The federal government’s announcement of a $43 billion National Broadband Network (NBN) is welcome news for the economy and the ICT sector. Delivering a fibre to the home (FTTH) network to 90% of Australian homes and businesses, the project will be the largest single infrastructure investment in Australia's history.
But just what impact will it have on ICT companies and professionals? Details are still unclear, but it is obvious the NBN is a significant opportunity for both businesses and professionals to ‘piggy-back’ their way out of the current economic climate.
Advice for businesses
The key outcome of the government’s decision to abandon the tender process and establish a public private partnership (PPP) is the guarantee of competition in the provision of applications and services from the fibre to the premise. This will provide small businesses with opportunities to innovate and to collaborate to win market share in those areas where knowledge, experience and creativity add significant value. It is also an opportunity for large organisations to collaborate with small niche providers that can add value.
The large volume of work required for the initiative has sparked significant interest and excitement within the telecommunications sector, with many predicting a frenzied demand for skills that could culminate in a Telco ‘war for talent’.
Accordingly, those intending to participate in the NBN need to start planning now so they can define the role they will play and identify staffing skills gaps, bearing in mind that other organisations will be recruiting for similar skill sets.
Participating organisations need to maintain and even increase their commitment to hiring graduates as well as enhancing the learning and development of their existing workforce. Given the project will last for at least eight years, this level of workforce planning is critical. For medium and larger providers, establishing a relationship with tertiary institutions may also provide a reliable pipeline of talent.
The demand for certain ICT skill sets will also increase the salary and contract rate expectations of employees, and so it is very important that companies allow for this during the budgeting process.
With the increased demand for communications professionals, it is possible that participants in the NBN may have to source the technical expertise they require from offshore, potentially placing further pressure on the government to review its immigration policies in order to support the project. Companies should be flexible and open to candidates from overseas, and consider partnering with an expert international recruiter as this will make the process less daunting.
Advice for ICT professionals
The global financial crisis has had a marked impact on the ICT sector with a recent Olivier index of job advertisements indicating a decline of 56.5% in the past 12 months. However, the predicted 25,000 jobs per month generated by the NBN, increasing to 37,000 at the project’s peak, will be a shot in the arm for the ailing ICT job market.
Furthermore, job seekers can expect public sector pay conditions — one of the few areas within the ICT sector to remain stable in the past 12 months — to experience additional increases as the demand for specific skill sets broadens.
Like their prospective employers, it is important for job seekers to prepare themselves for the upcoming work. This means beginning to network — with recruiters, ex-colleagues and any contacts that operate in the telco space.
While there is still a lot of uncertainty surrounding the NBN and exactly what it will look like, now is the time for candidates to start talking NBN with recruiters. Specifically, areas that will definitely be in demand are cabling, commissioning, project management and transmission engineering but this list will expand once the project gains momentum. Current ICT students should pay attention to the project and any announcements/developments over the next year and consider adjusting their study preferences appropriately.
So for ICT companies and professionals alike, the NBN represents a substantial opportunity and those that are able to position themselves to take a big slice of the pie.
*Hiten Parmar is the Technology Practice Manager for LINK Recruitment.