Jessica Hawkey, MD of the innovative and experiential learning hub redAcademy, says the biggest obstacle to closing the skills gap and getting more young people into IT careers is the perception that onboarding them burdens businesses by negatively impacting productivity and draining resources.

This understanding was reinforced by a recent survey conducted by redAcademy, that included some of the most recognisable brands in the country, spanning retail, financial services and more, where the number one concern remains the time, effort and loss of productivity associated with onboarding entry-level software developers.

“We knew from the outset that if we are to make any meaningful impact on the skills shortage we needed to find a solution to this problem. Since day one, and backed up by our recent survey, it became clear that graduates with classic qualifications require significant investment to get them up to par with ways of working and to be a cultural fit with the organisation they are entering. Businesses are concerned that this is not a quick process and that it eats into the capacity of senior resources who are not as productive as a result. This is why businesses are opting to hire more seasoned developers, even at a higher cost,” explains Hawkey.

Hawkey says that in order to address this, redAcademy has approached integrating skilled entry-level software developers into businesses as a managed service.

“SIaaS is designed to remove the number one obstacle to placing skilled young people in businesses. And so, as a managed service, redAcademy handles every step of the integration, significantly reducing the time and effort businesses need to invest themselves. We achieve this by customising year-long training inside the client’s live working environment. Six months of this is dedicated to their real-world software delivery. All of this is overseen within the redAcademy team,” she said.

The result is that businesses can focus on delivering value to their customers, while redAcademy’s senior software development professionals come in and manage the entire integration process, explains Hawkey.

“This changes everything because now, instead of having to invest time and money just to get a young person to be able to start adding value, the skilled developer starts day one of his or her employment fully immersed in the business culture and live projects, already integrated with the existing teams.”

Hawkey says that the managed service model, at scale,will make a dent in the IT skills shortage. “As a country we spend inordinate amounts of money outsourcing every year. Imagine that money was turned inwards – the impact on the local economy would be profound. In addition to this, circulating the same mid-level or senior developers increases costs and with heightened competition for talent, businesses invest in onboarding new staff only to lose the talent to another business with more budget. This is unsustainable as the skills gap is just getting bigger and unemployment is just getting worse. There isn’t an endless runway and as a country we need to do something before we get to the cliff.

“Make no mistake, the government and many other stakeholders understand the magnitude of the problem, with a host of important interventions. Now, businesses can enjoy SIaaS through their skills development spend as it is an accredited programme, meaning this comes at no additional cost to the IT department who gain access to custom-trained and experienced talent,” explains Hawkey.

“Adding SIaaS into the country’s toolkit provides a compelling business case to make a difference because companies can secure their future IT talent needs while simultaneously contributing positively to the country.”

A staggering 1.5 to 2 million global data science jobs remain unfilled. This gap is projected to widen, with an estimated need for 11.5 million roles by 2026 signalling an urgent demand for skilled professionals.

Compounding the talent retention challenge, once study found that 33% of a departing employee’s annual salary is spent on recruiting a replacement.

Given that the average tenure for a data scientist in a role is two years, there is significant work to be done if industry is to find an effective way of overcoming these challenges. In Africa, collaboration between all stakeholders will be essential in this regard.

The skills gap and talent shortage are significant. We need to facilitate what skills there are and the industries that need it most.

But to do this, the funding shortage at universities must be addressed. The private sector must work closer with universities to make data science units sustainable. For instance, just as data scientists leave their jobs, so to do universities require funding to mitigate the risk of losing experienced faculty members.

One of the benefits of stronger cross-industry partnerships for universities is that tertiary institutions will be able to produce graduates with the skills vital in the digital workforce.

Therefore, the connection between universities and business must be formalised and managed. Yet, many of these partnerships are left to chance.

One of the most effective ways for stakeholders to think differently is to prioritise a brain gain – a proactive response to the brain drain often experienced – where knowledge is transferred, and collaboration is prioritised.

The power of AI

Artificial Intelligence (AI) is considered a game changer in social and economic development for several reasons.

These include its potential to automate routine tasks, tailor products and services, and solve complex problems at scale.

It can even be used in various social applications, from predicting and managing natural disasters to assisting in medical diagnoses and treatment recommendations, amongst others.

But if South Africa and the rest of the continent are to effectively inject AI into business processes, there needs to be a skilled resource to understand how to use this advanced technology.

AI and machine learning are game changers when it comes to statistical analysis. If human capital is there with graduates having the skills to operate in the emerging data ecosystem, the opportunities to boost the African economy are significant.

Better private-public institutional arrangements for building data science and statistical capacity on the continent are vital as these harness the strengths of both sectors.

While the public sector provides governance and broad reach, the private sector brings innovation and efficiency.

Collaborative arrangements ensure the optimisation of resources, accelerate technology adoption, and facilitate skills transfer. Such synergies create a conducive environment for data-driven initiatives, maximising impact, and sustainability in Africa’s data landscape.

Embracing empowerment

Having a private and public sector dedicated to diversity and inclusion will be key in combating the high employee turnover rate of 33%. But beyond simply focusing on the numbers, connecting talent is about creating equitable opportunities for all.

This is where the potential for mentorship initiatives is significant. These have the potential to extend beyond traditional corporate roles to emphasise deep engagement with the community. Through personal mentorships, business leaders can provide graduates with the practical, real-world skills essential to enhance their data science training to not only grow as individuals but also have a broader societal impact.

Expanding data science skills

Much of this depends on how much investment businesses will make to ensure the requisite skills-building takes place and to align those with the growth they are predicting.

There is no point in investing in new technologies that employees have not been skilled up to utilise, and no technology, no matter how good it is, will deliver a return on investment if people cannot – or will not – adopt it.

By engaging with high school and university students, businesses can ensure a steady flow of skilled individuals prepared for the challenges and opportunities in data science and analytics.

All this requires a commitment by industry to foster a diverse and inclusive community, combined with a focus on nurturing future leaders in cybersecurity, data analytics, and digital transformation. And when that is in place, the skills gap will be reduced.

Nigeria faces some of the highest youth unemployment figures globally. But the tech industry, where about four out of five companies miss out on critical digital skills, could be the solution to reducing this issue. 

With a population of over 220 million people, Nigeria’s future economic outlook is concerning, as it has recorded an average of only 1.4 percent economic growth in the last eight years, while the population has grown by an average of 2.5 percent over the same period.

The situation becomes even bleaker when considering the potential effects on the economy if foreign and domestic investments continue to fall short of expectations. Furthermore, the insecurity in the region, climate change challenges, and an increase in migrants seeking safety, food, and economic security could add more strain to the struggling economy. 

However, amidst these challenges, the country’s technological sector offers immense potential for economic growth and reducing youth unemployment.

The digital revolution has already transformed the global economy, creating new job opportunities in various industries. In Nigeria, the digital sector has become a driving force behind economic growth, with increasing demand for skilled professionals in digital marketing, web development, data analysis, and artificial intelligence. 

A recent report revealed that Nigeria and South Africa are significantly behind Kenya in terms of the skills gap, with many Nigerian companies citing a negative impact due to a lack of tech and digital skills. That is why attracting skilled recruits has become a top challenge in the tech industry for 2023.

To capitalise on the opportunities in the digital sector, Nigerian youths must acquire relevant and cutting-edge digital skills. These skills not only make them more employable but also empower them to become entrepreneurs and contributors to the digital economy, as digital skills are versatile and applicable across industries.

Platforms like Ad Dynamo by Aleph, a leading provider in digital advertising and marketing in SSA, offer opportunities to upskill and learn necessary skills for the growing tech sector.

With a presence in over 130 countries and trusted by major social networks, Ad Dynamo by Aleph is committed to providing industry-relevant skills to clients and staff through initiatives like the free Digital Ad Expert platform.

That has been emphasised further through Aleph Group, Inc’s, free Digital Ad Expert platform, where students learn digital marketing fundamentals and gain hands-on training.

Once armed with digital skills and advertising proficiency, they can empower businesses to accelerate their economic growth.

To improve Nigeria’s economy and address youth unemployment, the private sector should play a more active role by offering apprenticeships, internships, and employment opportunities to graduates of these programs.

Collaborative efforts will bridge the gap between theoretical knowledge and practical experience, making the transition to employment smoother for Nigerian youths.

In 2021, Gartner found that talent shortages were inhibiting technology adoption and development, with 64% of IT executives citing it as a challenge.

Fast-forward to 2023, and the market remains complicated with the firm predicting that demand for talent within tech to continue to exceed supply until 2026. It is echoed by S&P Global statistics that highlight how complex the skills situation has become with 51% of respondents saying it has been difficult to hire new people and 44% struggling to find qualified candidates.

The S&P analysis also found that while companies are looking for smart ways to upskill and reskill existing talent while building packages that woo top talent to their doors, the cost of finding, attracting and retaining the right people is high.

If anything, it is increasing as companies fight for talent – 86% of CIOs participating in a Gartner Survey are competing for qualified candidates and 73% are concerned about attrition.

This demand for highly skilled individuals, particularly within the technology sector, is not just adding zeroes to the business bottom line (as well as wrinkles to the CIOs brow), it is igniting a shift in how companies find, and work with, talent. 

Gartner has also found that 58% of organisations today are turning to borderless talent to resolve their skills woes, with 27% considering hiring borderless technology employees. The goal today is to find sustainable ways of filling the gaps by strategically sourcing skills.

And this strategic sourcing has shifted to the managed services provider (MSP). Where in the past, outsourcing talent and resources to third parties was really only used to save costs and manage non-critical areas of the business, today this narrative has changed.

Deloitte describes it as a reality where ‘technology, talent and risk forces are colliding’ and emphasises the value of companies working with MSPs to fill skills gaps and gain a competitive advantage.

By bringing in expertise from trusted service providers that have retained and fought for the right skills, companies are bypassing the risk of falling behind and gaining all the value without the battle.

Deloitte also believes that collaborating with MSPs to overcome the skills gap allows for the business to explore new revenue streams and new business avenues.

This move is also changing the shape of how the work is done, and how skills are appreciated within the business. MSPs provide talent that is focused on outcomes, innovation and deliverables within tight cost parameters and expectations. It is an approach that adds immense value to the business.

Collaborating with an MSP to manage very specific gaps in your talent pool also allows you to simplify how you approach technology investments and strategy.

If you know that you can rely on your MSP to provide support, expertise, implementation, and management of innovative solutions it opens up a lot more doors and gives you a lot more freedom.

Plus, as KMPG found, outsourcing saves costs, improves efficiencies, accelerates change and can save some sectors up to 50% on costs.

The skills gap doesn’t have to grow wider. It can be managed with an MSP that understands your business, your needs, and your technology requirements and that has invested in the right strategies to ensure that talent is diverse, skilled, and capable.

The demand for professionals skilled in areas such as software development, data science, cybersecurity, and digital marketing continues to outpace the supply of qualified talent.

Bridging the technology skills gap is crucial for Nigeria’s economic development and global competitiveness.

This article explores the challenges facing Nigeria in this regard and suggests strategies to address them effectively.

Challenges:

Several challenges contribute to the technology skills gap in Nigeria: Education System: Nigeria’s education system often fails to provide students with practical, up-to-date skills relevant to the rapidly evolving technology industry.

The focus on theoretical knowledge over practical application leaves many graduates ill-prepared for the demands of the workforce.

Infrastructure: Limited access to reliable internet connectivity and electricity in many parts of the country hampers efforts to provide online education and training programmes, hindering the development of technology skills among the population.

Perception of Technical Education: There is a societal bias towards traditional academic disciplines, leading many students to overlook technical and vocational education in favor of fields perceived as more prestigious.

This results in a shortage of skilled workers in technology-related industries.

Brain Drain: Nigeria faces the challenge of losing its skilled workforce to emigration, commonly referred to as “brain drain.” Many talented professionals seek better opportunities abroad, depriving the country of essential expertise.

Strategies for Bridging the Gap

To address the technology skills gap in Nigeria, concerted efforts are needed from various stakeholders, including the government, educational institutions, private sector, and civil society.

Here are some strategies that can be implemented:

Curriculum Enhancement: Update educational curricula at all levels to include more practical, hands-on training in technology-related fields.

Collaboration between academic institutions and industry experts can ensure that curricula reflect current industry needs.

Investment in Infrastructure: Improve access to reliable internet connectivity and electricity, particularly in rural areas, to facilitate online learning and training initiatives. Public-private partnerships can help fund infrastructure development projects.

Promotion of Technical Education: Raise awareness about the value of technical and vocational education through targeted campaigns and outreach programs. Highlight the opportunities for lucrative careers in technology-related fields to attract more students to these disciplines.

Skills Development Programs: Establish and expand skills development programs, such as coding boot camps, hackathons, and online courses, to provide individuals with opportunities to acquire in-demand technology skills outside of traditional educational settings.

Retention Strategies: Implement policies and incentives to retain skilled professionals within the country, such as offering competitive salaries, creating conducive work environments, and providing opportunities for career advancement and professional development.

Collaboration and Partnerships: Foster collaboration between government agencies, educational institutions, industry associations, and non-profit organizations to develop comprehensive strategies for addressing the technology skills gap. Pooling resources and expertise can lead to more effective outcomes.

Continuous Learning Culture: Promote a culture of lifelong learning among the workforce by encouraging individuals to pursue continuous skills development and upskilling opportunities.

Employers can support this by offering training programs and professional development initiatives.

Thus, bridging the technology skills gap in Nigeria is essential for driving innovation, economic growth, and social development.

By addressing the underlying challenges and implementing targeted strategies, Nigeria can build a skilled workforce capable of competing in the global technology landscape.

Collaboration among stakeholders and a commitment to investing in education and infrastructure are key to realizing this vision and ensuring a prosperous future for the country. [Featured Image Credit]