Public and Private Sector Perspectives on the Impact of the Technology Skills Gap in Costa Rica

August 4, 2008

Roberto Gallardo, Costa Rica Minister of Planning

Costa Rica is a country that seems to do well in rankings. It has ranked first in Latin America for environmental performance, press freedom, democracy and travel and tourism competitiveness. Unhappily, it has also scored highly on a less promising chart.

A Cisco®-sponsored survey by the research company IDC recently placed the country second-highest out of seven Latin American nations in terms of IT skills deficit, estimating that there was a 39 percent difference between the demand and supply of skilled network technicians.

IT skills gaps are a challenge in almost all countries but for a rapidly developing nation such as Costa Rica, such a deficit-which translates into more than 1500 individuals, rising to 2200 by 2010-can potentially have very significant consequences.

To find out how Costa Rican organizations are being affected by the shortage of an IT-skilled workforce, and what they are doing to overcome it, News@Cisco spoke to the country's Minister of Planning, Roberto Gallardo, and Maria Teresa Castro, regional manager of human capital at the systems integrator GBM.

"The issue of skills is very important not only in allowing people to take advantage of work opportunities but also to help support the modernization of the country itself"

— Roberto Gallardo, Costa Rica Minister of Planning

What impact is the skills gap in Costa Rica having on your organization?

Roberto Gallardo: This is an economy which is in transition from agro-industry to services.

Within the services segment, there is a lot of emphasis on those that have to do with IT, so the issue of skills is very important not only in allowing people to take advantage of work opportunities but also to help support the modernization of the country itself.

Our public sector needs skilled technicians to help with the delivery of digital services to citizens but with a limited pool of talent it is difficult for us to compete for people against the private sector, particularly since Costa Rica is an attractive location for IT outsourcing.

Maria Teresa Castro: We have around 725 people and about 85 percent of our staff is technically skilled. We are growing at around 10 percent a year and we find it quite difficult to get qualified personnel because our market demands specialized consultants.

The issue has been worsening exponentially in the last three years with the arrival of foreign companies which have pushed up the demand for personnel. Our clients are also growing, which means they increasingly compete with us for people.

There is definitely a problem and the industry as a whole needs to join forces to solve it.

What measures are you taking to solve the problem?

Maria Teresa Castro: We have a system of programs and grants with universities to help create a pool of potential employees. This process of development and recruitment is very important because in order to provide integrated systems for our clients we need a whole team.

We are not just looking for technical abilities, so our programs aim to provide additional skills in areas such as client service. We also carry out mentoring and shadowing with prospective technical and sales employees. But we need more.

We are conscious that this system cannot give us senior consultants, which is something that affects the whole sector. That is why I believe we need to act jointly with our partners in the industry. We all need to invest in the provision of skills to the labor market.

Roberto Gallardo: The basic strategy for the country is that people should come into contact with technology at an early age, through schools.

At the same time, we are working on the provision of skills for IT certification, particularly in universities. For those who cannot get into university, we are putting in place programs run through our Instituto Nacional de Aprendizaje (National Learning Institute).

Right now we are putting a lot of effort into teaching English in order to take advantage of the opportunities opening up in the service sector. We recognize that English and IT skills are two important and closely related assets in the labor market.

What part can programs such as the Cisco Networking Academy® play in helping to reduce skills gaps?

Roberto Gallardo: Within IT, we have a general deficit of skills as well as specific deficits. The first area, the provision of general capabilities in the workforce, is one where universities have traditionally focused their resources and there is probably only a limited role for the private sector.

It is in the second area where the scope for private sector participation can be much greater. In the case of the Networking Academy, there is already a strong relationship between it and the computing centers of our universities.

Ultimately it is necessary for there to be an environment where business, the public sector and centers of learning can come together to tackle the problem.

Maria Teresa Castro: Having certified personnel is vital for us in order to offer a professional service to our clients. The Networking Academy certifications are highly valuable in this respect.

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