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In The ICT/BPO Sector in Mauritius: A Study On Labour Shortage
In The ICT/BPO Sector in Mauritius: A Study On Labour Shortage
In The ICT/BPO Sector in Mauritius: A Study On Labour Shortage
A Study on
Labour Shortage
in the ICT/BPO sector
in Mauritius
Demand-Side Analysis
Supply-Side Analysis
Gap Identification
May 2012 1
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Contents
1. Landscape of the ICT sector 1
1.1. ICT Sector: HRD Matters! 1
1.2. The Mauritian ICT Sector 3
1.3. Rationale of the study 5
2. Aims and objectives of the study 7
2.1. Contribution of the ICT sector to the economy 7
2.2. Enrolment in ICT and ICTrelated courses 8
2.3. TEC Graduate Tracer Study 2011 9
2.4. Employment in Mauritius 12
2.5. Employment in the sector 16
2.5.1. Employment forecasts for the ICT Sector, 2011-2015 17
3. Methodology 19
4. Findings of labour shortage survey 21
4.1. Sector and employment profile 21
4.1.1. Employee distribution by category 21
4.1.2. Size of workforce of companies included in the survey 22
4.1.3. Terms of employment (full-time versus part-time employment) 23
4.1.4. Expatriate workers in the ICT Sector 23
4.1.5. Educational Requirement in the ICT Sector 25
4.1.6. Working experience as a requirement in the ICT Sector 25
4.2. Labour shortage status 27
4.2.1. Perception about labour shortage at the national level 27
4.2.2. Perception of labour shortage in the ICT sector 28
4.2.3. Labour shortage within the company 28
4.3. Future labour requirement in ICT firms 29
4.4. Labour shortage as defined by employers of the sector 30
4.4.1. Reasons for the labour shortage in the ICT sector 31
4.5. Current quality and level of skills in the ICT Sector 32
4.5.1. Scarcity Areas 33
4.5.2. Difficulty filling jobs 34
4.6. Skills development initiatives 38
4.6.1. Budget allocation for training 38
4.6.2. Preferred mode for acquiring skills 39
4.6.3. Skills development initiatives 39
4.6.4. Use of the National Training Fund (Levy Grant System) 41
4.6.5. Training Needs Analysis 41
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Contents
4.7. Recruitment and retention of employees 41
4.7.1. Recruitment channels 42
4.7.2. Skills and qualities employers look for when recruiting new employees 42
4.7.3. Difficulties in retaining skilled employees 46
4.8. Measures proposed to fill skills gap 46
4.8.1. Education and Training system 47
4.8.2. Government Policies 47
4.8.3. Areas of HR where assistance is required 48
4.8.4. Advice to those wishing to join the ICT sector 50
5. Conclusion and Recommendation 51
6. References 63
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Tables
Table 1: Development ICT Index, 2008-2010 8
Table 3: Graduates in Full Time Employment, distributed by Programme of Study and Cohort (%) 9
Table 7: Number of companies by size of workforce and by main activities of ICT companies included in the survey 23
Table 11: Percentage of organisations employing different categories of staff per minimum educational level 25
Table 14: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius 34
Table 17: Preference (top five) for acquiring the required skills for organisations in the ICT Sector 39
Table 18: Skills and qualities employers look for when recruiting Workers in the ICT Sector 43
Table 19: Skills and qualities employers look for when recruiting Specialised worker in the ICT Sector 43
Table 20: Skills and qualities employers look for when recruiting Professional Staff in the ICT Sector 44
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Figures
Figure 1: Trend in employment in the ICT sector by gender, 2006 2010 16
Figure 9: Will there be a net increase in the number of employees in 2012 in organisations? 29
Figure 10: Description of Labour shortage terms of qualifications and past work experience 30
Figure 11: Description of labour shortage in terms of lack of technical and soft skills 31
Figure 13: Status of skills among existing pool of skills in the ICT sector 32
Figure 15: Initiatives to address skills shortage among existing employees in the ICT Sector 40
Figure 17: Do you use the Levy Grant System provided by the HRDC? 41
Figure 18: Do you carry out any TNA before training your employees? 41
Figure 20: Does your organisation face any difficulty in retaining skilled people? 46
Figure 21: Percentage of respondents who ranked their recommendations among top three 47
Figure 22: Policies which the Government may consider to fill skills gap 48
Figure 23: Areas in HR where organisations would like to have training and / or assistance 49
Figure 24: Percentage of respondents who ranked the following advices among top three 50
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Acknowledgement
The survey and the report prepared is an effort of a vibrant team. This report for the ICT Sector
is the result of the splendid support of our stakeholders namely the employers of the ICT Sector
who were the respondents of the survey. Grateful acknowledgement is accorded to the team of
the Research Division for their valuable contribution and continued support. This report could
not have been put together without the thought leadership of Dr K S Sukon and undoubtedly the
combined effort of:
Leena Ramtohul
R K Sharma Seechurn
Kreshna Googoolye
Tehjal Vaghjee-Rajiah
Devika Gopaul
Malini Ramah
The series of consultations and survey results have helped in drawing conclusions and make
recommendations on the future manpower requirements of the ICT Sector. We look forward to our
continued partnership with our stakeholders.
The opinions and interpretations in this publication are those of the respondents and do not
necessarily reflect those of the HRDC.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
vi
In the modern knowledge-intensive economy
A Study on Labour Shortage human
in the resources
ICT/BPO are the most
sector in Mauritius
critical factor behind the success of corporations. Information and
Communication Technology (ICT) sector is one of the most knowledge-
1. intensive
Landscape
branches of of
the the ICT The
economy. sector
overall importance of ICT has also
greatly increased, as it is nowadays widely integrated into almost all functions
1.1. ICTwhole
of the Sector:economy,
HRD Matters!
business and society.
In the modern knowledge-intensive economy human resources are the most critical factor behind
the success of corporations.
Numerous research has Information
provenand Communication
how these newTechnology
ICT tools (ICT) sectorthe
within is one of theof
fields
most knowledge-intensive branches of the economy. The overall importance of ICT has also greatly
education,
increased, as it is environment and
nowadays widely integrated income-generating opportunities
into almost all functions of the whole economy, are
business and society. and helping nations develop socially and economically faster
revolutionising
than ever
Numerous before.
research As a result,
has proven how theseit new
is highly important
ICT tools within the to foresee
fields the skills
of education, needed
environment
and income-generating
from opportunities
the ICT professionals in are
therevolutionising
future. and helping nations develop socially and
economically faster than ever before. As a result, it is highly important to foresee the skills needed
from the ICT professionals in the future.
Based on the 2011/2012 Global
Based on the 2011/2012 Global Competitiveness
Competitiveness
Index published by the Index published
World Economic by the
Forum,
Mauritius was pitched at the 54th position out of a
World
total of 142Economic
countries whenForum,
rankedMauritius
from high towaslow
competitiveness. th
pitched at theThe 54 index which out
position is measured
of a total on of
a
scale from 1 (lowest degree of competitiveness) to
7 142 countries
(highest degree ofwhen ranked from
competitiveness) stoodhigh to
at 4.31
for
lowthe competitiveness.
country. Putting the lens
The closer
indexto which
the pillars
is
(efficiency enhancers: rank of 68 and score of 4.04)
measured
that on a education
comprise higher scale from 1 (lowest
and training and
technological readiness amongst others, Mauritius
degree of competitiveness) to 7 (highest
has been pitched at the 68th (score: 4.17) and 61st
degree
(score: 3.76)ofpositions
competitiveness)
respectively. Onstood at 4.31
the Innovation
and sophistication factors scale, we were ranked 60th
for the country. Putting the lens closer to
with a score of 3.62. Business sophistication rank was
44th
theand a score(efficiency
pillars of 4.27, innovation at 89th and
enhancers: rankscored
of
2.96.
68 and score of 4.04) that comprise Source: Global Competitiveness report 2011/2012
1
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
2
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
In the emerging digital economy, human resources are the critical factor behind success. Therefore,
scarcity in skills or in skilled personnel can pose a serious threat to the ICT sector. The quantity and
quality of skills have been important issues especially in the high growth development phase, which
the ICT sector in many countries has gone through. But quantitative skills shortage and qualitative
skills gap could still threaten further positive development of the ICT sector. In addition, when
ICT is nowadays widely integrated throughout the functions of the whole economy and society,
the possible skills related problems are to be taken seriously (Pohjola 2002, SRI Consulting 1997).
When generalised to all end-users and the whole society, the qualitative skills gap could also block
countries path towards true information society (Gaia 2000 and Koski et al., 2001). Changes taking
place in the operational environment of the ICT firms influence the skill profiles they demand from
The rapidly changing By
their employees. nature of ICT
examining has likewise
the evolution putsector
of the ICT pressure on the
and business sector.
a clearer IT of the
picture
skills demanded in the future can be formed.
workers can quickly find themselves out of work as new technologies render
The mostskills
their technical critical
allchallenge has moved
but obsolete, significantly
while at the sametowards the professionals
time actual human dimension
with and
capacities required to actually capitalize on these new technologies. Skills shortage is a global
old skills'',
concern become coveted.
as revealed by research studies in many parts of the world (Kikwasi, 2011).
Recent theories argue that the role of employees has dramatically changed over the past century.
Even though new institutions
The current for training
environment emphasizes and education
quality of ICT
and innovation, for manpower have
which human, rather than
physical capital,
been established is particularly
in various forms important (Zingales,
in Mauritius, it 2000). Human relations
is acknowledged theories
that (e.g. Maslow,
FDI and
1943; Hertzberg, 1959; McGregor, 1960) view employees as key organisational assets, rather than
foreign expendable
technology transfer via
commodities, whoMulti-National Companies
can create substantial value by(MNCs)
inventinghave played or
new products a building
client relationships. These theories argue that satisfaction can improve retention and motivation,
significant role in developing ICT skills. MNCs can effectively transfer
to the benefit of shareholders.
technology and diffuse
The rapidly changingknowledge,
nature of ICTwherever
has likewisetheir subsidiaries
put pressure are located.
on the sector. IT workers can quickly
find themselves out of work as new technologies render their technical skills all but obsolete,
while at the same time professionals with old skills, become coveted.
Changes in skill profiles happen at all levels of qualifications and across all
Even though new institutions for training and education of ICT manpower have been established
sectors.in To avoid
various future
forms skill shortages,
in Mauritius, countries
it is acknowledged that need
FDI andtoforeign
devise strategies
technology transfer via
based Multi-National Companies
on well-informed (MNCs)decisions,
policy have played asocial
significant role in developing
dialogue ICT skills. MNCs can
and coordination
effectively transfer technology and diffuse knowledge, wherever their subsidiaries are located.
among ministries and between employers and training providers.
Changes in skill profiles happen at all levels of
qualifications and across all sectors. To avoid future
1.2. The
skillMauritian ICT Sector
shortages, countries need to devise strategies The IT/BPO global sourcing market size is
based on well-informed policy decisions, social currently estimated between USD 89bn
The Government
dialogue andProgramme
coordination 2010-2015 has set
among ministries and a and 93bn with IT and BPO market shares
averaging 40 and 60 percent respectively.
numberbetween employers targets
of challenging and training
to providers.
the next stride to The contribution of the IT/BPO sector to
the Mauritian economy is expected to
convert Mauritius into a regional ICT hub. The grow to some 8% by 2015 with direct
employment in the sector amounting to
1.2.
vision of The Mauritian
Government ICT make
is to Sector of Mauritius an I- 25,000.
Mauritius (IntelligentProgramme
The Government Mauritius) through
2010-2015 has set full
a Mauritius is a leading global outsourcing
destination ranked 25th on the A.T.
number of challenging targets to the next stride to Kearney Global Services Location index
Broadband Islandwide Connectivity and to narrow 2009 and 2nd in Africa as per the
convert Mauritius into a regional ICT hub. The vision
Commonwealth Business Council report
the digital divide. isBecause
of Government of its cross-cutting
to make of Mauritius an I-Mauritius 2009. The country is also among the
(Intelligent Mauritius) through full Broadband highest in Africa in the Digital Opportunity
nature,Islandwide
the ICTConnectivity
sector plays a pivotal role in
and to narrow the digital
Index ranking (DOI).
divide. Because
employment, of its and
job creation cross-cutting nature, thein
quality/efficiency Source: BOI, 2012
ICT sector plays a pivotal role in employment, job
other services
creation delivery.
and quality/efficiency in other services
delivery.
3
The National Computer Board (NCB) has recently redefined its strategies to
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Further diversification of ICT services, including Software development, high-
end BPO activities and Disaster Recovery Centres has been envisaged.
Mauritius
The Nationalhas, up toBoard
Computer now,(NCB)
successfully navigated
has recently redefined the vagariestoofrespond
its strategies the global
more
effectively to new national aspirations in view of multi-faceted challenges emerging in the wake of
economy, on which it is so dependent. The development of the ICT sector
globalisation and threatening the very resilience of the countrys economy. Its core mission is now
poses
to numerous
accelerate challenges
the transition for into
of Mauritius thea regional
island inICT its
hub effort to gain
and ensure a competitive
the swift realisation of
governments objective to make of the ICT sector the third pillar of the economy.
edge in the presence of Asian giants namely India and China where their
Further
humandiversification of ICT
capital is their services,
major including Software development, high-end BPO activities
asset.
and Disaster Recovery Centres has been envisaged. Mauritius has, up to now, successfully navigated
the vagaries of the global economy, on which it is so dependent. The development of the ICT sector
poses
The numerous
ICT sector challenges for the island
is strategically in its effortfor
important to gain a competitive
Mauritius as it edge
playsin athevital
presence
role of
in
Asian giants namely India and China where their human capital is their major asset.
the development of other sectors. Its weight in GDP is rising fast. It reached a
The ICT sector
figure is strategically
6.4 percent in 2011important
and for Mauritius as itnearly
it employed plays a 13
vital000
role in the development
people in 2010 of
in
other sectors. Its weight in GDP is rising fast. It reached a figure 6.4 percent in 2011 and it employed
large 13
nearly establishments
000 people in 2010 (those
in largeemploying more
establishments (thosethan 10 employees).
employing more than 10The budget
employees).
The budget speech 2012 announced that occupation permits will be issued to workers in the ICT/
speech 2012 announced that occupation permits will be issued to workers in
BPO earning more than Rs30 000. This measure will enable more local ICT professionals to be
the ICT/BPO earning more than Rs30 000. This measure tapped by will enable industry.
the ICT/BPO more local
Nitish at Accenture ICT professionals to be growing
tapped
The BPO is one of the fastest
Nitish joined Accenture in November 2009 in Solutions, SAP CRM 7 with
segments
by of Information
the ICT/BPO Technology
industry.
an HSC and a few months experience. Nitish was subjected to an HR
interview followed by a technical interview. The company found lots of Enabled Services. Mauritius has
potential in Nitish and he was offered a job as a Trainee at the beginning. The
takenBPO is one
several of the
initiatives fastest
to develop
He was converted from Trainee to Assistant Software Engineer in Feb 2010 the ICT/BPO industry. There are
despite not possessing a degree and promoted to Software Engineer in growing segments of
March 2012. He was given the same opportunities to grow as anyone activities that require greater skill,
else.. Information Technology
knowledge, education and expertise
to handle and these form an offshoot
The training facilities (online, classroom and on the job coaching) and HR Enabled Services. Mauritius
of BPO known as Knowledge Process
support assisted him to acquire the know-how and ramp up quickly on SAP
CRM 7. has taken several
Outsourcing (KPO). initiatives to
The young Nitish was encouraged to pursue his studies he is currently develop the ICT/BPO
The evolution of the ICT sector
enrolled in a degree in IT programme at UoM. The flexible working hours
in Mauritius
industry. warrants
There
allow him to attend classes. He has set clear career goals for himself to meet are aactivities
detailed
his aspirations. evaluation of the current skills and
that require
knowledge greater
since they skill,
are the main
driving forces of economic growth
and social development of Mauritius. Countries with higher and better levels of skills adjust more
effectively to the challenges and opportunities of the world of work. Thus, it is necessary that the
12
local workforce be adequately skilled to realise the demographic dividend.
Clearly, the pattern of skills required in the local sector is changing. Companies are increasingly
recruiting skilled and highly skilled people who can easily use and adopt latest trends and
technologies. Therefore, identification of imbalances between the demand for and the supply of
specific skills in the local ICT industry is particularly important since it contains a large number of
distinct skills categories. Shortages in any particular category can result in bottleneck in output
and reduce productivity, whereas surplus of trained workers can cause serious unemployment or
underemployment which represents a squander of national resources (Hillebrandt and Leikle,
1985; Kao and Lee, 1998).
On the demand-side, manpower forecast focuses on the expected quantity of jobs to be available
and nature of the requirements in the future (Bartholomew et al., 1991). Therefore, manpower
planning has become useful for this sector in order to reduce the mismatch in skills as well as
to help economic planners, policy makers and training providers in their endeavours. Availability
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
In this hyper-competitive global era where technological change is intensifying and demographic
change is unfolding, skills mismatch has come to the forefront of the policy debate in Mauritius
especially that human resources remain our most important resource. Skills mismatch includes
skill shortages due to lack of qualification, knowledge and experience as well as skills exceeding
job requirements. Lack of skills in some sectors may occur simultaneously with supply of over
qualified people in others. If skills mismatch is not resolved, it adds to real costs on individuals,
enterprises and societies. Therefore, it is imperative to know the ever-changing skills needs in
order to match skills and jobs.
More and more employers complain about the lack of required labour to fill the skills gap in the
ICT sector in Mauritius. It is an undisputed fact that foreign labour would be needed to ensure
that the sector continues to grow. However, stakeholders need to work together in order to reduce
the dependency on foreign labour while providing services that meet all local and international
norms.
This study focuses on skills need in the local ICT/BPO sector. There are shortages of skilled
individuals across several disciplines of the ICT sector. The report satisfies to a large extent the
urgent need that was felt to synthesise evidence and provide new insights that can provide the
basis for crafting comprehensive policies that would prevent and address skill mismatch and its
consequences to the ICT sector. This study also provides data that are the most crucial prerequisites
to supporting timely, effective and evidence-based skills-match policies.
5
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
6
pattern of skills as well as Athe future
Study evolution
on Labour ofinthe
Shortage the ICT manpower
ICT/BPO sector in landscape
Mauritius
in Mauritius. This would help develop strategies and policies to reduce the
mismatch between demand and supply of labour in the ICT sector. Some
The definition of the ICT sector is according to the recommendations of the Global Partnership on
Measuring ICT for Development of the United Nations.
The ICT sector consists of manufacturing and services industries whose products capture, transmit or
display data and information electronically
16
In 2010, value added at current prices generated by the ICT sector was Rs 16 941 million, under the
shadow of a global downturn, 14.1 percent higher than the figure of Rs 14 851 million in 2009.
The real growth rate was 13.1 percent same as in 2009. In 2010, around 46 percent of value
added of the sector was generated by activities of telecommunications, 11 percent by wholesale
and retail trade and 43 percent by the remaining activities. The number of large establishments
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
operating in the ICT sector was 139 in 2010, representing an increase of 3.7 percent over the 2009
figure of 134. Employment in those establishments increased by 3.8 percent to 12 826 in 2010 from
12 360 in 2009.
Table 1: Development ICT Index, 2008-2010
Category Index
2008 2009 2010
ICT Access 4.24 4.74 5.12
ICT Use 1.03 1.50 1.67
ICT Skills 6.63 6.67 6.73
ICT Development Index 3.44 3.83 4.03
Source: Economic and Social Indicators Information and Communication Technologies (ICT) statistics Statistics 2010, Statistics
Mauritius
The ICT Development Index (IDI) which measures countries progress towards becoming information
societies improved to 4.03 in 2010 for Mauritius from 3.83 in 2009 and ranked 69th. Mauritius was
ranked first among African countries followed by Seychelles (Rank 71st).
2.2. Enrolment in ICT and ICTrelated courses
Enrolment in ICT at secondary and tertiary level has increased over the years.
Source: Annual Survey in Primary and Secondary Schools in March, Mauritius Examination Syndicate (MES) and Tertiary Education
Commission (TEC)
Source: Economic and Social Indicators Information and Communication Technologies (ICT) statistics Statistics Mauritius 2010
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The Graduate Tracer Study 2011 covers the two biggest tertiary education providers in the country
namely the University of Mauritius (UoM) and the University of Technology, Mauritius (UTM), which
together account for over three quarter of degree graduates produced locally.
The survey targeted a random sample of 3 453 full-time degree graduates (1 515 male and 1 938
female) from the UoM (3 103) and the UTM (350), out of a graduate population of 7 188 over the
period 2006 to 2010. The sample comprised about 50 percent of the graduates stratified by cohort
and programme, gender and place of residence, from a list obtained from these institutions which
provided details of names and addresses of graduates by field and year of graduation, encompassing
some 95 programmes. The list of ICT courses and ICT related courses are displayed at Table 3.
Table 3: Graduates in Full Time Employment, distributed by Programme of Study and Cohort (%)
(Source: Graduate Tracer Study of UoM/UTM 2011 - Graduates Labour Market Experiences)
Among those persons having an ICT degree or a degree in an ICT-related field, more than 75
percent have secured a job and are active ICT professionals. However those who followed the
programme in Information Technology Enabled Services faced major difficulties.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The ranking for the quality of the educational system was 50 but internet access at schools was
pitched at 75.
Pravind at Ceridian
Pravind started his career as a Payroll agent in 2004. Throughout the years, he climbed the
career ladder and today he is in a management position.
He has been subjected to continuous learning through the different processes that he has been
involved in for customers based in UK, US and Canada. The nature of the industry has offered
Pravind the opportunity to travel to different countries and explore different cultures. The
BPO industry being very dynamic and to accommodate this changing environment, Pravind
went through training and coaching for self-development which has helped him grow with
the company.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Ceridian
Ceridian started its operations in 2000 with 10 employees. Today it employs some 700 people
associates (including 7 expatriates) in ITO (software development, software testing, and
support), FAO (finance and accounting outsourcing) and BPO (payroll, tax services, healthcare
claims processing, HR admin, EAP). Ceridian plans to grow to 1,000 associates by 2014 given
the high demand from UK and US. Labour turnover is in the tune of 11 percent. It serves clients
in US, UK and Canada. At present, off-shoring is becoming more and more apparent from
Europe and US.
Its ITO operation has 45% of its workforce comprising primarily of degree holders. Its BPO
operation comprises 50% of its employees with a mix of HSC, diploma and degree holders. FAO
comprises less than 5 % with a mix of HSC, diploma and degree (many are ACCA students).
Fresh graduates require some 6 months to reach an acceptable level of performance and be
productive.
As a matter of fact, no major problem is faced for recruitment in FAO and BPO whereas ITO is
experiencing serious labour shortage since all companies worldwide are looking for resources,
where salary of employees are competitive. In ITO, some skills sets are more scarce such as
Java and Oracle amongst others. People need to have knowledge in more than one technology.
In the same vein, Ceridian has recently launched their learning centre in partnership with
NIIT (a world leader in training). Due to the lack of competencies on the market today it
is distorting the market value for such professional, resulting in high salaries. This makes
Mauritius less competitive compared to other emerging markets.
In order to meet demand of employers at any point in time, supply should exceed demand
implying that we should create talent surplus. Enrolment at the universities in IT should at
least treble. It is noted with concern that the enrolment rate in IT is reducing year over year at
Mauritius universities. We could start converting people with technical degrees (mathematics,
science, engineering) into IT engineers, however we need to enhance enrolment for technical
subjects at schools and universities. It is also believed that the universities are very rigid about
reviewing their curriculum. There is a need to improve the perception of people regarding its
image to make the sector attractive. Parents do not want their kids to work at non-standard
hours and are not familiar with the sector.
Additionally, many people have technical skills in ICT but lack customer management skills and
other soft skills which is a matter of serious concern when working internationally. Attitude
issue of the workforce needs to be addressed at the level of schools itself. Graduates are not
hungry to learn, do not go for training on their own and they are thus not ready for prompt
absorption by the job market.
The future is challenging though there is a lot of potential. Apart from human resource, there
are telecommunications challenges as well. Training is also expensive in Mauritius and there
is a concern about levy being reduced. Our only resource being human resource, we need to
invest in world class education and training to produce people with global skills.
The company works with different time zones. Therefore logistics like transport, shopping at
night are issues to be dealt with in Mauritius. It is a huge cost to be incurred by the company.
We need to ensure to have sufficient number of graduates for future opportunities and meet
the future demand. We need also to consider that future demand will be affected by the
supply of IT professional on the market today and in the future.
The future of Mauritius is to serve the global business and our economic growth is based on
talent we build today.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
2.4. Employment in Mauritius
Population projection 2010-2050
2.4. Employment in Mauritius
According to the World Bank population projections by country, the population
of Mauritius,
Population which
projection was 1.250 million as at December 2011, would reach its
2010-2050
peak by 2035, that is 1.367 million, and would gradually dwindle to reach
According to the World Bank population projections by country, the population of Mauritius, which
was 1.2501.322
around millionmillion
as at December
in 2050.2011,
Thiswould reach its pattern
population peak by 2035, that is 1.367
will obviously million,
have an
and would gradually dwindle to reach around 1.322 million in 2050. This population pattern will
impact on
obviously havethe labouronforce,
an impact more
the labour particularly
force, on theonactive
more particularly labour
the active labourforce,
force, as
as
depicted
depictedininFigure C. C.
Figure
1,380
1,366 1,367
1,370
1,357 1,359
1,360
1,350 1,342
1,339
Population ('000)
1,340
1,330 1,322
1,320 1,313
Figure A: Population projection 2010-2050,
1,310 Island of Mauritius
1,300
1,2901,281
1,280
1,270
2010 2015 2020 2025 2030 2035 2040 2045 2050
Year
Source:Adapted
Source: Adaptedfrom
from World
World Bank
Bank online
online database
database
Figure
FigureB Bclearly projects
clearly the ageing
projects of the Mauritian
the ageing populationpopulation
of the Mauritian with an increasing
with antrend of those
increasing
above 60 and/or above 65 years and a fall in proportion of those in the active working group 15-
trend of those above 60 and/or above 65 years and a fall in proportion of those in the
59 and/or 15-64 years. This ageing population phenomenon is further amplified by a decreasing
activeinworking
trend the belowgroup 15-59
15 years and/or 15-64
population. years. any
In a nutshell, Thisfuture
ageing population
medium or long phenomenon
term strategy
with regards to the management of the Mauritian labour force will have to consider the pertinent
is further amplified by a decreasing trend in the below 15 years population. In a
issues of ageing as well as the trend in Mauritian population.
nutshell, any future medium or long term strategy with regards to the management of
the Mauritian labour force will have to consider the pertinent issues of ageing as well
as the trend in Mauritian population.
22
12
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Figure B: Population pyramids by age group and gender, Island of Mauritius, 2010, 2020 & 2050
Figure B: Population pyramids by age group and gender, Island of Mauritius, 2010, 2020 & 2050
http://www.nationmaster.com/country/mp-mauritius/Age_distribution
http://www.nationmaster.com/country/mp-mauritius/Age_distribution
23
13
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Highlights of the labour force, employment and unemployment as at fourth quarter 2011
The total Mauritian population aged 16 and over for the fourth quarter 2011 stood at 987 200,
with 483 800 males (49 percent) and 503 400 females (51 percent).
The total economically active population was 585 600, comprising of 365 500 males (62
percent) and 220 100 (38 percent) females.
Employment of Mauritians is estimated at 541 800 at the fourth quarter of 2011 compared to
537 700 for the same period in 2010 and 536 400 at the fourth quarter of 2009.
The unemployment rate is estimated at 7.5 percent, comprising of 4.9 percent for males and
11.8 percent for females. The unemployment rate stood at 7.2 percent for same period in
2010 and 6.3 percent in 2009.
The tertiary sector was the major employer with 63.8 percent followed by the secondary
sector 27.5 percent and primary sector 8.7 percent.
Employment in the Construction sector represented 10.2 percent of the active population in
employment and it stood at 10.7 percent for the same period in 2010.
The main characteristics of the unemployed at the fourth quarter of 2011 were:
There were 43 800 unemployed comprising 17 900 males (41 percent) and 25 900 females
(59 percent).For the same period in 2010, there were 41 600 unemployed comprising 13 100
males (31 percent) and 28 500 females (69 percent).
17 100 or about 39 percent of the unemployed were aged below 25 years. For the same period
in 2010, 15 300 or about 37 percent of the unemployed were aged below 25 years.
Some 8 600 or 20 percent had not reached the Certificate of Primary Education (CPE) level or
equivalent and a further 15 900 (36 percent) did not have the Cambridge School Certificate
(SC) or equivalent. For the same period in 2010, some 9 000 or 22 percent had not reached the
Certificate of Primary Education (CPE) level or equivalent and a further 16 700 (40 percent)
did not have the Cambridge School Certificate (SC) or equivalent.
In fourth quarter 2010, 14 100 (34 percent) were looking for a first job while this figure rose
to 15 600 (36 percent) in 2011.
Employment of Mauritians increased by 600 from 536 100 in 2010 to 536 700 in 2011. It
increased by 11 300 from 524 800 in 2009 to 536 100 in 2010.
Unemployment rate stood at 7.8 percent in 2010 compared to 7.3 percent in 2009. It increased
marginally from 7.8 percent in 2010 to 7.9 percent in 2011.
14
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Table A: Comparative figures, fourth quarter 2010 and fourth quarter 2011
Table B: Employment and unemployment - Year 2010 & 2011, Island of Mauritius
Activity rate
59.3%
Unemployment rate
7.9%
15
ators Information
A Study on and
LabourCommunication
Shortage in the ICT/BPOTechnologies
sector in Mauritius (ICT) statistics, 2010)
1
Value added in the
2
ICT sector (Rs Million) 9,858 11,714 12,994 14,851 16,941
Revised Large establishments, that is employing 10 or more persons
rce: Economic and Social
Value added Indicators
in the Information
ICT sectorand as Communication
a % of GDP Technologies
5.2 (ICT) statistics
5.4 5.3 Statistics 2010, Statistics
5.9 6.4 Mauritius
eneral Growth
trendrateinin employment
the ICT sector (%) in the 13.0
sector 15.1
has been
13.2 increasing
13.1 13.1over the
as depicted
Revised
1
in FigureLarge 1.establishments,
2
The gap thatbetween
is employing 10 ormale and female employment
more persons
Source: Economic and Social Indicators Information and Communication Technologies (ICT) statistics Statistics 2010, Statistics
Mauritius
e ICT sector has sunk in the past few years. The total employment has
The general trend in employment in the sector has been increasing over the years as depicted in
an upward trend
Figure 1. The and in
gap between light
male of the
and female measures
employment taken
in the ICT by sunk
sector has thein Government
the past few
years. The total employment has taken an upward trend and in light of the measures taken by the
udget Government
speech 2012, it speech
and budget will offer
2012, ittremendous employment
will offer tremendous opportunities
employment opportunities for the for
youth who must be well equipped.
outh who must be well equipped.
Figure Figure 1: Trend
1: Trend in employment
in employment in the in thesector
ICT ICT sector by gender,
by gender, 20062006 2010
2010
Source: Adapted from Digest of Labour Statistics 2010 and historical series, Statistics Mauritius (2011)
Source: Adapted from Digest of Labour Statistics 2010 and historical series, Statistics Mauritius (2011)
At the beginning of 2012, the BOI had listed some 497 ICT/BPO companies that comprised both large and other
At the beginning of 2012, the BOI had listed some 497 ICT/BPO companies that comprised both large and
than large organisations.
other than large organisations.
16
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Nickell (1984) notes that industrial employment has proven notoriously difficult to model as it
is related to numerous factors such as rapid technological development, consumers patterns,
difficulties faced by employers to forecast growth, industrial structure, changes in the level of
economic activity, government programmes and policies etc.
The assessment of labour market therefore has been a critical challenge to researchers, employment
policy makers, manpower analysts and educational planners for decades, with the aim to avoid
mismatch between manpower demand and supply for labour, whether appearing as structural
unemployment or skills shortages impeding economic development.
To obtain a glimpse of the future trend in employment in the ICT Sector, a model based on linear
regression was worked out. The figures from 2006 to 2010 were obtained from the Economic
and Social Indicators Information and Communication Technologies (ICT) statistics. The number
of employees in large establishments from 2011 to 2015 has been estimated by the HRDC
and presented in Table 5. The upward trend in employment has been graphically presented in
Figure 2.
2006 7970
2007 10170
2008 11250
2009 12360
2010 12826
2011 14486
2012 15676
2013 16866
2014 18056
2015 19247
17
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Assumption: The Model is based on an extrapolation of the current trend in employment over
time, assuming all the conditions or scenario remains unchanged.
Assumption: The Model is based on an extrapolation of the current trend in employment over
time, assuming all the conditions or scenario remains unchanged.
Based on the projection, employment in large establishments is expected to
Basedreach
on the19 247 by employment
projection, 2015, representing an increase of
in large establishments around 50
is expected percent
to reach from
19 247 by 2015,
representing
2010. an increase of around 50 percent from 2010.
The yearly average increase in employment is expected to lie between 7 and 13 percent.
The yearly average increase in employment is expected to lie between 7 and
13 percent.
29
18
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
3. Methodology
Data collection was conducted during the months of July to October 2011. With a view to achieve
the objectives of the Labour Shortage Survey 2011, the data to compile this report was captured
from both primary and secondary sources. The primary source of data was a structured survey
questionnaire sent out to various organisations operating in the ICT Sector. Quantitative data were
backed up by qualitative information obtained through face to face semi-structured interviews of
a few major long-existing players of the local industry. This also helped to confirm and complement
the findings of the survey. Secondary sources of data included figures from Statistics Mauritius and
other documents that related to the issue of skills in Mauritius.
A structured questionnaire (Annex II) was developed which comprised 4 sections with 33 questions.
A whole page was dedicated to description of the aim and objectives of the study, definitions
and interview administration details. Questions were rationally shared between closed and open-
ended ones.
The questionnaire was piloted in a few companies to ensure relevance of questions as well as
to eliminate any discrepancy. Thirty-nine professional interviewers and eight supervisors were
appointed to administer the structured questionnaire through face to face interviews. In order to
ensure consistency in data collection, a briefing session was carried out. This exercise also ensured
that each and every question was properly understood while answers were properly recorded
thereafter.
The list of companies operating in the ICT Sector was obtained from the Levy Grant database 2011
and the National Human Resource Development Plan 2009 database. 100 companies were randomly
selected from that database ensuring a representative sample through stratification in terms of
the number of employees. Companies that could not be contacted (because of reasons like change
of name, closure or refusal to participate) were replaced by companies of similar characteristics.
Following data collection, questionnaires were verified for completeness followed by data entry in
Statistical Package for the Social Sciences (SPSS) 18.0. The final database, after data cleaning and
validation comprised entries from 95 companies. The main activities of the companies included in
the final analysis are described in Table 6, on which the findings of the study are based.
19
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The ICT sector comprises manufacturing activities, telecommunications services, wholesale and
retail trade and other activities such as call centres, software development, website development
and hosting, multimedia, IT consulting and disaster recovery.
Hence, the survey sample comprised firms mostly involved in call centre/BPO (35 percent) followed
by those involved in software development.
Data analyses and report writing were carried out in November and December 2011. Simple
univariate (frequency runs) and bivariate analyses (cross- tabulations) were conducted. For
questions 20 and 21, after grouping the common reasons/measures, a score of 30 was allocated to
each response ranked 1st, a score of 20 for each response ranked 2nd and a score of 10 for each
response ranked 3rd. As there were not many responses ranked 4th and 5th, they were merged
with the 3rd response for each question respectively.
For the purpose of this study, the skill level of employees has been classified into 3 broad categories
namely Workers, Specialised workers and Professional staff. A brief definition of these 3 categories
of employees appeared on the front page of the questionnaire to ensure that respondents were on
the same wavelength with regard to the different skill level of employees.
Employee classification
1. Worker: A worker is a labourer or non-technical staff. Their work is mostly manual and
repetitive. Examples include salesperson.
3. Professional staff: Professional staff is more independent and perform a variety of tasks.
They require a higher level of education and/or experience to be able to fulfill their roles.
Examples include Software Engineer, Computer Network Specialist.
20
4. Findings of labour shortage
A Study on Laboursurvey
Shortage in the ICT/BPO sector in Mauritius
4.
4.1.1. Findings of labour
Employee distribution by category shortage survey
The three categories of employees, namely, Workers, Specialised workers and
4.1. Sector and employment profile
Professional staff, were fairly well represented across the ICT firms, with the
4.1.1. Employee staff
Professional distribution
beingbyemployed
category in most of the companies (98 percent)
followed
The by Specialised
three categories workers
of employees, employed
namely, Workers,by 94 percent
Specialised of and
workers the Professional
companiesstaff,
and
were fairly well represented across the ICT firms, with the Professional staff being employed in
Workers employed by 65 percent of the companies.
most of the companies (98 percent) followed by Specialised workers employed by 94 percent of
the companies and Workers employed by 65 percent of the companies.
A stratification of the total number of employees by employee category
A stratification of the total number of employees by employee category revealed that Specialised
workers
revealed comprised the major chunk,
that Specialised representing
workers 64 percent
comprised of thechunk,
the major workforce, followed by 32
representing 64
percent of Professional staff and 4 percent of Workers (Figure 3).
percent of the workforce, followed by 32 percent of Professional staff and 4
Figure 3:3).
percent of Workers (Figure Composition of ICT sector workforce
Professional
staff
32%
Specialised
worker
64%
Worker
4%
Hence, it can be inferred that the current ICT sector workforce can be qualified
Hence, it can be inferred that the current ICT sector workforce can be qualified basically as a
basically
highly asknowledge-intensive
skilled a highly skilled knowledge-intensive
workforce. workforce.
Figure 4 gives a pictorial display of the proportion of different categories of staff per company size.
Figure
The share4 of
gives a pictorial
Workers decreasesdisplay of the
with size proportion
of the of and
organisation different
totallycategories of staff per
absent in organisations
having
companymore size.
than 50 employees.
The share ofOrganisations having between
Workers decreases with 1size
to 5 of
employees had the largest
the organisation and
share of Workers. The proportion of Specialised Workers inflated when the company size increased. It
totally absent in organisations having more than 50 employees. Organisations having
can thus be deduced that the bigger the organisation, the larger the share of specialised Worker.
between 1 to 5 employees had the largest share of Workers. The proportion of
Specialised Workers inflated when the company size increased. It can thus be deduced
that the bigger the organisation, the larger the share of specialised Worker.
33
21
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
22
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
2-5 employees 5 0 3 0 0 8 8
6-10 employees 2 1 5 1 4 13 14
11-50 employees 5 12 12 4 2 35 37
51-100 employees 2 6 5 4 0 17 18
101-200 employees 0 7 2 2 0 11 12
201-300 employees 0 2 0 1 0 3 3
301-500 employees 0 5 0 1 0 6 6
This research provides considerable evidence to support the contention that ICT jobs are typically
full-time with relatively longer working hours. Part-time employment in this sector did not seem
to be a common practice, with three out of every four firms not employing any part-time workers.
77 percent of the organisations did not employ anyone on part-time basis and 15 percent employed
up to 9 part-time workers (Table 8).
The total number of expatriates employed by the 46 firms (representing 48 percent) was 237 and
were mostly Professional staff and Specialised Workers.
23
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Note: Percentage represents percentage of expatriates out of the total number of employees for the respective company.
Only 1 expatriate was classified as Worker.
1337 Occupation Permits were issued for Professionals by the Board of Investment (BOI) from
October 2006 to January 2012. The most recurrent job titles for which Work Permits were issued
by the Ministry of Labour and Industrial Relations in 2011 were:
Software Developer;
Software Engineer;
Telecommunications Technician;
Telecommunications Engineer;
IT Developer;
IT Technician;
Telecommunications Lineman;
Translator.
The number of work permits issued in the ICT Sector from 2008 to 2011 is presented in Table 10.
24
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Educational qualification was not always a prerequisite to be recruited as a Worker in the ICT
sector. However, people need to be sufficiently qualified in order to be recruited as Specialised
worker and Professional staff.
Budget 2012 recognises the need to facilitate the rising trend of women seeking employment
and will try to break the vicious circle for youth. No jobs without previous experience, and no
experience without a previous job.
As depicted at Table 12, nearly 40 percent of the companies surveyed were of the view that
experience was necessary for Workers whereas desirable by some 37 percent of companies. For
Specialised Worker and Professional staff, experience was definitely a pre-requisite given the
level of responsibility shouldered by these categories of employees. Yet, in the absence of people
with the required experience, companies have to do the preliminary training to fill the skills gap
in-house.
25
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Percentage of organisations
Level of experience required Worker Specialised worker Professional staff
Definitely require 39 78 84
Depends 37 19 15
Not at all 24 3 1
Total 100 100 100
Apollo Blake
26
levels, namely the national level,
A Studysectoral
on Labourlevel andinorganisational
Shortage level.
the ICT/BPO sector in Mauritius
With a relatively high level of unemployment, they all highlighted that there
was 4.2. Labourofshortage
a problem statusin the labour market. They were willing to recruit
mismatch
people but they
Employers could not
perception findgravity
on the the right person
of labour to fillwas
shortage the vacant
gauged positions.
at three levels, namely the
national level, sectoral level and organisational level.
4.2.1. Perception about labour shortage at the national level
With a relatively high level of unemployment, they all highlighted that there was a problem of
A few questions
mismatch in the in themarket.
labour questionnaire aimedtoat
They were willing gauging
recruit people the perception
but they of the
could not find
right person
employers about to fill the vacant
labour positions.
shortage status across all sectors in Mauritius.
experience.
Figure 5:5:DoDo
Figure you agree
you that Mauritius
agree is experiencing
that Mauritius labour shortage?
is experiencing labour shortage?
39
27
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
4.2.2. Perception of labour shortage in the ICT sector
More than half of the respondents opined that the ICT sector was facing labour
4.2.2. shortage
Perceptionasofhighlighted
labour shortage
in in the ICT6.sector
Figure Among those who said that this sector was
More enduring
than half ofa the
labour shortage,
respondents 20that
opined percent
the ICTwere
sectorofwas
the viewlabour
facing thatshortage
this situation
as
highlighted in Figure 6. Among those who said that this sector was enduring
would persist over the next 5 years. However, 30 percent stated that it woulda labour shortage,
20 percent were of the view that this situation would persist over the next 5 years. However, 30
worsen.
percent Nearly
stated that halfworsen.
it would of theNearly
respondents
half of the expressed optimismoptimism
respondents expressed that the
thatsituation
the
situation would improve.
would improve.
Figure 6: Perception of
labour shortage at
sector level
4.2.3. Labour shortage within the company
4.2.3. than
More Labour
70shortage within the company
of respondents indicated a labour shortage at the national level
and more
More than than 50 percent
70 of respondents indicated
indicated such
a labour a shortage
shortage in the level
at the national ICT and
Sector. There
more than
50 percent indicated such a shortage in the ICT Sector. There appears to be a slight disconnect
appears to be a slight disconnect between perception and reality. In the ICT
between perception and reality. In the ICT sector, practically two third of the respondents stated
sector, practically
that their two
organisations third
were of the
not facing anyrespondents
labour shortage.stated that
The result their organisations
is depicted in Figure 7.
were not facing any labour shortage. The result is depicted in Figure 7.
40
A Afurther
further analysis in terms
analysis in ofterms
sub-sectors
of revealed that 51 revealed
sub-sectors percent of organisations
that 51 indicated
percenta of
labour shortage issue in the ITES/BPO sub-sector. In the Hardware Consultancy sub-sector, 43
organisations indicated
percent of respondents said a labour
that shortagewere
their sub-sectors issue
not in theany
facing ITES/BPO sub-sector.
labour deficit. The results In
are depicted in Figure 8.
the
Hardware Consultancy sub-sector, 43 percent of respondents said that
their sub-sectors were not facing any labour deficit. The results are depicted in
28
Figure 8.
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The top ten jobs in demand in the sample of 95 ICT companies are presented
in Table 13. Appendix I details the list of jobs. Employers, in the absence of
local capabilities, had to seek competencies from foreign countries. The work
42
permits issued by the Ministry of Labour and Industrial Relations were in line
with the requirements of the employers as depicted at Table 14. Demand for 29
ICT Professionals spans from entrant to specialist level jobs (such as software
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The top ten jobs in demand in the sample of 95 ICT companies are presented in Table 13. Appendix
I details the list of jobs. Employers, in the absence of local capabilities, had to seek competencies
from foreign countries. The work permits issued by the Ministry of Labour and Industrial Relations
were in line with the requirements of the employers as depicted at Table 14. Demand for ICT
Professionals spans from entrant to specialist level jobs (such as software developers, software
engineers) to senior positions (such as senior software engineers). Of the positions named, a large
majority were programming-type positions after jobs in the ITES/BPO sub-sector. The range of
programming skills sought was extremely varied, with Java being the most popular.
No. Job title 2011 2012 2013 2014 2015 Qualification required
Figure 11: Description of labour shortage in terms of lack of technical and soft skills
Percentage of respondents
80
60
40 75
20
14 12
0
Lack of people with Lack of people Lack of people
both technical skills with technical with soft skills
to do the job and skills to do the job (e.g attitude, team
soft skills spirit etc.)
0 10 20 30 40 50 60 70 80 90
Percentage of respondents
31
In general,
A Studythe majority
on Labour of respondents
Shortage in the ICT/BPOsaid that
sector their current employees (78
in Mauritius
percent of Specialised workers, 87 percent of Professional staff and 57 percent
of Worker) were satisfactorily meeting the basic skills requirements of the
4.5. Current
sector. quality and
This result is level of skills
in line with in the
theICTprevious
Sector findings where employers
expressed their
In general, the views
majority of regarding
respondents labour
said thatshortage atemployees
their current organisational level.
(78 percent of Specialised
workers, 87 percent of Professional staff and 57 percent of Worker) were satisfactorily meeting
the basic skills requirements of the sector. This result is in line with the previous findings where
65 percent
employers of companies
expressed employed
their views regarding labourWorkers,
shortage at 94 percent level.
organisational of companies
employed Specialised worker and 98 percent of companies employed
65 percent of companies employed Workers, 94 percent of companies employed Specialised worker
Professional
and 98 percent Staff. As shown
of companies in Figure
employed 13, 57Staff.
Professional percent of Workers
As shown in Figure were
13, 57 meeting
percent of
Workers were meeting the skills requirements of employers but on the other hand around 35
the skills requirements of employers but on the other hand around 35 percent
percent of employers said that this question was not applicable for the same category of employees
ofsince
employers said
they did not thatWorkers.
employ this question was not applicable for the same category
of employees since they did not employ Workers.
Figure 13: Status of skills among existing pool of skills in the ICT sector
100
87
90
78
Worker
ofrespondents
80
respondents
70 Specialised worker
60 57 Professional staff
50
Percentageof
Percentage
40 35
30
20 14
9 7
10 5 3
1 1 2
0
Meets basic requirements Does not meet basic Requires upgrade Not applicable
requirements
This study attempted to measure the importance assigned by employers to soft skills like
communications, team spirit, innovation and customer care. Besides possessing the required
technical skills in todays world of work, peoples skills are becoming pivotal. Soft skills have
lots of significance in the ICT Sector essentially for the Professional staff category followed by
Specialised worker. The survey revealed that soft skills were extremely important for the majority
of respondents (more than 90 percent for Specialised staff) as depicted in Figure 14. Soft skills
were considered least important for the Worker category of the ICT Sector given their nature of
work.
46
32
of respondents (more than 90 percent for Specialised staff) as depicted i
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Figure 14. Soft skills were considered least important for the Worker categor
of the ICT Sector given their nature of work.
Figure 14: Importance attached to soft skills in the ICT Sector
Figure 14: Importance attached to soft skills in the ICT Sector
The ICT is a relatively highly skilled industry. A significant number of ICT professionals do have
academic qualifications and technical capacity that provide a solid foundation to secure a job.
During the survey, employers stated that they were facing difficulties in recruiting people with:
Degree in IT;
Again, the scarcity areas revolve around qualifications like software engineering and degree in IT
which cascade down to occupations like software engineers/developers for which work permits
have been issued recently.
33
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Employers stated the reasons as to why it was difficult to recruit skilled labour. The top five
difficulties revolve around lack of qualified people and skilled labour, issue of brain drain, high
salary expectations, lack of trained people with relevant working experience and lack of focus
on vocational training programmes. The reasons are tabulated in Table 14 starting with the most
difficult to find.
A noteworthy index on brain drain pitched Mauritius at 77th with a score of 3.2.
Within the sector, a heightened degree of flexibility is expected from the employee. More
specifically, employees are expected to work at atypical hours given the nature of the work. The
ICT staff seemed to show no major problem in picking up and moving on, though some work still
remains to be done.
Table 14: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius
No. Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius
(most cited to least cited)
34
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
16. Conditions of work are not favourable. Working conditions are not attractive enough.
17. In some regions there is lack of skilled labour and people from other region are not ready
to move long distances.
18. Inappropriate transport system makes it difficult to recruit people all around the country.
19. Inappropriate personal profiles of skilled labour.
20. Labour turnover too high. Lack of stability from job seekers. They tend to leave after some
time.
21. Lack of confidence.
22. Lack of job security.
23. Language skill (English/French) very poor.
24. May be employers adopt inadequate recruitment strategy.
25. Mismatch between demand and supply.
26. Pool of skilled labour growing old.
27. There is high competition to recruit the best. Too much competition to recruit key
talents.
28. Employees are too ambitious.
In light of the many difficulties, a number of suggestions has been made by employers namely
to revise the tertiary level curriculum since according to them it does not meet the market
requirements, to focus on soft skills as well since youngsters seem to lack a culture dentreprise
and to conduct regular research on labour shortage so that training could be delivered depending
on market requirements. More so, the variable nature of ICT over time requires ICT professionals
to regularly redefine and reassess their roles, functions and skill requirements.
The linkages between firms, research institutions and education/training are however relatively
weak in the sector and often grieved upon by all. Partially as a response to these weak linkages,
the Government responded to both the shortages on the labour market as well as to the lack
of skilled ICT labour, by initiating the ICT Centre of Excellence which is a form of corporate
university. This centre is meant to provide fast track talent and provide effective mechanisms for
aligning company strategy and interests with labour force skill levels. Access to courses available
via the centre will also be part and parcel of the secondary employment benefits used to attract
top talent, where the labour market is being affirmed as competitive. A successful roll out could
provide a new impetus to the sector and new growth perspectives. The many proposals made by
employers to reduce mismatch of labour are elaborated in Table 15 which requires concerted
efforts of employers, associations, education/training providers and other stakeholders.
35
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
1. Enable more job placements during studies to make students aware of the workplace
needs
2. Provide more career guidance and organise job fairs to allow job seekers know the
requirements of employers, before enrolling for higher studies to make them aware of the
employers requirement
3. Promote development of soft skills
4. Annual survey on labour shortage, survey different sectors regularly
5. Carry out TNA before setting up training programmes
6. Conduct regular surveys in sectors where there is shortage of skilled labour & labour market
requirements
7. Offer more facilities so that firms can invest in training
8. Set up appropriate training programme that meets labour market requirement
9. Set up professional training programmes in field where there is skill scarcity
10. More emphasis on vocationl training
11. Use levy grant to re-train employees
12. Training should be done according to demand forecasted jobs
13. Meeting with educational institutions
14. Evaluation of labour skills and abilities
15. More emphasis on quality of training courses rather than quantity
16. Provide more training in sectors that is short of skilled labour
17. Bring job seekers and employers on same platform
18. Ensure that training programmes being offered are up to the standard
19. Provide appropriate training using latest technology
20. Set up appropriate courses to reduce mismatch
21. Diversify skills of workers so that they can move from one sector to another. Encourage
people to be multi-skilled
22. Improve training standards
23. More training for school leavers
36
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
37
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The results of this study had painted a grey picture of the status of skills development of this
sector. Table 16 depicts the provision of training budget where 22 percent of ICT companies had
no training budget at all. 3 out of every 4 organisations allocated 1 percent or more of their
budget for training purposes. Nevertheless, another reading could be that ITES/BPO companies
may not have training budget as a caption but training could be under operation or transition
budget or knowledge transfer since eventually all ITES/BPO companies deliver product training
being a prerequisite to meet the service level agreement. Putting the lens closer, 31 percent of
companies in ITES/BPO invested 6 percent or more on training compared to only 19 percent of
companies involved in software development (7 percent for hardware consultancy and 8 percent
for telecommunications).
None 21 22
Less than 1 1 1
1-3 31 33
4-5 24 25
6 or more 18 19
Of those companies that budgeted less than 6 percent for training, 36 percent said they suffer from a
labour shortage. Of those that budgeted more than 6 percent, 61 percent deplored a labour deficit
in their organisation. It should be noted here that under the Pre-Operational Training Incentive
(POTI) scheme, an advance is offered as incentive to attract investment in emerging sectors which
require a relatively high level of initial skills. The HRDC provides an advance equivalent to 50
percent of the estimated qualifying training costs during the first year of operation of firms which
are in the process of being set up.
38
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
While the overwhelmingly preference was for on-the-job training, many attempted to address
the issue of skills in-house.
The preference for on-the-job training might be the cause of many organisations not earmarking a
training budget. As informal training, which is generally unstructured, is not generally approved/
recognised by the Mauritius Qualifications Authority (MQA), it cannot be funded through the Levy
Grant System of the HRDC. Very often small organisations do not have a training department or
lack staff to look into such matters. Seminars and overseas training were least popular in the
ICT Sector. The organisations might not also have the necessary platform to engage in e-learning
mode. The figures are presented in Table 17.
Table 17: Preference (top five) for acquiring the required skills for organisations in the ICT Sector
Most Second most Third most Fourth most Fifth most Total
preferred preferred preferred preferred preferred
(%) (%) (%) (%) (%) (%)
On-the-job 40 21 18 13 3 95
In-house 17 26 23 19 3 89
Seminars 1 13 12 20 28 74
Tailor-made courses 12 14 13 10 11 60
Learnership 9 6 6 10 16 49
Degree 8 7 6 3 8 34
Diploma 6 4 2 5 9 26
Certified short courses 3 4 12 13 9 41
Overseas training 2 2 6 2 7 20
E-learning 1 2 1 5 5 13
Continual learning is vital in ICT professions in order to keep pace with technical developments.
Knowledge and skills requirements evolve very rapidly and also become obsolete rapidly. Continuing
training in the ICT sector involves not only the enhancement of ICT skills and knowledge, but also
the development of managerial, organisational and interpersonal skills.
39
a measure to address skills shortfall while re-training was utilised by 51
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
percent. Upskilling was adopted by 18 percent of employers together with
other popular initiatives. The results are presented in Figure 15.
Figure Figure
15: Initiatives to address
15: Initiatives skills
to address skillsshortage amongexisting
shortage among existing employees
employees in theinICT
theSector
ICT Sector
Training 53
Re-training 48
Up-skilling 34
Improve wages 32
0 10 20 30 40 50 60
Percentage of respondents
A Arecent
recentGerman
German report states that against
thethe background
of of
thethe demographic situation
as as
3
report 3 states that "against background demographic situation well
well as structural and economic change, an increasing demand for skilled labour is the emerging
as structural and economic change, an increasing demand for skilled labour is the emerging
trend, requiring people to have an ability to engage in lifelong learning. It then diplomatically
trend", requiring
notes that somepeople
schooltoleavers
have an
do "ability
not havetothe
engage in lifelong
required traininglearning".
maturity.It then diplo matically
notes that "some school leavers do not have the required training maturity".
Among the 37 percent of companies who did not have any such initiatives, 65 percent did not plan
to curb the skills shortage of existing employees. This observation was in fact not in line with the
Among themore
finding that 37 than
percent
half ofof
thecompanies who did
employers reported not
labour have However,
scarcity. any such initiatives,
enterprises did not65
structure and non-negotiable adherence to its success requirements
seem to adequately
percent did not invest
plan intoskills
curb development,
the skillsat shortage
least throughofa proper
existingplanning in the wakeThis
employees. of
throughout
new challenges.all
Onelevels
can alsoofseethe
the organisation.
lack of initiativesIn many cases,
in developing existingthe small to
employees size
meetof
observation was in fact
future skills requirements. not in line with the finding that more than half of the
organisations does not allow for such ventures. Yet, three quarter of the
employers reported labour scarcity. However, enterprises did not seem to
Arespondents
few employers in were
thestill
ICTreluctant
Sector to stated
see skillshaving
development as an extremely
a strategic powerful tool inplan
skills development the
adequately invest in skills development, at least through a proper planning in
arsenal of any organisation but then it requires unequivocal commitment and support at the highest
as shown
levels of the in Figure 16.
organisation This finding
structure is in contradiction
and non-negotiable adherence to with the result
its success that 61
requirements
the wake
throughout of new challenges. One can also see the lack of initiatives not in
percent all had levels of thedevelopment
skills organisation. In many cases, the
initiatives small
yet 75sizepercent
of organisations
had a doesskills
allow for such
developing ventures.employees
existing Yet, three quarter
to meetof the respondents
future skills in the ICT Sector stated having a
requirements.
development
strategic plan. Thisplan
skills development could be explained
as shown in Figure 16.byThis
thefinding
fact that a number of
is in contradiction withplans
the
result that 61 percent had skills development initiatives yet 75 percent had a skills development
may not be implemented as intended.
plan. This could be explained by the fact that a number of plans may not be implemented as
Aintended.
few employers were still reluctant to see skills development as an extremely
powerful tool in the arsenal of any organisation but then it requires
Figure 16: Strategic skills development
unequivocal commitment and support
plan for the at the highest levels of the organisation
organisation
3
"Ten Guidelines for the Modernization and Structural Improvement of Vocational Education and Training", Federal Ministry of Education and
Research, Berlin, 2007, pages 12 and 14.
56
The Levy Grant System is amongst the spectrum of training incentives available in Mauritius to
facilitate training and managed by the HRDC. This survey found that a little more than one third
of the ICT firms did not make use of this training incentive as presented in Figure 17. These
organisations may not have a full-fledge HR department or dedicated resource person to look into
these details and ensure a proper follow-up. Others may not be aware of such incentives that
exist.
% claimed
Figure 17: Do you use the Levy Grant of the % claimed
No Figure by
System provided 17:the
Do HRDC?
you use the Levy Grant amount of the
No System provided by the HRDC? Year Number of trainees contributed amount
33%
Year 1108Number of trainees contributed
33% 2005/2006 118
2005/2006 1230 1108 118
2006/2007 111
2006/2007 1391 1230 111
Yes 2007/2008 85
Yes 2007/2008 1452 1391 85
67% 2008/2009 121
67% 2008/2009 1452 121
(Source: HRDC, 2012)
(Source: HRDC, 2012)
No
32% No
32%
Yes
68% Yes
Figure 18: Do you carry out any TNA 68%
Figure
before training 18: employees?
your Do you carry out any TNA
before training your employees?
Newspapers 34
0 10 20 30 40
Percentage of respondents
A large share (82 percent) of the organisations in the ICT Sector did not face any difficulty to retain
Atheir
large share (82 percent) of the organisations in the ICT Sector did not face
people.
any difficulty to retain their people.
4.7.2. Skills and qualities employers look for when recruiting new employees
4.7.2. Skills and qualities employers look for when recruiting new employees
Based
Based on on recent
recentresearches,
researches, the new skills
the new
The problem does not necessarily
skills requested by the ICT firms, besides The problem does not the
necessarily lie human
with the
requested by the ICT firms, besides educational lie with quantity of our
educational degree, are often qualities of quantity of ourresources
humanbutresources
with QUALITY. but with
degree, are often
personal nature. Factorsqualities of personal
like attitudes, the nature.
QUALITY.
world-view, personal communication skills
Factors like attitudes, the world-view, personal communication skills etc. are
etc. are more important than before. The new
more
needs important than
are reflecting before. taking
the changes The new
placeneeds
within are reflecting
the ICT industry,the
but changes
also in thetaking
relationship
between the ICT and other sectors. As depicted in Tables 19 to 21, past working experience was
place within the ICT industry, but also in the relationship between the ICT and
predominantly placed before qualifications for the Worker category. The importance of educational
other sectors.
qualifications As higher
raised depicted in Tables layer
the hierarchical 19 to 21,category
of the past working
of employee.experience was
Other requirements
were mainly good placed
predominantly work attitude
beforefor Workers and Specialised
qualifications for theWorkers.
Worker category. The
59
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Table 18: Skills and qualities employers look for when recruiting Workers in the ICT Sector
Skills and qualities Most Second Third Fourth Fifth Total Difficulty in
preferred most most most most finding
preferred preferred preferred preferred
(%) (%) (%) (%) (%) (%) (%)
Past experience 28 14 4 3 12 61 12
Work attitude 15 22 8 12 6 63 13
Educational qualification 12 5 11 13 11 51 -
Technical skills 4 7 6 7 5 31 2
Communication 8 13 16 7 6 51 6
Decision making - 1 6 8 - 16 -
ICT 1 6 8 5 8 29 2
Analytical skills - - 3 2 2 7 1
Foreign language - - 3 - 2 5 1
Management skills - - - - 2 2 -
Affiliation - - - 1 2 3 -
Table 19: Skills and qualities employers look for when recruiting Specialised worker in the ICT Sector
Skills and qualities Most Second Third Fourth Fifth Total Difficulty in
preferred most most most most finding
preferred preferred preferred preferred
(%) (%) (%) (%) (%) (%) (%)
Educational qualification 43 22 7 3 8 84 7
Past experience 19 35 7 5 11 77 12
Work attitude 8 6 11 15 24 64 6
ICT 8 9 17 9 6 51 7
Communication 7 3 19 15 12 56 6
Decision making 3 - 6 12 11 32 1
Management skills 2 - 3 2 1 8 1
Analytical skills 1 3 7 15 4 31 2
Foreign language 1 5 3 3 1 14 2
Technical skills - 7 12 12 14 44 7
Affiliation - 2 1 3 - 6 1
Table 20: Skills and qualities employers look for when recruiting Professional Staff in the ICT Sector
Skills and qualities Most Second Third Fourth Fifth Total Difficulty in
preferred most most most most finding
preferred preferred preferred preferred
(%) (%) (%) (%) (%) (%) (%)
Educational qualification 51 18 4 8 5 86 10
Past experience 19 37 12 3 8 79 10
Management skills 14 3 11 6 20 54 14
Work attitude 3 4 9 5 9 32 2
Communication 3 4 14 13 7 41 8
Decision making 3 12 16 17 18 65 6
ICT 3 12 7 8 3 34 2
Affiliation 1 2 5 4 2 15 -
Technical skills 1 3 7 12 8 32 1
Analytical skills 1 4 11 17 13 45 -
Foreign language - - 3 5 4 13 3
Moreover, relational skills (communication, team work, team management) receives increasing
importance at the higher end of the ladder.
Skills requirements for all ICT professionals are constantly changing and there is a perpetual need
for them to update their professional skills. There is a progressive hybridisation of skills taking
place in ICT professions. Business and management skills are increasingly used alongside technical
ones and indeed, technical skills seem less important in comparison to business and management
skills as ICT Professionals progress in their career.
44
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Accenture Mauritius
Accenture, incorporated in 2001 started its operation in 2002 with a workforce of 10 people.
Today, it has reinforced its position with around 1200 employees in its 2 main lines of business
Technology Outsourcing and Business Process Outsourcing. It intends to grow to 2000
employees in 5 years time. Will the skills gap be filled and how?
Given that all its clients are based overseas, Accenture offers plenty of opportunities for
international exposure to its employees (including travel).
Every year, out of the 328 IT graduates coming from UOM and UTM, only 50% meet Accentures
requirements in terms of entry level requirements.
On top of young graduates, Accenture is also facing a very limited supply of experienced
labour in software development in the local market. Due to the growing business demand,
the company has had to recruit expatriates at higher costs to fill the gaps, but it is becoming
more and more challenging to sustain this practice in the long term.
45
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
ontrary to this perception, this study shed light on the fact that the ICT
ector as a whole might not be facing much difficulties in retaining skilled
4.7.3. Difficulties in retaining skilled employees
bour since the study found that 82 percent of respondents were able to retain
It is perceived that the ICT and especially the BPO sector is prone to high labour turnover or labour
heir skilled
mobilitypeople
within theas shown
sector. in has
This issue Figure 20.
been put Thisby problem
forward employers as may be they
a problem accentuated
face
with the young generation.
or the BPO sub-sector mainly as described below.
Contrary to this perception, this study shed light on the fact that the ICT Sector as a whole might
he companies faced
not be facing the following
much difficulties difficulties
in retaining skilled labour to retain
since employees:
the study found that 82 percent of
respondents were able to retain their skilled people as shown in Figure 20. This problem may be
Demand for higher pay by employees;
accentuated for the BPO sub-sector mainly as described below.
Poaching by other companies who can pay better wages;
The companies faced the following difficulties to retain employees:
Lack of career prospect;
Demand for higher pay by employees;
Many move by
Poaching abroad;
other companies who can pay better wages;
Lack of career prospect;
People do not join call centres for a career. They usually leave after 1 or 2
Many move abroad;
years. Many
People do join callcall
not join centres
centres normally
for a career.on short
They term
usually leavebasis,
after 1 they no longer
or 2 years. Many want
join call centres normally on short term basis, they no longer want to work at odd hours or
to work at odd
overtime. Therehours or overtime.
is also negative There
opinion about is also negative opinion about
call centre. call
centre.
Figure 20: Does your organisation face any difficulty in retaining skilled people?
Yes
18%
No
82%
Further to the numerous issues faced, employers were requested to propose measures that could
fill the skills gap. Measures cut across the education and training system and Government policies
amongst others.
46
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The industry covers a broad range of activities and hence calls for a broad range of skills. Each sub-
activity has unique characteristics and training needs. Some are more dynamic, more technology
driven while others are more labour intensive. Hence the need for training courses should be
designed with more focus on workplace skills. Many had proposed to have 50 percent theory
and 50 percent practical classes. 73 percent of respondents proposed teaching of more practical
workplace skills followed by delivery of relevant courses which would be possible only through
strong links with employers and education/training providers. Thus, apprenticeship schemes, job
placement opportunities could become compulsory in all programmes of study to be implemented
with the collaboration of employers with a view to bridge the gap between training and requirement
of employers. This suggestion has been provided by employers as a major improvement in the
system.
The need for better links with employers has also been reiterated by 60 percent of respondents.
It is vital to know the current and future needs of the industry in order to uplift the education and
training system accordingly. Training courses should therefore necessarily match the needs of the
market.
Figure 21: Percentage of respondents who ranked
their recommendations among top three
0 10 20 30 40 50 60 70 80
Percentage of respondents
4.8.2. Government
4.8.2. Government Policies
Policies
AAbig chunk
big chunk (80(80 percent)
percent) of respondents
of respondents expressed
expressed the the need
need for effective jobfor effective
placement job
(Refer
to Figure 22). This initiative will help fill the difference between the skills required by employers
placement
and the skills (Refer
possessedto Figure
by the 22).which
applicants Thisvery
initiative willmatch.
often do not helpWhile
fill employers
the difference
would
prefer to hire
between thepeople
skillswho are trainedby
required andemployers
ready to go toand
work,the
they skills
are usually willing to provide
possessed by the
the specialised, job-specific training necessary for those lacking such skills. Most discussions
applicants which workforce
concerning todays very oftenturndo
to not match. While
employability employers
skills. Synergy would
between prefer
relevant to hire
institutions
could also catalyse such an essential element in the value chain.
people
who are trained and ready to go to work, they are usually willing to
provide the specialised, job-specific training necessary for those lacking such
skills. Most discussions concerning today's workforce turn to employability
skills. Synergy between relevant institutions could also catalyse such an 47
essential element in the value chain.
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Figure 22: Policies which the Government may consider to fill skills gap
Figure 22: Policies which the Government may consider to fill skills gap
0 20 40 60 80
Percentage
Percentage of
of respondents
respondent
67
48
recruitment, selection and retention, HR planning, performance management,
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
training planning and TNA amongst others as depicted in Figure 23.
Figure
Figure 23: Areas
23: Areas in HRin where
HR where organisations
organisations wouldlike
would liketo
tohave
have training
training and
and/ /ororassistance
assistance
HR planning 53
Performance management 52
Training planning 51
Reward management 49
Training evaluation 47
Manpower forecasting 47
Succession planning 43
0 10 20 30 40 50 60
Percentage of respondents
Began her career in 2005 as Call Centre Agent at Euro CRM, before being promoted to Team
Leader during the same year and later to Supervisor on different contracts for French clients.
In 2008, she was recruited by Outremer Telecom as Trainer and a few months later was promoted
to Quality and Reporting Training Manager and was subsequently in charge of the Customer
Services team (Indian Ocean region).
Given the particular services offered by Apollo Blake in the BPO sector and the use of bilingual
communication (English and French), Cline chose to join Apollo Blake in 2010 as Trainer before
she was promoted to French Training Manager in December 2010, 5 months after she joined the
company.
68
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Across all industries, the complexity of jobs is increasing. Apart from the upgrading of the skill
level demanded in the labour market, technological and occupational changes induce shifts in the
type of skills required (Green et al. 2000). Many policy makers and experts argue that low-skilled
workers can also benefit from the changes in the demand for skills if they receive additional
training (Acemoglu & Pischke, 1999).
Lindbeck & Snower (2000) argued that, in addition, more flexible and multi-skilled workers are
required. This is also acknowledged by 62 percent of respondents who advised multi-skilling for
people to secure a decent job.
The primary concern of employers lies in finding employees with a good work ethic and appropriate
social behaviour, i.e., reliable, good attitude, pleasant appearance and good personality. It is
clear that the new recruit should also have a positive attitude to continuous learning and in this
respect, many employers also provide the necessary training to fill any skills gap. The new recruit
should show a keen interest in his personal development and training, be accountable and strive
for quality. In a nutshell, there is expectation of the right attitude from employers; 56 percent of
respondents favoured a right attitude from employees.
The pattern of development of Mauritius has led to a dramatic transformation of the economy.
Employers are also looking for specialised qualifications. Acquiring more than one degree or,
having overseas exposure was cited by less than 20 percent of ICT enterprises. Whereas excelling
in schooling was stated by some 43 percent. Yet, 62 percent of ICT companies sought multi-skilled
It is worth stating that employers were not merely looking for qualifications but
employees and almost an equal percentage advised students to choose courses that are in demand
by employers.
for skills as well. It is idealistic to have all the employability traits in an
individual but
It is worth thethat
stating latter should
employers were be prepared
not merely lookingto
for learn practical
qualifications but forskills
skills asthrough
well.
It is idealistic to have all the employability traits in an individual but the latter should be prepared
internship as pointed
to learn practical skills out byinternship
through half of the respondents.
as pointed out by half of the respondents.
Figure
Figure 24: 24: Percentage
Percentage ofofrespondents
respondents who
whoranked
rankedthe
thefollowing advices
following among
advices top three
among top three
0 20 40 60 80
Percentage of respondents
50
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The purpose of this study was also to go beyond usual clichs of labour shortage and to carry
out a critical evaluation of the status of ICT skills requirements from the ICT firms operating in
Mauritius.
ICT will continue to be the enabler of development and see increasing integration into all aspects of
the economy. The philosophy, therefore, behind the survey was to take the pulse of the ICT sector
in terms of labour shortage, skills requirement, skills development initiatives in response to skill
problems amongst others. One of the main objectives was also to come up with recommendations
further to which more sustainable solutions could be brought to resolve the labour shortage
dilemma.
For Mauritius to fully leverage and capitalise on the tools and opportunities provided by ICTs in
meeting the manpower planning, it is imperative that the strategic national ICT vision be built
upon vision tempered by realism; planning hinged on adequate and coherent co-ordination, and
adoption of localised solutions for localised challenges. The vision sets the stage and the agenda
has been redefined National Information &Communication Technology Strategic Plan (NICTSP) 2011
2014: Towards i-Mauritius. To realise the many projects specified in this plan, the necessary human
resources have to be available on time and every time. The Government Programme 2012-2015 has
made provision for the following initiatives namely a National Training Strategy, Skills Pledge, ICT
Academy, National Graduate Internship Scheme, National Youth Employment Programme amongst
others.
In the same vein, focus of this report has therefore been put on three strategic thrusts, within which
several policy measures are recommended, although these are not exhaustive at this stage:
51
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
54
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
- Improving the quality of Such quality standards will allow companies to have a brand
product and service in for ICT services offered by Mauritius.
the ICT Sector for global
competitiveness ICT companies should be encouraged to work to obtain
accreditation like the Capability Maturity Model Integration
- Create a brand name for
(CMMI) or other standards with international organisations.
Mauritius
This will give clients even greater assurance they are
engaging an organisation with the highest levels of project
governance, quality and efficiency.
6. Pedagogical The major challenges facing higher education are how to:
transformation to
make curriculum more - Significantly raise the basic skill competencies of those
relevant to industry students entering and graduating from the system.
requirements - Increase the number of people achieving post secondary
education/training qualifications.
- Improve the synergy - Align the new curriculum and outcomes with employer
between education/ expectations.
training providers and - Increase the variety of user-friendly delivery options.
employers - Create a seamless transparent pathway from experience to
education to the skill requirements of the new economy.
- Improve the quality of
graduates from the local
universities
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
- Mechanism to refund Innovative practices in the sector will help to reduce skills
informal training shortages, improve business performance, bring a diverse
range of people into the industry, improve learning for
- Systemic barriers
apprenticeships, higher and further education.
reduced
10. Transfer of knowledge Ministry of Labour and IR could put in place a mechanism
from foreign labour to to ensure constructive transfer of skills from foreign labour
local people for example work permits for selected technical skills could
contain a clause to make room for transfer of skills. Mauritius
is ranked 63rd and scored 4.8 on FDI and technology transfer
in the Global Competitiveness Report 2011/2012.
11. ICT Skills Audit To have this repository of information, certain tasks need to
be undertaken. There is a lack of quantitative ICT workforce
- Conduct study on profile on the current size and shape of our ICT workforce as well
of ICT Professionals as the consideration of supply and demand of ICT workers in
the near future. It is essential therefore to conduct a study
- Review nomenclature of
on number and profile of ICT professionals (ICT Skills Audit)
ICT occupations
of the ICT/BPO sector. This study will help paint a picture
- Harmonise common of the ICT employees in terms of qualifications, experience,
occupations their life cycle and skills.
12. Interactive platform for To develop a medium term training strategy for future skills
recruitment and skills requirement for the sector with the collaboration of all the
requirement information players of the sector. A mechanism should be developed
sharing
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
- Dynamic website for whereby employers could inform decision makers about
interaction their needs in terms of skills (e.g. an effective Labour Market
Information System).
- Employers to post their
skills needs
A dynamic website specific to the ICT sector could be created
where employers can constantly post their short term, medium
term and long term skills requirements. Improved information
on skills in demand and ICT occupations and careers are
needed by industry, employers, ICT professionals, students
and education and training providers. This information will
enhance training and career planning, course and curriculum
development, and assist government policy development.
This information would serve policy makers and education/
training providers to tune their deliverables to serve the
industry at their best at any point in time.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
The recommendations in this report suggest key areas to be addressed by government, industry,
and education and training providers.
In the end, and compounding the overall picture gleaned from the survey, the predominant
prognosis appears to be that the skills situation in the ICT/BPO Sector may get worse over the
short to medium term. It cannot be emphasised enough, there is an urgent need to re-brand and
market the ICT profession so that more bright students will enrol in ICT courses and more ICT
practitioners will consistently upgrade their skills to remain relevant and valuable in this field.
More synergy is required among the education/training providers to train our youth proactively
in skills required by employers in the future. The government should urgently consider additional
incentives to encourage the private sector to develop and further increase their current training
commitments.
The case study on Mauritius in the World Economic Forums Global IT Report, entitled The Making
of a Digital Nation: Toward i-Mauritius, enumerates the milestones met in the ICT sector reform of
Mauritius. It stipulates that continued and sustained efforts to bring down the costs of international
connectivity, to improve the quality of the workforce, and promote a business-friendly environment
will further ensure that Mauritius becomes a preferred platform and solutions provider in the
global ICT/BPO realm.
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
6. References
1) Development of a Multi-Factor Set of Country-Level ICT Human Resource Capacity Indicators
UN-APCICT. 2012. Available at: http://www.unapcict.org/ecohub/resources/development-
of-a-multi-factor-set-of-country-level.
2) The Global Information Technology Report 20102011, Transformations 2.0, 10th Anniversary
Edition
8) Challenge to ICT manpower planning under the economic restructuring: Empirical evidence
from MNCs in Singapore and Taiwan Connie Zheng, Mei-Chih Hu, Science Direct, Technological
Forecasting & Social Change 75 (2008) 834853
9) White Paper Post Crisis: e-skills are needed to Drive Europes Innovation Society, Marianne
Kolding Curtis Robinson, Mette Ahorlu, November 2009
10) ICT Human Capital Development Framework by the National Human Resource Taskforce,
Malaysia, 2010
11) Labour Market Highlights 2011/12, Singapore Workforce Development Agency, Ministry of
Manpower
13) Overview of the ICT Situation and Diffusion in Thailand, ICT Manpower Development,
Somchai Suksiriserekul
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Appendix I
Future Labour/skills requirements in the ICT Sector
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A Study on Labour Shortage in the ICT/BPO sector in Mauritius
Appendix II
Questionnaire ID:.......................................................
Interviewers name:....................................................
Telephone:...............................................................
Supervisor:...............................................................
Aim of survey: To reduce the mismatch between demand and supply of labour.
Definitions
Labour/Skill shortage: It refers to a shortfall in the number of individuals in the labour force required to
meet the demands for employment. It sometimes denotes the possible mismatch between workers and
jobs in the economy.
Skills: Skills can be described in different types and they can be split into a number of different categories.
Basic skills, such as literacy and numeracy, and generic skills, such as team working and communication,
are applicable in most jobs. Specific skills tend to be less transferable between occupations. Most
occupations use a mix of different types of skills and within each skill there are different levels of
ability. For skills to benefit the economy, they must be economically valuable. That is, they must benefit
individuals through higher wages and businesses through improved productivity.
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8.2 Questionnaire
Section I: Labour shortage in your sector of operation
1. (a) Is your sector of activity experiencing labour shortage. Yes 1 No 2 (If No to Q1(a), go to Q4)
(b) How do you foresee this labour shortage over the next five years in your sector of operation?
3. What are the reasons for the labour shortage in your sector of operation? For each reason, please
circle one option from: 1: Extremely important, 2: Important, 3: Not Important at all, 4: Not
required/Not applicable
Reasons 1 2 3 4
Education system does not meet market demands 1 2 3 4
Training system does not meet market demands 1 2 3 4
People do not have the right attitude toward work 1 2 3 4
People are not sufficiently proficient in language 1 2 3 4
People are not sufficiently proficient in numeracy 1 2 3 4
People are not sufficiently proficient in ICT 1 2 3 4
People are not sufficiently proficient in technical skills 1 2 3 4
Low wages compared to other sectors 1 2 3 4
Unfavourable conditions of employment
compared to other sectors 1 2 3 4
Employees not willing to work on shift 1 2 3 4
Employees not willing to adopt flexi time 1 2 3 4
Employees not willing to work overtime 1 2 3 4
Not sufficient job security compared to other sectors 1 2 3 4
have a negative opinion about this sector 1 2 3 4
Others (please specify) 1 2 3 4
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4. Please fill in the table below about the people you employ in your organisation currently.
For Minimum education level, select one option from: 0: Education not important 1:
Incomplete primary 2: CPE Passed 3: Incomplete secondary 4: SC passed 5: HSC passed 6:
Vocational qualification (e.g. NTC2 passed, NTC3 passed) 7: Professional qualification (e.g.
ACCA) 8: University Diploma 9: Bachelor degree 10: Post-graduate (e.g. MSc, PhD)
Definitely require 1
Worker1 Yes 1 No 2 0 1 2 3 4 5 6 7 8 9 10 Depends 2
Not at all 3
Definitely require 1
Specialised Yes 1 No 2 0 1 2 3 4 5 6 7 8 9 10 Depends 2
Worker
2
Not at all 3
Definitely require 1
Professional Yes 1 No 2 0 1 2 3 4 5 6 7 8 9 10 Depends 2
Staff
3
Not at all 3
5. How would you describe the existing pool of skills in your organisation per category of
employee? (Please circle one option for each type of worker)
Worker1 1 2 3 4 5
Specialised worker2 1 2 3 4 5
Professional staff3 1 2 3 4 5
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6. Besides the technical and generic skills, how much importance would you attach to the
following soft skills (e.g. communications skills, team spirit etc)? Please circle one option
from 1: Extremely important, 2: Important, 3: Not Important at all, 4: Not required/Not
applicable
Communication 1 2 3 4 1 2 3 4 1 2 3 4
Ability to work in 1 2 3 4 1 2 3 4 1 2 3 4
team
Ability to innovate 1 2 3 4 1 2 3 4 1 2 3 4
and create
Ability to understand 1 2 3 4 1 2 3 4 1 2 3 4
needs of customers
1 2 3 4 1 2 3 4 1 2 3 4
1 2 3 4 1 2 3 4 1 2 3 4
1 2 3 4 1 2 3 4 1 2 3 4
1 2 3 4 1 2 3 4 1 2 3 4
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B. Future labour / skills requirements in your organisation
7. (a). Do you have a labour shortage in your organisation currently? Yes 1 No 2
(b). Do you think there will be a net increase in the number of employees by 2012 in your organisation? Yes 1 No 2
(c). If you are looking for labour, please list the top five job titles where there is a shortage
in your organisation in order of most acute deficiency?
For each job title, please mention the specific skills (S) and highest qualification (Q) you are looking for and the number of employees
(N) required.
N: Number to be recruited
S: Skills required: A: Highly skilled Labour , B: Skilled Labour, C: Semi-skilled Labour, D: Unskilled Labour
Q: Highest qualification required: 0: Education not important 1: Incomplete primary 2: CPE Passed 3: Incomplete secondary 4: SC passed 5: HSC passed 6:
Vocational qualification (e.g. NTC2 passed, NTC3 passed) 7: professional qualification (e.g. ACCA) 8: University Diploma 9: Bachelor degree 10: Post-graduate
(e.g. MSc, PhD)
By December 2011 By December 2012 By December 2013 By December 2014 By December 2015
Job title N S Q Job title N S Q Job title N S Q Job title N S Q Job title N S Q
1. 1. 1. 1. 1.
2. 2. 2. 2. 2.
3. 3. 3. 3. 3.
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
4. 4. 4. 4. 4.
5. 5. 5. 5. 5.
A Study on Labour Shortage in the ICT/BPO sector in Mauritius
8. (a).Has your organisation implemented any initiatives to help address the skill shortage among
existing employees?
Yes 1 No 2 IF No go to Q8(c)
(b). If Yes to Q8 (a), what are these initiatives? (You may tick more than one option)
(c). If you answered No to question Q8(a), are there any plans for such initiatives in the future?
Yes 1 No 2
9. Do you have a strategic skills development plan for your organisation? Yes 1 No 2
10. Do you use the Levy Grant Scheme provided by the HRDC? Yes 1 No 2
11. Do you carry out any TNA before training your employees? Yes 1 No 2
12. What percentage of your organisations annual budget is allocated
to skills development and training programmes? _________ (%)
13. Specify your preference (top five) for acquiring the required skills for your organisation?
(Please rank 1, 2, 3, 4, 5; 1: most important)
14. What is your most preferred method of recruitment? Please tick one option only
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15. Does your organisation face any difficulty in retaining skilled people? Yes 1 No 2
16. If Yes to Q15, what are the major difficulties your organisation faces to retain skilled people?
1.
2.
3.
17. In each column please rank the five most important skills and qualities you look for when
hiring new employees in your organisation? (please rank 1, 2, 3, 4, 5; 1: most important).
*Is it difficult to find? Please tick where you think it is difficult only.
18. State the qualifications where you find difficulty to recruit?(eg. BSc Forensic Science, MSc
Finance, ACCA level 1)
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Section III: How to reduce the skills gap and increase employment?
19. (a). Mauritius is experiencing labour shortage. Do you agree? Yes 1 No 2 (If No Q 19 (a), go to Q 21)
(b). How severe do you think the labour shortage is?
Extremely severe 1 Tolerable 2 Not severe at all 3
(c). Why do you think Mauritius is experiencing a labour shortage? Please state three (3) reasons starting
with the most important one.
1.
2.
3.
(d). How do you foresee this labour shortage over the next five years in Mauritius?
Worsening 1 Improving 2 Remaining the same 3
20. State five reasons (starting with the most important one) to explain why it is difficult to recruit
skilled labour in Mauritius.
1.
2.
3.
4.
5.
21. State five measures that should be taken (and by whom) to reduce mismatch between demand and
supply of skilled labour? (starting with the most important)
1.
2.
3.
4.
5.
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22. What advice would you give to young Mauritians to help them find a good job? (Please rank
only three; rank 1 = most important)
Get good marks in your studies. Complete more than one degree.
Try to study overseas (if possible). Choose courses that are demanded by
employers; not just the easy or
popular courses.
Learn practical skills by volunteering/ Develop the right attitude be professional,
internship in organisations. prepared to work hard, willing to learn.
Try to be multi-skilled as far as possible. Other (please specify):
23. What changes would you recommend to the education and training system to address the skills gap?
(Please rank only three; rank 1 = most important)
Teach more practical workplace skills Require higher standards for students to pass.
and less theory.
Offer courses that are relevant to employer Education institutions should build better
demands; not just courses that links with employers so they know
are easy to teach. what skills to teach.
Improve the quality of education Other (please specify):
(course content, study materials,
teacher quality).
Pay higher salaries to teachers and lecturers/
professors to boost their motivation.
24. What laws or policies can the Government amend / develop to address the skills gap?
(Please rank only three; rank 1 = most important)
Provide more job placement opportunities. Improve education and training standards.
Raise enrolment in universities and Facilitate better communication/
vocational training. synergy between Government, universities,
vocational training institutions and employers.
Raise enrolment in vocational training. Other (please specify):
Increase spending on universities
and institutes (more teachers,
higher salaries, better facilities).
25. Which of the following areas in HR your organisation would like to have training and / or assistance?
(Please rank ; rank 1 = most important)
Assessment of HRD climate in the organisation Training planning
Recruitment, selection and retention Training evaluation
Career and talent management Succession planning
Reward management HR planning
Performance management Others, please specify:
Training needs analysis
Manpower forecasting
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1 to 5 1 101 to 200 5
6 to 10 2 201 to 300 6
11 to 50 3 301 to 500 7
51 to 100 4 Above 500 8
32. How many part-time staff does your organisation currently employ?
33. Please specify the number of foreign/expatriate staff your organisation currently employs
per level.
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Appendix III
Number of registered professional jobseekers with ICT qualifications,
as at 6 June 2012
EIC Male Female Total
Curepipe 1 2 3
Flacq 17 4 21
Mahebourg 1 5 6
Mapou 4 6 10
Port Louis 8 5 13
Quartier Militaire 5 4 9
Quatre Bornes 4 4 8
Riv. Des Anguilles 1 5 6
Riv. Du Rempart 9 10 19
Rose Belle 9 1 10
Rose Hill 1 2 3
Triolet 6 9 13
Vacoas 1 2 3
Workfare - ESMO 6 5 11
Total 73 64 135
Source: LMI UNIT
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Appendix IV
Number of expatriates working in the ICT Sector, as at 6 June 2012
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Appendix V
ICT Statistics
Number of cellular subscribers (000) in 2010: 1190.9
Internet subscribers (000): 284.2
Table 7: Persons aged 5 years and above who can use computer by age-group and sex 2010
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Table 8: Persons aged 12 years and above using computer and Internet by age-group, 2008 and 2010
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1. Primary education
(i) Primary school having Internet access for students (%) 4.8 5.9 6.0 19.9 55.7
(ii) Students per computer in primary schools (Number) 163 63 38 25 27
2. Secondary education
(i) Seccondary schools having Internet access fro students for study purposes (%) 89.2 93.8 93.6 95.7 94.7
(ii) Students per computer in secondary schools (Number)1 26 26 25 22 22
(iii) Students examined in ICT at School Certificate level
Number 4,177 4,571 4,624 4,636 5,241
Percentage 25 26 26 27 26
iii) Students examined in ICT at Higher School Certificate level
Number 822 920 933 952 977
Percentage 10.2 10.8 10.5 10.0 10.0
3. Tertiary education2
Student enrolled in ICT or an ICT-dominated field at tertiary level
Number 3,971 3,700 3,448 3,475 3,694
Percentage 12.0 10.6 8.9 8.5 8.3
1
Figures for secondary level include both Academic and Pre-Vocational
2
Includes also distance education and institutions abroad, and relates to school years 2006/2007 to 2010/2011
Source: Annual Survey in Primary and Secondary Schools in March, Mauritius Examination Syndicate (MES) and Tertiary Education
Commission (TEC)
List of providers (around 130) offering ICT courses at technical and vocational level is available
on the MQA website at www.mqa.mu
List of providers (around 25) offering ICT courses at tertiary level is available on TEC website
at www.tec.mu
Information on levy grant scheme is found on the HRDC website at www.hrdc.mu
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Appendix VII
All BSc Programmes @ CSE Dept 590 615 760 924 936
Total MSc 90 50 41 75 64
Source: UoM, 2012
Appendix VIII
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Appendix IX - SC and HSC Results
GRADE DISTRIBUTION - COMPUTER STUDIES
SCHOOL CERTIFICATE 2007
Grade Achieved
1 2 3 4 5 6 7 8 Very Good Credit Pass Ungraded Total Pass No Examined
B 222 166 313 129 176 409 484 358 388 1027 842 330 2257 2587
8.6% 6.4% 12.1% 5.0% 6.8% 15.8% 18.7% 13.8% 15.0% 39.7% 32.5% 12.8% 87.2%
7010 Computer
G 186 114 237 106 158 355 365 270 300 856 635 197 1791 1988
Studies
9.4% 5.7% 11.9% 5.3% 7.9% 17.9% 18.4% 13.6% 15.1% 43.1% 31.9% 9.9% 90.1%
T 408 280 550 235 334 764 849 628 688 1883 1477 527 4048 4575
8.9% 6.1% 12.0% 5.1% 7.3% 16.7% 18.6% 13.7% 15.0% 41.2% 32.3% 11.5% 88.5%
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A B C D E Performance No.
Principal Subsidiary Examined
Pass Pass Ungraded
B 31 73 105 141 120 470 32 69 571
9691 Computing 5.4 12.8 18.4 24.7 21.0 82.3 5.6 12.1
G 34 45 75 93 68 315 8 39 362
9.4 12.4 20.7 25.7 18.8 87.0 2.2 10.6
T 65 118 180 234 188 785 40 108 933
7.0 12.6 19.3 25.1 20.2 84.1 4.3 11.6
HSC 2009
A B C D E Performance No.
Principal Subsidiary Examined
Pass Pass Ungraded
B 29 77 108 135 106 68 455 14 537
9691 Computing 5.40 14.34 20.11 25.14 19.74 12.66 84.73 2.61
G 29 58 84 114 77 38 362 11 411
7.06 14.11 20.44 27.74 18.73 9.25 88.08 2.68
T 58 135 192 249 183 106 817 25 948
6.12 14.24 20.25 26.27 19.30 11.18 86.18 2.64
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