARB) Quarterly Reports Page 12 MICT Sector Skills Plan, , Version 1.3, November 2012

17 o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Past MICT SETA Annual Reports BMI-TechKnowledge World Information Technology and Services Alliance (WITSA) Engineering News SAAF Media Consumption Information Department of Science and Technology website Commercial Producers Association South African Yearbook Career Junction PriceWaterhouseCoopers Wilkofsky Gruen Associates South African Information website Department of Trade and Industry website South African Media and Entertainment Outlook The McKinsey Global Institute Organisation for Economic Co-operation Development Global Economic Research D. Rodrik, Understanding South Africa s Economic Puzzles SABC News South African Yearbook Africa Economic Outlook ILO Global Employment Trend Report Business Monitor International Report First National Bank website N Altman, State of Employment in South Africa H.Bhorat et al., The Impact of Structural and Production Method Changes on Employment Growth of Occupational Groups in South Africa South Africa National Treasury Harvard Report World Bank Report Bureau for Economic Research Other sources as referenced in this document National e-skills Plan of Action As input to assessing the supply of skills in South Africa, data from the following sources was acquired and analysed: Higher Education Management Information System data from The Department of Higher Education and Training (DHET), HEMIS Division for national qualification supply data. The Scarce and Critical Skills reports of the other SETAs. The Skills Demand List compiled by the DHET, available from the DHET s website. The matric data was sourced from the Department of Education 2 and the tertiary data from the Department of Higher Education and Training 3. At tertiary level, electronics and electrical engineers are classified together. An estimate of 25% for electronics engineers in this group was used. The DHET provided the MICT SETA with over 800 Megs of data in over 700 files. This data has been collated into one database in order to analyse the supply side of people entering and achieving tertiary qualifications. Qualifications that are relevant to graduates that are likely to pursue a career in the MICT sector were identified, allowing a comparison of the supply of MICT graduates against the demand for such graduates on a national basis. National demand was identified using the SSPs of other SETAs and the Skills Demand List from the DHET. Due to a rearrangement of HEMIS data that occurred in 2010, there is a discontinuity with the historical trends of enrolments and graduates against the 2010 data. This occurred primarily with the data for Advertising, as well as the Electronic Media and Film data. Nevertheless, an analysis of the 2010 data has been performed with estimates for 2011 to 2014 being performed using the historical trends. Additional desk research that is due to be performed for inclusion in the 2013 Sector Skills Plan includes research into the development of skills in green occupations. As a result of these findings, the relevant SAQA occupational qualifications will be reviewed. The National Planning Commission report will also be reviewed. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 68, 92, 104 and Matric data from Annual Reports of the Department of Education, to Higher Education Management and Information Systems (HEMIS) data from the Department of Higher Education and Training, 2004 to 2010 MICT Sector Skills Plan, , Version 1.3, November 2012 Page 13

18 Research will also be conducted to attempt to assist potential retrenchees in the traditional sectors with ABET and End User Computing training to improve their prospects of re-employment in other sectors, utilising NSF funding. Challenges will involve an interim living allowance and poor English skills. This will require cross-sectoral partnering with Agriseta and MQA. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 42, 43, 135 and 167. A national database of supported small businesses will be established and the impact of MICT SETA supported training in SMEs will be reported on. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 48 and 49. The skills needs of trade unions, NGOs and community-based organisations in the MICT Sector identified and Strategies developed to address these needs. A sector skills development project piloted with selected trade unions, NGOs and community-based organisations and Skills development with selected trade unions, NGOs and community-based organisations expanded through partnership NSF funding. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 50 to 53. Stakeholders will be engaged through questionnaires to review and adjust skills and qualification needs, as addressed in the MICT SETA Strategy, presented in Chapter 6, Item 57. Types of mentoring and coaching programmes will be researched. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 66, 95 and 141. Information will be distributed to stakeholders via the website and . This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 5, 6, 54 to 56, 72, 73, 76 and 80 to 82. Research undertaken to establish the impact on the NSDS, as addressed in the MICT SETA Strategy, presented in Chapter 6, Item Qualitative Stakeholder Research In DHET s Framework for the National Skills Development Strategy, 2011/ /16, First Draft for Consultation, 29th April 2010, it was requested that the SETAs obtain inputs from stakeholders. In order to obtain inputs on several topics from the MICT SETA stakeholders, the MICT SETA developed and distributed a questionnaire to several MICT SETA companies. The MICT SETA would like to thank the following organisations for the valuable and comprehensive responses they returned to the MICT SETA: 1. Bytes Managed Solutions 2. Bytes Outsource Services 3. Computer Society of South Africa (CSSA) 4. Derivco 5. Department of Communications 6. Ericsson Sub Saharan Africa 7. Helios Copier 8. The Information Technology Association (ITA) 9. Joburg Centre for Software Engineering (JCSE) 10. Mobile Telephone Networks (MTN) 11. MWeb Connect 12. Nashua Mobile 13. Nokia Siemens 14. State Information Technology Agency (SITA) 15. T-Systems 16. Lindsay Smithers FCB 17. The Hardy Boys 18. Ogilvy & Mather Rightford 19. Hero Design & Advertising 20. Ochre Media 21. Nu Metro Entertainment 22. Filmair Camera & Grip Rental 23. The Bomb 24. Urban Brew Studios The inputs from these organisations were reviewed, analysed and consolidated, and are presented in Section 3.7. Future additional qualitative stakeholder research is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 22, 24 and Focus and Working Groups In the past, the MICT SETA has participated in several working groups, such as the JIPSA ICT Working Group, and is currently participating in the Strategic Integrated Partnership (SIP) initiative. Work recently started on identifying the perceived MICT skills required for SIP 16. Page 14 MICT Sector Skills Plan, , Version 1.3, November 2012

19 The MICT SETA is also working with SAQA, addressing the needs identified in the Sector Skills Plan. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 104. In order to test the validity of the Sector Profile information presented in the August 2011 Sector Skills Plan, five focus group sessions were held in November 2011 with representatives of each of the Electronic Media and Film, Advertising, and Information and Communication Technologies (including Electronics) Subsectors. The participants of each of these focus groups confirmed that the information presented was in line with their own perceptions of their respective subsectors, except for the Electronics subsector participants, who felt that the employment data was too low for this subsector. After discussion regarding the types of organisations included in the Electronics subsector, it emerged that the MICT data excluded electronic installers, organisations that are likely to belong to the Services Seta. Additional focus groups are planned for 2013 to 2015, as addressed in the MICT SETA Strategy, presented in Chapter 6, Item 26, 27, 31 to 38, 58 and 59. These tasks involve: Prospectuses on the FET colleges in SA obtained. Relevant programmes (at N6) at FET colleges identified and mapped to the Seta SSP. Substantial quality programmes identified through focus groups with employers. Qualifications reviewed with the QCTO, Employers, Training Providers and other stakeholders. Impact of the training programmes analysed and reported in an Impact Study report. The MICT SETA is aware of the Labour Market Intelligence Partnership project and will participate once nominated Personal Interviews In 2011, a personal interview was held with the E-Skills Institute. More recently, personal interviews have been held with participants in the Electronic Media and Film subsector and the Advertising subsector, the purpose being two-fold, namely: To discuss the information presented in the August 2012 Sector Skills Plan To determine whether these organisations could present any additional information that could add value to the November 2012 Sector Skills Plan These organisations include: National Electronic Media Institute of South Africa (NEMISA) Cape Film Commission Film Industry Learner Mentorship (F.I.L.M.) Media Development and Diversity Agency (MDDA) Association for Communication and Advertising (ACA) National Association of Broadcasters (NAB) Official South African Casting Association (OSCA SA) Where applicable, these organisations have agreed to work with the MICT SETA to contact their stakeholders in order to assess the magnitude of employment in the Electronic Media and Film subsector and the Advertising subsector, as well as assist with skills development Contracted Research Houses Towards the end of 2011, as suggested by DHET, the MICT SETA contracted the Centre of Education Policy Development (CEPD) to assess the quality of the MICT SETA Sector Skills Plan and make suggestions as to how the document could be improved for the mid-january 2012 submission. The CEPD had worked with a number of SETAs already and was therefore able to make several constructive suggestions, the majority of which were incorporated in time for the mid-january 2012 submission. External research was contract in 2010 with Joburg Centre for Software Engineering (JCSE), associated with the Witwatersrand University, and IT Web to produce the 2010 National ICT Skills Survey. This report was made available on the MICT SETA website and some of the findings were presented in the 2011 Sector Skills Plan. In 2012, JCSE made some of its 2011 report available to the MICT SETA, which is published in the section on Priority Skills in this Sector Skills Plan. The MICT SETA has again contracted JCSE to repeat this research, but with an expanded to determine the national installed base of technical MICT personnel. This report will become available in early The DHET has expressed concern that the MICT SETA is not conducting and empirical research. For 2013/14, the MICT SETA has budgeted R2 million which will be directed at obtaining an economic model/data and well as a labour market model/stats for the sector/national industry. This will be put out to tender. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 1. MICT Sector Skills Plan, , Version 1.3, November 2012 Page 15

20 The MICT SETA is also researching which universities have performed research in the Advertising, Electronic Media and Film. Electronics, Information Technology, and Telecommunication subsectors and whether these universities can provide subsector labour market and skills development research information in these subsectors. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 20, 22, 24 and ATR and WSP Research Legislation requires the SETAs to acquire particular data from levy paying organisations, as per the Skills Development Levies Act of 1998 and subsequent amendments and associated regulations. The MICT SETA analysed the Annual Training Report (ATR) and Workplace Skills Plan (WSP) data received from the MICT SETA stakeholder companies to determine the profile of the MICT Sector. In order to obtain the best possible and most accurate data from Skills Development Facilitators (SDFs), the MICT SETA has over the years taken the following actions: 1. Over the years, the MICT SETA has built up a strong relationship with its SDFs, the intention being to understand the challenges facing SDFs. In this regard, the MICT SETA has adopted the approach of attempting to make the SDFs task as easy as possible. This has been achieved through: The development of a comprehensive SDF Reference Manual which assists SDFs with the methodology of data collection and data capture into the MICT SETA s Internet based On-Line Grant System (OGS). This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 62 an 75. The provision of templates to assist with data collection. Conducting annual workshops where the SDFs are taken through the OGS in detail. About 550 out of about 630 MICT SETA SDFs attended in 2012, a higher attendance rate than 2011 due primarily to the anticipated changes in the process through the introduction of pivotal grants. The provision of strong query support to SDFs from the MICT SETA administrators. It has also been explained to SDFs that the MICT SETA will continuously be auditing stakeholder submissions to assess the accuracy of the submissions. This is done on a sample basis, this process starting in The auditing function is performed by the Monitoring and Evaluation Division of the MICT SETA. 2. For the last three years of submissions, the MICT SETA built into their system various checks and balances that check for inconsistencies and possible errors that may occur, requesting the SDFs in real time to recheck their data. These checks and balances are pointed out in the ATR/WSP template that is available to the SDFs, so that the SDFs know ahead of time what to expect when they capture their data into the OGS. In many instances, these checks require the SDF to perform additional calculations to confirm that the data entered agrees with their collected data, thereby dramatically reducing the possibility of incorrect data entry. 3. The new data provided by SDFs is further analysed by the MICT SETA s researchers to look for inconsistencies. If any are found, the stakeholder is contacted for clarification. For example, a jump in employment could indicate a buy-out or merger. 4. SDFs are informed that the MICT SETA uses the Scarce and Critical Skills data provided by SDFs to indicate whom the MICT SETA should partner with on learning programmes in order to achieve its own goals. When applying to the MICT SETA for funding assistance on learning programmes, the stakeholder completes a Letter of Intent, motivating their need for learners to be trained, and indicating how many learners need to be trained. On submission of this Letter of Intent to the MICT SETA, the MICT SETA checks this request against what the organisation reflected in its WSP. If there are discrepancies, the stakeholder is requested to explain the difference. 5. SDFs are requested to indicate why their WSP forecast of the previous year differs from the ATR actual. 6. Once the SDF is ready to submit this data, it is first signed off for accuracy by a senior manager in the organisation, the employee representative within the organisation (where the organisation has 50+ employees), and the SDF. SDFs are requested to provide the following data: Past and future spend (separately) and number of training interventions, by type of training intervention and by occupation by municipality, race, gender and disability. Types of training interventions include Learnerships (Employed and Unemployed), Internships, Skills Programmes, Short Courses, and Bursaries. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 9, 10 and 21. Employment Profile of the company, as at 31 March, by occupation by municipality, race, gender. Disability and age group. Page 16 MICT Sector Skills Plan, , Version 1.3, November 2012

21 Scarce and Critical Skills, by occupation with a three year forecast, including suggested training interventions that will assist in acquiring these skills. Reasons, where applicable, why the training interventions that were planned in the previous year did not occur as originally planned. As may be appreciated, the MICT SETA SDFs provide extensive and detailed data, requiring a lot of effort on the SDFs part, and, in many stakeholder companies, this can consume several weeks of the SDF s time. Although some may suggest that the collection of this data should be outsourced, it is unlikely that collecting this detail of data within a one or two hour interview would be achievable. It is also unlikely that outsourced researchers will cover the number of organisations from which the MICT SETA receives ATR/WSP data. The following table shows the submission percentage return results of the methodology described above. It should be noted that only organisations that have a total annual payroll exceeding R per annum and only organisations contributing SDL to the MICT SETA are included in this table. The table below shows that a very high percentage of Large companies (those companies with 150+ employees) provided data to this Seta via their WSP submission. This percentage is in fact 96%, up slightly from the 93% recorded in About 84% of Medium companies (those companies with 50 to 149 employees) submitted their WSP data, also slightly up from the 78% recorded in Regarding Small companies (those companies with 49 or fewer employees), 23% submitted their WSP data, down slightly from the 26% of The reason for this is believed to be the complications of pivotal grants which were thought to be introduced in The MICT SETA is concerned that the introduction of pivotal grants will have a large impact on the number of Small companies participating in the skills development process. Table 2: Assessment of ATR/WSP Data Submission versus Number of Levy-Contributing Companies ,5 Number of Levy- Contributing Companies Number of WSP Useable Submissions of Data Percentage Return Advertising % Large % Medium % Small % Electronic Media and Film % Large % Medium % Small % Electronics % Large % Medium % Small % Information Technology % Large % Medium % Small % Telecommunications % Large % Medium % Small % Grand Total % Source: DHET Levy Contribution Data, the MICT SETA ATR/WSP submission data Once this data has been collected, it is analysed for input into the SSP. Using regression analysis on known levy contributions for all MICT SETA stakeholder companies, as provided by SARS via DHET, and known employment data as provided by WSPs, the number of employees in the non-submitting companies is estimated, this analysis being performed by Standard Industrial Classification (SIC) code, subsector and company size. This forms the basis for the analysis of all other data, as presented in this document. For the 2013 ATR/WSP submission, SDFs will be requested to provide education and qualification data of employees, the analysis of which will be presented in the 2013 Sector Skills Plan. 4 DHET Levy Contribution Data 5 MICT ATR/WSP submission data MICT Sector Skills Plan, , Version 1.3, November 2012 Page 17

22 Using the chapter in the Sector Skills Plan on Scarce and Critical Skills, the MICT SETA Career Opportunities Guide will be developed and distributed. This is addressed in the MICT SETA Strategy, presented in Chapter 6, Item 5, 6, 54 to 56, 72, 73, 76 and 80 to Assessment Inputs on the August 2012 Sector Skills Plan At the August 2012 presentation of the August 2012 Sector Skills Plan to the MICT SETA Board, the Board made the following suggestions: That conscience is taken of the non-levy paying organisations in the Electronic Media and Film subsector. This subsector has a host of small community radio and television companies which are either non-profit organisations or fall below the R total annual payroll boundary, but nevertheless represent a significant area of employment. Furthermore, this subsector is characterised as having large numbers of freelancers who may or may not directly be levy contributors, but are likely to have skills development needs. To this extent, NEMISA, the Cape Film Commission, ACA and MDDA have agree to assist in identifying these subsector participants so that the MICT SETA can identify the magnitude of employment in this subsector as well as assist with skills development. The MDDA has already provided some valuable information in this regard. The MICT SETA will shortly be contacting these radio and television stations through telephone and/or questionnaires. Where possible, NEMISA will assist with contact details. The SABC, etv and other organisations will be approached for assistance with freelancer contact details, and the MICT will develop a freelancer database also through placing advertisements in local newspapers around the country requesting freelancers to come forward with their contact details and CVs. That the MICT SETA becomes the authority covering all MICT employment and skills needs across South Africa, rather than focusing only on the MICT sector of levy paying organisations. To this end, the MICT SETA has already contracted JCSE, as mentioned above, to determine the national installed base of technical MICT personnel. These suggestions of the MICT Board are welcomed. Although preliminary work on these suggestions has already started, the magnitude of this exercise means that the results of this research will only become available during 2013, and will be included in the 2013 Sector Skills Plan. In October 2012, the DHET provided its findings and suggestions based its assessment of the August 2012 Sector Skills Plan. 2.4 Defining the MICT Sector and its Subsectors The Government Notice, No , published in the Government Gazette, dated 11 th November 2010, defines the MICT SETA SIC Codes as being those presented in Table 3 below. Furthermore, the MCT Seta has five subsectors within its sector. These subsectors are also defined by SIC code in the following table. Table 3: The MICT SETA SIC Code List 6 SIC Description Subsector Manufacture of Alarm Systems Electronics Telecommunication Telecommunications Wired Telecommunication Carriers Telegraph Telecommunications Television Broadcasting, Television and Radio Signal Distribution Television and Radio Signal Distribution Telecommunications Cable Networks and Programme Distribution Cable TV Services Telecommunications Telephone Telecommunications Wireless Telecommunication Carriers except Satellite Radiotelephone Telecommunications Television Broadcasting Telecommunications Telecommunications and Wired Telecommunication Carriers Telecommunications Paging Telecommunications Cellular and Other Wireless Telecommunications Telecommunications Satellite Telecommunications Telecommunications Other Telecommunications Telecommunications Security Systems Services except Locksmiths Electronics Office Automation, Office Machinery and Equipment Rental Leasing including Installation and Maintenance Electronics Software Publishers Prepacked Software Information Technology Computer Systems Design and Related Services Computer Integrated Design Information Technology Computer Facilities Management Services Information Technology Electronic and Precision Equipment Repair and Maintenance Computer Maintenance and Repairs Electronics Computer Rental and Leasing Information Technology Computer Programming Services Information Technology Other Computer Related Activities Information Technology Call Centre Systems Development and Installations Activities Call Centre and Customer Relationship Information Technology Management System Development Computer System Design Services and Integrated Solutions Information Technology 6 Government Notice, No , Government Gazette, 11 th November 2010 Page 18 MICT Sector Skills Plan, , Version 1.3, November 2012

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