Needs Assessment of the Egyptian ICT Sector Needs Assessment of the Egyptian ICT Sector This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of Confederation of Danish Industry, Federation of Egyptian Industries ECO and Voluntas Advisory, and do not necessarily reflect the views of the European Union Published by the Executive Summary One in three employers thinks the lack of qualified employees hinders growth This report is concerned with the skill gaps in the Egyptian ICT sector. Based on surveys among businesses and young ICT graduates, it highlights a lack of talented employees is the key factor hindering g than by the graduates. The graduates prefer to look for jobs through recruitment agencies, university career opportunities and job fairs. The costs and resources of being present at job fairs exceed what most MSMEs can afford. Salary and career progressions are key if companies wish to attract the b Universities can: Expand apprenticeship programs in dialogue with the private sector and with MSME engagement. Make students graduate projects based on cases from SME businesses. Establish focus groups, dialogue fora or networks with ICT companies to give input on curriculum development. Give in Egypts ICT sector in short Top 10 Egypts ICT Facts 1 2 3 4 5 6 7 8 9 ) ICT sector growth From 2011/12 to 2016/17, the ICT sector has grown from EUR 2 billion to 3 billion at fixed prices (7.7% of CAGR) and has grown from contributing 2.5% of GDP in 2011/12 to 2.9% in 2015/16 Internet penetratio Contents Introduction .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Results of hearings and validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Methodology .. . . . . . . . . . . . . . . . Introduction ICT has an immense impact on our future Information Communications Technology (ICT) is one of the key drivers for global growth and for shaping the future of societies. One issue is the development of new ICT products and services, and another is the intense digitization of products, s The Consortium Partners This study is conducted by a consortium of partners: the Confederation of Danish Industry (DI), the Federation of Egyptian Industry/ Environmental Compliance Office (FEI/ECO) and Voluntas Advisory (VA) under a grant from the European Commission under the Inclusive Economic Gr and opportunities to improve the enabling environment for MSME development through an enhanced labour supply. The results are achievable through the recommendations that, when implemented, will help strengthen the ICT sector and contribute to the governments policy formulation process. The recommend The Projects Theory of Change Components Main activities Nationwide survey among 1,000 youth (18 25), thereof 50% female Quantitative skills gap analysis of ICT sector 10 12 key informant interviews with local policymakers Qualitative mapping of obstacles of growth 10 12 key informant interv Results of hearings and validation The consortium partners met with key players and stakeholders (see list over interviewees) within the ICT sector in Egypt during the inception phase of the project and during the project lifetime. The consortium partners met with stakeholders from the government, e Address the access to finance barriers and the need for building the capacity of the banking sector to understand the unique na ture of the ICT sector Create initiatives to support the dialogue between academia and industry to design the curriculum based on market needs The importance of providing Methodology In this chapter, we present the methodology used to collect data from businesses in the ICT sector and recent graduates. Overall methodological approach This study is a combined quantitative and qualitative skills gap analy sis in the ICT sector. On the supply side, students and recent Another limitation could be the relatively low per centage of qualified responses received from the graduates. 10,000 online survey invitations were sent out to this cohort, 1309 participated, and 486 surveys were completed and qualified. In the field survey, 1407 surveys were received, of which 714 Key findings This chapter presents the core findings in the survey, mapping barriers between employees and employers in the ICT sector. The collected data are presented through graphs to make it more accessible. Factors hindering company growth Figure 3 shows the primary barriers business owners fa Employers focus mainly on technical skills when hiring; ICT graduates have a broader perspective The majority of employers consider technical skills extremely important ICT graduates consider a combination of skills important Q: How important do you consider the following skills for entering the jo Less than half of the employers think the skills of the graduates are adequate The figure shows that less than half of the employers think the skills the graduates fulfil are adequate. On the other hand, roughly 2 out of 3 graduates in all skill categories estimate that their skills are adequate. H Figure 7 shows how many business owners offer training in the various skill categories. About half of employers train most skills, technical skills receive priority Q: Does your company offer trainings of the following skills? % of respondents 23 % 38 % 32 % 5% 11 % 32 % Technical skills Analy Employers and graduates are not aligned on the preferred hiring channels Q: Select the best 3 recruitment channels to find a job in your opinion. Q: In your opinion, what are the most effective recruitment channels (may select multiples)? 75 % 74 % 64 % 57 % 53 % 47 % 46 % 46 % 37 % 27 % 24 % The collected data show that businesses and graduates agree on the importance of online platforms as a recruitment channel. Graduates, to some extent, prefer job seeking activities with more support like recruitment agencies, university career opportunities and job fairs. These channels are more or The last section of the survey explores potential gender barriers in the ICT sector. Business owners were specifically asked about the job potential for young people and women. Figure 12 shows the results. Employers believe that the potential of ICT for creating jobs is higher for women than for yo Recommendations In this section we highlight recommendations for actions to be taken. The recommendations are a balance of government policy and initiatives taken by businesses, universities, their professors and teachers, graduates and others. The chapter ends with three key suggestions for the gov Little focus on digitization in Egypt Finally, there are few government or public initiatives that drives a broader digitization in Egypt e.g. within public administration. Increased government focus on developing public online services, removing bureaucracy and development of smart cities will adv communication, listening, cooperation, and empathy which make the graduates able to collaborate with colleagues, customers, suppliers and others. ICT businesses prioritise soft skills in jobs such as marketing, sales, communication, product development, user design, CSR, etc. The survey reveals that ship and guide the students on how to build their businesses. For many universities and their professors, this is unknown territory. Three major initiatives are suggested Based on this study, it is suggested that the government and the private sector debate the following three initiatives. A closer Additional reading EU Facility for Inclusive Economic Growth Program https:// ec.europa.eu/neighbourhood-enlargement/sites/near/files/c_2016_6633_egypt_aap_2016_part_2_aap_2017_part_1_annex_1.pdf Practic Consulting (2019) ICT Needs Assessment Survey Closure Report. Confederation of Danish Industry List of Interviewees The list of interviewees and meeting participants: Mr. Walid Gad Chairman, Chamber of Information Technology and Telecommunication Dr. Hamdy Ellaithy Vice Chairman, Chamber of Information Technology and Telecommunication Mr. Hany Hamza General Manager, Chairman, Chamber of Infor Mr. Abd Elmalek El Barrawy Chief Innovation Officer, Spirula Development & Operation House Mr. Tamer Issa CEO, Smart Dynamics Solutions Mr. Abdel-Malek Mohamed Managing Director, SAVVY ARABIA Eng. Hoda Shakra Ministry of Communications Information Technology / Technical Officer, Medical and E-waste 28 Needs Assessment of the Egyptian ICT Sector Lack of talented employees is the most important factor hindering growth in the Egyptian ICT sector, particularly for MSMEs. According to the companies themselves, quali-fied workers lack talent both within technical and soft skills. Businesses and univers