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Chapter 5

The ICT Sector

Introduction

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Worldwide the ICT sector-growth of 6 percent in 2006 (OECD, 2006)

Typically, countries that are performing well have put ICT on the national agenda and have strivento make it an area of excellence.

ICTs are increasingly recognised as a source of innovation and economic growth, and national ICTstrategies have pushed towards further integration of IT and economic development policies to meetemerging challenges. To maximise policy effectiveness, countries are increasingly co-ordinating policyboth vertically, through the layers of government, and horizontally, across ministries and agencies,to achieve more coherent and effective cross-ministry and agency planning and improve delivery ofmore targeted policies and programmes.

Rapid technological developments in ICTs intertwined with ongoing liberalisation of trade andinvestment in services, have indeed shrunk the world to connect people.

More so, studies have shown that investing in ICT has paid significant dividends. In this respect, ICTskills are becoming more and more a prerequisite at the workplace. OECD figures depict that up to 5percent of total employment is in ICT specialist occupations and around 20 percent in ICT-usingoccupations. ICT specialist job definitions appear to be evolving, requiring some combination of ICTspecialist skills with other skills, e.g. business or marketing. ICT skills are supplied in different waysfor different populations. Basic skills needs are increasingly filled “naturally” through diffusion ofICTs and the use of ICTs in schools and at the workplace. Efforts are being made to improve accessof older workers to ICT skills through training programmes. Because ICT specialist skills needs arelikely to change rapidly as technology changes, the formal education system may offer less flexibilityfor adapting curricula than private sector schemes, usually set up as multi-stakeholder partnerships.

Global overview and trends

BRICS–the emerging economies

BRICS, the emerging group of countries namely Brazil, Russia, India, China and South Africa areamong the world’s fast-growing ICT markets and developments in these five countries have spill overeffects in the OECD area. Between 2000 and 2005, ICT spending in the BRICS economies increasedby more than 19 percent a year from USD 114 billion to USD 277 billion, while worldwide ICTspending increased by just 5.6 percent a year and OECD country spending by 4.2 percent a year.

Dynamic growth in these economies is reflected in their growing shares of world trade, directinvestment and Mergers & Acquisitions (M&As). (OECD (2007) Information Technology Outlook Highlights 2006 )

IT spending, ICT market data and forecasts confirm expectations of moderately strong and widespreadgrowth worldwide in 2006. With the emergence of new growth economies, world ICT spending wentup 5.6 percent a year over 2000-05 in current USD.

Figure 5.1: Top 250 ICT firm’s performance trends, 2000-2005 Current USD1, index 2000=100

Source: OECD (2007) Information Technology Outlook Highlights 2006

As depicted in Figure 5.1, the ICT industry has experienced growth over the years. The high rankedcompanies are established in US, EU, Japan, Taiwan, Korea, Hong Kong, India, Singapore and China.

Data from the OECD reveals that China became the top exporter of ICT goods such as laptops, mobilephones and digital cameras in 2004, exporting USD 180 billion worth of ICT goods and overtaking the US,which exported USD 149 billion worth.(OECD (2007) Information Technology Outlook Highlights 2006 )

The growth and development of communication markets is also reflected in trade of communicationequipment. Telecommunication trade continues to grow in the OECD area and accounted for 2.2 percentof all trade in 2007. The growth is most notable between the member and non-member countries, andincreasing imports from countries such as China are having a substantial impact on trade balances. Exportsto non-member countries are up 66 percent since 1996 while imports from these countries were up 112percent in 2007.

1.US Dollar index: A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies.

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Drivers of the ICT industry

Digital content is now an important driver of the ICT industry. Technological innovation and newconsumer demand are leading to new or more direct forms of creative supply, new distributionmethods and potentially improved access. Research results, for example, are becoming more directlyaccessible, and digital content is pervading many sectors, with applications that may prove moresignificant than those for entertainment. Content industries are migrating to commercial digitalcontent applications, with varying degrees of success. The games, music, scientific publishing andmobile content industries have very specific and different characteristics, but digital content is themajor driver of growth for all. It has also become increasingly vital to note the significant increase inthe investment on Research and Development (R&D). If we want to provide world-class qualitygoods then we should promote innovation and creativity with renewed energy.

The OECD Secretariat defines ICT activities as those that process, deliver and display informationelectronically. The report excludes broadcasting, media and content and divides the ICT sector intothe following components:

� communication equipment and systems; � electronics and components; � IT equipment and systems; � IT services; � software; and � telecommunication services.

Figures 5.2 and 5.3 illustrate that trade of ICT goods has accrued over the years. ICT goods are definedby the OECD in terms of the United Nations Harmonised System.

Figure 5.2: Direction of OECD ICT goods2 trade, 1996-2004 USD current prices, index 1996 = 100

Source: OECD (2007) Information Technology Outlook Highlights 2006

2.Definition of ICT goods: Those that are either intended to fulfil the function of information processing and communication by electronic means,including transmission and display, OR which use electronic processing to detect, measure and/or record physical phenomena, or to control a physicalprocess.

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Imports from Non-OECD

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220

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Figure 5.3: Top 30 economies’ shares of total reported exports of computer and information services and other business services, 1995-2004

1: 2003Source: OECD (2007) Information Technology Outlook Highlights 2006

Rapid technological advances in ICTs have increased the tradability of services and made it possible toprovide from remote locations many ICT-enabled services that do not require face-to-face contact.

Although OECD countries still account for most services activities and services trade, growth is very rapidin many non-OECD countries. In year 2004, India and China already accounted for around 6.5 percentof exports and almost 5 percent of imports of computer and information services and other businessservices. Some eastern European and Baltic countries are also increasing their share in ICT-enabledservices supply and they are often growing most rapidly.

The widespread development of ICT infrastructure and enabling business frameworks makes it clear thatthere is great scope for increasing the supply of services from and to emerging countries. This is a two-way process. Services firms from these countries, especially India, are adopting global business modelsand services operations, establishing a presence in OECD countries and increasingly competing with firmsfrom OECD countries. But as these countries’ domestic demand grows and they open their markets tointernational competition, services firms from OECD countries are also expanding activities in theirmarkets.

Figure 5.4: Worldwide employment demand in IT services, 2003-2008

Source: McKinsey & Company (2005)

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It is projected that worldwide employment in the IT services sector has been growing by around 2percent annually and is expected to reach 6.9 million by the end of 2008. These analyses also indicatethat 44 percent of the total sector employment can be outsourced anywhere in the world.

Figure 5.5: Worldwide demand for IT Services, 2005-2008

Source: Gartner (2004) cited in McKinsey & Company (2005)

The global market for demand for IT services has been growing at 4-5 percent annually from USD534.6 billion in 2005 to USD 624.1 billion in 2008 as shown in Figure 5.5.

Figure 5.6: Worldwide demand for packaged software, 2005-2008

Source: Gartner (2004) cited in McKinsey & Company (2005)

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The ITES/BPO3 Sector

Gartner forecasted that in 2009, the market across all the major functions of the ITES/BPO industry wouldgrow to reach $ 172 billion.

Figure 5.7: Worldwide BPO Market Size & Forecast, 2004 & 2009

Source: Gartner

Global trend in ITES/BPO will have major positive impact in developing countries. Countries having therequired skill, infrastructure and conducive environment will have maximum pie of this market.Traditionally countries like India, China and Philippines have exploited this growth opportunity.Worldwide forecast by Gartner-Dataquest shows the projection numbers in millions of dollars (Table5.1).

Table 5.1: Worldwide BPO market forecast by (Millions of Dollars), 2004-2009

Source: Improving Business Competitiveness and Increasing Economic Growth in Ghana: The Role of ICT-ITES- April, 2006

National Association of Software and Services Companies (NASSCOM)-McKinsey report suggests thatthe total addressable market for global off-shoring is approximately $300 billion, of which $110 billionwill be off-shored by 2010. The report avers that India has the potential to capture over 50 percent of thisopportunity and generate export revenues of approximately $60 billion by growing at 25 percent year-on-year till 2010. NASSCOM feels that India has inherent advantages like abundant talent supply, strongcost and leadership-oriented companies, regulatory support, scaleable high-quality infrastructure, and agrowing domestic market have been instrumental in driving the growth of this sector.Offshore services have evolved over a period of time starting with the lesser complex ITES activities suchas simple data entry, data processing, data conversion, medical transcription, voice and non-voice basedcontact centre to providing high end processes like customer analytics and CRM, legal transcriptionsupport, Knowledge Process Outsourcing (KPO) and Financial Process Outsourcing (FPO).

3.Gartner defines BPO (business process outsourcing) as “The delegation of one or more IT-intensive business processes to an external provider that, inturn, owns, administers and manages the selected processes, based on defined and measurable performance metrics”.

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A $132 billion market in 2006, growing to $172 billion by 2009 Gartner

ITES/BPOTotal

ITES/BPOgrowth %

2004 2005 2006 2007 2008 2009CAGR(%)2004-2009

114, 797 125, 895 137, 332 150, 675 164, 357 179, 348

9.8

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Comparison of Opportunity in BPO and KPO markets

Low-end outsourcing services will have an expected Cumulative Annual Growth Rate (CAGR) of 26percent by 2010. In contrast, the global market is poised for an expected CAGR of 46 percent by 2010.Figure 5.8 demonstrates the expected growth in the BPO and KPO markets by 2010.

Figure 5.8: Expected growth in Global BPO & KPO Markets (2003 & 2010)

Source: Evalueserve Analysis

60

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Size (US$ billion)Size (US$ billion)

FY 2010FY 2003

CAGR (KPO) = 45%

CAGR (BPO) = 26%

BPO

KPO

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According to a report of NASSCOM4 , KPO (in India and worldwide) is expected to reach USD17billion by 2010, of which USD 12 billion would be outsourced to India.

A report by Evalueserve predicts that India will capture more than 70 percent of the KPO sector by2010. Apart from India, countries such as Russia, China, the Czech Republic, Ireland, and Israel arealso expected to join the KPO industry.

The local scenario

Goal 8 of the Millennium Development aims to “Develop a global partnership for development”.Target 18 specifies that: “In cooperation with the private sector, make available the benefits of newtechnologies, especially information and communications”.

National Initiatives

The Government of Mauritius recognises that the ICT sector ispivotal for the future development of the country. OurGovernment has therefore placed a very strong focus on ICT bothbecause it is a major industry sector in its own right and becauseof how it underpins the productivity of so many other keyindustry sectors.

ICT is also the backbone of our knowledge-based intelligent society. The Government sees ICT as avital support to business processes and information flow within and across economic activities,leading to increase in value added at the national level. In this respect, it has become imperative todeepen and broaden our economic base in order to promote challenging opportunities for theupcoming generations.

4. The Indian Chamber of Commerce that serves as an interface to the Indian Software industry

The Government’s ICT Vision forMauritius is “to make ICT the fifthpillar of the Mauritian economyand transform Mauritius into a Regional ICT Hub”.

Policy Framework: NICTSP

The National Information and Communication Technology Strategic Plan (NICTSP) has been crafted bythe Ministry of Information and Communication Technology (MICT) to provide Mauritius with a roadmap to achieve the Government vision to make Mauritius a Cyber Island. NICTSP comprises an array of15 strategies to be implemented on a concurrent basis among which the following relate to buildingcapacity in the ICT sector:

� facilitate sustained superior quality of talent pool in the country through interventions at thefoundational levels of educational system using ICT as a tool and aimed at instilling a spirit oflifelong learning among students; and

� identify and build expertise in certain niche areas of ICT.

National level projects have been identified as the main vehicles to implement the strategies like:� review of ICT policy to lend strategic directions to activities in ICT and other sectors;� scheme for providing BPO training for perspective employees; and� creation of a Quality of Service framework.

The following are primary targets to be met over a period of five years (2007-2011):� a 7 percent contribution to GDP of the offshore ICT export services;� employment of at least 29 000 qualified individuals in the ICT sector;� employment in the ICT sector to at least 90 percent of those who graduate in ICT;� doubling the number of foreign investors into the ICT sector in Mauritius;� at least 16 000 Mauritian nationals employed in ICT sector; and� 13 000 people from outside Mauritius to be employed in ICT sector.

It is worth noting that in 2007 the International Telecommunications Union (ITU) awarded the Minister of Information and Communication Technology the “Top ICT Minister for Africa” and “TopICT Individual for Africa”

The E-Government Service

In its endeavour to transform Mauritius into a Cyber Island and create an ICT-literate nation, theGovernment has clearly identified e-Government as a key initiative which can radically transform theway the Government interacts with citizens and businesses and redefine the nature of relationships acrossvarious Ministries and departments in providing seamless, consistent and value-added public services.

The Government intends to provide an effective and efficient delivery of services, on a 24/7 basis, tocitizens as well as to the business community. In this respect, the Government has invested in thenecessary infrastructure, namely, the Government Online Centre (GOC) and the Government WebPortal as a gateway to provide Government services online.

Universal ICT Education Programme (UIEP)

With a view to provide ICT Education to every student, every employee and non-employee in four years,the Universal ICT Education Programme (UIEP) was launched in year 2004 with the objective ofimparting computer proficiency skills to all segments of the population (around 400 000 citizens). Traineesfrom various sectors, including the Education sector, the Public Service, Parastatal Bodies, the Small andMedium Enterprises, Local Authorities, and the Private sector and unemployed persons have alreadybeen identified. Courses started in September 2006 and 100 000 trainees are targeted yearly for a periodof four years.

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Ebene Cybercity Development project

The first initiative consisted in the development of the Ebene Cybercity, a strategically locatedbusiness park of a total area of 152 acres, with modern infrastructural facilities.

Legal framework

The enactment of the following laws laid the first milestones for the development of the ICT sector: � Copyright Act - 1997;� Telecommunication Act - 1988; and� The Information Technology Act - 1988.

This effort was further reinforced with the enactment of the following laws: -� The Electronic Transactions Act 2000; � The Information and Communication Technologies (ICT) Act 2001 (repealing the

Telecommunication Act 1988 and the Information Technology Act 1988);� ISP Act (2001) for the regulation of ISP operators; � The Computer Misuse and Cyber Crime Act 2003; and � The Data Protection Act 2004. (Presently amendents are being considered with a view to

providing adequate protection to personal data and enhancing the image of Mauritius as a safedestination for undertaking BPO/ITES activities.)

International Players

Given that Mauritius is an attractive location for ICT activities, it has attracted key internationalplayers such as Infosys Technologies Ltd, Satyam Computers, Accenture and Cendris to set updevelopment centres, conduct BPO activities and operate Disaster Recovery Centres. In addition,IBM, Microsoft and Hewlett-Packard have set up their regional offices on the island. A key advantagefor these companies is the international time zone in Mauritius, given its strategic position in theIndian Ocean. Thus, business transactions can be conducted in the morning with Asia and in theafternoon with Europe and the USA.

Developments in the ICT sector in Mauritius have proved to be promising and the country is readyto take on further challenges and opportunities arising in the digital world economy. Mauritius hasthe ambition to be transformed into an intelligent island and into a hi-tech hub between India, Africaand Europe, providing innovative business solutions to foreigners.

The ICT Sector in figures

More than 300 companies are operating in the ICT sector in Mauritius. The ICT sector comprisesactivities of Manufacturing, Telecommunications, Wholesale and Retail Trade, and other activitiessuch as Call Centres, Software Development, Website Development and Hosting, Multimedia, ITConsulting and Disaster Recovery. In 2007, around 66 percent of value added of the sector wasgenerated by activities of Telecommunications (65.6 percent in 2006), 13 percent by Wholesale and Retail Trade (10.1 in 2006) and 21 percent by the remaining activities (24.3 percent in 2006).

In 2007, value added generated by the ICT sector was Rs 11.7 billion, 18.2 percent higher than thefigure of Rs 9.9 billion in 2006, while the contribution to the Gross Domestic Product was 5.7 percentin 2007 compared to 5.5 percent in 2006. The real growth rate in 2007 was 14.6 percent comparedto 12.9 percent in 2006.

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Employment in the ICT Sector

According to the CSO, the number of large establishments operating in the ICT sector was 125 in year2007. The number of employees in these establishments expanded by 27.0 percent to 10 390. The number of large establishments operating in the ICT sector was 116 in 2006, compared to 52 in 2000giving rise to an increase in employment in these establishments by 87.6 percent from 4 360 in 2000 to 8 180 in 2006.

Figure 5.9: Evolution of employment in the ICT sector, 2001-2010

Source: NHRDP 2007(*Estimates have been calculated by HRDC based on a regression model with R-square 98.5 %.)

Trade in ICT Goods and Services

Available data indicates that the imports of ICT goods increased by about 300 percent to Rs 13.6 billionin 2006 from Rs 3.4 billion in 2002 while imports of ICT services declined by 23.1 percent to Rs 1.0billion from Rs 1.3 billion.

Table 5.2: Trade in ICT Goods and Services

Source: CSO (2008) Economic and Social Indicators Information and Communication Technologies (ICT) statistics-2007

6560 70407900 8375

90439673

1030310933

1156312193

0

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4000

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8000

10000

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Imports 3.4 billion 14.0 billion 5.9 billion 1.3 billion 1.0 billion 1.0 billionExports 0.6 billion 9.9 billion 1.1 billion 1.1 billion 1.5 billion 1.8 billion

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Figure 5.10: Trade in ICT Goods and Services

Source: Adapted from CSO (2008) Economic and Social Indicators Information and Communication Technologies (ICT) statistics-2007

Imports of ICT goods decreased by 57.9 percent to Rs 5.9 billion in 2007 from Rs 14.0 billion in 2006while imports of ICT services was Rs 1.0 billion, the same level as in 2006. Exports of ICT goodsincluding re-exports decreased by 88.9 percent to Rs 1.1 billion in 2007 from Rs 9.9 billion in 2006whereas exports of ICT services went up by 20.0 percent to Rs 1.8 billion from Rs 1.5 billion duringthe same period.

It is to be noted that the decline in both imports and exports of ICT goods in 2007 was due to lowerimports and exports of cellular phones compared to 2006. The share of imports of ICT goods andservices in total imports worked out to 4.3 percent in 2007 compared to 10.0 percent in 2006, and thatof exports of ICT goods and services in total exports to 2.1 percent in 2007 compared to 9.0 percentin 2006.

Positioning Mauritius on the world map

In 2007, the ITU published the results of a remarkable benchmarking exercise called “the ICTOpportunity Index”, based on a comparative analysis of 10 indicators with the objective of assessingto what extent the digital divide had worsened or improved between different country groups.

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3.4 14

1.3 1

0.6 9.9

1.1 1.5 1.8

1.1

0 5 10 15 20 25

Imports of ICTgoods

Imports of ICTservices

Exports of ICTgoods

Exports of ICTservices

bn

200220062007

1

5.9

10 Indicators: Main telephone lines per capita, Mobile cellularsubscribers per capita, Int/al Internet bandwidth (kbps per capita),Adult lite acyrates,Grossenrolmentrates(primary/seondary/tertiary)(source: UNESCO), Internet users per capita, Proportion ofhouseholds with a TV, Computers per capita, Total broadbandInternet subscribers per capita, Int/al Outgoing telephone traffic(minutes) per capita

Table 5.3: ICT Opportunity Index, 2001 & 2005

Source: ICT Markets in East Africa and the Indian Ocean Challenges and prospects

The A.T. Kearney Global Services Location Index5 analyses the top 50 services locations worldwide against41 measurements in three major categories: cost, people skills and availability, and business environment.

As indicated in Table 5.4, Mauritius was ranked 25th in year 2007 on the Global Services Location Indexabove countries like South Africa and Canada. India and China continued to lead the Index by a widemargin.

Table 5.4: Ranking for the Global Services Location Index, 2007

Source: A.T. Kearney Global Services Location Index

As a matter of fact, Mauritius has to continue investingmassively to improve the skills of its workforce,otherwise the local business environment is likely toface a loss of competitiveness in the fast-movingremote services business.

Mauritius is among the most competitive and success-ful economies in Africa and actively seeks foreign investment. In the World Bank’s 2007 Doing BusinessSurvey, Mauritius was ranked 32nd among 175 countries and second in Africa, after South Africa, for easeof doing business. The Government of Mauritius’ objective is for Mauritius to rank among the top 10most investment and business-friendly locations in the world.(Source: http://www.state.gov/e/eeb/ifd/2007/80726.htm)

Mauritius was ranked at the 27th position in “Doing Business 2008” among 178 economies. This indextakes into consideration Starting a business, Dealing with, Employing workers, Registering property, Getting credit, Protecting investors, Paying taxes and Trading across borders. In the “Doing Business2009” report Mauritius has been pitched on the 24th position out of 181 countries.

5.The Index assigns weightings reflecting the drivers of offshoring decisions based on A.T. Kearney research and engagement experience. Because cost ad-vantages have been the primary impetus behind offshoring, financial factors constitute 40% of the total Index weight. People skills and availability andbusiness environment each receive a 30% weighting.

ICT Opportunity index Average growth (%)

2001 2005 2001 to 200596,000 150,000 56,25

Rank Country Rank Country Rank Country

1 India 18 Poland 35 Canada2 China 19 Vietnam 36 Morocco3 Malaysia 20 UAE 37 Russia4 Thailand 21 USA (Tier II) 38 Israel5 Brazil 22 Uruguay 39 Senegal6 Indonesia 23 Argentina 40 Germany (Tier II)7 Chile 24 Hungary 41 Panama8 Philippines 25 Mauritius 42 UK (Tier II)9 Bulgaria 26 Tunisia 43 Spain10 Mexico 27 Ghana 44 New Zealand11 Singapore 28 Lithuania 45 Australia12 Slovakia 29 Sri Lanka 46 Portugal13 Egypt 30 Pakistan 47 Ukraine14 Jordan 31 South Africa 48 France (Tier II)15 Estonia 32 Jamaica 49 Turkey16 Czech 33 Romania 50 Ireland17 Latvia 34 Costa Rica

Quote- AT Kearney Global Services LocationIndex 2007: the rise of Mauritius… reflectsgrowing interest in locations with the ability toserve francophone markets. Stronger businessenvironments in Mauritius … contend withlower costs and larger populations in Moroccoand Senegal.”

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Figure 5.11: Global Rank of Mauritius for the ease of doing business, 2008

Source: World Bank Group (2009) Doing Business 2008 Mauritius

The Global Information Technology Report 2006-2007, Connecting to the NetworkedEconomy

Mauritius had been ranked at the 51st position with a score of 3.87 among 122 countries in 2006/2007and pitched at the 45th position in 2005/2006 among 115 countries and at the 104th level in 2004/2005among 104 countries.

A striking improvement had been noted from year 2004/2005 to 2005/2006 on this index which givesa positive indication on the new orientation taken by Mauritius.

Table 5.5: Score and rank of Mauritius in the Global IT Report, 2006/2007

Score(1=not very successful,

7=highly successful)No. Rank

1 Market environment

1.1 Venture capital availability 3.52 461.2 Financial market sophistication 4.37 431.3 Technological readiness 4.11 541.4 State of cluster development 3.28 781.5 US utility patents 0.00 791.6 High-tech exports 1.82 551.7 Burden of government regulation 2.30 1121.8 Extent and effect of taxation 4.67 171.9 Time required to start a business 46.0 861.10 Number of procedures required to start a business 6.00 161.11 Intensity of local competition 4.41 841.12 Freedom of the press 5.52 55

2 Political and regulatory environment

2.01 Effectiveness of law-making bodies 4.33 242.02 Laws relating to ICT 4.30 352.03 Judicial independence 4.67 42

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180

160

140

120

100

80

60

40

20

0

Singap

ore

Mauritius

South Africa

Kenya

Mozambique

Comores

Madagasca

r

1

2735

72

134147 149

Year Rank Difference

2006/07 51 -62005/06 45 592004/05 104 -

Score(1=not very successful,

7=highly successful)No. Rank

2 Political and regulatory environment

2.04 Intellectual property protection 4.26 392.05 Efficiency of legal framework 4.85 332.06 Property rights 5.58 282.07 Quality of competition in the ISP sector 3.07 1002.08 Number of procedures to enforce a contract 37.0 782.09 Time to enforce a contract 630.0 93

3 Infrastructure environment

3.01 Telephone lines 28.84 433.02 Secure Internet servers 18.43 503.03 Internet hosts 34.41 563.04 Electricity production n/a n/a3.05 Availability of scientists and engineers 4.00 863.06 Quality of scientific research institutions 3.63 703.07 Tertiary enrolment 17.24 82

4 Individual readiness

4.01 Quality of math and science education 4.19 594.02 Quality of the educational system 3.41 644.03 Quality of public schools 4.04 454.04 Internet access in schools 3.70 624.05 Buyer sophistication 4.33 494.06 Residential telephone connection charge 0.69 454.07 Residential monthly telephone subscription 0.75 344.08 High-speed monthly broadband subscription charge 51.60 714.09 Lowest cost of broadband 2.62 594.10 Cost of mobile telephone call 0.03 18

5 Business readiness

5.01 Extent of staff training 4.41 335.02 Local availability of specialised and training services 3.37 855.03 Quality of management schools 3.89 695.04 Company spending on research and development 3.04 735.05 University-industry research collaboration 2.93 685.06 Business telephone connection charge 1.39 575.07 Business monthly telephone subscription 1.87 455.08 Local supplier quality 4.63 465.09 Computer, communications, and other services imports 21.90 67

6 Government readiness

6.01 Government prioritization of ICT 5.52 176.02 Government procurement of advanced technology products 4.04 396.03 Importance of ICT to government’s vision of the future 4.30 476.04 E-participation index 0.127 626.05 E-government readiness index 0.532 51

7 Individual Usage

7.01 Mobile telephone subscribers 57.29 557.02 Personal computers 16.22 417.03 Broadband Internet subscribers 0.22 717.04 Internet users 14.60 637.05 Internet bandwidth n/a n/a

8 Business Usage

8.01 Prevalence of foreign technology licensing 4.81 508.02 Firm-level technology absorption 4.52 738.03 Capacity for innovation 2.96 738.04 Availability of new telephone lines 5.96 508.05 Availability of mobile telephones 6.37 518.06 Extent of business internet users 2.96 101

9 Government Usage

9.01 Government Success in ICT Penetration 4.67 279.02 Availability of on-line services 3.15 759.03 ICT Use and Government efficiency 3.59 959.04 ICT Pervasiveness 4.15 73

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The ICT SectorTable 5.5 illustrates our weak spots for major improvements among which the following had contributed to obtain low ranks:

� Burden of government regulation;� Quality of competition in the ISP sector;� Company spending on research and development;� Broadband Internet subscribers;� Extent of business internet users; and� ICT Use and Government efficiency.

The Global Competitiveness Report, 2006-2007

The Global Competitiveness Report 2006-2007 and the Global Information Technology Reporthighlight our strengths that need to be capitalised on and our weaknesses where major improvementsare required to position Mauritius and re-brand it on the international arena to gain a competitive edgein the region. Mauritius was ranked at the 55th position in 2006/07. Indicators and rankings withrespect to technological readiness and innovation are as follows:

Mauritius is ranked at the 60th position in 2007/2008 with a score of 4.16.

Technological readiness

Notable Competitive Advantages Rank/125 Notable Competitive Disadvantages Rank/125

Laws relating to ICT 35 Firm-level technology absorption 73Personal computers (hard data) 41 FDI and technology transfer 73

Technological readiness 54

InnovationNotable Competitive Advantages Rank/125 Notable Competitive Disadvantages Rank/125

Government procurement of technology products 39 Availability of scientists and engineers 86Intellectual property protection 39 Company spending on R & D 73

Capacity for innovation 73Quality of scientific research institutions 71

The Mauritian ITES-BPO Landscape

According to the Board of Investment (BOI), as at year 2007, there were� 150 companies operational in the sector (mostly export-oriented) with the BPO accounting for

47 percent of the industry’s share; and� 5 500 people employed by the sector with a diversified range of skills.

There are clear indications that the ICT sector in Mauritius is progressing fast. According to the BOI report published in March 2007, the level of investment in the ITES-BPO sector had increased by 53.7percent over the past 6 months. Over the period October 2006 to March 2007, 41 new companies hadstarted operations with a projected investment of Rs 700 million and an increase of 26 percent in employment.

Table 5.6: Evolution of the ITES/BPO sector

Source: Semi annual publication of the BOI on the ITES/ BPO sector - October 06 to March 07

There seems to be an evolution towards higher skills labour in the sector as more projects in the medical,marketing, engineering design, legal and financial services were approved during the year.

Employment trend in the ITES-BPO sector

Table 5.7: Evolution of employment in the ITES-BPO sector

Source: BOI 2007

2004 Oct 2005-Jan 06 Feb 06-Sep 06 Oct 06-Mar 07

No. of companies 72 107 148 185Growth rate 18.9% 38.3% 25.0%Cumulative realised investment (MUR) (Rs m) 539 918 1 010 1 553Cumulative actual investment (MUR) 917 989 339 1 010 262 462 1 552 743 953Additional investment (MUR) - - 92 273 123 542 481 491Employment 2 392 4 332 5 513 6 960

Month/Year No. of employees

July 2004 2 260October 2004 2 392February 2005 3 354May 2005 3 525September 2005 3 801January 2006 4 332September 2006 5 513March 2007 6 960

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The ICT SectorThe total employment in the ITES/BPO industry stood at 6 960 as at March 2007, representing anincrease of 26.2 percent over a period of 7 months. Call Centres represented half of the total workforcein the industry, followed by the BPO services and software development.

Figure 5.12: Evolution of number of companies and employment in ITES/BPO sector since July 2004

Source: Semi annual publication on the ITES/BPO sector,BOI 2007 - October 06 to March 07

Table 5.8: Projected Level of Employment in the ITES/BPO sector, 2005-2010

Source: BOI 2005

Table 5.9: Skills required to work in the ITES/BPO sector

Source: BOI Survey on the ITES-BPO industry (BPO Secretariat February 2005)*www.rediff.com

Evolution of the number of companies

200

175

150

125

100

75

50

25

0

Num

ber o

f com

pani

esN

umbe

r of c

ompa

nies

Jul-04 Nov-04 Mar-05 Nov-05Mar-06 Jul-06 Mar-07Jul-05 Nov-06

Evolution of employment

Jul-04 Nov-04 Mar-05 Nov-05 Mar-06 Jul-06 Mar-07Jul-05 Nov-06

8000

7000

6000

5000

4000

3000

2000

1000

0

Num

ber o

f Em

ploy

ees

Num

ber o

f Em

ploy

ees

Year Projected level of employment

End 2005 5 0002006 6 0002007 7 2002008 8 2802009 9 5222010 10 950

Segments of activity Skills required

Call centre Good communication and language skills, good accent, basic computing skills, fast learner &able to deal efficiently via telephone

BPO Computing, language, analytical and accuracy skills, willing to learnSoftware Development Computing skills and knowledge of latest technology e.g. netTranslation and medical transcription Language understanding, basic computing (word processing knowledge) and understanding

of various medical terminologiesAnimation Drawing and creative skills, computer graphic skills and knowledge in 3DFinance and accounting International/country specific, accounting rules, basic knowledge of accountingGIS/remote sensing Understanding equipment, technical/computing skills, programming skillsLegal* Proficiency in American English, drafting and research methodology are essential skills.

Comfort with workplace technology is another important pre-requisite as all productcreation and delivery is done using computer applications.

Although call centre operation has picked up well, Mauritius needs to enhance the BPO sector thuscontinue creating employment opportunities. The BPO sector is rapidly diversifying into new areas likeKnowledge, Medical, Legal and Financial outsourcing that need a large number of qualified Graduates andHSC holders who can support and sustain the system in the long term.

Since last year, with the Government strategy to attract higher value-added activities in the ITES/BPOfield, there has been a change in the skills required to work in this Industry. Companies are movingtowards the high end and thus employers are seeking for Graduates with specialisation in technical skillssuch as IT and Engineering but also professionals in areas such as finance, tourism, linguistics, legal,design etc.

Legal Process Outsourcing (LPO) is a sunrise industry which should see a boom in the next 3-5 years.Forrester Research estimates that there could be a demand for as many as 79 000 LPO professionals in thenext 7-8 years.

The BOI has forecasted that:� There will be a growing interest of multinationals to use Mauritius as a strategic bilingual centre,

confirming the importance of risk mitigation and placing Mauritius on the map of reliable globaloffshoring destinations;

� New models of cooperation with India, South Africa and Europe would materialise, confirming anew world order for Mauritius; and

� The Mauritian ITES-BPO sector will move up the value chain in terms of process and industryexpertise.

The Supply Side

Education can contribute to human capital development through educating a wider range of individualsand ensuring that they are employable when they leave education, helping employers by responding tonew skills requirements, ensuring that employees go on learning. Widening access to higher educationis a national task.

Enrolment of students at Secondary, Technical & Vocational and Tertiarylevels

Tertiary Level

The number of students enrolled in ICT or an ICT-related field at tertiary level was 3 707 in 2007/2008,3 971 in 2006/2007 compared to 4 134 in 2005/2006 (the figures include also distance education andinstitutions abroad). As a percentage of total students enrolled at tertiary level, this represents 10.8 percentin 2007/2008 lower than the figure of 12.0 percent in 2006/2007 (CSO, 2008).

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The ICT SectorNo. University No. of enrolment for post-secondary courses related to IT

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

1. University of Mauritius (UoM) 635 873 1296 1418 1486 15242. University of Technology (UTM) 134 682 872 775 728 7213. Mauritius Institute of Education (MIE) 19 - 58 76 14 824. Mauritius College of the Air (MCA) 20 95 12 11 32 225. Swami Dayanand Institute of Management 479 636 506 674 510 2966. Institut Superieur de Technologie (IST) - - 100 130 254 2347. Industrial & Vocational Training Board (IVTB) - 240 402 306 274 208

Total 2 526 3 246 3 390 3 298 3 087

Table 5.10: Enrolment at public-institutions in Mauritius, 2001-2007

Source: Adapted from TEC (2007) Participation in Tertiary Education 2008

Overall enrolment for IT courses has increased over the years; however a slight decrease has beennoted in 2006/07. Enrolment at the UoM had increased significantly by 140 percent from 2001/02 to2006/07. Similarly enrolment at IST had witnessed a considerable rise of 134 percent from 2001/02 to2006/07. Most of the courses range from Certificate level programmes to Masters courses. However,a lack of PhD enrolment had been noted in the field of ICT. In this respect, research projects in ICTcould be encouraged by widening access and providing incentives.

According to Participation in Tertiary Education publishedby the Tertiary Education Commission (TEC), as at December 2006 and December 2005, an estimated numberof 888 and 853 Mauritian students were studying abroadin the field of IT in tertiary education institutionsrespectively; 241 were going in 2006. Through PrivateProviders/Distance Education, 1 255 learners wereenrolled as at December 2006 and 1 261 as at December2005 in the field of IT.

Secondary Schools

At the end of March 2006, the percentage of secondary schools providing Internet access to studentsincreased to 92.1 percent from 72.3 percent in 2005. At the end of March 2007 the figure stood at 94.1percent. The number of students per computer worked out to 24 in 2007, 23.9 in 2006 compared to24.8 in 2005.The number of students examined in ICT at School Certificate (SC) level increased from 4 018 in 2005to 4 177 in 2006 and 4 571 in 2007. However, as a percentage of the total number of students examinedat SC level, it decreased to 25.4 percent in 2006 from 25.9 percent in 2005. The figure grew, highly to26.4 percent in 2007. The number of students examined in ICT at Higher School Certificate (HSC) levelin 2006 was 822 representing 10.2 percent of all students examined at HSC level compared to 658 or 9.0 percent in 2005. The pass rate in Computer Studies at SC level was 87.1 percent in 2006 and reduced slightly to 85.6 percent in 2007 (MES, 2008).

Industrial & Vocational Training Board (IVTB)

List of IVTB training centres providing IT courses:� School of Information Technology, Electronics and Communication; � School of Design; and� Mahebourg Training Centre.

The NICTSP has aimed for at least 100percent increase in the enrolment atthe tertiary level in ICT courses over aperiod of 5 years and at least 20 percentyear on year increase in enrolment atthe tertiary levels.

Table 5.11: Enrolment per Award courses at the IVTB, 2003-2007

Key: M: Male, F: Female, T: Total

Overall, enrolment for award IT courses at the IVTB had witnessed a decline from 2003 to 2007. It hasbeen found that the share of female enrolment for IT courses at the IVTB and universities was relativelylow.

Pass rate for the IT courses at the IVTB has been found to be quite high across the years with theexception of certain courses as shown in Table 5.12.

Table 5.12: Pass rate analysis for full time courses at the IVTB, 2004-2006

The ICT Infrastructure Status

As far as telecommunications is concerned, the infrastructure includes:� connectivity through the South Africa Far East (SAFE) fibre optic submarine cable;� Participation in the future Eastern Africa submarine Cable (EASSy) Submarine Cable System; and� 13 Internet Service Providers (ISPs) with two already providing Wifi and 3G technology

(Source: www.icta.mu, 2007).

The liberalisation of telecommunications services since 1 January 2003 has given an impetus to the ICTsector however not all the 13 ISPs are operational.

The Indian Ocean Commission (IOC) has decided to implement an Inter-Island connectivity networkproject, currently being undertaken under the Regional ICT Support Programme of the Common Marketfor Eastern and Southern Africa (COMESA). The project, named as SEGANET, aims at connectingmember states via a submarine fibre-optic cable with a view to providing high telecommunicationsbandwidth for the socio-economic development of the region. (Cabinet decision, 09 May 2008).

IVTB Courses 2003 2004 2005 2006 2007Course title M F T M F T M F T M F T M F THND

Graphic Design and multimedia (Sep-Jun) Yr I 15 7 22 16 5 21 11 6 17 16 5 21 14 8 22Graphic Design and multimedia (Sep-Jun) Yr II 15 7 22 12 1 13 16 5 21 11 6 17 16 4 20Telecommunications (Sep-Jul) 13 0 13Telecommunications (Sep-Jul) Yr II 7 0 7

DIPLOMA

Diploma in Information Technology (Aug-Jul) Yr I 55 41 96 20 28 48 34 16 50 34 17 51 34 18 52Diploma in Information Technology (Sep-Jul) Yr II 38 27 65 32 24 56 8 15 23 8 15 23 14 5 19Computer Applications (Certificate) 13 9 22 14 16 30 14 5 19 9 9 18Total 136 82 218 93 67 160 83 58 141 90 48 138 87 44 131

No. Course Level Pass rate % Pass rate % Pass rate %2004 2005 2006

Mahebourg Training Centre

1 Certificate in Computer applications NTC3 100.02 Computer applications NTC3 33.3

School of Design

3 Graphic design and multimedia HND 90.9 100.0 100.0

School of Information Technology, Electronics and Communication

4 Certificate in Computer applications Cert. 73.2 58.85 Diploma in Information Technology Diploma 90.8 87.0 95.56 HND Telecommunications HND 100.0 58

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The ICT SectorAs seen at Figure 5.13, both the number of internet subscribers and users have experienced growthover the years.

Table 5.13: Internet users and subscribers, 2000-2007

Source: Adapted from ITU

Figure 5.13: Growth of Internet subscribers and internet users, 2000-2007


As seen from Table 5.14, the number of broadband subscribers had increased significantly from 2 786in 2004 to 51 395 in 2005.

Table 5.14: Types of internet subscribers, 2003-2005

Internet Broadband Subscribers

Subscribers Subscribers per 100 Users Users per 100 inhabitants Total Per 100 inhabitants(000s) inhabitants (000s) (000s) (000s)

2000 35.0 2.93 87.0 7.29 - -2001 43.5 3.62 106.0 8.83 - -2002 58.0 4.79 125.0 10.33 0.3 0.022003 61.2 5.02 150.0 12.29 1.2 0.102004 80.1 6.50 240.0 19.46 2.6 0.212005 128.6 10.33 300.0 24.10 3.1 0.252006 137.5 10.95 320.0 25.48 21.9 1.742007 166.1 13.16 340.0 26.95 61.5 4.87

43.5 58 61.2 80.1128.6 137.5

106 125 150

240

300 320

35

166.187

340

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007

Year

000s

Internet Subscribers Internet Users

2003 2004 2005

TOTAL SUBSCRIBERS 61 252 78 023 128 555 Narrowband Internet subscribers (dial-up) 60 052 75 237 77 160 Broadband Internet subscribers 1 200 2 786 51 395 Fixed (including wireless) 1 200 2 786 8 339 DSL (Digital Subscriber Line) 1 200 2 786 8 114 Wireless na na …Other na na 229 Mobile na … 43 056 GPRS na … 40 804 3G na … 2 252

Table 5.15: ICT infrastructure, 2000-2006


The number of fixed telephone lines experienced stagnation, contrary to the number of cellular subscribers that continued to grow over the years.

Table 5.16: ICT access, 2000–2007


Figure 5.14: Cellular mobile versus fixed line subscribers, 2000-2007


2000 1 2 1 92 3 275 27.42001 1 2 2 93 3 126 25.92002 1 2 2 94 3 462 28.52003 1 2 2 95 3 985 32.52004 1 2 3 96 4 819 38.92005 1 2 6 97 4 974 39.82006 2 3 7 98 9 654 76.8

Fixed-linetelephone

serviceproviders(number)

Mobilecellularservice

providers(number)

Internetservice

providers(number)

Percentage ofpopulation

covered by mo-bile telephony

(%)Internet hosts

(number)

Internethosts per10 000 in-habitants(number)

174.5

928.6

361.2357.3357.5353.8348.2327.2

306.8262

772.4656.8

547.8466.3

347.5

278.7

0100

200300

400500600

700800

9001000

2000 2001 2002 2003 2004 2005 2006 2007

Year

Num

ber

of su

bscr

iber

s (00

0)

Fixed telephone lines (''000) Mobile cellular subscribers ('000)

FFixed telephone lines

(''000) Fixed telephone lines

per 100 inhabitants Mobile cellular

subscribers ('000)

Mobile cellular subscribers per 100

inhabitants

2000 262 22 174.5 14.6

2001 306.8 25. 5 278.7 23.1

2002 327.2 26.9 347.5 28.6

2003 348.2 28.4 466.3 38

2004 353.8 28.6 547.8 44.3

2005 357.5 28.6 656.8 52.6

2006 357.3 28.4 772.4 61.5

2007 361.2 28.6 928.6 73.6

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Sub-activity Definition No. of companiessurveyed

Computer equipment and software – sale Sale of computers and other hardware equipment 28

Telecommunications ISP and mobile technologies 14Hardware consultancy Consultancy in hardware requirements 0Software consultancy and supply Development of software and its supply 10ITES/BPO Call centres, companies engaged in

multimedia activities etc 14Computer related activities, other Other ICT activities 4

Total 70

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The ICT SectorHRDC Manpower Planning Survey 2007-2010 for the ICT Sector

Introduction

Technological innovations are the main drivers of long-term productivity growth. The links betweenthe most significant technology of our time, namely ICT, and productivity growth are of considerableinterest.

The questionnaire for this survey was therefore accentuated on the present and future trainingrequirements of employees and gearing the research towards the future demand and probing intothe specificities of the exponentially growing sector.

The ICT sector, in general, consists of manufacturing and service industries whose products capture,transmit or display data and information electronically. It includes related activities of“Manufacturing”, “Wholesale and Retail Trade”, “Communication”, “Business Services (such as CallCentres, Software Development, Website Development and Hosting, Multimedia, IT Consulting andDisaster Recovery)” and “Education”.

This study involved 70 private ICT companies divided into the following sub-activities:

Table 5.17: Composition of the survey sample for the ICT sector

The sample comprised 31.4 percent of small establishments and 68.6 percent of large ones.

Figure 5.15: Distribution of establishments in terms of size

Question 4How far do you agree with the following statements in relation to the developments occurringin your sector/organisation during the next three years?

(a) Contribution to the National Growth will rise

Figure 5.16: Contribution to the National Growth will rise

Majority of the ICT companies (90 percent) were convinced that the contribution to the National Growthwould continue to rise. From the level of confidence placed on this sector, it is crystal clear that it wouldwitness an exponential growth with time. This means that the organisations expected the contributionto the GDP and earnings to unfurl. Only 2.9 percent of them disagreed with the statement while 7.1percent neither agreed nor disagreed.

68.6 % of large establishments

31.4 % of small establishments

2.97.1

90

0

10

20

30

40

50

60

70

80

90

100

Disagree Neither disagree noragree

Agree

Perc

enta

ge

Perc

enta

ge o

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pond

ents

Level of satisfactionLevel of satisfaction

200

(b) Rate of unemployment will decline

Figure 5.17: Rate of unemployment will decline

Above 70 percent of the firms surveyed agreed that the unemployment rate would decline whichmay be an indication of the future recruitment plans and growth of the ICT companies surveyed.12.9 percent disagreed with this statement while 14.3 percent neither agreed nor disagreed.

(c) Our education system will meet the requirements of the labour market

Figure 5.18: The education system will meet the requirements of the labour market

The present education system in Mauritius seemed to give confidence to 60 percent of respondentswho felt that this system would be able to meet the requirements of the labour market. Theeducation system, that is the formal education, is the backbone of the workforce; however trainingis an important building block which has to be promoted as well for workers to be able to performto the required level.

However, taking a close look at the responses of the 14 companies in the ITES/BPO sector, 6 disagreedwith this statement and only 5 agreed.

12.9 14.3

72.9

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10

20

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40

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60

70

80


Agree

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12.9

24.3

60

2.90

10

20

30

40

50

60

70

Disagree Neither disagreenor agree

Agree N/A

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(d) Our training system will meet the requirements of the labour market

More than 65 percent of companies believed that the actual training system would be able to meet therequirements of the labour market. The skills and competencies acquired through continuous trainingwould empower employees to meet their employers’ expectations at work.

Figure 5.19: The training system will meet the requirements of the labour market

The ITES/BPO sector had shown more confidence in the training system than the education system since8 out of the 14 companies agreed with this statement compared to 2 which disagreed. However, it shouldbe noted that 4 neither agreed nor disagreed.

The figures show that there is a need to align our education and training system with the requirementsof the labour market with more emphasis on upskilling of our labour force.

(e) The number of employment will increase

Figure 5.20: Employment will increase

5.7

28.6

65.7

0

10

20

30

40

50

60

70


Agree

Perc

enta

ge

Perc

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5.712.9

81.4

0

10

20

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40

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90


Agree

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202

Respondents seemed to be optimistic regarding the unemployment problem since a large majority(81.4 percent) believed that the number of employment would increase which is in line with theresults obtained earlier. Only 5.7 percent disagreed with this statement and 12.9 percent neitheragreed nor disagreed.

All 14 companies of the ITES/BPO sector agreed that the number of employment would increase.

(f) Your organisation will be recruiting more skilled/educated employees

Figure 5.21: The organisation will be recruiting more skilled/educated employees

Only 48.6 percent of companies intended to recruit more skilled/educated employees and 45.7 percentof the companies neither agreed nor disagreed. This is a matter of concern since the ICT sector ispresently expected to take off in Mauritius. It is important to note that this sector reckons anincreasing number of intellectual capital which is a major element in achieving our vision to makeMauritius a Cyber Island. Mauritius should attract FDI inflows and create a pool of human capaitalwith change in mindset to deliver the required goods with the international standard.

The tendency of the ITES/BPO sector seemed to recruit people and provide them with in-housetraining. This may explain why 6 of the 14 companies surveyed agreed with the statement and 8neither agreed nor disagreed.

5.7

45.748.6

0

10

20

30

40

50

60


Agree

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(g) Your organisation will be recruiting expatriates to sustain its growth

Figure 5.22: The organisation will be recruiting expatriates to sustain its growth

Only 25.7 percent of respondents agreed that they would be recruiting expatriates to sustain their growth.This sector has specific requirements in terms of skills and competencies. ICT companies recruitexpatriates to impart knowledge to their existing staff or to complete specific assignments or to fill atechnological gap. Recruiting expatriates may incur additional costs to the companies and it might notbe affordable for small establishments. This might be one reason for showing scepticism to suchendeavours. According to the NICTSP, it is projected that Mauritius would employ 13 000 expatriates by2011 and would double the number of foreign investors into this emerging sector. The BusinessFacilitation Act 2006 has been enforced to eliminate bureaucratic obstacles . Residence permits and workpermits for foreign investors and professionals have been combined into an occupation permit6, whichis now processed within three working days. This has been made possible with the gradual meltdown ofgeographical frontiers with regard to the movement of workers in search of better jobs.

In the Computer Equipment and Software Sale sector, 15 out of 28 respondents disagreed with thisstatement; however 5 companies of the ITES/BPO sector agreed, 5 neither agreed not disagreed whereas3 disagreed. 7 out of the 14 companies in the Telecommunications sector agreed, 2 disagreed and theremaining neither agreed nor disagreed.

(h) Your organisation will continue to expand in terms of investment and turnover

Figure 5.23: The organisation will continue to expand in terms of investment and turnover

6. The Business Facilitation Act 2006, effective as from October 1, 2006; also provides that entrepreneurs can start new activities within three working dayson the basis of self-adherence to guidelines set by the authorities, who will exercise ex-post control for compliance.

35.7

27.1 25.7

11.4

0

5

10

15

20

25

30

35

40


Agree N/A

Perc

enta

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tage

of R

espo

nden

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07.1

91.4

1.40

102030405060708090

100


Agree N/A

Perc

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204

It is encouraging to note that majority of the companies surveyed planned for expansion with regardto investment and turnover. One aspect that could have been investigated in depth could be theintention of companies to embark on projects on the international front. This would reflect theforthcoming growth of this sector in the future years that could help transform Mauritius into aRegional ICT Hub that could attract more foreign investment to give a boost to this sector.

Question 5How far are you satisfied with the following statements?

Table 5.18: Responses to statements in relation to the developments occurring in organisations/sector during the next three years

Figure 5.24: Responses to statements in relation to the developments occurring in organisations/sector during the next three years

10

8082.9

80 81.4

90

1.45.7 1.4 1.44.3

1.41.4

11.4 8.612.9

15.711.4

18.614.3

85.7

74.3

85.7

2.9 1.44.35.75.7

0

10

20

30

40

50

60

70

80

90

100

The ability ofyour

employees tocreate andinnovate

The ICT skillsof your

employees toperform their

jobs

Theknowledge ofbasic science

of youremployees toperform their

jobs

Numeracyskills of youremployees toperform their

jobs

Literacy skillsof your

employees toperform their

jobs

The ability ofyour

employees tocommunicate

withcustomers

The ability ofyour

employees tounderstandthe needs of

yourcustomers

The ability ofyour

employees towork in team

Statements in relation to the developments occurring in organisations / sector during the next three years

Perc

enta

ge o

f Res

pond

ents

e of

Res

pond

ents

DisagreeNeither disagree nor agreeAgreeN/A

Disagree Neither disagree Agree Not Applicable(%) nor agree (%) (%) (%)

The ability of your employees to create and innovate 5.7 11.4 80.0 2.9The ICT skills of your employees to perform their jobs 0.0 14.3 85.7 0.0The knowledge of basic science of your employees to perform their jobs 1.4 18.6 74.3 5.7Numeracy skills of your employees to perform their jobs 1.4 11.4 85.7 1.4Literacy skills of your employees to perform their jobs 1.4 15.7 82.9 0.0The ability of your employees to communicate with customers 4.3 10.0 80.0 5.7The ability of your employees to understand the needs of your customers 1.4 12.9 81.4 4.3The ability of your employees to work in team 0.0 8.6 90.0 1.4

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ICT companies seemed to have lot of confidence in their human capital given the fact that they believedthat their employees possessed not only generic skills but soft skills as well to be able to perform at theexpected level at work.

As depicted in Figure 5.24, 80 percent of respondents felt that their employees had the ability to innovate.It is a known fact that ICT skills are more and more a pre-requisite at the workplace. It is encouraging tofind out that 85.7 percent of employers were satisfied with the level of ICT skills of their employees.

More than 70 percent of ICT companies agreed that their employees had the required knowledge of basicscience to allow them to perform their task. It gives a positive indication on the momentum for employeesto absorb innovation and adapt to technological changes.

Employers normally see basic skills, such as literacy and numeracy, as being the responsibility of theschool system and the Government, with businesses more responsible for on-the-job training. Ratherthan investing in the basic and foundation skills of their employees, few employers prefer to come up withprograms to develop employee skills at the workplace.

Literacy and numeracy rates are measures of effectiveness of human capital. They indicate the skills thatadults have in understanding and using information from printed material encountered in everyday life.The Mauritian economy and its competitiveness depend on the skills of the workforce, so it makes a lotof sense to ensure an acceptable level of basic skills. More than 80 percent of respondents were satisfiedwith the level of numeracy skills.

Generation of a large pool of people with world class skills will require the commitment and sustainedaction of the Government, employers, trades unions and individuals.

Literature has revealed that communication skills is in general ranked above analytical, conceptual andproblem-solving skills especially in our case where Mauritius wants to attract investors in the field ofITES/BPO where communication skills is of utmost importance. 80 percent of respondents felt that theirstaff had the ability to communicate with customers and 81.4 percent opined that their staff understoodthe needs of customers.

Despite the spectacular speed of technological development that has occurred across advanced economies,there have been very few changes in the most basic social pre-requisites for organising work andestablishing healthy and productive work environments. 90 percent of companies trusted the ability oftheir employees to work in teams which certainly impacts positively on the performance of companies.

Question 6Please indicate the challenges that your organisation is currently facing. Kindly mention what youare currently doing/planning to do to overcome them.

Lack of qualified employees

There is no doubt that companies operating in Mauritius are facing numerous challenges in theirendeavour to achieve their objectives and ‘lack of qualified employees’ is one of them. However, it isworth noting that these companies were striving in this direction and intended to continue to do so. Thisindicates that companies were considering employees to be their asset and intended to provide trainingto enable them to upgrade their skills and competencies to perform better.

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Table 5.19: Challenge: Lack of qualified employees

Companies intended to overcome the challenge of the lack of qualified personnel mainly:� by providing on-the-job training to their staff;� seeking the help of UoM; and� by recruitment of expatriates.

On-the-job training seemed to be the most popular choice since firms themselves prefer to train theiremployees according to job specifications. 32 percent of companies were providing on-the-job train-ing to their employees and 21.7 percent intended to continue to do so. 12 percent sought the help ofUoM. 4 percent of the organisations recruited qualified people and 17.4 percent intended to do so. 13percent intended to recruit expatriates to fill the existing gaps and source foreign talents wheneverrequired. A handful of organisations were taking the services of established training institutions anda higher percentage planned to do so in the future.

Lack of trained employees

For companies to be able to remain competitive, they need to have trained employees. Most of thecompanies were already providing training to their staff and planned to do so in many ways, likeproviding on-the-job training which seems to be practical or to take the services of establishedtraining institutions.

Table 5.20: Challenge: Lack of trained employees

Currently doing Planning to do% %

Provide on-the-job training 32.0 21.7Give employees training 28.0 21.7Seek help from UoM 12.0 4.4Recruit expatriates 8.0 13.0Manage with what we have 8.0 0Recruit people who are already qualified 4.0 17.4Send employees to follow courses in established institutions 4.0 8.7Organise workshops on attitude and approach 4.0 0Conduct aggressive marketing 0.0 4.4Nothing 0.0 8.7


Give employees training 40.0 28.6Provide on-the-job training 26.7 35.7Recruit people who are already trained 13.3 7.1Send employees to follow courses in established institutions 6.7 14.3Recruit people as trainee for a period of 1 year and employ them after 6.7 0Recruit expatriates 0 7.1Nothing 6.7 7.1

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A few companies also intended to recruit expatriates in the absence of locally available trained manpower.

Technological Change

New developments in technology allow companies to be more efficient, more productive and morecompetitive; however, it is a continuous challenge. Companies have to continuously keep pace with thelatest developments to face the fierce global competition. They have to continue to innovate and createto ensure employees are up-to-date. In these cases, training is required to operate new machines, providestate-of-the-art solutions to customers to retain them and gain a competitive edge.

Table 5.21: Challenge: Technological Change

30.8 percent of companies were investing in new equipment and technologies to keep pace withtechnological change and a higher percentage proposed to continue such spending. Others were providingtraining either on-the-job or at established institutions since increased competitiveness to use modern &high technology production methods/processes require highly skilled workers.

Competition (local/international)

As discussed earlier, remaining competitive both on the local and international front seems to be thebiggest challenge for organisations of this era. The fierce competition with an increasing number of newentrants makes it imperative for firms to continue innovating and re-inventing themselves.

Taking recourse to on-going capacity building and related investment seems to be an appropriate solutionto gain a competitive edge. To be able to compete with new companies and new products with highlycompetitive prices aiming to increase market share, companies were investing on new equipment andproviding high quality service.


Invest in new equipment and technologies 30.8 41.7Send employees to follow courses in established institutions 15.4 16.7Recruit expatriates 7.7 8.3Introduce new products 7.7 -Give employees training 7.7 8.3Conduct research and development programs to find new production methods 7.7 -Adopt new techniques of production 7.7 8.3Adopt new marketing strategies 7.7 8.3Nothing 7.7 8.3

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Table 5.22: Challenge: Competition (local/international)

Providing a better quality of service seemed to be the first priority. Companies also intended to be onthe look out of new markets to expand their business activities.

Access to finance

Across the world, access to finance has been a problem especially for SMEs and Mauritius is noexception. The most challenging period is during the infancy period where lots of money need to beinjected in the business to sustain it during the growth stage of its life cycle.

All the companies in the sample had obtained loan from banks and 75 percent were planning to doso in the future. 25 percent did not do any such planning.

Flexible and multi-skilled employees

Organisations are increasingly employing a flexible workforce – one where working arrangementsdiffer from traditional employment in terms of duration and location. From the literature, it has beenfound that there are various advantages to multi-skilling (job enrichment) as listed below:

� Enhanced innovation;� Improved labour productivity;� Workers are less likely to oppose to technological change;� Workers are more likely to make useful suggestions;� Workers are more flexible and are able to meet challenges, improve performance and better

utilise the current pool of skilled workers; and� Improved ability of firms to adapt to change.


Improve quality of service 26.9 23.8Provide competitive prices 15.4 14.3Introduce new products 11.5 4.8Look for cheaper suppliers 11.5 9.5Decrease selling price 7.7 4.8Conduct aggressive marketing 7.7 14.3Give employees training 3.8 4.8Invest in new equipment and technologies 3.8 4.8Provide interesting salary package to those trained 3.8 4.8Adopt new techniques of production 3.8 -Control credit and other expenditures 3.8 -Look for new local markets - 4.8Increase production capacity - 4.8Buy in large scale so as to reduce unit cost - 4.8

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Table 5.23: Challenge: Flexible and multi-skilled employees

More and more organisations are investing in training and re-training of their staff to ensure that theyare multi-skilled and versatile. Making employees work on a rotational basis seemed to be one optionprovided. There is a need to train them to maximise the utilisation of newly bought equipment.

Conform to international norms

All the companies in the sample were willing to conform to international norms by investing in newequipment and technologies and planned same for the future.

Question 7State the total number of employees (local and expatriates) you had in your organisation as at 30June 2007 as per their occupational group.

The sample consisted of 31.4 percent firms in the bracket of 1-9 employees (small establishments) and 68.6percent were large establishments (18.6 percent between 10-19 employees, 27.1 percent between 20-49employees, 22.9 percent with 50 employees & above ).

Table 5.24: Number of employees per occupational group, including yearly recruitment and retirement, 2007-2010

The 70 ICT companies surveyed employed 324 Senior Officials & Managers, 921 Professionals and 865Associate Professionals. Clerks formed the largest group among the occupational categories; the figurestood at 1 086 as at June 2007 and is expected to increase by 38 percent in 2009/10. The total number ofemployees worked out to 3 619 as at June 2007 and by 2010, this figure is expected to attain 4 560, thatis an increase of 26 percent. Skilled Agricultural and Craft & Related Trade Workers were the leastrepresented among the pool of employees in the ICT sector.Generally, an increase in the number of employees was anticipated across all categories of occupations.


Give employees training 28.6 28.6Provide on-the-job training 14.3 14.3Send employees to follow courses in established institutions 14.3 14.3Make employees work on rotational basis 14.3 -Provide training in other related field of work 14.3 14.3Train employees to use new equipment 14.3 14.3Reduce cost of operation - 14.3

OOccupational Groups

No. of employees

as at 30/06/07

Expected 2007/08

Expected 2008/09

Expected 2009/10

2007/08 2008/09 2009/10 Recruitment Retirement Recruitment Retirement Recruitment Retirement

Senior Officials and Managers 324

331

339

345

8

1 8

0

6 0

Professionals 921

974

1 031

1 060

58

5

58

1

31

2 Associate Professionals 865

992

1 103

1212

230

103

111

0

111 2

Clerks 1 086

1 245

1 358

1 500

164

5

115

2

146

4 Service Workers & Sales Workers 305

310

315

317

5

0

5

0

2

0

Supervisor 13

13

13

13

0

0

0

0

0

0

Skilled Agricultural workers 2 2

2 2

0

0

0

0

0

0

Craft and Related Trade Workers 6 6

6

6

0

0

0 0

0

0

Plant and Machine Operators & Assemblers

23

24

25

25

1

0

1

0

0

0

Elementary Occupations 74

76

79

80

2

0

3

0

1

0

TOTAL

3 619

3 973

4 271

4 560

468

114

301

3

297

8

210

Table 5.25: Number of employees per occupational group, including yearly recruitment and retirement per activity, 2007-2010

As seen from Table 5.25, in the next 3 years, the biggest share of workers would be recruited in theITES/BPO sector and would mainly comprise ICT specialists and Clerks. In general, most of the futurerecruitments would be concentrated on IT experts.

Question 8State the total number of employees you have in your organisation as at 30 June 2007 as pertheir educational background. Also state the number of additional employees you will berecruiting from 2007 to 2010.

Table 5.26: Number of employees per highest educational qualification, including yearlyrecruitment of locals and expatriates, 2007-2010

*N.A.D.: Not Adequately Defined Key: L: Local E: ExpatriatesNote: Two companies (consisting of 200 and 99 employees respectively) did not respond to this question which led to the discrepancy in thenumber of employees in relation to Question 7.

OOccupational Group

Senior Officials and Managers Professionals

Technicians & Associate Professionals Clerks

Service Workers & Sales Workers

Activity 07/08 08/09 09/10 07/08 08/09 09/10 07/08 08/09 09/10 07/08 08/09 09/10 07/08 08/09 09/10

IT/BPO 112 117 122 453 486 500 608 690 780 1035 1132 1268 136 136 136

85 88 88 142 157 161 215 231 241 88 93 98 106 106 106 Computer related activities 53 53 53 73 73 73 21 21 21 58 68 68 0 0 0 Software Consultancy & Supply 41 41 42 277 283 291 26 27 27 31 31 31 2 2 2 Computer equipment and software -sale 40 40 40 29 32 35 122 134 143 33 34 35 66 71 73

Total 331 339 345 974 1031 1060 992 1103 1212 1245 135858 1500 310 315 317

Telecommunications

HHighest Educational

Q ualification

Expected number ofumber of

employees Employment as

at 30/06/07 20 07/08 20 08/09 20 09/10

07/08 08/0 9 09/10 L E L E L E

Post-Graduate 363 371 379 351 12 0 8 0 8 0

Degree 1 229 1 356 1 503 1145 84 0 127 0 147 0

Vocational/HND 325 340 345 257 68 0 15 0 5 0

Higher School Certificate 1 318 1 443 1 559 1 088 224 6 123 2 112 4

School Certificate 410 413 413 350 60 0 3 0 0 0

Incomplete Secondary 12 12 12 12 0 0 0 0 0 0

Pre-vocational 65 65 65 64 1 0 0 0 0 0

CPE Passed 36 38 39 36 0 0 2 0 1 0

Incomplete Primary 14 15 15 13

1 0 1 0 0 0

No formal education 4 4 4 4 0 0 0 0 0 0

N.A.D* 197 214 226 299 12 20 20

TOTAL 3 973 4 271 4 560 3 619 462 6 299 2 293 4

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In June 2007, 92 percent of the employees in the ICT sector had at least an SC; most of the employeessurveyed possessed an HSC (33 percent) which was followed by Degree holders (31 percent). SC holdersrepresented 10 percent of the ICT community and Post-Graduates by 9 percent. There was a wide gapbetween the number of HSC and SC recruits. People with Vocational/HND (9 percent) background alsohad an important role at the workplace.

With regard to future recruitment plans, more HSC and Degree holders were expected to be on board by2010. The planned number of expatriates to be recruited was negligible compared to locals.

It can therefore be deduced that people with low education level might find it difficult to find a job by2010.

Figure 5.25: Composition of employees by highest qualification level as at June 2007

Secondary education

46%Post-secondary

42%

Technical training

9%

Low level of education

3%

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Table 5.27: Number of employees per highest educational qualification by activity, 2007-2010

The ITES/BPO sector intended to recruit more of HSC holders followed by Degree holders. Table 5.27shows that those who are not qualified would be less likely to obtain a job in the ICT sector.

Question 9Below are the various reasons for training employees. How important are these reasons foryou?

ICT industry competitiveness depends, at the most basic level, upon the skills of those driving ICTand business innovation. ICT uptake is equally dependent on skill levels and a highly skilledworkforce drives innovation, enabling businesses to compete in the global economy.

It is widely recognised that business needs are such that they cannot always release people to followtraining. In such cases the help of training providers are sought who can deliver training at theworkplace to suit the availability of the employees and many choose informal training. The moderntrend is to have training programmes that are individualised to the particular needs of businesses.

95 percent of respondents said that they trained their employees to remain competitive. A largemajority (97 percent) provided training to their employees to make use of the state-of-the-art

HHighest Education Qualification Year

ITES/BPO

Software Consultancy

& Supply

Computer equipment

& software-sale

Computer- - related

activities Telecomm - unications Total

No formal education

07/08 1 0 0 3 0 4

08/09 1 0 0 3 0 4

09/10 1 0 0 3 0 4

Incomplete Primary

07/08 2 0 3 0 9 14

08/09 2 0 3 0 10 15

09/10 2 0 3 0 10 15

CPE Passed

07/08 6 7 12 1 10 36

08/09 8 7 12 1 10 38

09/10 8 7 12 1 11 39

Pre-vocational

07/08 44 2 7 0 12 65

08/09 44 2 7 0 12 65

09/10 44 2 7 0 12 65

Incomplete Secondary

07/08 10 0 1 0 1 12

08/09 10 0 1 0 1 12

09/10 10 0 1 0 1 12

SC

07/08 270 18 64 7 51 410

08/09 270 18 65 7 53 413

09/10 270 18 65 7 53 413

HSC

07/08 941 38 114 58 167 1318

08/09 1033 40 130 68 172 1443

09/10 1132 42 140 68 177 1559

Vocational/HND

07/08 170 8 43 14 90 325

08/09 170 9 44 14 103 340

09/10 170 9 45 14 107 345

Degree

07/08 640 214 65 108 202 1229

08/09 748 216 68 108 216 1356

09/10 877 218 72 108 228 1503

Post-Graduate

07/08 193 101 6 15 48 363

08/09 199 103 6 15 48 371

09/10 202 108 6 15 48 379

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technology that have been put in place to sustain the business in this digital age. This definitely leadsto empowerment of their staff (86 percent trained for employee empowerment) and can ultimatelyhave a direct impact on the quality of services/products (96 percent found improving quality ofservices to be important).

To gain a competitive edge, companies also had to continuously comply with international normsand regulations. Capacity building is a very important aspect to allow staff to sharpen the saw toremain competitive and ensure that the business is more profitable over time.

Figure 5.26: Reasons for training employees

Question 10State the number of employees trained/to be trained by occupational group

Note: This question attracted very few companies; only 1-10 companies out of 70 answered Question10. The figures in bracket denote the response rate.

The survey results indicated that employers were more likely to provide formal training to moreeducated group of workers. Technical skills, in particular, must be continuously renewed. In addition,the labour market has become a turbulent place. The notion of "a job for life" or of a steady, orderlyclimb up the ladder of one organisation, have almost become relics of our industrial past.

Important

Unimportant

Neither unimportant nor important

1%

1%

1%9%

90%

3%

96%

4%

97%

3%

17%

80%

13%

86%

4%

95%

To remain competitiveTo remain competitive

Empower new recruitsEmpower new recruits To improve quality of To improve quality of services/productsservices/products

To comply with labour or environmental To comply with labour or environmental standards or regulationsstandards or regulations

To use new technology To use new technology or machineryor machinery

To comply with new standards To comply with new standards and specificationsand specifications

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Table 5.28: Percentage of employees trained/to be trained by occupational group, 2007-2010

The poor response to this question shows a lack of HR planning. This gives rise to several questionslike: Are training institutions sufficiently empowered to conduct Training Needs Analysis (TNA)?Are employers aware of the importance of HR planning? Without identification of the training needs,it is practically impossible to develop an effective training plan!

This survey shows that manual workers were far more likely to receive training in the workplacethan Senior Officials & Managers and Professionals; on-the-job training has been historically designedfor manual workers and classroom-based training is still popular among Senior Officials & Managersand same is expected to grow. It is also important to note that a relatively higher percentage of SeniorOfficials & Managers went abroad for training.

A high percentage (80 percent) of Professionals had been trained by training institutions and above50 percent had obtained training on-the-job in year 2007/08. However, these figures might registera decrease for the following years.Technicians & Associate Professionals were provided with more on-the-job training rather thanoverseas training. The percentage of Clerks that had been trained was low compared to other category of workers.All the Service Workers were trained at training institutions followed by on-the-job training. It isimportant to note that they had been provided with overseas training too.

SSenior Officials & Managers

07/08 8 %

08/09 9 %

09/10 % %

Training Institution (11.4) 83.1 (5.7) 73.9 (4.3) 100.0

On-the-Job (2.9) 18.9 (0.0) 0.0 (0.0) 0.0

Abroad (14.3) 28.3 (7.1) 41.7 (4.3) 54.8

Professionals

Training Institution (8.6) 86.0 (2.9 4.2 (2.9) 8.8

On-the-Job (12.9) 50.8 (2.9) 19.0 (4.3) 13.0

Abroad (5.7) 16.4 (4.3) 2.7 (4.3) 4.1

Technicians & Associate Professionals


On-the-Job (24.3) 53.8 (12.9) 60.4 (12.9) 69.4

Abroad (1.4) 16.7 (2.9) 1.6 (2.9) 1.9

Clerks


On-the-Job (7.1) 39.9 (5.7) 26.3 (2.9) 32.8

Abroad (91.4) 7.1 (0.0) 0.0 (0.0) 0.0

Service Workers


On-the-Job (4.3) 46.2 (1.4) 25.0 (1.4) 22.2

Abroad (1.4) 11.5 (0.0) 0.0 (0.0) 0.0

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It should be noted that coaching is now a popular method of reinforcing and following up on trainingwhere many companies might be using this technique for Senior Officials & Managers.

Investment in trainingAmount spent annually

Table 5.29: Amount spent annually in training, 2007-2010

A lot of money was spent on training in year 2007/2008 compared to what has been planned for thefollowing two years. It seemed that training for the coming years had not yet been planned adequately.However from this survey, one important shortcoming has emerged-lack of proper planning or is it lackof internal capacity for such exercises. This may be associated with the difficulty in obtaining adequateassistance from senior line managers or directors to develop an adequate training strategy or may besenior managers and directors had a poor understanding of training and development.

RRs 000 2007/2008 2008/2009 2009/2010 Senior Officials

and Managers

No. PPercent NNo. PPercent NNo. PPercent 0 1 5.9 - - -

1 -25 2 11.8 3 33.3 2 33.3

26 -50 5 29.4 2 22.2 2 33.3

More than 50 9 52.9 4 44.4 2 33.3

Total 17 9 6

Professionals

0 5 33.3 - - - -

1 -25 4 26.7 1 16.7 2 28.6

26 -50 1 6.7 2 33.3 1 14.3

More than 50 5 33.3 3 50.0 4 57.1

Total 15 6 7


0 8 38.1 3 30.0 2 20.0

1 -25 3 14.3 3 30.0 3 30.0

26 -50 3 14.3 1 10.0 2 20.0

More than 50 7 33.3 3 30.0 3 30.0 Total

21

10

10

Clerks

0 1 14.3 1 25.0 - -

1 -25 2 28.6 1 25.0 1 50

26 -50 1 14.3 1 25.0 - -

More than 50 3 42.9 1 25.0 1 50

Total 7 4 2


0 2 40.0 - -

1 -25 1 20.0 - -

26 -50 0 0.0 - -

More than 50 2 40.0 - -

Total 5 - -

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Duration of training

Table 5.30: Duration of training - Senior Officials and Managers

It is worth noting that training was provided to employees at the top management level mostly withduration of more than 161 hours in year 2007/08 and the companies proposed to continue with thesame trend in years 2008 to 2010.

Table 5.31: Duration of training - Professionals

The same trend was found among Professionals where training was mostly of duration of more than161 hours and between 41-80 hours. The companies did not plan to provide training for short durationin the following years. The expected Return on Investment (ROI) might not have materialised withshort duration courses.

Table 5.32: Duration of training - Technicians & Associate Professionals

PPercent Senior Officials and Managers 2007/2008 2008/2009 2009/2010

No training 75.0 86.8 91.2

1 -3 hours 1.5 - -

7 -12 hours 4.4 1.5 1.5

13 -40 hours 2.9 1.5 1.5

41 -80 hours 2.9 1.5 1.5

81 -160 hours 1.5 1.5 -

161 hours onwards 11.8 7.4 4.4

PPercent Professionals 2007/2008 2008/2009 2009/2010

No training 65.1 86.0 83.7

1 -3 hours 2.3 - -

4 -6 hours 2.3 - -

7 -12 hours 2.3 - -

13 -40 hours 4.7 2.3 2.3

41 -80 hours 7.0 2.3 2.3

81 -160 hours 2.3 2.3 2.3


PPercent Technicians & Associate Professionals 2007/2008 2008/2009 2009/2010

No training 63.6 81.8 83.6

1 -3 hours 1.8 - -

7 -12 hours 3.6 1.8 -

13 -40 hours 5.5 - -

41 -80 hours 5.5 1.8 1.8

81 -160 hours 1.8 1.8 1.8

161 hours onwards 18.2 12.7 12.7

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Most Technicians & Associate Professionals had been trained for a duration of more than 161 hours andthe same trend was proposed for the years 2008/09 and 2009/10.

Table 5.33: Duration of training - Clerks

More and more companies intended to provide training to Clerks for a longer duration. It might bepossible that short duration courses were too intensive and employees might not be able to acquire theskills in a short lapse of time where hands-on practice is essential as a part of occupational training asdemonstrated in Question 19.

Table 5.34: Duration of training - Service workers

The trend is reversed for Service Workers where training was provided for shorter duration as well.However for the future, it was planned that training would be provided uniquely for a duration of 161hours onwards.

Our economy should be moving towards a high performance/high skilled economy but it can only beachieved if more investment in training, particularly through workplace learning, is undertaken. May beone of the reasons for this, as our survey suggests, was that a minority of senior managers and directorswere insufficiently committed to developing their employees. Unless buy-in is obtained from the topmanagement, employees at the lower level of the hierarchy are bound to work without sufficient training.

PPercent Clerksks 2007/2008 2008/2009 2009/2010

No training 85.7 91.8 95

7 -12 hours 2.0 - -

81 -160 hours 2.0 - -

161 hours onwards 10.2 8.2 5

PPercent Service WorkersService Workers 2007/2008 2008/2009 2009/2010

No training 82.1 96.4 96.4

1 -3 hours 7.1 - -

4 -6 hours 3.6 -41- 80 hours 3.6 - -

-


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Question 11In case you have to re-skill your employees, which of the following will you use?

Table 5.35: Ways of re-skilling employees

Re-skilling keeps employees in touch with the dynamic needs of the industry and prepares them totake up newer responsibilities.

68.6 percent of respondents chose to re-skill their employees through in-house training programmes.This may be explained due to the fact that they found it difficult to release their staff for training anddisrupt office work. Also, through in-house training programmes, the course may be customised tomeet the requirements of employers for specific activities and for a better follow up. Only 5.7 percentpreferred overseas training to re-skill their employees. This mode generally incurs more cost.

Question 12Are you aware of the HRDC Levy Grant Scheme (LGS)?

The HRDC Levy Grant Scheme exists in Mauritius since 1989 and was previously managed by theIVTB.

Since year 2003, the HRDC has been vested with the responsibility to administer, control and operatethe National Training Fund (NTF). This Fund provides the necessary incentive to employers todevelop their human resources. Only employers contributing to the levy (1 percent of employee’sbasic monthly salary) are eligible. The training has to be job-related and must lead to acquisition ofnew skills.

This scheme aims at encouraging a targeted approach to training whereby the ultimate long termobjective would be to develop a training grant system where all training conducted by firms wouldbe based on a proper TNA and a corporate training plan.

70 percent of the private companies of the ICT community reported of being aware of this scheme.It is high time that for the 30 percent, a communication programme be put in place so that a maximumnumber of employees can benefit from it and hence help build a pool of capable human resource toface the challenges posed by phenomena like globalisation.

PPercent In -house training programmes 68.6 Resort to private training institutions 45.7 Training needs analysis 35.7 Seeking help from the government 17.1 Overseas Training 5.7 Other 8.6 Nothing 2.9

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Figure 5.27: Awareness of the HRDC Levy Grant Scheme

Question 13Have you taken advantage of the HRDC Levy Grant Scheme?

\Among those who were aware, only 55.1 percent had taken advantage of the scheme. It is crucial at thisstage, where the Government’s vision is to make Mauritius a Knowledge Hub, to put a lot of emphasis ontraining and sensitising employers on the benefits of training and the payback this scheme can bring totheir organisations.

Question 14 (a)If yes, from where did your employees get your training?

Figure 5.28: Location of training

Among those who took advantage of the Levy Grant Scheme, 51.9 percent went for an in-house training.It is important to note that 66.7 percent of the respondents sought the help of private training institutionswhich depicts the level of trust put in the private sector which is also an opportunity for private trainingproviders. 40.7 percent of companies sought the help of overseas organisations. Only 22.2 percent tookthe services of Government training centres. It may be concluded that the training facilities provided bythe Government might need revisiting to encourage its utilisation or availability of such facilities bettercommunicated to stakeholders.

30%

70%

Aware of HRDC LGS

Not Aware of HRDC LGS

% o

f Res

pond

ents

% o

f Res

pond

ents

Location for obtaining trainingLocation for obtaining training

70

60

50

40

30

20

10

0Private training

centresIn housetraining

Overseas training

Governmenttrainingcentres

66.7

51.9

40.7

22.2

220

Question 14 (b)If no, why?

Table 5.36: Reasons for not taking advantage of the HRDC Levy Grant Scheme

37 percent did not use the LGS because there were no trainers available for the specific fields theywere looking for. 25.9 percent informed that no training cost had been incurred yet. It is alsointeresting to note that 14.8 percent provided training on their own and thus did not claim for refund.7.4 percent did not require these services yet.

Others also informed that they did not find it needful to train their employees yet. A few reportedthe system to be too complicated and also that they did not have enough information about the systemand its procedures.

RReason Percent

No trainers are available for specific fields 37.0

No training cost incurred yet 25.9

We provide our own training 14.8

Help of HRDC has not yet been required 7.4

No need to train employees yet 7.4

Employees already trained 3.7

System is too complicated 3.7

Do not have enough information about the system and its procedures 3.7

Training is free 3.7

Training centres are too far 3.7

Because the company does not pay levy 3.7

Others 7.4

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Question 15What are your views regarding the HRDC Levy Grant Scheme?

Table 5.37: Views regarding the HRDC Levy Grant Scheme

20.4 percent of respondents thought that the Levy Grant Scheme encouraged enterprises to train theiremployees. 14.3 percent replied that it is a good system to encourage improvement of skills and use oflatest technologies.

It should also be noted that 8.2 percent opined that the system is complex. However, given that presentlythe levy grant system is being computerised and online services will be made available to stakeholders,it might become simpler to use.

From responses to Questions 14 and 15, it had been found that the system might not be user-friendly.Therefore, the system might be re-engineered carefully so that it minimises bureaucracy and avoids beingoverly prescriptive, but flexible to let maximum employers and employees to benefit from it. It is alsocrucial that other relevant agencies like MQA and TEC work in tandem to facilitate the linked processesapplicable to its users.

PPercent

It encourages enterprises to train their employees 20.4Good system encouraging improvement of skills and use of technologies

14.3

Complicated procedures to obtain grants 8.2It takes time to recover money spent on training -

scheme is very slow 4.1

Fund received is not enough 2.0

It helps in investing in new technology 2.0

The system should be less bureaucratic 2.0

Limit of grant should be reviewed 2.0

Limited information available on the scheme 2.0

Refunds not available in time 2.0

Refund is not flexible enough 2.0

HRDC & MQA should work in collaboration 2.0

Others 2.0

Nothing 2.0

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Question 16Have your employees benefited from the training facilities provided by the followingorganisations?Employers did not seem to use free services from the Government but preferred to take the servicesof private providers.

Table 5.38: Percentage of companies whose employees benefited from training facilities provided by the organisations

The least popular training facilities used were Government training centres. Most of the respondentsdid not make use of facilities offered by the Government institutions like Ministries, IVTB, SEHDA,Enterprise Mauritius, Polytechnics etc which might imply that the funds injected by the Governmentin these Publicly-Funded Institutions were not meeting their objectives to its optimum. However,may be the facilities of these public institutions are not up-to-date or do not meet the required standard. It is therefore imperative that appropriate strategies be crafted to ensure that useable conveniences be made available and communicated to stakeholders.

Not surprisingly, the most popular choice of firms was in-house training. 66.7 percent of respondentsbenefited from in-house training facilities followed by 63 percent who took the services of privatetraining institutions. Most of the respondents surveyed agreed that training increased efficiency oftheir workers since it improved their skills. 81.5 percent of companies surveyed benefited from othertraining amenities emanating from institutions like UoM, UTM, MEF etc.

OOrganisations Yes No % Yes % No Details provided by respondents

Ministry 1 26 3.7 96.3 ❑ Increase in efficiency

SEHDA 1 26 3.7 96.3 ❑ Improved productivity

IVTB 4 23 14.8 85.2 ❑ Improved productivity (25%)❑ Improvement in skill (25%)❑ Employees have become more creative (25%)❑ Employees are more motivated to work (25%)

Enterprise Mauritius

1 26 3.7 96.3 ❑ Improved productivity

Polytechnics 0 27 0.0 100.0

Private Training Institutions

17 10 63.0 37.0 ❑ Increase in efficiency (42.9%)❑ Job is being done better (14.3%)❑ Improvement in skill (14.3%)❑ Improved productivity (4.8%)❑ Better team spirit is prevailing (4.8%)❑ Better service is being provided (4.8%)❑ Improved performance of employees (4.8%)❑ Employees have become more computer literate

(4.8%)❑ Employees have acquired more knowledge (4.8%)

In-house training

18 9 66.7 33.3 ❑ Improved productivity❑ Increase in efficiency❑ Job is being done better❑ Improvement in skill❑ Better service is being provided

Others 5 22 18.5 81.5 ❑ Increase in efficiency (16.7%)❑ Improvement in skill (33.3%)❑ Better service is being provided (33.3%)❑ Employees have acquired more knowledge (16.7%)

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Question 17What are the difficulties you usually encounter when you plan to train your employees?

The survey looked for the barriers that employers face when planning training for workers. A few firmsmay fear that generic training at lower levels could lead to other firms poaching their workers. Below isa list of constraints encountered by Mauritian ICT companies surveyed:

Table 5.39: Difficulties companies usually encounter when planning to train employees

More than 50 percent of respondents had found high cost to be the main difficulty encountered whenplanning training.

It is important to tackle immediately the financial barriers to learning that employers and learners faceand widen access to learning.

Since employees are not definitively attached to an employer, they may quit after being trained whileemployers lose their investment in human capital. 45.7 percent of participants had reported thatemployees tend to quit after being trained which seemed to be a genuine problem for employers whoinvested in training their staff to improve productivity.

It has therefore become essential to sensitise employers who find it difficult to value the indirect benefitsof training, such as reductions in staff turnover and improvement in morale and motivation, all of whichalso contribute to efficiency.

34.3 percent reported that they cannot release staff due to the limited number. These companies may lookfor other forms of training for example blended training, e-learning and distance learning to meet theirrequirements and employees too will not be deprived from continuous development in their career.

DDifficulties Percent

High cost 54.3 Employees tend to quit after being trained 45.7 Can't release due to limited number of staff 34.3 Lack of trainers 20.0 Training too theoretical 18.6 Inappropriate and irrelevant training programmes 14.3 Teaching not up to your desired level 11.4 Inappropriate location 7.1 Language used in training is too difficult 1.4 Other 8.6 Nothing 8.6

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Question 18What method(s) do you prefer to train your employees?

There are a variety of ways to train employees and deciding on which method is most appropriate forwhom is a key factor in successful employer engagement and Figure 5.29 gives an overview of thepreferences.

65 percent preferred lectures, 59 percent most preferred practical sessions in workshops and 33percent showed preference for this mode. 64 percent had a preference for mentoring and 44 percentliked job rotation as a form of training.

As our economy continues to shift toward education and skills as the basis of competitive success, wecannot afford, economically or politically, to ignore the post-secondary educational needs andaspirations of adults already in the work force. 70 percent of the companies preferred their employeesto go for formal qualifications namely Diploma/Certificate courses.

77 percent of companies preferred learning and development to occur and consequently performanceto improve, through discussion with colleagues in a supportive environment.

69 percent of the employers preferred the use of Audiovisuals/Multimedia as the teaching aid; aninnovative method of delivering work-focused intermediate skills whereas 60 percent desiredApprenticeship to increase the supply of skilled and trained manpower.

Efforts should be made by the Government to develop a knowledge-seeking culture amongMauritians in view of the rapid changes in technology and the increasing knowledge intensity of theeconomy. Lifelong learning should be promoted to enhance productivity and employability throughthe use of ICT, among others, distance learning and web-based learning to meet employer as well asindividual needs. More diversified courses should be offered in the distance learning mode to caterfor different levels of educational attainment and interest.

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Figure 5.29: Ways to train employees

Lecture Lecture

MentoringMentoring

ApprenticeshipApprenticeship Case StudyCase Study

Audiovisuals/MultimediaAudiovisuals/Multimedia Sharing Knowledge with more experienced colleaguesSharing Knowledge with more experienced colleagues

Formal qualifications (Diploma,Certificate etc...)Formal qualifications (Diploma,Certificate etc...)

Job rotationJob rotation

Practical sessions in workshopsPractical sessions in workshops

10%

6%

6%

20% 14%

60%

6%

14%

9%7% 14%

70%

13%6% 4%

77%

11%

69%

3%

3%

20%

56%

21%

24% 29%

44 %

14% 16%

84%

59%

4% 4%33%

9% 16%

65%

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Question 19Which of the following would you prefer for your future training programmes?

Figure 5.30: Preference for future training programmes

More than 50 percent of employers in the ICT sector preferred to have more hands-on practice forfuture training programmes and 37 percent preferred less theoretical course content. Trainingproviders should therefore ensure that they are meeting these needs of customers and might devisetraining programmes in line with their requirements.

With regard to the medium used, more than 55 percent preferred English and 31 percent choseFrench. However, a relatively small share (14 percent) had a preference for Creole.

More than 85 percent wished to have their courses delivered at an accessible location and only 14percent desired a central location. This requirement may be a hint for the course to be delivered in-house or at decentralised locations.

Almost an equal number of people preferred morning and afternoon classes. Only 27 percent wantedevening classes. These requirements could be incorporated in any policy being devised for trainingof staff.

ContentContent LanguageLanguage

TimingTimingLocationLocation

52%Less theoreticalMore theoreticalMore hands-on

CreoleFrenchEnglish

MorningAfternoonEvening

37%

11%

14%

55%

36%

27%37%

14%

31%

86%CentralAccessible

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Question 20During the last recruitment made, have you been able to employ candidates with the requiredskills, qualifications, experience?

Figure 5.31: Ability of employers to recruit people with the required skills, qualifications and work experience

Companies generally use various methods of assessing candidates before recruitment where weighting isgiven to skills, qualifications and work experience among other criteria. Recruitment process in generalcost companies money & time and on the other hand the ICT sector registers a high staff turnover.

More than 75 percent of respondents had been able to employ people with the required skills. Nearly oneout of every two companies could recruit people with work experience (55.7 percent) and above 80percent could recruit qualified people.

The Empowerment Programme has an important role to play to ensure fresh Graduates are being giventhe opportunity to be exposed to the world of work. School-to-work transitions could possibly beimproved through apprenticeships by incorporating it in the law to make them employable and promptlymeeting employers’ expectations.

The quality of people coming from training providers/universities seemed to be welcomed by employerssince 80 percent of them said that they had been able to recruit people with the required qualifications.

SkillsSkills QualificationsQualifications

Work Experience Work Experience

No 24%

Yes 76%

No 20%

No 44% Yes 56%

Yes 80%

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Question 21(a)Does your organisation have an in-house training centre?Merely 37.1 percent (representing 26 out of 70 ICT companies) of respondents had an in-housetraining centre where the highest number (9 companies) was from the ITES/BPO sector.

Figure 5.32: Percentage of organisations having an in-house training centre

Question 21(b)Does your organisation have an in-house training officer/manager?

80.8 percent of respondents had an in-house training officer/manager. It shows the commitment ofthese organisations to train and re-train their people who are considered as the most valuable assets.

Question 22State the number of employees who resigned from your organisation in the month of July2007.As stated earlier and evidences of the global trend, staff turnover for the ICT sector is quite high asshown in Table 5.40.

Table 5.40: Percentage of employees who resigned in the month of July 2007

37.1% have an in-house training centre

62.9% do not have an in-house training centre

NNo. of employees who resigned in June 2007 Percent

Computer equipment

and software -sale

Computer related

activities ITES/BPO

Software Consultancy

& Supply Telecommunications

0 60.0 24 3 3 5 7 1-3 25.7 4 1 4 5 4 4-9 8.6 0 0 3 0 3 10 & above 5.7 0 0 4 0 0

Total 28 4 14 10 14

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The highest staff turnover was observed in the ITES/BPO sector where in 4 such firms, 10 or more staffquit in the month of July 2007.

Question 23In the absence of natural resources, Mauritius has no choice but to reply on its human resources.According to you, what can be done to have a critical mass of human resources with right skillsand competencies?

The suggestions of ICT employers to have a critical mass of human resources with the right skills andcompetencies are summarised in Table 5.41.

Table 5.41: Suggestions to have a critical mass of human resources with the right skills and competencies that can be readily absorbed by our labour market

Computer equipment Computer Software

Suggestions Percent

Provide training facilities 20.0 Training and guidance should be given to students so as to get a balanced labour market 10.7

Provide training according to demand of labour market 9.3

Provide training in different fields 5.3

Review our education system to meet the needs of the labour market 5.3

Courses should be more technical oriented 2.7

Help young people to develop their skills 2.7

People must be prepared to work in different jobs 2.7

Labour force must be trained in new technologies in order to adapt to modern trends 2.7

Encourage students to participate in work placements and job fairs 2.7

Providing more training programs targeted at young people 2.7

Provide training in emerging sectors 2.7 Expose students to the world of work while they are still at school by organising regular visits to enterprises 2.7

Facilitate access to quality education 2.7

Encourage young people to choose vocational training programs 1.3 Government must inform population in which sector there is shortage of labour and encourage training in the particular sector

1.3 Create more training centres1.3

Intensive training courses should be made available to all people 1.3

Create awareness program based on different market areas 1.3

Increase wage rate levels 1.3

A training need analysis should be done 1.3

Training should be provided at a lower cost 1.3

More professional training and emphasis on personal development 1.3 Replace CPE by some other system as with actual system many candidates having good potential cannot be developed 1.3 Government should identify strengths of the country, develop it fully and make proper use of these strengths 1.3

Training curriculum at the university should be in line with business/market requirements 1.3

Include vocational training programs in secondary schools 1.3

Nothing 6.7

Others 1.3

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20 percent of participants opined that training facilities should be provided to ensure a critical massof human capital in the Mauritian market. Around 11 percent also believed that students andprospective employees should be properly informed about the demands of the industry. The careerguidance and counselling service offered might play a pivotal role to ensure it has the latest laboursupply & demand figures, the skills/competencies required and advise the Government and the publicat large accordingly. Policy makers should be well informed of the requirements of employers to beable to take wise decisions in terms of courses offered and act as a consultant for the private sectoron emerging opportunities.

Question 24In what ways can the present situation of under-employment be tackled?

Employers proposed a number of ways to tackle the present situation of under-employment whichare summarised in Table 5.42.

Table 5.42: Suggestions of ways to tackle the present situation of under-employment

SSuggestions Percent

Provide appropriate training 12.0

Create more job opportunities 8.0

Train employees in ICT so as they can easily join this sector 6.7

Encourages skill development program 5.3

Appoint candidates according to their skills 4.0

Motivate employees to work 4.0

Provide motivating salary package 2.7

Create more enterprises, small and medium included 4.0

Employees must be trained in more than one field in order to be multi - skilled 2.7

Working for longer hours of work 2.7

Employers must see to it that qualified employees are posted to the right job 2.7 Job seekers should be kept informed where jobs are available so that they can choose those that fit their skills and qualification 2.7 Regular assessment of employees and assign job accordingly 1.3

Appoint candidates according to their qualifications 1.3 Give job to employees according to their qualifications even if they don’t have experience in the job 1.3

Set up a database of human capacities so that we can organise resources better 1.3 Make forecasts so that where there is shortage of labour, in the future so as people can acquire training accordingly 1.3

Training should be given according to needs of labour market 1.3 Organise regular forums and meetings to make workers more aware of opportunities available 1.3

Redeployment of workers through training 1.3

Reallocation of job 1.3

Through job rotation 1.3

Stop political interferences 1.3 Research work and surveys must be carried out to find out fields in which people can work, be trained and give such work so as to make maximum use of their potential 1.3

Encourage people to work in call centres 1.3

Youngsters should be prepared to work at odd hours 1.3

Encourage foreigners to invest in sectors where there is underemployment 1.3

Encourage large international companies to outsource to Mauritius 1.3

Develop new industries 1.3

Sensitise employees about effect of absenteeism 1. 3

Create good working environment 1.3

Nothing 17.3

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A handful of companies believed that this can be done by building capacity and creating more jobopportunities.

A few companies cited the option of creating of small and medium enterprises which is an importantway to create employment and wealth.

Grouping the proposed solutions, the following ways have been cited� Motivate employees;� Give employees jobs according to their skills/qualifications; and� Provide reliable figures to train people according to the requirements of the labour market.

Mauritius is presently in the transition period trying to leave behind the developing state and becominga developed country. In this process, the work environment and conditions change very rapidly wherepeople have to adapt promptly to lubricate this development.

In order to catalyse this progression, sensitisation programmes need to be conducted to change themindset of Mauritians to accept this transformation e.g. working in call centres requires a new state ofmind and new skills to fit the specific requirements.

Where investors are on the look out of cheap and skilled labour, Mauritius needs to be attractive enoughfor them to outsource their activities or set up companies to absorb the local workforce as far as possible.

Question 25 (a)Is there a performance appraisal system in your organisation?

It is important to note that for private companies where the bottom line is profit maximisation, only 54.3percent had a performance appraisal system in place. Out of those that had an established performanceappraisal system, the majority was from companies involved in ITES/BPO activities.

Figure 5.33: Percentage of companies having a performance appraisal system in their organisation

46% do nothave a Performance

Appraisal System54% have a

PerformanceAppraisal System

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The possibility of those companies not aware of the benefits of such a system or not having the know-how could not be ignored. It has therefore become important to empower these companies to set upsuch internal systems that could not only help develop the capabilities of employees but would alsohave a direct impact on their performance.

Question 25 (b)What methods do you use to appraise your employees?

The ICT companies used an array of methods to conduct appraisal that are summarised in Table 5.43.

Table 5.43: Methods used to appraise employees

32.5 percent of respondents that had a performance appraisal system in place, assessed their employeesbased on work objectives set and agreed upon, measured according to key performance indicators.Others relied on productivity, attitude, behaviour and performance.

Question 26For each occupational group, rate the following skills/competencies according to theirimportance while recruiting people in your organisation.

Senior Officials & Managers

This position is at the strategic level of the organisation where informed decisions have to be taken.People in this position need to have the required leadership skills along with managerial skills, workexperience and technical/educational qualifications.

MMethods Percent

Work objectives are set, agreed upon and measured according to key performance indicators 32.5

Employee's performance is assessed yearly 12.5

Performance is assessed regularly to see if work assigned has been completed 7.5

Performance is assessed every 3 -6 months 7.5

Promotion based on productivity 5.0

Self appraisal 5.0Employees are assessed on four factors, namely, performance, conduct, ability to understand and attendance 5 .0Bonus is given to productive workers 2.5Employees are made accountable for their job 2.5Employees are required to perform certain number of duties in a day 2.5Monitor productivity and competencies 2.5Using an appraisal form to assess performance 2.5Performance evaluation 2.5By measuring attitude, performance and behaviour 2.5To see that goal of the organisation is achieved through mentoring 2.5Performance is assessed yearly & best performer is rewarded 2.5Competency evaluation 2.5

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Table 5.44: Skills/Competencies important while recruiting Senior Officials and Managers

Table 5.44 depicts that most respondents found managerial skills, work experience, technical capabilities,educational qualifications as well as general skills important for people holding the post of Senior Officials& Managers.

Professionals

All participants found that work experience and generic skills were important for Professionals. A largemajority felt that managerial skills as well as technical competencies and educational qualifications wereimportant for such job categories.

Table 5.45: Skills/Competencies important while recruiting Professionals


Only 55.2 percent of respondents said that managerial skills were important for Technicians and Associate Professionals to be able to perform. However, a large majority felt that work experience,technical capabilities, educational qualifications and generic skills were important.

SSkills/CompetenciesUnimportant

%


%Important

%

Managerial 2.9 0 97.1Work Experience 0 2.9 97.1Technical Capabilities 2.9 7.4 89.7Educational Qualifications 1.5 8.8 89.7Generic Skills 1.5 0 98.5


%


%Important

%

Managerial 0 11.6 88.4Work Experience 0 0 100Technical Capabilities 2.3 0 97.7Educational Qualifications 0 7.0 93.0Generic Skills 0 0 100

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Table 5.46: Skills/Competencies important while recruiting Technicians and Associate Professionals

Clerks

A bulk of employers felt that generic skills, educational qualifications and work experience in orderof importance were essential criteria for recruitment of Clerks. Managerial and technical capabilitieswere given less importance for this level of job.

Table 5.47: Skills/Competencies important while recruiting Clerks


Managerial skills did not seem to be important for Service and Sales Workers contrary to genericskills.

Table 5.48: Skills/Competencies important while recruiting Service Workers and Sales Workers


%


%Important

%

Managerial 3.4 41.4 55.2Work Experience 0 10.3 89.7Technical Capabilities 1.7 8.6 89.7Educational Qualifications 1.7 24.1 74.1Generic Skills 1.7 8.6 89.7


%


%Important

%

Managerial 28.6 26.5 44.9

Work Experience 12.2 24.5 63.3

Technical Capabilities 20.4 24.5 55.1

Educational Qualifications 8.2 16.3 75.5

Generic Skills 2.0 14.3 83.7


%


%Important

%


Work Experience 0 41.4 58.6


Educational Qualifications 0 34.5 65.5

Generic Skills 0 13.8 86.2

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Elementary Occupations

Table 5.49: Skills/Competencies important while recruiting Elementary Occupations

Above 60 percent of respondents had stated that managerial skills were not important for ElementaryOccupations while 56.3 percent opined that general skills were important.

Question 27Please state the field(s) in which it is difficult to recruit people for your organisation.

The absorptive capacity of public institutions is relatively small compared to the number required by theindustry. Thus, to address this shortfall, the Government might establish a consortium of public andprivate universities to offer distance learning courses and create a mass of qualified ICT professionals.

The following were found from the survey:� The ICT field had a range of job titles comprising mostly technical level people like Technicians,

Engineers, Web Designers, Programmers, Database Administrators, IT Security and so onpossessing Diploma and Degree level courses. Product oriented courses like MCSE, CCNA werealso required by employers. The ITES/BPO sector required Tele-agents possessing HSC andknowledge of French language.

� Telecommunications also seemed to be a field where engineers (Telecommunication PlanningEngineer, Transmission Engineer, Switch Engineer, and Value Added Service Engineers) wererequired by the ICT industry.

� The field of accounting required Account Clerks and Accountants with qualifications rangingfrom HSC to ACCA Levels 1 & 3 respectively.


%


%Important

%


Work Experience 25.0 50.0 25.0


Educational Qualifications 37.5 53.1 9.4

Generic Skills 6.3 37.5 56.3

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Table 5.50: List of field(s) in which it is difficult to recruit people

Field Job title Qualification

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Accounting & Finance

Accounting Accounts clerk HSC ACCA level 1

Manager ACCA level 3 Finance Accounts Officer ACCA level 1 Fraud Fraud Officer Degree in Finance

ITES/BPO

ITES/BPO Chat Operator SC Data Entry Operator Diploma in IT Tele Agent HSC Telemarketing Operator HSC & French language

ICT

Hardware and software Analyst Programmer Degree Computer Engineer BSc Computer Science Computer Technician HSC

Diploma in Computer Database Administrator BSc Computer Science ICT Engineer MCSE with experience Internet Café Operator HSC & A+ IT Security Officer Degree in IT Sales Executive BSc Management Senior Technician BSc Computer Science Software Developer Degree in IT Software Engineer BSc Software Engineering

BSc Computer Science BSc IT

Team Leader BSc IT Technical Assistant Diploma in IT Technician A+

BSc Computer Science CCNA, MCSE

Web Applications Architect Degree in ICT + experience Web Designer BSc Computer Science Programmer BSc Software Engineering .NET Developer

Multimedia Graphic Designer BSc IT and experience in Flash Enterprise Resource Planning Consultant Degree(ERP) ConsultancyTelecommunications Telecommunication Planning

Engineer BEng Transmission Engineer Switch Engineer Value Added Service EngineerEngineer BSc Engineering Communication & ElectronicsTelecom Engineer BSc Telecommunications

Others

Administration Administrative clerk HSC Confidential Assistant Secretarial Studies

Electrical Technician NTC 2Management Operation Management BSc ICT

Team Leader HSC and Experience Project Management Manager Degree Marketing Clearing Agent Degree in MarketingSales Sales Representative HSC plus experience Customer Service Communication Officer BSc Communication Transport Automotive Electrician NTC Driving Driver CPEMessenger Messenger CPE

Question 28State the fields in which you wish to train your employees for the next three years.

Table 5.51: Fields in which employers wish to train their employees for the next three years

The respondents required a spectrum of fields for training of employees and most of them gearing towardssoft skills (managerial skills) followed by ICT skills in specialised areas.

Field Course Level No. of employeesICTHardware and Software BSc IT 1

Programming 4Diploma 2BSc Science 3Junior Engineer 2Level 2 5

Networking Degree 3Software Skills Level 3 100.NET Advance 30Computer Repair Diploma 2BPO Certificate 2Telecommunications Junior Engineer 2Programming and Analyst Practical 6Engineering BSc 10Total 174ManagementLeadership Basic 20Management Level 3 100

BSc 1Post-Graduate 5

Marketing Diploma 10Level 2 3

Sales and Marketing Basic 42Team Building Basic 40HR Diploma 1Communication Basic 150Customer Service Basic 42French Language Intermediate 15Total 429OthersFinance Basic 20ACCA Level 2 3

Level 3 5Engine Automation Diploma 3Total 31

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Question 29Please state area(s) in which it is difficult to find local trainer for your employees.

Employers faced these 2 main difficulties in finding local trainers in the specified areas as follows:

1. No availability of qualified trainers locally in the fields

� Siebel from ITES/BPO sector – (includes marketing and customer service applications,including customer relationship management (CRM))

� Software Languages� Software Engineering� Engine Automation � Web Applications� ACCPAC - (includes accounting, CRM and business management software) � ACCA � Network/Telecommunication� Marketing of mobile services � M2M Systems � PASTEL � Leadership � Microsoft Project � Management Development � Project Management � Coaching

2. Nobody is interested to provide such course

� Network Structured Cabling

Respondents reported that qualified trainers were not available locally in various fields which includesSiebel, networking and engine automation. Employers could have the perception that suchcompetencies were not available locally. In this respect, agencies like MQA and TEC might publishup-to-date user-friendly information on trainers and their fields of competence, list of traininginstitutions registered and their respective approved and accredited courses for employers to havetimely information whenever their services were required. Train-the-trainer programmes could beorganised with the assistance of foreign talents in scarce areas and ensure proper transfer of knowledge.

Question 30Do you have a career plan for your employees once recruited by your organisation?

It is essential to note that above three quarter of respondents (75.7 percent) did not have a career planfor their employees. This may be associated with the fact that employers lacked the aspect of planning.Employers have to be sensitised on the advantages of career planning to their business.

If yes, give a brief explanation.

The following were given as explanations for having in place a career plan:� Employees can move to superior grades (64.7 percent)� Employees can move to higher grades depending on their performance (17.6 percent)� Promote employees after a certain number of years of service (5.9 percent)� There is a rotation system so that everyone can work at various levels in the organisation (5.9

percent)� Employees are given training (5.9 percent)

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Most replies were pointing towards the promotion of employees to occupy higher posts at their place ofwork, where a few specified that this could be possible depending on their performance and othersdepending on the number of years of service.

Question 31Do you have a program/scheme to redeploy your workers?

In this changing world it is not uncommon for new markets and products to open (and close) rapidly.Companies need to have a strategy to remain "agile" and to redeploy people, and resources rapidly fromareas of low return to areas of a higher return.

This study revealed that 88.6 percent of respondents did not have a program/scheme to redeploy theirworkers. The ICT sector comprised 91.7 percent of employees with at least an SC. Nevertheless, given thatfew organisations had an established scheme for redeployment, it has become more important for themto ensure that their people across the board are well equipped with skills and competencies to be able tofind a job in case of crisis.

If yes, give a brief explanation.

Three quarter of the 8 companies did not have such a scheme to redeploy their employees in their sisterorganisations/within the group.Others (12.5 percent) intended to re-orient the companies into another business and the remaining woulduse their networking relationships for redeployment.

Those companies that had a scheme for redeployment, the following were proposed:� To redeploy employees in sister company (50.0 percent)� To redeploy within the group (25.0 percent)� To re-orient the company into another business (12.5 percent)� To deploy to another company with which they have good relationship (12.5 percent)

Figure 5.34: Schemes/Programs in place for re-deployment

12.5% deployed to anothercompany where we have

good relationship

12.5% re-orientthe company intoanother business

75.0% redeployemployees in sistercompany/within

the group

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Question 32Kindly suggest any scheme(s)/incentive(s)/support that would motivate you to train youremployees.

Employers in the ICT sector tendered the following schemes that could motivate them to train theiremployees:

Table 5.52: Suggestions of schemes/incentives/support that motivate employers to train employees

Most of the incentives cited were geared towards financial support for training. This is an importantpoint to be noted since it might happen that the cost of training might not be affordable for smallestablishments and at the same time to release their staff. Flexible and relaxed procedures were alsoon the agenda as an incentive for promoting training.

A few even proposed to improve the training infrastructure and share resources between public andprivate sectors. It is essential to highlight that the results of Question 16 depicted that an insignificantnumber of ICT companies had utilised Government-funded training resources.

Question 33 (a)Do you employ expatriates?

The employment of foreign labour becomes almost inevitable where there are marked shortages ofskills locally.Only around one quarter (25.7 percent) of the respondents in the ICT sector employed expatriateswhere above 50 percent were working in the ITES/BPO sector and around 28 percent belonged tothe telecommunications sector. Question 8 portrayed that the ICT companies had planned to recruitan insignificant number of foreign workers. It is important to note that access to skilled foreignworkers is vital to make up the labour deficit in the ICT sector and transfer of knowledge.

PPercent Financial assistance should be provided by established institutions or government 9.6

Lower cost of training programmes 8.2

Give sponsored training 6.8

Provide training specific to our sector of operation 4.1

Provide free training programmes 4.1

Refund of training cost 4.1

Increase the refund rate 2.7

Repayment of grant should be more flexible 2.7

On -the -job training approved by Government organisations 2.7

Increase in salary 2.7

Employees should be promoted after training 2.7

Simplify procedures for refund 1.4

Refund should be made more rapidly 1.4Law to prevent employees from leaving the organisation after being trained 1.4

To give approved courses 1.4

Refund all cost incurred on training 1.4

Setting up of more MQA approved courses 1.4Setting up of better and more training infrastructure around the island 1.4

Provide stipend to employees during training period 1.4

Sharing of resources between private and public sector 1.4

Reward most performing and regular employees 1.4HRDC should provide a list of MQA approved training programs so that we can train employees accordingly 1.4Payment of one increment after training 1.4Nothing 32.8

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Statistics revealed that there were 292 valid work permits as at end of June 2006 and 311 in 2006.

Source: Employment Service, Monthly Bulletin, Ministry of Labour, Industrial Relations and Employment-2008

The world economy is heading towards a state of affairs underpinned by a knowledge-based society. Inresponse to this challenge and to sustain a competitive edge in the world market, the Government hasbeen making efforts to attract foreign investment and experts in emerging sectors where Mauritius hasthe potential. The Business Facilitation Act 2006 was introduced to address such situations to attractskilled foreign workers in specialised occupations, such as ICT and other emerging sectors like Finance& Tourism and also to promote labour mobility. Procedures have become more relaxed. This is in linewith the international trend of dismantlement of trade barriers in order to facilitate cross-border trade.

Question 33 (b)If yes, what is/are the main reasons for employing expatriates in your organisation?

Figure 5.35: Reasons for employing expatriates

Of those who employed expatriates, 78 percent had recruited them because of the lack of locally trainedpeople in related fields. 56 percent had reported that there was a lack of locally qualified manpower. Unwillingness of locals to work at odd hours had been rated low. It might be due to the fact that localsare now getting used to the new work style Mauritius has been exposed to and given that the number ofcall centres has been on the rise (above 185, BOI Sep 07). Not to ignore are the various communicationprogrammes that had been launched by agencies to sensitise people on the opportunities offered by thisemerging sector.The MEF Annual Business Trends Survey 2007 showed that skills shortages are mostly anticipated inmanagement, professional and technical positions with respondents to the survey expecting this trend to

YYear 2001 2002 2003 2004 2005 2006 20072008

(as at 31 March 2008)

No. of work permits issuedin the ICT Sector

132 179 174 216 261 225 124 47

No. of expatriates working in Mauritius in the ICT Sector

- - - 238 314 304 277 229

90

80

70

60

50

40

30

20

10

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55.6

16.7

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ReasonsReasons

Lack of localtrained in related

fields

Lack of qualifiedlocals

Unwillingness oflocals to workodd hours/shift

system

High labour costwhile recruiting

locals

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continue in the medium term.

The success of the Mauritian economy, therefore, will be determined by the quality of the humanresources available, with the local workforce being supplemented by foreign labour.

Question 34State the number of unfilled vacancies (up to June 2007) in your organisation.

Table 5.53: Number of unfilled vacancies (up to June 2007) per field of activity

Job title No. of unfilled vacancies Qualification required

Computer Equipment and Software-Sale

Technician 5 CCNA, MCSEInternet Café Operator 3 HSC and A+ Sales Executive 2 Diploma in Marketing IT Technician 1 MCSE Store Keeper 1 HSC Computer Technician 1 SC Technician 1 HSC Salesgirl 1 SC Confidential Assistant 1 Secretarial Studies Total 16

Computer Related Activities

Product Manager 10 BSc Engineering Asst Accountant 7 ACCA Level 1 Project Manager 5 MSc Project Management Accounts Manager 5 BSc Finance Software Engineer 2 BSc Software Engineer Electrician 1 NTC 2 Accounts Clerk 1 HSC Legal Officer 1 BSc Law Total 32

ITES/BPO

Tele agent 200 HSC Chat Operator 75 SC Accounts Officer 65 ACCA Level 1 Telemarketing Operator 58 HSC Telemarketer 25 HSC Claims Agent 25 HSC Supervisor 20 HSC Maquettiste 6 HSC and NTC 2 Payroll Agent 5 HSC Software Engineer 5 BSc Software Engineering Telemarketing Supervisor 2 HSC Programmer 1 BSc Software Engineering Team Leader 1 BSc IT Secretary 1 BSc Public Administration Manager 1 MBA Total 490

Software Consultancy & Supply

Software Developer 14 BSc Software Engineering Software Consultant 3 BSc Team Leader 2 BSc Software Engineering and Experience Receptionist 1 SC and Experience Hardware Technician 1 Diploma in IT Software Technician 1 Diploma in IT Total 22

Telecommunications

Sales Representative 4 HSC plus experience Chartered Accountant 3 ACCA Level 3 Project Manager 1 Degree Automotive Electrician 1 IVTB

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During the Plan period, an array of qualifications were required varying from basic secondaryqualifications to Degree and Masters level course.

HSC was the most required qualification with 353 unfilled vacancies with this requirement. Employersrequired 78 SC holders and 75 people with ACCA Level 1-3, 48 Degree holders, 6 people with CCNA,MCSE certifications, 6 Diploma holders, 6 employees with Masters and 4 with technical/vocationalqualifications.

Most of the unfilled vacancies were in the field of ITES/BPO. Employers in the field of ITES/BPO required200 tele-agents; this confirms that the sector has already taken off in Mauritius and the Governmentshould capitalise on the opportunities and build capacity to meet this demand, guide the population todevelop the required skills and competencies to become employable. Continuous sensitisation of peopleon the new working environment and requirement of a new mindset are also essential.

The NICTSP has made provision for the setting up of a BPO training centre to build capacity in this fieldwhere training is expected to be provided in several batches to people who intend to join this growingsector.

In a nutshell, the ICT sector required large majority of people with core ICT skills: in both hardware andsoftware.

Job title No. of unfilled vacancies Qualification required

Telecommunications Sales Representative 1 HSC with marketing Sales Executive 1 BSc Telecom Engineer 1 BSc Telecommunications Accounts Clerk 1 HSC plus experience Technical Professional 1 IVTB Total 14

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The ICT SectorManpower Projections for the ICT Sector, 2007 - 2010

Projection for the years 2007 to 2010 of the number of employees was conducted using a multiplelinear regression model for the period 2000-2006. The total number of employees in the ICT sector wasthe dependent variable and the variables that would explain for the variation in the number ofemployees contained:

� Total employment;� Number of establishments;� Contribution to GDP;� Value-added of the ICT sector; and� Export of ICT Services

A positive relationship was found between the number of people employed and contribution to GDPby the sector to the national economy. The R2 was found to be 0.957. Therefore contribution to GDPaccounted for around 96 percent of the variation in employment in the ICT sector for the period 2000-2006. Using this model, assuming that the relationship between the contribution to GDP andemployment follows a positive linear trend, prediction for the years 2007 to 2010 was conducted(Figure 5.36).

Table 5.54: Number of employees, 2000-2010

* Estimated by HRDC** Projected by HRDC

A steady increase of 5 percent annually is expected in the number of employees as illustrated inFigure 5.36.

YYear Total number of employees

2000 5893

2001 6560

2002 7040

2003 7900

2004 8375

2005 9045

2006 9676

2007* 10206

2008** 10784

2009** 11363

2010** 11942

Figure 5.36: Trend in employment, 2000-2010

An overall increase of 16 percent in employment is projected from 2007 to 2010 and a rise of 11 percentfrom 2008 to 2010. The number of workers in the ICT sector is expected to reach around 12 000 in 2010;this figure could inflate in case the objectives set by the NICTSP are met.

Table 5.55: Estimated Number of employees per occupational group, 2007-2010

According to the survey, it is expected that the number of employees would increase across almost alloccupational categories. As found in the survey at Question 7, the occurrence of Clerical Workers rankedhighest. The share of experts, that is Professionals and Technicians & Associate Professionals togetherrepresented the highest percentage of employment (49 percent of total employment). A slight decreaseis expected among Skilled Agricultural Workers. Salespersons would represent a significant share ofemployment; however this figure would record a decrease. Elementary Occupations comprising mainlyAttendants would stagnate from 2007 to 2010.

Therefore, the results give a convex shape to the number of workers in the category of occupationsstarting from the Senior Officials to Professionals, Technicians & Associate Professionals, ClericalWorkers to Skilled Agricultural Workers. Low skilled workers are expected to be least in number in theICT sector.

Occupational Group Estimated number of employees as at June 2007 2007/08 2008/09 2009/10

Senior Officials and Managers 914 898 902 904

Professionals 2597 2644 2743 2776

Technicians and Associate Professionals 2439 2693 2935 3174

Clerks 3062 3 379 3 613 3 928

Service Workers & Sales Workers 860 841 838 830

Supervisors, Foremen and Sirdars 37 35 35 34

Skilled Agricultural Workers 6 5 5 5

Craft and Related Trade Workers 17 16 16 16

Plant and Machine Operators & Assemblers 65 65 67 65

Elementary Occupations 209 206 210 210

Total 10205 10784 11363 11942

13000

120000

110000

10000

9000

8000

7000

6000

5000

4000

Num

ber o

f em

ploy

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Num

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f em

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YearYear

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

5893

6560 7040

7900 8375

9045 9676

10206 10784

1194211363

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educational qualification, 2007-2010

*N.A.D.: Not Adequately Defined

This sector is expected to provide more opportunities to HSC and Degree holders as well as Post-Graduates. This survey found that the number of people in employment would be mostly HSCholders. This is in line with the results of the previous table where it was found that mainly Clerkswould be in employment, and generally HSC is a prerequisite for obtaining such a post.

It is also expected that employers would be employing 3 336 Degree holders in 2007/08 followed by1 113 SC holders.Highest percentage increase is forecasted among HSC holders (33 percent), Vocational/HND (25percent) and Degree holders (22 percent) from 2007 to 2010. A decrease in the recruitment of thosewith no formal education and those not having completed their secondary education is noted from2007 to 2010. It is predicted that there would hardly be any improvement in the recruitment of CPEpassed and Post-Graduates as the highest qualification.

This survey again affirms that unskilled people with low level of education would find it more andmore difficult to find a job.

Conclusion & Recommendation

Information and Communication Technology is another pillar in the Policy Agenda of theGovernment. The various initiatives clearly spell out the Government’s commitment to develop aglobally competitive ICT industry, and transform the country into a Cyber Island.

In addition, achieving this Plan’s ambition will bring huge and lasting benefits to the Mauritianeconomy. ICT is only an enabler—a necessary but not sufficient condition for productivity growthand transformational improvements. Unless organisations have appropriate policies and supportiveenvironments in place, the desired outcomes will not necessarily occur.

Productivity growth will often depend on organisational transformation aimed at improving thecapacity and capabilities of the organisation to address its future business environment moreeffectively than in the past. The organisational processes associated with ICT implementation, aswell as the ICT system itself, may produce direct productivity improvements. There may be additionalbenefits in new and greater skills and knowledge, together with a culture more conducive to changeand innovation.

Highest Educational Qualification Estimated number of employees

as at June 2007 2007/08 2008/09 2009/10

Post -Graduate 990 985 987 993Degree 3229 3336 3608 3936Vocational/HND 725 882 905 904Higher School Certificate (HSC) 3068 3577 3839 4083School Certificate (SC) 987 1113 1099 1082Incomplete Secondary 34 33 32 31Pre -vocational 180 176 173 170CPE Passed 102 98 101 102Incomplete Primary 37 38 40 39No formal education 11 11 11 10N.A.D* 843 535 569 592Total 10205 10784 11363 11942

This study has provided with sufficient evidence that the Mauritian ICT industry can undoubtedly becomethe 5th pillar of the economy. To position Mauritius as the most attractive trade and investment hub ofthe region, components of its institutional infrastructure and the quality of its workforce must be attunedto global competition.

From the perspective of the ITES/BPO sector, it is unanimously agreed that the greatest problem lies inthe cost of international connectivity via broadband, where costs have remained high and skilledworkforce ready to work at atypical hours scarce. Hence, it is urgent to address these pressing problemsfor Mauritius to fully reap the benefits of the ICT revolution. For Mauritius to become a global player, itneeds to create a robust domestic economy with solid international connections.

Given that small companies are the major sources of job creation, Government should supportparticipation of SMEs in creating more dynamic and innovative service and production industry clusters.These companies should not at any cost be deprived of the resources our country can provide for themto sustain in the competitive and global market. In general, the ambiance in this sector is optimistic withemployers intending to expand their business in terms of investment and turnover. In addition, theyseemed to be confident that the unemployment rate would decline and believed in the potential of theirstaff given that they were satisfied with the level of their skills. However, they believed that oureducational and training system needs to be aligned with the requirements of the labour market. Theybelieved to face the numerous challenges ahead by investing in human resources and providing on-the-job training to their staff being more applicable to this sector. Financial and infrastructuralincentives provided by the Government could be looked into to ensure their optimal utilisation andelimination of barriers to training where cost has been reported to be the main one.

With regard to training provision, training providers may design, develop and deliver trainingprogrammes to bridge the gap between the employer and the fresher. Trainers should understand theskills required by the employer and train the existing talent pool to fit in the industry through innovativetraining methods.

The ICT companies had on board mostly Professionals and Technicians & Associate Professionals (expertsin their fields) and Clerks holding Degree and HSC/SC respectively. Most of the employers had been ableto recruit people with the required skills and qualifications, however, a lesser number could recruit withthe required work experience. Employers found it difficult to recruit people with technical backgroundmainly Technicians, Engineers, Web Designers, Programmers, Database Administrators, IT SecurityOfficers possessing Diploma and Degree level courses. Product oriented courses like MCSE, CCNA werealso required by employers.

The ITES/BPO sector had more specific requirements in terms of human resource namely Tele-Agentspossessing HSC and knowledge of French language. More people could be trained in the ITES/BPO sectorwith generic skills together with more specific skills depending on the requirements of employers andtheir customers. The Symposium on Enhancing Value addition in the Export of the ICT services held inJanuary 2008 revealed that to become and stay competitive, Mauritius has to ultimately rely on thedevelopment of its local labour and exploit its bilingual capabilities. The Symposium also recommendedthe creation of an ICT Academia to increase the availability of skilled labour and to further develop thecompetencies of the existing labour pool. It is important to note that this recommendation is in line withthe programme prescribed by the NICTSP to create a BPO Training Centre.

In line with the findings of this study, the following is also recommended:� Sensitise employers on the importance of having in place an HR Strategy for their employees and

planning their career to maintain their motivation at work instead of practicing a myopic managementstyle to hit immediate performance targets. They should also be empowered to be able to keep andmaintain record of their staff that would allow them to prepare HR intelligence to help monitorcompetencies.

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� Involve employers in programme development, so that courses better reflect economicallyvaluable skills e.g. less theoretical course content, and use the medium preferred by the targetaudience. They should learn to value the indirect benefits of training, such as reductions in staffturnover and improvements in morale and motivation, all of which contribute to improvedefficiency and productivity.

� Employers intended to train 150 employees in communication skills and 100 in software skills.Employers might be provided with the appropriate resources and incentives in these fields to fulfilsuch requirements.

� Training providers could transform their offerings to better address the current challengescompanies face. Such efforts could include wider access to flexible customised qualifications acrossall levels to facilitate up-skilling of employees. The industry and academia could team up in thisrespect to continuously revise course contents and keep it dynamic to adapt to the changing needsof the industry.

� As part of the measures to increase the supply of skilled and trained manpower, apprenticeshipprogrammes might be put in place, innovatively delivered together with attractive fundingincentives. There is a need to re-consider the training facilities provided by the publicly-fundedinstitutions and ensure their maximum utilisation. These could contribute to reduce the barriersto training.

� Companies should stimulate personal and professional growth, share the opportunities ofdevelopment and maximise individual and team performance. In this respect, needful could bedone to build internal capacity and put in place performance appraisal system, career planning andtalent management.

� A few companies believed that the problem of unemployment could be tackled by buildingcapacity and creating more job opportunities. In this respect, top-up programmes could bedesigned and launched in several fields by the academia depending on the needs of the industry.To increase the supply of graduates in the industry, the Government might establish a consortiumof public and private universities to offer courses in distance/e-learning mode.

� Presently, the market lacks people holding roduct-oriented certifications namely Oracle,Microsoft, Cisco etc. The cost of such training could be subsidised by the Government to increasethe number of certified professionals in the market.

� Employers could put in place re-deployment strategies for their staff and re-skill their employeesto bring more flexibility and motivation at the workplace.

� Specific train-the-trainer programmes could be implemented in CRM, accounting packages,networking, telecommunications and so on to build capacity since employers could not findtrainers locally in such fields to coach their staff.

� Employers found it difficult to recruit Analyst Programmers, Technicians, Computer Engineers,Database Administrators, IT Security Officers, Software Developers, Web Designers, .NETDevelopers among others holding a Degree in IT. In this regard, the career guidance andcounselling services could be enhanced to disseminate such information to meet those needs.

� Presently, there exist 2 associations in this sector, namely Outsourcing and TelecommunicationsAssociation of Mauritius (OTAM) and Mauritius IT Industry Association (MITIA). It is noted thatthey do not comprise all players of the ICT industry. However, evidence shows that a strongindustry association can pro-actively work with the Government on key front end and back endinitiatives to meet their common objectives. Therefore, high profile initiatives could help to

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coalesce efforts in this area to bring synergies to be able to work in collaboration with the Governmentto achieve our common goals. Employers could be guided by core values – a focus on continuous quality improvement, innovation,craftsmanship, customer collaboration, empowering employees, avoiding complacency and reinvestingin the company.

Employers should have a workforce that is more flexible that could better able to progress to higherskilled work, enabling and driving them to take advantage of the opportunities and challengespresented by globalisation. Shared action of this kind will deliver shared benefits.

Strategies

If the economy has to survive and prosper in the global context, we must therefore focus on developingthe country’s inner strength from the grass-roots upward.

The new challenges posed in this era require that the Government becomes visionary and prudent informulating policies, coupled with their more effective and efficient implementation. Since the worldis moving forward at a phenomenal pace, the Government can no longer be complacent withincremental development, but must make every conceivable effort to expedite sustainable strategies.The NICTSP and Budget 2008/2009 have come up with various policies with a view to facilitate suchtasks.

In order to meet the objectives set for the plan and based on the opinion of employers in the ICT sector,the following strategies are proposed:

1: Launch a targeted communication programme to empower employers to buildcapacity internally in the field of HRD

To come up with a communication programme to sensitise employers

� on transforming HR into a strategic partner. Employers should be informed of the importance ofestablishing a proper HR Strategy within the organisations. Many employers do not keep record ontheir employees (e.g. skills and competencies, their aspirations) and do not necessarily plan their careeror conduct succession planning. Is it that the institutions are not sufficiently empowered to conductTNAs and cannot forecast their future training requirements or are not motivated for such exercisesor they may not be looking at the long-term sustainability of the companies or they may be finding itdifficult to obtain adequate assistance from senior line managers or directors to develop an adequatetraining strategy or may be senior managers and directors have a poor understanding of training anddevelopment, their buy-in is of utmost importance! One of the keys for success will be ensuring thatHR professionals have the operating experience and business acumen required to add value to thebusiness. Proper HR intelligence could be developed where all employee information is captured andthis could be made compulsory by means of incorporating it in the legislation;

� who find it difficult to value the indirect benefits of training, such as reduction in staff turnover andimprovements in morale and motivation, all of which also contribute to efficiency. Employees couldbe trained on HR issues like motivation and hygiene factors at the place of work;

� on the facilities and financial incentives already available by various institutions since cost has beenfound as the main barrier to training. Employers must be encouraged to use the National TrainingFund to benefit from its services;

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� on the benefits and importance of a performance appraisal system and empowering employers toimplement such a system for measuring performance of staff and build capacity internally;

� and providers alike of each others expectations for example, hands-on practice and lesstheoretical training and the medium to be used at different levels of the hierarchy given thenature of this sector. Training methods have to be continuously revised in order to meet industryrequirements. These will ensure the level of competency acquired by trainees conform to theneeds of industries. The public and private sectors, therefore, need to team up to create aninterface to produce skilled, competent labour force to meet the requirements of employers interms quality and quantity.

2: Launch industry-driven top up programmes by academia

� A few companies believed that the problem of unemployment could be tackled by buildingcapacity and creating more job opportunities. This can be achieved by providing applied coursesbased on the needs of the labour market which will require the input of the corporate sector.Therefore, more industry-driven top-up programmes could be launched in several fields jointlyby the academia and employers.

� Certifications courses namely from Oracle, Microsoft, Cisco etc could be promoted with trainingcost subsidised by the Government to increase the number of certified professionals in themarket.

� 70 percent of the companies surveyed preferred their employees to go for formal qualificationsnamely Diploma/Certificate courses. One way to realise this would be to provide incentives forworkers themselves to obtain qualifications by creating a more thorough certification system forworkers. It is believed that if workers have a way to certify their skill level which would berecognised by potential employers, they will be more willing to invest in learning new skills.

3: Foster innovation and creativity

� In order to create value and move up the value chain, the Government could set incentives tofoster creativity in the business sector for employers and employees to become moreentrepreneurial, dynamic and innovative. Competitions may be organised at the national level oninnovative training methods used at the place of work to encourage innovation and creativity.

4: Increase the supply of qualified and skilled workforce

� The absorptive capacity of public institutions is relatively small compared to the number of highlyqualified professionals required by the industry. Thus, to address this shortfall, the Governmentmight promote blended forms of leaning, distance learning or e-learning to encourage lifelonglearning especially for the working community supported by financial incentives. Thisrecommendation is line with the policy of the Government that appeared in the Budget Speech2008/2009.

� According to the survey, the BPO/ITES sector seemed to be the largest employer looking forskilled people as Chat Operators, Tele-agents etc with the basic qualification (SC/HSC) and theyhad reported a number of difficulties to make such recruitments. In this respect, the NICTSP hasmade provision for the setting up of a BPO training centre to build capacity in this field. It shouldbe ensured that a maximum number of people are trained to obtain generic as well as specificskills and ensure their employability. At the same time, sensitisation programmes could bereinforced with a view to change the mindset of the population and related institutions alike toacknowledge the new working trends and adopt a holistic approach to build an enabling

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environment to make it more conducive for Mauritians to work at atypical hours.

� Employers in the ICT sector had found it difficult to recruit people with the required work experienceto be able to perform. In order to facilitate training for young workers, it is important for schools,companies, and employment service agencies to cooperate with each other for development of jobconsciousness among young workers and enhancement of opportunities for practical human resourcesdevelopment, including apprenticeships. For this to happen, it is proposed that appropriate legislationcould be put in place to take in apprenticeship schemes.

� The Government and private sector should encourage Education & Training for life longemployability. ICT enable lifelong learning, it allows learners to keep learning once their formaleducational years are behind them. By helping people pick up new skills, ICT benefits both theindividuals and the economy as a whole, helping keep the Mauritian workforce highly skilled.

5: Encourage to establish re-deployment strategies

� Learning how to configure existing technological and social capabilities and to restructure institutionalarrangements to create incentives for continuous learning is central. Employers could be encouraged to put in place re-deployment strategies for their staff and re-skill their employees to ensure that the workforce is well equipped with skills and competencies to face challenges in their life.

6: Make information accessible and user-friendly

� Ensure information is accessible and user-friendly. Agencies like MQA and TEC might publish up-to-date user-friendly information on trainers and their fields of competence, list of training institutionsregistered and their respective approved/accredited courses. Employers might not be aware of theavailability of local skills and competencies they might require.

7: Encourage networking among institutions towards an effective career guidance service and counselling

� Institutions involved in employment and career guidance/counselling services could collaborate toenhance and make better use of an Integrated Information Management System to provide with up-to-date, reliable and relevant information on the requirements of the market with trends. This willallow timely actions to balance the equation between the demand for labour and supply of education& training and forecast its future demand. Presently, different institutions are managing differentpieces of information and it is difficult to extract vital information thereon. This strategy could beworked out in line with the programme prescribed under the NICTSP project– “ICT CareerCounselling”.

8: Re-configure existing publicly-funded financial incentives and training facilities

� Incentives, financial or institutional, could be enhanced for employers to provide on-going trainingto their staff. As a matter of fact, the existing incentives and facilities could be re-branded and/or re-packaged to market them to the employers. In 2007, 70 percent of the companies in the ICT sector were aware of the National Training Fund (NTF) out of which only around 50 percent benefitedfrom it.

9: Ensure more flexible institutional procedures and systemic problems eliminated

� Employers opined that the systems in Mauritius are still complex and procedures lengthy. Thereforethe system might be re-engineered carefully so that it minimises bureaucracy and avoids being overly

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10: Foster Public-Private Partnership

� A strong industry association (OTAM and MITIA) could be invigorated that can pro-actively actas a bridge to work with the Government and on key front end and back end that can help driveinitiatives at regional, national and international forums (model of NASSCOM).

Brief on estimated number of employees in the ICT Sector

The goal of forecasting is not to predict the future but to tell you what you need to know to takemeaningful action in the present.

The following employment trends from year 2007 to 2010 have been observed from the Table 5.57for the 10 occupational groups:

� Senior Officials and Managers

The number of people in this job category would remain generally stagnant up to 2010. AssistantGeneral Managers/Managing Directors/Directors have been reported to be the most common jobtitle with a figure of 210 in 2010.

A rise of 25.0 percent is expected among Assistant Sales & Marketing Managers and a slightincrease of 4.2 percent among IT Managers. A fall of 3.4 percent is anticipated among AssistantAccounts/Audit Managers.

� Professionals

Professionals, the second most common job category of those who are experts in their fields,namely Business Analysts, System Analysts, Accountants are normally required by companies inhigh numbers. A rise would be registered in the number of Technical Pre-Sales Consultants (35.2percent), Consultants (17.7 percent) and Analysts Programmers (14.2 percent).

� Technicians & Associate Professionals

A highest percentage increase would be registered in the number of Graduate Trainees (68.6percent), Technicians/IT Support Officers (24.1 percent), Telemarketing Supervisors (21.2 percent)and Assistant Sales & Marketing Officers (19.1 percent).

� Clerical Workers

Clerical Officers would comprise the biggest share with 3 827 people in 2010. It is projected thatTelemarketing Operators could increase from 1 818 in 2007 to 2 308 in 2010.

The following job categories are likely to remain almost stagnant:

� Service, Shop and Market Sales Workers

Salesmen/Salesgirls would comprise 696 people in 2007 and 698 in 2010.

� Supervisors, Foremen and Sirdars

Only 7 supervisors would form part of this category.

� Skilled Agricultural & Fisheries Workers

This category would comprise only 2 Gardeners and this figure would remain unchanged.

� Craft and Related Trades Workers

This group would consist of only 15 Masons in 2007 and tends to stagnate.

� Plant & Machine Operators and Assemblers

This category would contain Drivers (31), Messengers (24) and Office Attendants (5) in 2010.

� Elementary Occupations

This group would consist of mostly Attendants; 67 in 2007/08, 65 in 2008/09 and 65 in 2009/10.

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Table 5.57: Estimated number of employees in the ICT Sector, 2007-2010

Classification of employees Estimated number of employees2007/08 2008/09 2009/10

Senior Officials and Managers

Accounts Manager 2 2 2Accounts/Audit Manager, Assistant 104 102 100Assistant Director 2 2 2Centre Manager 2 2 2Chief Executive Officer 2 2 2Chief Operations Manager 47 48 48Claims Manager 2 2 2Client Service Manager/Executive, Assistant 50 48 48Computer Service Manager, Assistant 15 15 14Director 10 10 10Finance and Control Manager 17 17 17Finance, Administrative & HR Manager 37 36 36General Manager/Managing Director/Director, Assistant 215 213 210HR Manager/Executive 37 39 38HR Manager 5 5 5IT Manager 94 97 98Library Information Services Manager 2 2 2Manager 7 7 7Managing Supervisor 72 73 74Marketing Manager 2 2 2Operations Manager, Assistant 37 36 36Personnel & Administrative Manager 50 48 48Personnel Manager 2 2 2Research, Technology & Dev. Manager, Assistant 2 2 2Sales & Marketing Manager 2 2 2Sales & Marketing Manager, Assistant 42 46 53Shift Manager 5 5 5Site Director 2 2 2Sub Manager, Assistant 20 19 19Total 891 892 892

Professionals

Accountant 176 175 172Analyst Programmer 82 87 93Business Analyst 12 17 17Business and Administrative Professional 20 19 24Chief Technical Officer 2 2 2Commercial 2 2 2Computer Analyst Programmer 89 97 105Computer Programmer & Analyst 193 189 187Computer Systems Designers & Analyst 109 114 120Consultant/Trainee 136 155 160Development Analyst 2 2 2Functional Analyst 2 2 5IT Professional 42 41 41Network Administrator 12 12 12Network Engineer 275 284 282Programmer/System Analyst 146 160 158Project Coordinator 7 7 7Software Developer 7 7 7Software Engineer 475 477 488Statistical and Data Analyst 0 2 2Support Coordinator 2 2 2System Developer 0 2 5System Engineer 359 351 347Team Leader 64 63 62Technical Engineer 238 240 237Technical Pre-Sales Consultant 87 109 117Trainer (IT) 7 7 7Trainer/Training Officer 5 5 5Total 2 555 2 635 2 669

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Accounts/Finance Officer, Assistant 77 75 74Accounts/IT Officer 87 97 120Administrative & Executive Officer, Assistant 2 2 2Administrative Officer, Assistant 20 19 19Administrative Secretary 30 29 31Assistant Production Officer 5 5 5Assistant Training Officer 2 2 2Chat Operator 550 538 531Computer Technician 5 5 5Customer Service Assistant 62 63 62Customer Service Officer 106 107 132Direct Marketing Officer 5 7 7Executive Officer, Assistant 5 5 5Executive Secretary 12 12 14Graduate Trainee 116 138 196Health & Safety Officer 5 5 5HR Officer 5 5 5Information Systems Officer 5 5 5IT Officer 2 2 2IT Technician 5 5 7Marketing Agent 2 2 2Marketing Officer 5 5 5Other Associate Professional 17 27 31PC Technician 2 2 2Personnel Assistant 40 39 38Planning Officer 2 2 2Purchasing Officer 22 24 24Quality Surveyor Technician 2 2 2Recruitment and Training Officer 27 27 26Sales and Marketing Officer 2 2 2Sales & Marketing Officer, Assistant 362 393 431Senior Accounting Technician 2 2 2Senior Technician 7 7 7Store Officer 5 5 5Teacher 87 102 129Team Leader 17 17 17Technical and Commercial Officer 72 78 88Technical Officer 37 36 41Technical/Vocational Officer 15 15 14Technician 5 5 5Technician/IT Support 730 853 906Telemarketing Supervisor 359 405 435Total 2 929 3 178 3 447

Clerical Workers

Accounts Clerk 106 107 110Administrative Clerk 69 73 79Assistant Store Keeper 5 5 5Clerical Officer 2 2 2Clerk 191 194 196Commercial Clerk 30 29 29Confidential Secretary 5 5 5Customer Service Clerk 5 5 5Data Entry Operator 941 950 952Developer/Operator 30 29 29Legal Clerk 2 2 2Marketing Assistant 2 2 2Purchasing Clerk 2 2 2Receptionist/Telephone Operator 79 80 79Secretary 12 12 12Store Keeper 7 7 7Telemarketing Operator 1 818 2 048 2 308Telephonist 2 2 2Total 3 311 3 556 3 827

Service, Shop and Market Sales Workers

Sales and Marketing Agent (Part Time) 7 7 7Sales Marketing Agent 64 63 62Salesman/Salesgirl 696 698 698Sales Assistant 7 7 7Total 775 776 775

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Skilled Agricultural & Fisheries Workers

Gardener 2 2 2

Craft and Related Trades Workers

Mason 15 15 14

Plant & Machine Operators and Assemblers

Driver 32 32 31Driver/Messenger 25 24 24Driver/Office Attendant 5 5 5Total 62 61 60

Elementary Occupations

Attendant/ Lunch Room 2 2 2Attendant/Office 67 65 65Cleaner 52 53 53Cleaner/Tea Maker 47 46 48Helper 10 15 19Helper/Cleaner 12 17 19Messenger 40 39 38Technical Attendant 5 5 5Total 235 242 249

Supervisors, Foremen and Sirdars

Supervisor 7 7 7

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Documents

The ICT Sector