Skills shortages in the information technology (IT) industry - particularly among technical workers - have reached critical levels, despite the efforts of many organisations to attract and train staff.
This is according to Mike Leeuwen, a director of PM Tech, the IT consulting, software development, systems implementation and support services group. He says there has been an exodus of skilled technicians, programmers, systems analysts and other specialists leaving SA for many years.
"The legacy is a critical shortage of skilled workers and many thousands of vacant posts," he says.
"Even following the recent economic downturn, which saw many layoffs and the down-sizing of companies, there are still shortages which will be exacerbated with the predicted upturn in the economy."
Leeuwen says the only solution, particularly in the short-term, is skills outsourcing.
"While companies should be encouraged to train staff, there is no denying the fact that the available workforce is under-skilled. Even trained IT workers lack appropriate skills sets. This is true of many of the so-called Oracle, Microsoft and Java experts in our market," he stresses.
Leeuwen says outsourcing may be the best alternative for companies that want to ramp up the delivery of new IT solutions to modernise their computer infrastructures ahead of expected increases in business activity.
"Many organisations - particularly non-technology companies seeking to expand their IT capabilities - should be looking to outsource at least some of their project load.
"In particular, the outsourcing of niche skills, leading-edge technology and resources is often the only route companies can take to meet their business goals," he says.
"This may mean bringing in systems integrators and third-party services that can write applications and code on an outsourced basis."
Leeuwen adds that a key factor to consider when weighing the advantages and disadvantages of the outsourcing route is cost.
"Many companies look at the fee structure of an outsourcing vendor and come to the conclusion that they will save money by providing their own labour.
"This may be true in IT departments that already have the skills to undertake a particular project - but many projects require new skills.
"Training staff to acceptable levels will be costly and time-consuming and will often work out to be more expensive than the outsourced option," he adds.
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