News Release

EMEA Supply of Networking Skills will be 31% Short of Demand in 2004 Says Latest Cisco - IDC Survey

Survey shows skills gap stabilising in relative terms but widening significantly in absolute numbers
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Aug 09, 2001

August 9, 2001 - The shortage in skilled networking professionals in Europe, Middle East and Africa (EMEA) is set to increase from 237,968 in 2000 to 709,696 by 2004. Demand for networking skills in EMEA will outstrip supply by 31% by 2004. These are the findings of IDC in its latest research carried out for Cisco Systems.

The research, which takes account of the economic downturn and slower GDP growth over forthcoming years, shows that an increasing proportion of organisations are leveraging the Internet to improve business efficiency and effectiveness. It also reveals increased demand for networking skills in the SME community as a growing proportion of organisations use networking technology to interface with supplier and partners.

Positive impacts on the skills shortage are reported to result from economies of scale generated through outsourcing IT activities, including the ASP model of computing, relaxed immigration rules for people with networking skills and the first fruits of public private training partnerships in the networking skills area.

Geographically, IDC anticipates that Germany (predicted to be 37% short of demand by 2004) will suffer the largest skills shortage in Western Europe owing to its large manufacturing sector and the current high demand for networking skills in this area. Southern Europe and Belgium will also feel the shortage significantly as the dependency of the SME market for networking skills increases, deregulation in utilities and telecommunications takes effect and low birth rates in the 1970's and 80's impact local supply.

The Netherlands, Nordics and to an extent the UK, which experienced sharp shortages at an earlier stage than other economies, are starting to experience a stabilisation of their networking skills shortage. This results from public private educational initiatives, the high adoption of less labour intensive means of computing such as the ASP model and liberalised immigration policies.

Mike Couzens, managing director of communications and training, Cisco EMEA commented: "In the area of networking skills, a drought continues. Even if not a single networking product was sold during 2001, there would still be a shortfall in qualified networking professionals available to work on existing projects. And even if the approximate numbers of people affected by redundancy in all positions in IT companies across the globe were placed into networking positions, they could not fill the vacancies projected for 2001 in Western Europe"

Andrew Milroy, Research Director at IDC Research, commented: " While the stabilisation in some markets is encouraging, the gap between supply and demand is huge. A tremendous amount remains to be done in the area of home grown skills as many countries currently choose importing skilled labour over exporting business opportunity.

While the recent slowdown had the effect of releasing labour from the IT market, its' impact on the networking skills shortage is small. Lay-offs have occurred largely in sales, corporate functions and specific technology areas"

Figure 1, Total (all countries EMEA), Networking Skills Shortages

1999 2000 2001 2002 2003 2004 5 yr CAGR
Demand 827,687 1,087,448 1,268,063 1,612,686 1,946,313 2,227,415 20%
Supply 675,924 849,479 990,705 1,185,026 1,323,114 1,517,718 16%
Shortage 151,763 237,968 277,359 427,660 623,199 709,696 31%
% Shortage 18 22 22 27 32 32
Source, IDC 2001

Figure 2, Total (Western Europe), Networking Skills Shortages

1999 2000 2001 2002 2003 2004 5 yr CAGR
Demand 728,871 949,733 1,096,196 1,388,692 1,660,389 1,870,242 18%
Supply 596,519 746,121 869,578 1,037,214 1,158,572 1,321,905 15%
Shortage 132,352 203,612 226,618 351,478 501,816 548,336 28%
% Shortage 18 21 21 25 30 29
Source, IDC 2001

About Cisco

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at www.cisco.com

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at emea.idc.com.

IDC is a division of IDG, the world's leading IT media, research and expositioncompany.

Further information and copies of report:

Grant Currie / Alice Waters, Bite Communications Ltd
T: 020 8741 1123
E: grantc/alicew@bitecomm.co.uk

Emma Bluck, Cisco Systems
T: + 33 1 58046069
E: ebluck@cisco.com

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

ENDS