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 |
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 |
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
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