News


Levy intended to stimulate IT skills development

14 February 2001 News

Companies should commit themselves to supporting the structures that are trying to promote coordinated skills development in the IT industry, instead of using their so-called ineffectiveness as an excuse not to get involved.

"The IT industry has mandated representation in the form of associations and bodies, which are geared towards promoting coordination among companies," declares Adrian Schofield, International Sales and Marketing Director of CompTIA (Computing Technology Industry Association). "Together, they should be looking at cooperative schemes to share the costs associated with skills development."

The skills development levy is intended to stimulate skills development by enabling employers to reclaim some expenditure on skills development initiatives. Before this can be done, however, the various sector education and training authorities (SETAs) must carry out research to identify and prioritise sectoral skills shortages and training needs so that appropriate learnership programmes can be developed. From there, the National Standards Authority (NSA) will identify national priorities for skills development, and only those companies which have produced compliant work skills plans will qualify for grants or rebates.

"Whether the plan will work remains to be seen," says Schofield. "Essentially, the levy will suck approximately R1 bn out of the economy, intended as seed money for the development of skills training. Of this, the IT sector will generate R35m. In terms of the legislation, only half of this amount is available for training. Consequently, if R10 000 is spent on training one learner, then only 1750 learners will be trained. Reduce the training figure to R1000, and 17 500 learners will be trained. Considering the IT industry needs to train at least 50 000 learners a year to alleviate the skills shortage, where will the additional 32 500 come from?"

Schofield warns IT companies not to hold their breath for the successful outcome of the skills development programme. "In certain niche sectors of the economy the plan will work, because money can be drawn from employers who have not been pulling their weight in terms of training and placed into the resources of those who have.

"In an industry as diverse as the IT sector, however, it is very difficult to envisage a successful outcome. Not only is there a high cost of compliance before employers can claim back their money, but it will cost large corporations twice as much to recover their grants than the actual grant itself. Where then, does that leave the small and medium enterprises?"

Instead of these companies taking the burden of skills development upon themselves, Schofield says they should look at ways of sharing it by working in conjunction with associations such as the Information Industry South Africa (IISA) which can provide essential facilitation, structure and management where it is needed.

"The SETAs and skills development process are designed to promote a healthier economy and business environment. It is time for the IT industry to get over its fragmentation issues and instead support the structures that are trying to coordinate the industry. Let us stop the tail wagging the dog and get involved in the education process," Schofield concludes.

CompTIA is a not-for-profit trade association of more than 10 000 companies and professional IT members in the converging computing and communications market. It has members in more than 50 countries and is headquartered in the Chicago area.

For information contact Adrian Schofield, (011) 787 4846, [email protected]





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Components distribution slowdown Q1 2025
News
European components distribution (DMASS) experienced a continued slowdown in the first quarter 2025.

Read more...
Semiconductor sales increase 17% YoY
News
The Semiconductor Industry Association (SIA) recently announced global semiconductor sales were $54,9 billion during the month of February 2025, an increase of 17,1% compared to the February 2024 total.

Read more...
Silicon Labs – Q1 results
News
Silicon Labs, a leading innovator in low-power wireless, recently reported financial results for the first quarter, which ended April 5, 2025.

Read more...
Strengthening industry through strategic partnerships at KITE 2025
Specialised Exhibitions News
The KwaZulu-Natal Industrial Technology Exhibition is not just an exhibition, it is a powerhouse of industry collaboration where visitors and exhibitors gain access to authoritative insights, technical expertise, and high-impact networking opportunities.

Read more...
Solar Youth Project calls on industry to step up
News
With the second cohort completed training and the first cohort returning for their final module, host companies are urgently needed to turn the training into a long-term opportunity.

Read more...
Conlog powers SA’s future with national smart meter rollout
News
Conlog recently secured the RT29-2024 contract from National Treasury, which is seen to be a major milestone towards modernising SA’s utility infrastructure.

Read more...
Zuchongzhi-3 sets new benchmark
News
This latest superconducting quantum computing prototype features 105 qubits and 182 couplers to operate at a speed 10¹5 times faster than the most powerful supercomputer currently available.

Read more...
Automatic device attestation certificate for Panasonic
News
DigiCert recently announced it has partnered with Panasonic Industry Europe to integrate DigiCert Device Trust Manager with Panasonic’s PAN-MaX intelligent manufacturing service for seamless Matter certification of interoperable smart home devices.

Read more...
From the editor's desk: Are we really being ripped off?
Technews Publishing News
To the surprise of many customers, installing solar panels does not always eliminate their utility bill – and in some cases, the power utility may impose additional charges on solar-powered homes.

Read more...
Winner of the Advanced Electronics Challenge
Avnet Silica News
Avnet Silica has named Hydronauten winner of the Advanced Electronics Challenge for breakthrough AI-driven vibration damping technology.

Read more...