What You Need to Know About Australia's Tech Talent Shortage

 

WHY SKILLED MIGRATION IS THE SOLUTION TO AUSTRALIA’S TECH TALENT SHORTAGE

Businesses in all industries are becoming more dependent on digital services to reach business goals: target new markets, innovate products and services and enhance customer experiences.

The increased use of technology across all business sectors propels most Australian workers to be equipped with digital capabilities even if they are not directly working in ICT occupations.

 

Australian’s ICT Workforce: Current State to Future Demand

In the 2018 ACS Australia’s Digital Pulse report, the demand for ICT workers is predicted to rise approximately between 100,000 to 758,700 workers by 2023.

Employment in the ICT management and operations occupations is forecasted to increase by 31,300 workers (75% growth). Meanwhile, 26,200 workers are likely to further increase employment in the ICT technical and professional occupations (27% growth). 

IT-shortage-2018

 (Click image to view whole infographic) 

 

Reasons for Tech Talent Shortage 

However, we are not producing enough new IT professionals to keep up with the current and future demand. Some of the reasons are: 
  • Many professionals go overseas to work, with salaries for AI experts in China and US exceeding $300,000.  As of 2018, the total ICT skills exports is now worth $3.2 billion, an increase from $2.8 billion in 2017.  Australians are in high demand with US software companies due to cultural fit, strong technical skills, and extremely straightforward visa arrangements under the E3 work visa
  • Decline in interest from our young people for technical roles. In 2016, IT graduates were less than 4000, creating a shortage of 20,000 tech talent annually to meet future demand for ICT workers. 
  • The decline in students’ performance in science and mathematics in the last ten years
  • Relatively low investment in ICT research and development 
 
Given the reasons above, it’s no wonder employers are considering recruiting overseas workers. 

 

Why Skilled Migration

Australian companies can recruit the needed IT capabilities from overseas through the skilled migration program.  The skilled stream is responsible for 67% of total migration to Australia in 2016-17 as per the Department of Home Affairs. 
 
Here are some of the benefits of sourcing skilled international IT staff: 
 
1. International experience
 
Casting your recruitment net wide on an international pool can give you access to best talent out there. There are no restrictions and you can surely hire someone based on skills.  In addition, some of the international applicants have unique interpersonal skills like adaptability, resilience, self-motivation and problem solving which can be an asset to any company. 
 
2.  Relevant Expertise 
 
This is particularly applicable to tech pioneers and startups in a country where a product or service does not exist. It will be unattainable to reach 100 per cent engagement of local staff with your business strategies, values and vision for the future. However, an international candidate may have worked in a similar industry or expertise, making it possible not only to implement your plan but also bring new ideas and knowledge to move your concept forward. 
 
3. Better Recruitment Opportunities  
 
If you have just begun your business in a relatively unknown or small job market, you may struggle in hiring the right candidate within your geographical area. Although there are many ways to look for local candidates (social media, word of mouth, local recruitment agency, etc.), there’s always the risk that the specific skills you are looking for aren’t available or are very limited in the location you are operating. In this case, opening your horizons to the global job market gives you more opportunities to find the ideal candidate from a diverse set of professional and educational background. 
 
 
 

The Economic Benefits of Skilled Migration 

Aside from filling immediate skills shortages and generating jobs, there are other benefits of skilled migration: 
 
1. Cross-border knowledge transfers, resulting in the importation of cutting-edge technologies and skills brought to Australia by overseas workers
 
2. Building relationships with other countries, leading to new economic activity like cross-border trade investment
 
3. Create new domestic initiatives as Australian industries grow, invest and innovate using a combination of local and international candidates 
 
4. Boost the country’s performance and IT capability on an international level 
 
 

TSS Visa 

To source candidates from overseas, employers can use Temporary Skill Shortage (TSS) Visa. 
TSS allows employers to sponsor a suitably skilled worker to fill a position not available in Australia. 
 
Visa is divided into two streams with assigned occupations for each stream: 
 
 
Short-Term Stream
The applicant can stay up to 2 years initially, and renewable for a further 2 years onshore. IT roles are based on 2018 Short-Term Skilled Occupation List (STSOL):  
 
Database Administrator, Network Analyst, Network Administrator, Systems Administrator, Web Developer, Web Administrator, Database Administrator, ICT Manager, ICT Project Manager, ICT Quality Assurance Engineer, ICT Support & Test Engineers, ICT Systems Test Engineer, ICT Trainer 
 
 
Medium-Term Stream
The applicant can stay up to 4 years, with a pathway to permanent residency. IT positions are based on 2018 Medium and Long-term Strategic Skills List (MLTSSL): 
 
Multimedia Specialist, Software & Applications Programmers, Software Engineer, Software Tester
Systems Analyst, Analyst Programmer, Chief Information Officer, Computer Network & Systems Engineer, ICT Security Specialist, Developer Programmer, ICT Business Analyst
 
 
 

Global Talent Scheme 

Under the TSS (Temporary Skill Shortage) visa program, the Global Talent Scheme is another pathway to source highly-skilled tech workers. 
 
The program aims to fill highly-skilled and specialized STEM (science, technology, engineering, mathematics) positions that can’t be filled by Australian employers and through other visa programs. 
 
More information about Global Talent Scheme available in this factsheet
 
The 2018 study by Robert Half noted the favourable feedback from IT employers on GTS role in addressing IT skill shortage: 56% of Australian chief information officers (CIO) believe that GTS will reduce IT skills shortage in the country while 93% agree that it will have a positive impact on Australia’s employment market. 
 

Conclusion 

 
Identifying and addressing the talent shortage in the Australian tech sector is just the start. It is an industry that goes through continuous changes – some jobs becoming obsolete due to automation while new roles to be discovered in the years to come. 
 
The potential benefits of addressing the IT skill gap are tremendous. Through skilled migration, we want to empower Australian employers with unrestricted opportunities in finding and attracting the best IT talent. 

 

 

 

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Blogs
Date published
Date modified
03/04/2019