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Phase 2 California ICT Study Released

This summer, MPICT released an extensive 2010 ICT industry and workforce study for California.

The Information and Communications Technologies (ICT) sector encompasses all rapidly emerging, evolving and converging computer, software, networking, telecommunications, Internet, programming, and information systems technologies. ICT is a comprehensive framework for organizing these inter-related, interdependent and rapidly changing high-tech fields and industries - and the ICT workforce, which spans organizations of all sizes, kinds and industries. The ICT term is widely used outside the U.S., for example, by the U.N., European Union, World Bank, and International Telecommunications Union. This is a groundbreaking study of the California economy using the ICT framework.

The research was a collaboration of the Mid-Pacific ICT Center (MPICT), a regional effort to improve ICT education at community colleges funded by the National Science Foundation, and California Community College (CCC) Economic and Workforce Development program (EWD) Centers of Excellence (COE).

According to the study, ICT industries and employment are strategically important parts of California and U.S. economies that are faring well and have strong future prospects - a welcome bright spot in a long, dark economic downturn. Employers across California report strong job growth for ICT workers.
 


Strong ICT Industries:

Mapping existing industry classifications to ICT, ICT companies:

  • represent about 4% of all California companies,

  • bring in 6% of California revenue,

  • employ a million workers in California,

  • pay 12% of private sector wages,

  • 2nd among California industry clusters by wages paid,

  • with wages per employee about twice the State average,

  • and expected job growth of 20% between 2006 & 2016, outpacing most other sectors.

Intuitively, many realize ICT industries are big and important in California, but ICT is considerably larger than previously acknowledged in the state using existing industry categories.

 

 

Strong ICT Employment:

Not all ICT industry workers do ICT related work, but ICT related work occurs in most industries today. Mapping existing job classifications to ICT, the ICT workforce is now:

  • about 1 in 20 jobs in the U.S. and in California,

  • with strong growth projections of 46,000 annual new and replacement jobs in California,

  • paying about twice the State average,

  • California’s 8th largest job cluster by job count.

Strategically Important:

 

The study also included primary research. More than 600 California companies were surveyed, a sample representing the geographic, company size and industry diversity of the State. Among the findings:

  • 82% agree or strongly agree ICT is important to their organizational productivity.

  • California companies anticipate 3.8% overall employment growth over the next two years. However, companies providing ICT goods and/or services expect 8.5% employment growth, and those that do not expect overall employment to shrink by .4% over the next two years.

  • California companies anticipate 7% overall ICT workforce employment growth over the next two years, significantly higher than the 3.8% overall employment growth estimates.

    • Companies providing ICT goods and/or services expect 11.2% growth in ICT workforce employment in the next two years, compared with overall employment growth expectations of 8.5%.

    • Companies that do not provide ICT goods and/or services expect -.4% overall employment growth, but expect 3.7% growth in ICT workforce employment over the next two years.

  • 85% of California companies require at least some employees to fill ICT workforce roles, and 74% agree or strongly agree that these roles will grow in importance for their employees

  • Overall, 36% of respondents expect to have more, and only 2% expect fewer people in ICT workforce roles in two years

  • More than 50% of firms report difficulty recruiting employees with appropriate ICT workforce skills, a surprising finding in this difficult job market and a wakeup call for ICT educators.



ICT workforce roles were simplified into 5 categories. Firms reported these roles as important or extremely important:

  • Roles supporting ICT end user devices, operating systems, and applications, like desktop support, help desk, computer support specialists, and computer repair – two-thirds.

  • Roles supporting Enterprise-wide and data center ICT systems, such as phone, server, data storage, telecommunications and networking systems – two-thirds.

  • Roles supporting Internet, Intranet and other online or web-based systems and services, such as web design and development, online commerce and webmaster – 71%.

  • ICT management roles, such as system and business process design, vendor selection and management, and ICT strategic planning – 58%.

  • Hardware and software development roles, like hardware engineer, software engineer and programmer – 51%.

  • Roles supporting marketing and sales of ICT related products and services – 41%.

  • More than half of California companies don’t know or have no opinion about whether California community colleges are doing a good job developing the ICT workforce, suggesting an awareness problem. Of those with opinions, many more agree than disagree that California’s community colleges are doing a good job in this regard, especially in larger companies.

  • Almost ˝ of California firms do not require a bachelor degree for at least ˝ their ICT workforce.

  • A majority of firms (51%) would value statewide ICT standards that would align employer needs with education and training programs. Overall, firms are 3.5 times more likely to agree or strongly agree than disagree or strongly disagree that they would value ICT standards.

  • Approximately half of all firms and 58% of ICT firms indicated desire for a digital literacy, or ICT end user knowledge and skills credential. Overall, firms are 2.9 times more likely to agree or strongly agree than disagree or strongly disagree they would value a Digital or ICT end-user knowledge and skills credential.

  • Across the various classifications of firms, technical competence specific to the position is the most important skill area for new ICT-related role hires. Overall, more than 60% of employers report interpersonal communication skills, creative problem-solving skills and an ability to work with different groups or departments are among the most important skills for new ICT-related role hires.

Intuitively, most people think of California, especially the San Francisco Bay Area and Silicon Valley, as a global leader in ICT. California policymakers, investors and education planners should use the information in this report to develop and implement strategic plans to improve ICT infrastructure, adoption, industries, employment and education — to build on California’s strengths and stay competitive in the global community. Information and communications technologies are empowering and enabling for all kinds of individuals and organizations. Implementing high quality ICT strategic and educational plans should lead to increased economic performance and higher employment in the state, across all industries and economic strata. It should also help to stem the nation’s decline in global rankings of important measures of ICT competitiveness.

The report is available free at www.mpict.org/ict_study_phase2.html. A recorded presentation of report findings is also available free on MPICT’s YouTube Channel at www.youtube.com/mpictcenter#p/u/5/UExXE7Yqgeg.

MPICT hopes to complete a more in-depth Phase 3 continuation of this study over the next year, which will dig deeper into ICT.

 

Back to Q3 2010 Newsletter


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