SlideShare une entreprise Scribd logo
1  sur  71
Kenya ICT Board
                  Monitoring and Evaluation Survey Results




                                                      22ND November 2011




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Agenda






    Project Background





 Market Overview (Key Indicators 2010, Kenya IT Market Value (US$M) Forecast 2010-
2015, Kenya IT spend by Vertical segments)
ICT Ecosystem Overview - Vendor Survey (market Structure, challenges, opportunities,





Vendors performance, outlook)





    International Benchmarking





    ICT Skills Survey Highlights





    Residential Usage and Penetration Highlights





    Business Survey Highlights





    Recommendations




     Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Project Background
                                       •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Background

Survey Objectives                                            Survey Highlights

 Understanding the Kenyan ICT                                Aims to provide ground-breaking primary research that
  Ecosystem and trends in the                                  encompasses numerous market sub -segments and
  market.                                                      different stakeholders


 Sizing the ICT Market and its sub                           It will leverage on existing secondary market research in
  segments (hardware, software,                                order to consolidate existing discrete market information
  services, etc) in Kenya.
                                                              It will have a repeat cycle to gauge the progress and
 Compiling a baseline of key ICT                              impact of KICTB and other stakeholders’ initiatives.
  KPIs
                                                              The survey is consultative as well – where multiple
 Benchmarking key Kenya ICT                                   stakeholders are both respondents (i.e. What are your
  indicators against six countries                             issues?) and also beneficiaries (i.e. What to do?)


 Understanding the ICT Skills                                Timely – to augment development of existing KICTB
  availability, demand and gaps                                projects – Pasha centres (rural access) , Tandaa (digital
                                                               content), Wezesha (asset financing) as well as other
                                                               government ICT initiatives




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Market Overview
                         •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Market Overview
Kenya ICT Market Key Indicators

Volume of international traffic (Mbps)                                                20,209.56 Mbps
International Internet bandwidth, Mbps per 10,000 population                          4.2
Number of Computers per 100 inhabitants                                               2.4
% of households with a personal computer                                              6.3%
Total number of Internet Subscriptions                                                4,716,977
Total number of internet users                                                        10,199,836
% of population with Internet Access                                                  25.9%
Internet subscribers as % of total population                                         11.5%
Total number of main fixed lines (fixed lines plus fixed wireless)                    380,748
Total number of mobile subscriptions                                                  24,968,891
Number of .Ke domain names                                                            18,000.00
% of organizations with a website                                                     90.0%
% of full time employees who use internet for work at least once a week               52.14%

   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Market Overview
ICT Spending by Technology Areas




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Market Overview
Spending by Vertical Sectors




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
                                   •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Structure




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Highlights 1/2
There are an estimated 20-30 vendors present in the market most of whom rely on a





small pool of major distributors and Tier 1 Value Added Resellers (VARs) and
Dealers who combined account for the bulk of ICT Business in Kenya estimated at
nearly 50-60%.
On average PC and Printer vendors each have between three to four distributors





and at least six other partners (dealers and systems integrators) each at different
market levels.
At the lower part of the pyramid are Tier 2 VARs and dealers, estimated to number





more than 100 players and whose focus is part of the SME segment, the SMME and
home user segment. These are players who typically do not have a country wide
presence and would largely be found operating at a provincial level or even a
national level (where SMEs have such a presence to require nationwide services)
but at a smaller scale nonetheless.
These Tier 2 firms are mostly Kenyan owned companies serving other Kenyan





owned businesses and occasionally securing parts of relatively good contracts in the
government and education segments, where procurement of goods or services may
require a local player.

    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Highlights 2/2
The Tier I players largely comprise companies with both a national and regional





presence, and in most instances are majority foreign owned companies spinning off
regional offices in South Africa, UAE, India among other countries.
Owing to having a good foothold in their parent regions, coupled with access to





industry best practices, fairly solid skills bases and access to capital, such
companies have been able to target the market segment that includes multinational
companies (MNCs), large enterprises and government, where such credentials bear
heavily on decision making at this level.
Vendor competition on channel partnerships has intensified with main distributors





being sought after by other vendors to leverage on their reseller network. Thus
multiple brand handling by the channels is the norm even for channel partners who
were "loyal" to certain vendors.
The channel is maturing fast with thinning out of grey shipments.





Telcos and telco channels are now selling PCs.





    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Highlights 2/2
Vendors are keen on setting up offices in Kenya to serve the East and Central Africa





region.
Vendors with a local presence enhance the brand image significantly as well as





improve logistical support and increased marketing campaigns.
With more vendors setting up locally, the market has seen an increase in both the





number of channel partners.
Government initiatives including infrastructure development, regulatory reforms





(licencing frameworks), investment in public access centres, e-government projects,
content creation, device subsidies, have all had a very positive effect in transforming
the market, stimulating investment, ICT uptake and bolstering confidence in the
overall ICT market.
Thus vendors have registered positive growth over the last three years of between
•




15-15% in business and with some posting growth in headcount of between 25-50%




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Kenya as a regional Hub

•                Kenya is without doubt the regional
                 hub for most vendors with a regional
                 reach spanning between three to six                                   Among the countries
                                                                                       •




                 countries on average for vendors.                                     Kenya based vendors
                                                                                       have reach into from
•                Aside from being a hub, it is also a                                    their Kenyan hub
                 stepping stone for these vendors to                                          include:
                 set up operations in neighbouring                                       Uganda, Tanzania,
                                                                                           •




                 countries but still maintaining                                         Rwanda, Burundi,
                 somewhat centralized marketing,                                       Ethiopia and Southern
                 inventory and support functions at                                            Sudan.
                 regional levels.

•                Inherent in this structure are various
                 opportunities including training, skills
                 transfer, overall higher employment,
                 technology leadership and increased
                 investment.
    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Challenges faced
Challenges
•









    Currency fluctuation affecting imports
Overall low purchasing power especially in 2011 with high inflation putting pressure





on disposable income.
Taxation on consumable products and unclear taxation framework to define various





ICT imports.
Product/Service quality perception vis a vis other competing products/services in the





market (e.g. pro-West stance or pro-more established brands)
Lengthy customs procedures - demurrage costs passed on to users therefore higher





prices.





    Sourcing highly qualified talent.





    Doing business with the government – procurement laws.




     Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Market Opportunities
Skills development.





Further infrastructure investment mainly last mile access and quality of existing





networks is crucial for more pervasive adoption.
Reform tax environment to attract ICT investors.





Addressing the problem of counterfeit products (consumables, devices) , with





support of relevant government departments (in terms of scrutiny, enforcement
and standards). The success experienced by counterfeiters illustrates there is
good demand for products.
Skills gaps are opportunities where channel partners can intervene themselves





rather than leave it up to vendors to acquire and maintain the skills. Channel
partners can develop their own existing staff to meet some of these positions and
leave the vendor to have a basic presence - a sort of shift down the tier and in line
with the earlier stated objective to deepen intimacy with customers and strengthen
the channel.
Overall growth in the IT market will continue to stimulate growth in other areas.





Enhance the platform for increasing regional reach.





    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Ecosystem
Vendors’ Market Outlook





 Investing in specific ICT Skills like mobile applications development and setting up
innovation hubs.





    Vendors have deliberate strategies to develop and use more local talent than imported.





    Setting up innovation funds at academic levels and for developer groups





    Entry of products relevant to the local market and environment (e.g. solar powered devices)





    Increased participation in government driven ICT programmes.





 Watching very keenly on developments with the Konza Digital City with a view to enhancing
presence and regional investment.





    Deepen customer relations as more intimacy is needed in the market.
Reforming go to market strategies in line with a changing ecosystem underpinned by





technological and other developments.





    Increase presence in the region, headcount and channel partnerships.





    Enhance vertical sector and product specializations – skills, products, GTM approach.





 Focus on infrastructure issues and how to address how lack of adequate infrastructure
(power) affects uptake.


     Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking Kenya
                                    •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
    Internet Users vs Connections as a % of population

In more developed countries





the total number of
connections vis a vis the
number of users are evenly
spread
In countries like Kenya,





Nigeria and Morocco, there
are lower numbers of
connections but higher
number of users indicating
most connections are shared
connections and largely
comprise business
connections (including
publicly accessible
connections like cyber cafes,
education institutions).




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
    Total Internet vs Household penetration

Kenya has a higher internet





penetration vis a vis South Africa
but mainly bolstered by mobile
internet connections though with
a lower proportion of households
connected owing to a declining
fixed network and poor
development of DSL based
services.
Kenya compares much better





than both Nigeria and Rwanda
on both counts
Egypt has a much higher overall





and household internet
penetration with a huge gap
between Kenya of almost 25
percentage points at household
level.


    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
Computer Penetration



Kenya has slightly higher





PC penetration rates
than Nigeria and Rwanda
but still very far behind
South Africa and
Morocco, mostly owing to
lower disposable income
than these countries.




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
Household Internet Access vs Household PC Access


In terms of PC Access at the





household level, Kenya is only
better than Rwanda.
It should be noted that Nigeria as





a manufacturer of PCs (Zinox
brand) that are locally affordable,
accounts for much higher PC
penetration at household levels
but negligible household internet
penetration given infrastructure
issues (submarine cables arrived
way after they did in East Africa)




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
Business Internet Usage




In terms of business usage of





the internet, Kenya is nearly
on par with more developed
countries like Egypt and
Morocco and slightly ahead of
Nigeria




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking
Broadband Access Tariffs


  Despite additional capacity,
  




  cost of broadband is still a
  factor for business vis a vis
  other countries.
  Nigeria has recently got a lot
  




  of international bandwidth
  but constrained somewhat by
  back bone, last mile access
  and electricity challenges.
  Landlocked Rwanda largely
  




  relies on bandwidth from
  operators in neighbouring
  countries.




 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
•




                                               IT Skills Survey




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
IT Employment by Profession


 Of the total IT employment in Kenya (~27,000
 IT professionals in 2010), IT support people
 represent the largest portion (27%), followed
 by   Applications         Systems          Analysts       and
 System Engineers (13% each).

 The structure of IT professions is slightly
 different for IT companies and end-users.
 While the IT management and administration
 professions prevail in the end-user segment,
 IT companies employ more IT development-
 related professionals.




                                                                                     Source: IDC IT Skills Model



  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Demand Prediction by Professions

 Roughly 9600 IT professionals are
 expected to be added to the
 Kenyan IT workforce.

 The demand for individual IT
 professions differs by profession.

 Software     Developers          (at    70%
 growth) and Project Managers (at
 57% growth) are the professions
 expected to grow the fastest over
 the period 2011-2013.




                                                                                      Source: IDC IT Skills Model

   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Availability of IT Professionals

 Application      Systems        Analysts        and
 Software       Developers          are     the     IT
 professions that are least available.
 Approximately 45% of respondents
 reported they are very difficult or
 difficult to find.

 On the contrary, IT Support people
 and IT Administrators are much easier
 to find – only for less than 10% of
 respondents, they were reported as
 very difficult of difficult to find.




                                                                                     Source: IDC IT Skills Research
                                                              Source: Business Survey                N = 158

  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Demand/Availability Matrix for IT Professions


                                                      Consider                                                                       Focus
% of companies reported very difficult or difficult




                                                           Di

                                                                                              Application
                                                                                                            Syste
                                                                                                            ms                         Software developer
                                                                                                            Analy
                                                                                                            st
t
l
u
c
i
f
f




                                                                               System Engineer
                                                                    Av



                                                                 IT Manager/                                IT Consultant
                                                                                                                                   IT Project
            to find




                                                                               Direct
                                                                               or                                                               M
                                                                                                     Team Leader                                a
                                                                                                                            Web Designer        n
                                                                                                                                                a
i
l
i
b
a
l
i
a




                                                                       IT Administrator
 E




                                                                                                                                                g
                                                                                        IT Support                                              e
                                                      Monitor
                                                                                                                                                r
                                               y
                                               s
                                               a




                                                                 Low                Demand                                              High

                                                                                          New jobs growth between 2011 and 2013


                         Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
 Demand Prediction by IT Skills

 The demand for individual IT
 professions       differs.     The      most
 growing demand will be seen for
 IT   Project      Management            Skills
 (136%)             and             Software
 development skills (135%).

 IT Administration and HW skills
 are projected to grow at the lowest
 rate – less than 12%.




                           Source: IDC IT Skills Model

  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
 Availability of IT Skills

 Software        development/deployment                     &
 Enterprise/business application skills are
 least available – for approximately 30% of
 interviewed             organizations,                these
 professions are very difficult or difficult to
 find.


 Project management, security and mobile

 technology skills were also reported as
 difficult to find.


 Internet-related & Networking skills are

 available and easy to find.


                                                              Source: Business Survey   N = 158

  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Demand/Availability Matrix for IT Skills


                                                      Consider                                                                   Focus
% of companies reported very difficult or difficult




                                                           Di


                                                                                                                                Software
                                                                        Enterprise/Business                                                  Devel
                                                                                     Applicati                                               opme
                                                                                     ons                                                     nt
t
l
u
c
i
f
f




                                                                                                      Security
                                                                                                                                       IT Project
                                                                                         Data                          Mobile                        Ma
                                                                                                            S                   T                    na
                                                                   Av



                                                                                                            t                   e                    ge
            to find




                                                                                                            o Databases         c                    me
                                                                        HW                                  r                   h                    nt
                                                                                       IT Adm.              a Networking        n
                                                                                                            g                   ol
i
l
i
b
a
l
i
a
 E




                                                                                   Internet                 e                   o
                                                                                                                                gi
                                                      Monitor                                                                   e
                                                                                                                                s
                                               y
                                               s
                                               a




                                                                 Low            Demand                                               High

                                                                                    New jobs growth between 2011 and 2013


                         Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Supply side: Skills lacking in graduates
         Skills lacking in graduates: Interviewees were asked about the skills they thought their
          graduates were lacking in or particularly strong in, following are the skills plotted
         representing an average of the ratings.
          Hardware                                              Problem
                     s                                                       s
                     k                                                       o Software
                     i                                                       l              s
                     l                                                       v              k
                     l                                                       i              i
                     s                                                       n              l
  LACKING                                                                    g              l     STRONG IN
             Skills in graduates                                                            s




                           Project                        Structured &             Team skills
                                                   m                        Inn
                                                   a                        ov
                                                   n                        ativ
                                                  a                        e
              Software skills and Problem solving skills rated the highest while hardware and project
                                                   g                        thi
              management skills rated much lower.
                                                   e                        nki
                                                                            ng
  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
    Demand Side : Skills lacking in graduates
                                                                                Q: What type of skills are the graduates particularly
   When probed on the types of skills usually                                              lacking?
    lacking    in     graduates,      companies        cited

    Innovative      thinking,   Problem      solving    and

    Project management/implementation as the

    top three skills that are lacking


   Some of these findings were seconded by the

    university interviewees which indicated lower

    ratings on project management/implementation

    skills and innovative thinking.


   Based      on     some      interviews      with    ICT

    companies, Business/ Soft skills were cited as

    lacking in graduates as well as keeping up with

    technology trends; the view was expressed

    that the gap between theory and practice

    needs to be bridged via mediums such as                                     Source: Business Survey

    internships
    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Overall business perception of IT Skills

 Roughly a quarter of companies
 are not satisfied with the quality
 of     IT      professionals          from
 educational institutions in Kenya

 Approximately         a      third      of
 companies       have       contacted     or
 plan to contact external providers
 to manage the skills shortages.

 Roughly half of the respondents
 believe that the lack of IT skills
 significantly     impacts       business
 and IT operations & performance.




                                                                        Source: Business Survey


  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Inhibitors – Supply Side/Educ inst view

  •      Funding and Infrastructure constraints cause less availability of resources and labs; not
         all the educational institutions are adequately networked
  •      Scarcity of experienced faculty and a general shortage of teaching skills for technology; it
         was also indicated that it is tough for educational institutions to match private sector pay
  •      Last-mile connectivity to rural areas was also cited as an inhibitor. This severely limits
         the availability and accessibility of internet, both from a quality and price perspective
  •      Quality of education: The view was expressed by more than one interviewee that skills
         obtained from many colleges and institutions are not adequate for the industry.
         Consistency of curriculum was a common theme, with the lack of guidelines
         emphasized. The watered-down value of certifications and lack of market-relevant
         courses in some educational institutions were other themes.
  •      General lack of understanding of IT as a career




      Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Inhibitors - Businesses view

    Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country?




                                                                             Source: Business Survey



 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Residents Survey Highlights
                        •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
    IT companies view of inhibitors of IT skills
       Some large ICT companies were of the opinion that that the overall skills pool in the Kenyan market
        is rather limited.
       The view was also expressed that there is more of a gap at the advanced skills level as many IT
        professionals with advanced skills leave the Kenyan market while there is not much of an influx of
        experienced professionals from abroad.
       Another related issue is loyalty and attrition; IT professionals are perceived as migratory and there
        seems to be a fair bit of poaching; an opinion which is consistent with the business survey where
        80% of the companies indicated that attrition has a minor to significant impact on their
        organizations.
       Frequency and size of IT projects: The view was expressed that there may not be enough big IT
        projects that can result in a large pool of skilled personnel, consequently there are not enough
        projects that allow professionals to exhibit or develop their skills.
       Availability of lower cost imported ICT labour was also cited as an inhibitor to skills supply.




    Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT

   IT Skills Survey Highlights                                                         P
                                                                                       r
                                                                                       o

   Gap analysis framework                                                              f
                                                                                       e
                                                                                       s
                                                                                       s
                                                                                       i
                                                                                       o
                                                                                       n
                                                                                       a
                                                                                       l
                                                                                       s
       Training/ Re-
                       t
                       r                                                               f
                                                                                       r
                       a                                                               o
                       i                                                               m
                       n
                                                                                       a
                       i                                                               b
                                           ‘Unqualified’                                       Students
                       n                                                               r
                                                           s                           o                     w
                       g
                                                           u                           a                     h
                                                           p                           d                     o
‘Brain drain’                                              p
                es                                         l                                                 g
                pe                                         y                                                 o
                cia
                lly                                        o                                                 a
                                                           r                                          Attrition
                                                                                                              b
                at
                hig                                                                                           r
                he                                         S                                                  o
                r                                          k                                                  a
                                                                                                 Gaps filled by expats
                                                                                                                            Gap
                Sk                                         i                                                  d for
                ill                                        l                                                      short-
Move to                                                                                                      o term
                lev                                        l
                m                                                                                            r project
                els                                        s
                a                                                                          Demand                 duratio
                                                                                                                  n
              n                                                                                              p
                                                         m
     Copyrighta
              IDC. Reproduction is forbidden unless authorized. All rights reserved.
                                                         i                                                   u
IT Skills Survey Highlights
Dimensions of the gap in IT skills
                                                        Technical gaps
                                                        • Enterprise/busine
                                                          ss application
                                                          skills, software
                                                          development,
                                                          mobile
                                                          applications
                                                        • IBM and SAP
                                                          related
                                                          technology skills

         Higher-level gaps
         • Shortage of experienced IT                                                    Graduate-level skill gaps
           personnel                                          Gap in IT              •   Project management
         • Poaching and moving                                            prof       •   Problem solving
           abroad i.e. ‘brain drain’                                      ess        •   Innovative thinking
           reported; also technical staff                                 ion        •   Gap between theoretical
           moving to management                                           als            and practical skills;
           tracks                                                                        insistence of some
         • Experienced professionals                                                     experience from IT firms
           from abroad not coming in
                                                                  Quality gaps
                                                          • Candidates who
                                                             have certifications
                                                             and educational
                                                             qualifications but do
                                                             not bring the
                                                             expected quality
                                                          • Inconsistencies in
                                                             course duration and
                                                             curriculum within
                                                             the courses
 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
    Overall Recommendation areas and initiatives
                                                    Establish specialized training
Expand capacities of universities
                                                                programs for                   Integrate ICT in education
          and colleges
                                                                graduates
•   Provide infrastructure and funding              •   Focus on recognized skill gaps such    •   Incorporate more ICT elements at
    support                                             as business skills and ‘soft’ skills       secondary level
•   Address qualified teaching shortage;            •   Partner with training/ICT companies;   •   More attachment programs and
    Evaluate & incentivize the supply                   encourage investment to ensure             internships with technology
                                                        training availability                      companies to learn and apply

                                                                                               Harmonize and monitor supply &
Focus on special interest areas                     Improve connectivity
                                                                                                         demand
•   Local context and relevance e.g. ICT            •   Provide last-mile connectivity         •   Definitions and quantification of
    in agriculture                                      through pricing incentives                 demand roles and types of skills
•   Innovation areas similar to m-pesa              •   Help middle and lower tiers of         •   Policy on course design and criteria
•   Incentivize reverse brain drain i.e.                educational institutions to get            to fulfil these roles
    Kenyans based abroad                                connected                              •   Open up data to relevant
                                                                                                   stakeholders

Financing & Support                                 Review ICT curricula                       Promote IT as a career

•   Specialized funding for ICT courses             •   More regulation, more rigor and        •   Attract more people (especially youth
•   ICT incubators with educational                     standardization                            and females) via promotional
    institutions                                    •   Public-private partnership body to         campaigns
•   Tax relief & special funds for                      ensure curriculum standardization      •   Attractive industry compensation
    technology focus areas                          •   Online mechanism with Assessment           standards
                                                        of IT skills online
Government organizations, IT companies and Educational institutions would need to collaborate extensively in
         the above areas to achieve the ICT skills-related objectives related to the Strategic Plan and Kenya
         2030.
     Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IT Skills Survey Highlights
Projects prioritization

                 Consider                                                                              Implement
                                                       Expand capacities of
                                                                         univer
          High




                                                                         sities
                                                       Review university curricula
                                                                         and
                                                                         colleg
                                                                Focus on special interest
                     Improve connectivity                                es        areas
                                                                               Establish specialized
                                                                                                progr
                                                                                                ams
                                                                                                for
                                                                                              Promote IT as a career
                                                Financing & Support                             grad
                                                                                                uate
                                                                         Integrate ICT in education
                                                                                                s
                                                                        Harmonize and monitor
            Impact




                                                                                          suppl
                                                                                          y&
                                                                                          dema
                                                                                          nd




                          Low                        Ease of implementation                                            High
           Low




 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Residents Survey Highlights
                        •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Resident’s Survey Highlights
Internet Usage at home

                                                                                  Internet Home Penetration by Location




                                                                                        Internet Home Penetration by SCL


             Base : Total Sample (750)




     26% of the surveyed HH use internet

     Internet usage increases by SCL levels. It is highest in Mombasa (37%)




                          Base = The figure in parenthesis represents
     Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Internet Usage at home
Inhibitors for Not Using internet at home


                                           Q17. What are the reasons for not having internet
                                                           connection at home till now?

                                                                                         Highest in Eldoret (77%), in SCL D (77%),

                                                                               Highest in Kisumu (43%), in SCL C2 (39%),

                                                                           Highest in Nyeri (21%), in SCL AB (18%), among the 15-24 yrs (22%)

                                                                         Highest in Nyeri (32%), in SCL AB (17%)

                                                                       Highest in SCL D (36%), among the 45+ yrs (26%)

                                                                    Highest in Kisumu (11%)




  Unavailability of PC is the main reason for not using internet from homes (58%)

  The usage of internet within low SCL’s (D and C2) is mainly hindered by their inability to buy PC’s or pay for internet
   connection



                        Base = The figure in parenthesis represents
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Kind of PC, Internet Device & Mobile Service Used

                Q25. What kind of PC do you use?                                        Q60. Which kind of mobile service do you use?




                         Base : Users of PC (519)                                              Base : Users of Mobile Phone (746)


  Q31. Which of the following devices have you used to access the
                         Internet in the past 12 months?




                                                                                          Accessing internet is largely done from
                                                                                           mobiles, either internet-enabled handsets
                                                                                           (80%) or smartphones (15%)

                                                                                          A significant portion of PC usage (desktop or
                                                                                           laptop) is dedicated to accessing the internet



                      Base : Users of Internet (592)




                       Base = The figure in parenthesis represents
  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Purposes for Using PC


                                          Q27. What is your primary purpose for using the PC?

                                                                                                Detailed by Age            Detailed by Gender
                                                 Overall
                                                                                     15 – 24   25-34       35-44   45+     Male
                                                                                                                                    Female (206)
                                                                                      (219)    (163)        (67)   (70)    (313)


                                                                                      69%      72%         72%     76%     71%         71%

                                                                                      77%      70%         49%     40%     68%         64%

                                                                                      63%      65%         66%     67%     64%         65%

                                                                                      57%      42%         27%     30%     43%         47%

                                                                                      20%      44%         43%     59%     40%         29%

                                        Base : Users of PC (519)



  Respondents use PC mainly to perform personal task (71%), especially old individuals 45+ years

  Entertainment and education purposes drive respondents 15-34 yrs old to use PC. These reasons decrease significantly
   among older users (35+yrs)

  Old males (45+ yrs) tend to use PC for work reasons much more than other demographics.

                       Base = The figure in parenthesis represents
  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Purposes for Using the Mobile Phone


                Q59. Which of the following services do you actively use on your mobile device?
                                                                                                     Detailed by Age          Detailed by Gender
                                                        Overall
                                                                                          15 – 24   25-34      35-44   45+     Male      Female
                                                                                           (219)    (163)       (67)   (70)    (313)      (206)


                                                                                           97%      96%        97%     99%    97%         96%
                                                                                           97%      97%        99%     88%    96%         95%
                                                                                           51%      52%        41%     26%    46%         45%
                                                                                           53%      45%        34%     23%    44%         40%
                                                                                           47%      41%        31%     17%    39%         34%
                                                                                           42%      35%        34%     24%    38%         31%
                                                                                           36%      31%        32%     21%    30%         32%
                                                                                           33%      23%        20%     10%    25%         22%
                                                                                           20%      17%        10%     8%     18%         12%

                                           Base : Users of Mobile Phone (746)


  Calling and texting share respondents' main usage of the mobile (around 97%)

  The usage of internet enabled services and PIM mainly attracts the young category (15-24 yrs). Their usage decreases
   significantly by age




                       Base = The figure in parenthesis represents
  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Confidence in Using the PC
Overall

                                            Q47a. How confident are you in using…




  Highest confidence is recorded in the areas of text processing (68%) and working with spreadsheets(57%)

  PC users are least confident in maintaining the computer (checking and solving problems, 36%) and programming (31%)




                                                           Base = Users of PC
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   (n=519)
Confidence in Using the Internet
Overall

                                          Q47b. How confident are you in using…




  Highest confidence is recorded in the areas of using search engines (80%) and email communication (79%)

  Internet users are least confident in creating web pages / blogs (29%)




   Copyright IDC. Reproduction is forbidden unless authorized. AllUsers of Internet
                                                       Base = rights reserved.        (n=592)
Financial Transactions on the Internet and Mobile
Type of transition, Number of online Purchases

 Q38. Which of the following on-line / electronic (through internet or mobile) services have you used in the past 12
      months?




                                     Base : Respondents Using Online Banking or purchases (510)

  4 of the top 5 e-transactions are done via mobile

  Online e-transactions are almost not present and include online banking (4%), utility payments (3%) and the purchase of
   products and services (2%)


                        Base = The figure in parenthesis represents
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Tasks Performed on the Internet

                              Q34. Do you use the Internet to perform any of the following tasks?
                                                                                                Detailed by Age             Detailed by Gender
                                                                                      15 - 24   25-34     35-44    45+       Male      Female
                                                                                       (238)    (182)      (88)    (84)      (346)      (246)
                                                                                       81%      82%       76%     57%         79%       76%
                                                                                       68%      70%       66%     64%         70%       65%
                                                                                       48%      42%       24%     29%         39%       40%
                                                                                       37%      27%       23%     19%         31%       26%
                                                                                       25%      30%       26%     33%         27%       29%
                                                                                       19%      34%       26%     34%         29%       25%
                                                                                       28%      23%       14%      8%         25%       18%
                                                                                       21%      25%       22%     19%         25%       18%
                                                                                       17%      21%       23%     29%         21%       20%
                                                                                       13%      10%       14%     11%         13%       11%
                                                                                       11%      13%       14%     16%         13%       11%
                                                                                        6%      11%       13%      8%         10%        7%
                                                                                        6%       8%       10%      5%          8%        7%
                                                                                        4%       5%        7%      2%          5%        4%
                                                                                        5%       8%        2%      5%          6%        4%
                                                                                        2%       4%        0%      4%          4%        1%
                                    Base : Users of Internet (592)


  The main purposes for using the internet are communicating with colleagues (77%) and searching for information (68%),
   exceeding by far other reasons.

  Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling
   appointments, etc.) more than younger users who look for more social, entertaining or educational activities online


                        Base = The figure in parenthesis represents
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Satisfaction With Internet Service

Q46. The following questions are about your satisfaction with the Internet service you use. I will ask you about
     various characteristics of the service, for each one please select a number from 1-7, where 1 = Very
     dissatisfied, and 7 = very satisfied




                                                        Base : Users of Internet (592)

  68% of internet services are satisfied with the overall internet service. This is mainly driven by the reliability, speed and
   cost of this service

  Internet users record lowest satisfaction with the support they are getting from providers (41%)




                        Base = The figure in parenthesis represents
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Awareness of e-Government Services

Q65. Are you aware of any government services available online? If yes, have you used any for your non-work
     related matters in the past 12 months?




                      Base : Total Sample (750)




  Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated
   especially in Nyeri (23%)




                        Base = The figure in parenthesis represents
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Type of e-Government Services Used in Past 12 Months

Q66. Which of the following e-government services have you used in the past 12 months for none-work related
     matters?




  Copyright IDC. Reproduction isBase = Users of e-Government Services
                                 forbidden unless authorized. All rights reserved.   in Past 12 Months (n=103)
Other e-Government Services


                   Q68. Are there any other government services you would like to see available on line?

 Advertisement of Government positions                                                                            20%
 Application of birth certificates                                                                                13%
 Electronic elections                                                                                             13%
 Processing of licenses by KRA - Any other government services you would like available online                    7%
 Title deeds acquisition                                                                                          7%
 Downloadable ID cards/ passports                                                                                 7%
 How the budget is prepared/processed                                                                             7%
 People with disabilities should be put online                                                                    7%
 Show/upload government services                                                                                  7%
 City council stickers                                                                                            7%
 Efficiency/accountability of government related work and projects                                                7%
 Payment of council levies                                                                                        7%
 Appointments for government positions                                                                            7%
 ID registration                                                                                                  7%

                                                         None/Don’t Know : 85%




   Copyright IDC. Reproduction isBase = Users of e-Government Services
                                  forbidden unless authorized. All rights reserved.   in Past 12 Months (n=103)
Barriers to ICT Usage

          Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)?

                                                                                                                   Detailed by Location
                                                                                                                Mombasa   Eldoret   Kisumu   Nyeri
                                                                                                Nairobi (253)
                                                                                                                  (179)     (98)     (120)   (100)

                                                                                                   37%           36%       40%       58%     30%
                                                                                                   41%           31%       32%       43%     25%
                                                                                                   25%           34%       34%       38%     26%
                                                                                                   24%           27%       19%       33%     21%
                                                                                                   20%           18%       14%       15%     27%
                                                                                                   21%           15%       16%       24%     20%
                                                                                                   21%           18%       15%       3%      19%
                                                                                                   14%           18%        6%       14%     19%
                                                                                                   11%            7%        5%       18%      6%
                                                                                                   8%            14%        4%       23%      2%
                                                                                                   7%             9%        2%       16%      1%
                                                                                                   6%             9%        8%       7%       6%
                                                                                                   3%             7%        1%       7%       4%
                                                                                                   0%             8%        1%       8%       1%
                                                                                                   3%             2%        0%       3%       6%

                                                      Base : Total Sample (750)

  Unavailability of computers accompanied with theirs high cost as well as the costs of internet connections are the main
   barriers to the use of ICT

  Residents of Kisumu are mostly affected by these barriers compared to respondents from other cities.

                       Base = The figure in parenthesis represents
  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.   the base of the respective category
Recap of Main Findings
 Acquiring ICT skills in Kenya is significantly affected by the overall social status of households and
  respondents
 The unavailability of PC and internet at homes due mainly to their high cost and the inability of
  respondents to purchase them emerges as the main barrier against ICT knowledge
 Another barrier is the absence of internet infrastructure in some neighbours which is prohibiting those
  who are financially capable (SCL AB) form enjoying this service
 This is leading to the fact that most internet access is done via mobile or from places outside home
  where respondents are satisfied by its cost, speed and reliability
 Usage of PC, internet and mobiles is generally limited to basic features

 The same main barriers (cost and unavailability of PC and internet) that are reducing the use of internet
  and PC are also preventing respondents from taking ICT training courses
 With these factors pressing, only 16% of respondents have been trained on ICT skills in the last year

 Respondents are aiming to increase their general basic skills for using mobiles, PC and internet. They
  reflect less desire to learn advanced features



 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Business Survey Highlights
                         •




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Business Digital Presence

 Which of the following does your organization have at present?




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Business Digital Presence

 Constraints for internet usage




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Business Digital Presence

 Total number of full time employees that have access or use shared / dedicated PC




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Awareness and Usage of e-government services




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Satisfaction with e-government services




  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Recommendations
 IT Skills Gaps
Macro
               Details          Action
Area                                                              Broad Recommendations
                                       Awareness programmes at education institutions on:
                                         business needs vis a vis courses taken;
            Increase
                                         type of skills in high demand for the next 3-5 years
            output of
                                         current MIXTURE of skills needed
           number of
                                         attract the youth via promotional campaigns
           skilled staff
                                        Include middle & lower tiers of educational institutions to get
                                 Focus connected
IT                                     Bridging programmes to involve academia, graduates and ICT Business
Ski          Enhance
                                       leaders
                                       Curriculum refresh and plan to do this regularly
             quality of
lls            skills
                                       Inclusion of basic soft skills courses as part of the curriculum
                                       Establishment of Industry Standards, Accreditation and Ethics body
                                       Specialized funding for ICT courses
                               Focus Partner with training/ICT companies and ensure training availability
                                       Mechanism to balance the need for expat labour vs skills transfer value
          Protect local
                                       Incentivize Diaspora to reverse brain drain
          jobs & stem
                                       More attachment programs and internships with technology
           brain drain
                              Consider companies to learn and apply

 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Recommendations
 Residential Usage
Macro
                  Details              Action                                       Broad Recommendations
Area
            increase e-govt
                                                     Awareness programmes on services currently offered and follow
                services                 Focus
                                                     up on suggested online government services
Re            awareness
            increase e-govt
                                   Leverage mobile operators to update citizens on government

sid          services usage
                            Focus services vis SMS (subsidized cost for government for bulk SMS).
                                   Deploy relevant USSD driven services for citizens

ent
                                   Solicit feedback on content of interest, esp. from non-users
                                   Create awareness on other content and services
                                   Content - review feedback on content most used and share with
ial                                beneficiaries of digital content funds to take
             ICT Adoption Consider action/innovate/respond

Us                                 Close collaboration with media to pursue the internet as a channel
                                   for delivery.

ag                                 Address costs - See macro item COST below
                                   Access - see macro item INFRASTRUCTURE and COST below
                                   Prioritized subsidies of public access centers after evaluation
 e              Cost of
           services/Devices
                            Focus
                                   Provide infrastructure support and services subsidies
                                   Re-animate local assembly initiatives through vendor PPP and with
                                   political will
 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Recommendations
 Business Usage and Costs
 Macro
               Details          Action
 Area                                                                           Broad Recommendations

              e-govt                           Awareness creation on existing content and services
             services             Focus        Leverage on high internet adoption to interact with businesses more
Busi        awareness                          via a various databases (e.g. customs, taxes, registry, immigration etc)
nes e-govt
 s services
       usage
                                  Focus        Roll out more services and solicit feedback on what is needed

Usa Skilled Staff               Monitor See SKILLS macro
 ge      ICT
                                        Cost of services and Quality of Services - need to sensitize business
                                Monitor users of their rights in collaboration with the sector regulator.
             Adoption
                                        Collaborative campaigns.
             Internet
                                Consider Further subsidize public access areas, secondary schools
             Services
Cos          PC Costs           Consider Revive local assembly initiatives (e.g. Nigeria with Zinox)

 t             Mobile
               Device           Consider
                                               Partnerships with vendors of low cost devices, tap into local
                                               application community
               Costs
   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Recommendations
Channel & Infrastructure
 Macro
              Details            Action
 Area                                                                                 Broad Recommendations
           Vendor
       confidence &
        investment Monitor See Skills Macro Above
                             See SKILLS Macro above
                             Focused marketing & local promotional events that explicitly illustrate strengths
           Foreign
Chan Investment
  nel                        Nurture Tier 2 players as possible partners through capacity building, seed
                     Focus funding, preferential treatment in government procurement
         Tier 1 VAR Monitor
                             Develop plans to help elevate Tier II players into Tier I players
         Tier 2 VAR          Business Incubation Initiatives
                     Focus Capacity building outside urban areas and create employment
          Last Mile          Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access Gaps
           Access   Consider Collaborate with CCK to sensitise operators on USF
Infras Backhaul to           Develop a PPP framework & depart from ad hoc, covertly commercially
                             oriented PPPs that lack synergies and leveraging value.
 truct remote                Consider wireless/satellite technology elements in national infrastructure plans
  ure       areas
                             for remote areas to mix with other technologies for last mile access
                             Offer subsidies (and reward schemes) to operators with renewable energy
            Power
                             focus or innovation that address power issues


   Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Interventions for Recommendations


                                             Macro areas addressed
               Financial                      Infrastructure Skills                            Residential   Channel Cost

 Private Public Partnerships                  Infrastructure Skills                            Residential             Cost

              Regulation                      Infrastructure                        Business   Residential   Channel

              Awareness                                               Skills Business          Residential

               Content                                                Skills Business          Residential

        Curriculum reform                                             Skills




 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Thank You
                                                         •




                                                     •




                                                         Tablet OEM Site




Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Contenu connexe

Tendances

Recommondation teleco(manufacturing)
Recommondation teleco(manufacturing)Recommondation teleco(manufacturing)
Recommondation teleco(manufacturing)
bsmihd
 
Broadband for all mexico aspe
Broadband for all  mexico   aspeBroadband for all  mexico   aspe
Broadband for all mexico aspe
Business Finland
 
Cloud computing in south africa reality or fantasy
Cloud computing in south africa   reality or fantasyCloud computing in south africa   reality or fantasy
Cloud computing in south africa reality or fantasy
Samantha James
 

Tendances (20)

Inhibitors and catalysts for Successful Mobile Services Growth in Africa: The...
Inhibitors and catalysts for Successful Mobile Services Growth in Africa: The...Inhibitors and catalysts for Successful Mobile Services Growth in Africa: The...
Inhibitors and catalysts for Successful Mobile Services Growth in Africa: The...
 
Unicef Report Mobiles For Development
Unicef Report Mobiles For DevelopmentUnicef Report Mobiles For Development
Unicef Report Mobiles For Development
 
Recommondation teleco(manufacturing)
Recommondation teleco(manufacturing)Recommondation teleco(manufacturing)
Recommondation teleco(manufacturing)
 
Broadband for all mexico aspe
Broadband for all  mexico   aspeBroadband for all  mexico   aspe
Broadband for all mexico aspe
 
Economic and social impact of broadband access
Economic and social impact of broadband accessEconomic and social impact of broadband access
Economic and social impact of broadband access
 
Do's and Don'ts of Collaborative Regulation (G5) in Smart Cities
Do's and Don'ts of Collaborative Regulation (G5)  in Smart CitiesDo's and Don'ts of Collaborative Regulation (G5)  in Smart Cities
Do's and Don'ts of Collaborative Regulation (G5) in Smart Cities
 
BROADBAND
BROADBANDBROADBAND
BROADBAND
 
Product Market Study of ICT Industry in South Africa
Product Market Study of ICT Industry in South AfricaProduct Market Study of ICT Industry in South Africa
Product Market Study of ICT Industry in South Africa
 
Current ICT Status - Economic, Social & Legal Aspects of The Internet in Nige...
Current ICT Status - Economic, Social & Legal Aspects of The Internet in Nige...Current ICT Status - Economic, Social & Legal Aspects of The Internet in Nige...
Current ICT Status - Economic, Social & Legal Aspects of The Internet in Nige...
 
Global communications newsletter september 2010
Global communications newsletter   september 2010Global communications newsletter   september 2010
Global communications newsletter september 2010
 
Improving the Thai Television Sector in the face of ASEAN Economic Community
Improving the Thai Television Sector in the face of ASEAN Economic CommunityImproving the Thai Television Sector in the face of ASEAN Economic Community
Improving the Thai Television Sector in the face of ASEAN Economic Community
 
Cloud computing in south africa reality or fantasy
Cloud computing in south africa   reality or fantasyCloud computing in south africa   reality or fantasy
Cloud computing in south africa reality or fantasy
 
Accelerating digital transformation
Accelerating digital transformationAccelerating digital transformation
Accelerating digital transformation
 
Mongi
MongiMongi
Mongi
 
Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development
 
Session 2 ure_changingrules_final
Session 2 ure_changingrules_finalSession 2 ure_changingrules_final
Session 2 ure_changingrules_final
 
Jordan ICT Sector Apr 2011
Jordan ICT Sector Apr 2011Jordan ICT Sector Apr 2011
Jordan ICT Sector Apr 2011
 
MSC Malaysia Supply-Demand Study of the ICT Industry
MSC Malaysia Supply-Demand Study of the ICT IndustryMSC Malaysia Supply-Demand Study of the ICT Industry
MSC Malaysia Supply-Demand Study of the ICT Industry
 
IT Professionals for future Myanmar and IoT
IT Professionals for future Myanmar and IoTIT Professionals for future Myanmar and IoT
IT Professionals for future Myanmar and IoT
 
Day 3 C2C -Link Centre: Ultra Broadband for Smarter Africa
Day 3 C2C -Link Centre: Ultra Broadband for Smarter AfricaDay 3 C2C -Link Centre: Ultra Broadband for Smarter Africa
Day 3 C2C -Link Centre: Ultra Broadband for Smarter Africa
 

Similaire à Kenya ict survey 2011

Draft Kenya national ICT Masterplan 2012
Draft Kenya national ICT Masterplan 2012Draft Kenya national ICT Masterplan 2012
Draft Kenya national ICT Masterplan 2012
Brian Munyao Longwe
 
Prof dp sharma keynote speech in malaysia
Prof dp sharma keynote speech in malaysiaProf dp sharma keynote speech in malaysia
Prof dp sharma keynote speech in malaysia
dhatura
 
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
Faizal Adiputra
 
Mp io t uk consultaiton 23 nov 2011 berlin (v3) final presented
Mp io t uk consultaiton 23 nov 2011 berlin (v3)   final presentedMp io t uk consultaiton 23 nov 2011 berlin (v3)   final presented
Mp io t uk consultaiton 23 nov 2011 berlin (v3) final presented
grahamhitchen
 

Similaire à Kenya ict survey 2011 (20)

Developing ICT Finance & Investment Partnerships in Sierre Leone
Developing ICT Finance & Investment Partnerships in Sierre LeoneDeveloping ICT Finance & Investment Partnerships in Sierre Leone
Developing ICT Finance & Investment Partnerships in Sierre Leone
 
Analysis of HCL Technologies – IT SECTOR
 Analysis of HCL Technologies – IT SECTOR Analysis of HCL Technologies – IT SECTOR
Analysis of HCL Technologies – IT SECTOR
 
Draft Kenya national ICT Masterplan 2012
Draft Kenya national ICT Masterplan 2012Draft Kenya national ICT Masterplan 2012
Draft Kenya national ICT Masterplan 2012
 
Summary of Guidelines for Nigerian Content Development in ICT
Summary of Guidelines for Nigerian Content Development in ICTSummary of Guidelines for Nigerian Content Development in ICT
Summary of Guidelines for Nigerian Content Development in ICT
 
Atkearney soe digital transformation report present
Atkearney   soe digital transformation report presentAtkearney   soe digital transformation report present
Atkearney soe digital transformation report present
 
FinTechs in Francophone Africa Democratic Republic of the Congo Report
FinTechs in Francophone Africa Democratic Republic of the Congo ReportFinTechs in Francophone Africa Democratic Republic of the Congo Report
FinTechs in Francophone Africa Democratic Republic of the Congo Report
 
Napoleon - C Squared.pdf
Napoleon - C Squared.pdfNapoleon - C Squared.pdf
Napoleon - C Squared.pdf
 
vodafone, aritel, jio
vodafone, aritel, jiovodafone, aritel, jio
vodafone, aritel, jio
 
China IoT - Market and Ecosystm Analysis
China IoT - Market and Ecosystm AnalysisChina IoT - Market and Ecosystm Analysis
China IoT - Market and Ecosystm Analysis
 
Enterprise networking india 26_july_2016
Enterprise networking india 26_july_2016Enterprise networking india 26_july_2016
Enterprise networking india 26_july_2016
 
Retooling the Nigerian National Workforce with ICT
Retooling the Nigerian National Workforce with ICTRetooling the Nigerian National Workforce with ICT
Retooling the Nigerian National Workforce with ICT
 
Product Market Study - ICT Market in Vietnam (2012)
Product Market Study - ICT Market in Vietnam (2012)Product Market Study - ICT Market in Vietnam (2012)
Product Market Study - ICT Market in Vietnam (2012)
 
ICT boom in India
ICT boom in IndiaICT boom in India
ICT boom in India
 
Eae 100
Eae 100Eae 100
Eae 100
 
The Role of Fintechs in the Financial Industry: Creating Sustainable Pathways
The Role of Fintechs in the Financial Industry: Creating Sustainable PathwaysThe Role of Fintechs in the Financial Industry: Creating Sustainable Pathways
The Role of Fintechs in the Financial Industry: Creating Sustainable Pathways
 
Finpro report south africa
Finpro report south africaFinpro report south africa
Finpro report south africa
 
Prof dp sharma keynote speech in malaysia
Prof dp sharma keynote speech in malaysiaProf dp sharma keynote speech in malaysia
Prof dp sharma keynote speech in malaysia
 
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
Frostsullivanindonesiaict2outlook2012thebigleapahead 120216211906-phpapp02
 
Technological innovations in facilities management
Technological innovations in facilities managementTechnological innovations in facilities management
Technological innovations in facilities management
 
Mp io t uk consultaiton 23 nov 2011 berlin (v3) final presented
Mp io t uk consultaiton 23 nov 2011 berlin (v3)   final presentedMp io t uk consultaiton 23 nov 2011 berlin (v3)   final presented
Mp io t uk consultaiton 23 nov 2011 berlin (v3) final presented
 

Dernier

IAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI SolutionsIAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI Solutions
Enterprise Knowledge
 
Artificial Intelligence: Facts and Myths
Artificial Intelligence: Facts and MythsArtificial Intelligence: Facts and Myths
Artificial Intelligence: Facts and Myths
Joaquim Jorge
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
giselly40
 
Histor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slideHistor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slide
vu2urc
 

Dernier (20)

Scaling API-first – The story of a global engineering organization
Scaling API-first – The story of a global engineering organizationScaling API-first – The story of a global engineering organization
Scaling API-first – The story of a global engineering organization
 
How to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected WorkerHow to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected Worker
 
Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024
 
Boost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivityBoost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivity
 
08448380779 Call Girls In Diplomatic Enclave Women Seeking Men
08448380779 Call Girls In Diplomatic Enclave Women Seeking Men08448380779 Call Girls In Diplomatic Enclave Women Seeking Men
08448380779 Call Girls In Diplomatic Enclave Women Seeking Men
 
Handwritten Text Recognition for manuscripts and early printed texts
Handwritten Text Recognition for manuscripts and early printed textsHandwritten Text Recognition for manuscripts and early printed texts
Handwritten Text Recognition for manuscripts and early printed texts
 
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law DevelopmentsTrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
 
Powerful Google developer tools for immediate impact! (2023-24 C)
Powerful Google developer tools for immediate impact! (2023-24 C)Powerful Google developer tools for immediate impact! (2023-24 C)
Powerful Google developer tools for immediate impact! (2023-24 C)
 
Slack Application Development 101 Slides
Slack Application Development 101 SlidesSlack Application Development 101 Slides
Slack Application Development 101 Slides
 
A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024
 
IAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI SolutionsIAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI Solutions
 
The Codex of Business Writing Software for Real-World Solutions 2.pptx
The Codex of Business Writing Software for Real-World Solutions 2.pptxThe Codex of Business Writing Software for Real-World Solutions 2.pptx
The Codex of Business Writing Software for Real-World Solutions 2.pptx
 
GenCyber Cyber Security Day Presentation
GenCyber Cyber Security Day PresentationGenCyber Cyber Security Day Presentation
GenCyber Cyber Security Day Presentation
 
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time AutomationFrom Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
 
Artificial Intelligence: Facts and Myths
Artificial Intelligence: Facts and MythsArtificial Intelligence: Facts and Myths
Artificial Intelligence: Facts and Myths
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
 
2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...
 
Histor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slideHistor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slide
 
Driving Behavioral Change for Information Management through Data-Driven Gree...
Driving Behavioral Change for Information Management through Data-Driven Gree...Driving Behavioral Change for Information Management through Data-Driven Gree...
Driving Behavioral Change for Information Management through Data-Driven Gree...
 
Axa Assurance Maroc - Insurer Innovation Award 2024
Axa Assurance Maroc - Insurer Innovation Award 2024Axa Assurance Maroc - Insurer Innovation Award 2024
Axa Assurance Maroc - Insurer Innovation Award 2024
 

Kenya ict survey 2011

  • 1. Kenya ICT Board Monitoring and Evaluation Survey Results 22ND November 2011 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 2. Agenda  Project Background  Market Overview (Key Indicators 2010, Kenya IT Market Value (US$M) Forecast 2010- 2015, Kenya IT spend by Vertical segments) ICT Ecosystem Overview - Vendor Survey (market Structure, challenges, opportunities,  Vendors performance, outlook)  International Benchmarking  ICT Skills Survey Highlights  Residential Usage and Penetration Highlights  Business Survey Highlights  Recommendations Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 3. Project Background • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 4. Background Survey Objectives Survey Highlights  Understanding the Kenyan ICT  Aims to provide ground-breaking primary research that Ecosystem and trends in the encompasses numerous market sub -segments and market. different stakeholders  Sizing the ICT Market and its sub  It will leverage on existing secondary market research in segments (hardware, software, order to consolidate existing discrete market information services, etc) in Kenya.  It will have a repeat cycle to gauge the progress and  Compiling a baseline of key ICT impact of KICTB and other stakeholders’ initiatives. KPIs  The survey is consultative as well – where multiple  Benchmarking key Kenya ICT stakeholders are both respondents (i.e. What are your indicators against six countries issues?) and also beneficiaries (i.e. What to do?)  Understanding the ICT Skills  Timely – to augment development of existing KICTB availability, demand and gaps projects – Pasha centres (rural access) , Tandaa (digital content), Wezesha (asset financing) as well as other government ICT initiatives Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 5. Kenya ICT Market Overview • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 6. Market Overview Kenya ICT Market Key Indicators Volume of international traffic (Mbps) 20,209.56 Mbps International Internet bandwidth, Mbps per 10,000 population 4.2 Number of Computers per 100 inhabitants 2.4 % of households with a personal computer 6.3% Total number of Internet Subscriptions 4,716,977 Total number of internet users 10,199,836 % of population with Internet Access 25.9% Internet subscribers as % of total population 11.5% Total number of main fixed lines (fixed lines plus fixed wireless) 380,748 Total number of mobile subscriptions 24,968,891 Number of .Ke domain names 18,000.00 % of organizations with a website 90.0% % of full time employees who use internet for work at least once a week 52.14% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 7. Market Overview ICT Spending by Technology Areas Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 8. Market Overview Spending by Vertical Sectors Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 9. Kenya ICT Ecosystem • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 10. Kenya ICT Ecosystem Structure Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 11. Kenya ICT Ecosystem Highlights 1/2 There are an estimated 20-30 vendors present in the market most of whom rely on a  small pool of major distributors and Tier 1 Value Added Resellers (VARs) and Dealers who combined account for the bulk of ICT Business in Kenya estimated at nearly 50-60%. On average PC and Printer vendors each have between three to four distributors  and at least six other partners (dealers and systems integrators) each at different market levels. At the lower part of the pyramid are Tier 2 VARs and dealers, estimated to number  more than 100 players and whose focus is part of the SME segment, the SMME and home user segment. These are players who typically do not have a country wide presence and would largely be found operating at a provincial level or even a national level (where SMEs have such a presence to require nationwide services) but at a smaller scale nonetheless. These Tier 2 firms are mostly Kenyan owned companies serving other Kenyan  owned businesses and occasionally securing parts of relatively good contracts in the government and education segments, where procurement of goods or services may require a local player. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 12. Kenya ICT Ecosystem Highlights 2/2 The Tier I players largely comprise companies with both a national and regional  presence, and in most instances are majority foreign owned companies spinning off regional offices in South Africa, UAE, India among other countries. Owing to having a good foothold in their parent regions, coupled with access to  industry best practices, fairly solid skills bases and access to capital, such companies have been able to target the market segment that includes multinational companies (MNCs), large enterprises and government, where such credentials bear heavily on decision making at this level. Vendor competition on channel partnerships has intensified with main distributors  being sought after by other vendors to leverage on their reseller network. Thus multiple brand handling by the channels is the norm even for channel partners who were "loyal" to certain vendors. The channel is maturing fast with thinning out of grey shipments.  Telcos and telco channels are now selling PCs.  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 13. Kenya ICT Ecosystem Highlights 2/2 Vendors are keen on setting up offices in Kenya to serve the East and Central Africa  region. Vendors with a local presence enhance the brand image significantly as well as  improve logistical support and increased marketing campaigns. With more vendors setting up locally, the market has seen an increase in both the  number of channel partners. Government initiatives including infrastructure development, regulatory reforms  (licencing frameworks), investment in public access centres, e-government projects, content creation, device subsidies, have all had a very positive effect in transforming the market, stimulating investment, ICT uptake and bolstering confidence in the overall ICT market. Thus vendors have registered positive growth over the last three years of between • 15-15% in business and with some posting growth in headcount of between 25-50% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 14. Kenya ICT Ecosystem Kenya as a regional Hub • Kenya is without doubt the regional hub for most vendors with a regional reach spanning between three to six Among the countries • countries on average for vendors. Kenya based vendors have reach into from • Aside from being a hub, it is also a their Kenyan hub stepping stone for these vendors to include: set up operations in neighbouring Uganda, Tanzania, • countries but still maintaining Rwanda, Burundi, somewhat centralized marketing, Ethiopia and Southern inventory and support functions at Sudan. regional levels. • Inherent in this structure are various opportunities including training, skills transfer, overall higher employment, technology leadership and increased investment. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 15. Kenya ICT Ecosystem Challenges faced Challenges •  Currency fluctuation affecting imports Overall low purchasing power especially in 2011 with high inflation putting pressure  on disposable income. Taxation on consumable products and unclear taxation framework to define various  ICT imports. Product/Service quality perception vis a vis other competing products/services in the  market (e.g. pro-West stance or pro-more established brands) Lengthy customs procedures - demurrage costs passed on to users therefore higher  prices.  Sourcing highly qualified talent.  Doing business with the government – procurement laws. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 16. Market Opportunities Skills development.  Further infrastructure investment mainly last mile access and quality of existing  networks is crucial for more pervasive adoption. Reform tax environment to attract ICT investors.  Addressing the problem of counterfeit products (consumables, devices) , with  support of relevant government departments (in terms of scrutiny, enforcement and standards). The success experienced by counterfeiters illustrates there is good demand for products. Skills gaps are opportunities where channel partners can intervene themselves  rather than leave it up to vendors to acquire and maintain the skills. Channel partners can develop their own existing staff to meet some of these positions and leave the vendor to have a basic presence - a sort of shift down the tier and in line with the earlier stated objective to deepen intimacy with customers and strengthen the channel. Overall growth in the IT market will continue to stimulate growth in other areas.  Enhance the platform for increasing regional reach.  Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 17. Kenya ICT Ecosystem Vendors’ Market Outlook  Investing in specific ICT Skills like mobile applications development and setting up innovation hubs.  Vendors have deliberate strategies to develop and use more local talent than imported.  Setting up innovation funds at academic levels and for developer groups  Entry of products relevant to the local market and environment (e.g. solar powered devices)  Increased participation in government driven ICT programmes.  Watching very keenly on developments with the Konza Digital City with a view to enhancing presence and regional investment.  Deepen customer relations as more intimacy is needed in the market. Reforming go to market strategies in line with a changing ecosystem underpinned by  technological and other developments.  Increase presence in the region, headcount and channel partnerships.  Enhance vertical sector and product specializations – skills, products, GTM approach.  Focus on infrastructure issues and how to address how lack of adequate infrastructure (power) affects uptake. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 18. Benchmarking Kenya • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 19. Benchmarking Internet Users vs Connections as a % of population In more developed countries  the total number of connections vis a vis the number of users are evenly spread In countries like Kenya,  Nigeria and Morocco, there are lower numbers of connections but higher number of users indicating most connections are shared connections and largely comprise business connections (including publicly accessible connections like cyber cafes, education institutions). Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 20. Benchmarking Total Internet vs Household penetration Kenya has a higher internet  penetration vis a vis South Africa but mainly bolstered by mobile internet connections though with a lower proportion of households connected owing to a declining fixed network and poor development of DSL based services. Kenya compares much better  than both Nigeria and Rwanda on both counts Egypt has a much higher overall  and household internet penetration with a huge gap between Kenya of almost 25 percentage points at household level. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 21. Benchmarking Computer Penetration Kenya has slightly higher  PC penetration rates than Nigeria and Rwanda but still very far behind South Africa and Morocco, mostly owing to lower disposable income than these countries. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 22. Benchmarking Household Internet Access vs Household PC Access In terms of PC Access at the  household level, Kenya is only better than Rwanda. It should be noted that Nigeria as  a manufacturer of PCs (Zinox brand) that are locally affordable, accounts for much higher PC penetration at household levels but negligible household internet penetration given infrastructure issues (submarine cables arrived way after they did in East Africa) Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 23. Benchmarking Business Internet Usage In terms of business usage of  the internet, Kenya is nearly on par with more developed countries like Egypt and Morocco and slightly ahead of Nigeria Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 24. Benchmarking Broadband Access Tariffs Despite additional capacity,  cost of broadband is still a factor for business vis a vis other countries. Nigeria has recently got a lot  of international bandwidth but constrained somewhat by back bone, last mile access and electricity challenges. Landlocked Rwanda largely  relies on bandwidth from operators in neighbouring countries. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 25. IT Skills Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 26. IT Skills Survey Highlights IT Employment by Profession  Of the total IT employment in Kenya (~27,000 IT professionals in 2010), IT support people represent the largest portion (27%), followed by Applications Systems Analysts and System Engineers (13% each).  The structure of IT professions is slightly different for IT companies and end-users. While the IT management and administration professions prevail in the end-user segment, IT companies employ more IT development- related professionals. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 27. IT Skills Survey Highlights Demand Prediction by Professions  Roughly 9600 IT professionals are expected to be added to the Kenyan IT workforce.  The demand for individual IT professions differs by profession.  Software Developers (at 70% growth) and Project Managers (at 57% growth) are the professions expected to grow the fastest over the period 2011-2013. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 28. IT Skills Survey Highlights Availability of IT Professionals  Application Systems Analysts and Software Developers are the IT professions that are least available. Approximately 45% of respondents reported they are very difficult or difficult to find.  On the contrary, IT Support people and IT Administrators are much easier to find – only for less than 10% of respondents, they were reported as very difficult of difficult to find. Source: IDC IT Skills Research Source: Business Survey N = 158 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 29. IT Skills Survey Highlights Demand/Availability Matrix for IT Professions Consider Focus % of companies reported very difficult or difficult Di Application Syste ms Software developer Analy st t l u c i f f System Engineer Av IT Manager/ IT Consultant IT Project to find Direct or M Team Leader a Web Designer n a i l i b a l i a IT Administrator E g IT Support e Monitor r y s a Low Demand High New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 30. IT Skills Survey Highlights Demand Prediction by IT Skills  The demand for individual IT professions differs. The most growing demand will be seen for IT Project Management Skills (136%) and Software development skills (135%).  IT Administration and HW skills are projected to grow at the lowest rate – less than 12%. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 31. IT Skills Survey Highlights Availability of IT Skills  Software development/deployment & Enterprise/business application skills are least available – for approximately 30% of interviewed organizations, these professions are very difficult or difficult to find.  Project management, security and mobile technology skills were also reported as difficult to find.  Internet-related & Networking skills are available and easy to find. Source: Business Survey N = 158 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 32. IT Skills Survey Highlights Demand/Availability Matrix for IT Skills Consider Focus % of companies reported very difficult or difficult Di Software Enterprise/Business Devel Applicati opme ons nt t l u c i f f Security IT Project Data Mobile Ma S T na Av t e ge to find o Databases c me HW r h nt IT Adm. a Networking n g ol i l i b a l i a E Internet e o gi Monitor e s y s a Low Demand High New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 33. IT Skills Survey Highlights Supply side: Skills lacking in graduates  Skills lacking in graduates: Interviewees were asked about the skills they thought their graduates were lacking in or particularly strong in, following are the skills plotted representing an average of the ratings. Hardware Problem s s k o Software i l s l v k l i i s n l LACKING g l STRONG IN Skills in graduates s Project Structured & Team skills m Inn a ov n ativ  a e Software skills and Problem solving skills rated the highest while hardware and project g thi management skills rated much lower. e nki ng Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 34. IT Skills Survey Highlights Demand Side : Skills lacking in graduates Q: What type of skills are the graduates particularly  When probed on the types of skills usually lacking? lacking in graduates, companies cited Innovative thinking, Problem solving and Project management/implementation as the top three skills that are lacking  Some of these findings were seconded by the university interviewees which indicated lower ratings on project management/implementation skills and innovative thinking.  Based on some interviews with ICT companies, Business/ Soft skills were cited as lacking in graduates as well as keeping up with technology trends; the view was expressed that the gap between theory and practice needs to be bridged via mediums such as Source: Business Survey internships Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 35. IT Skills Survey Highlights Overall business perception of IT Skills  Roughly a quarter of companies are not satisfied with the quality of IT professionals from educational institutions in Kenya  Approximately a third of companies have contacted or plan to contact external providers to manage the skills shortages.  Roughly half of the respondents believe that the lack of IT skills significantly impacts business and IT operations & performance. Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 36. IT Skills Survey Highlights Inhibitors – Supply Side/Educ inst view • Funding and Infrastructure constraints cause less availability of resources and labs; not all the educational institutions are adequately networked • Scarcity of experienced faculty and a general shortage of teaching skills for technology; it was also indicated that it is tough for educational institutions to match private sector pay • Last-mile connectivity to rural areas was also cited as an inhibitor. This severely limits the availability and accessibility of internet, both from a quality and price perspective • Quality of education: The view was expressed by more than one interviewee that skills obtained from many colleges and institutions are not adequate for the industry. Consistency of curriculum was a common theme, with the lack of guidelines emphasized. The watered-down value of certifications and lack of market-relevant courses in some educational institutions were other themes. • General lack of understanding of IT as a career Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 37. IT Skills Survey Highlights Inhibitors - Businesses view Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country? Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 38. Residents Survey Highlights • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 39. IT Skills Survey Highlights IT companies view of inhibitors of IT skills  Some large ICT companies were of the opinion that that the overall skills pool in the Kenyan market is rather limited.  The view was also expressed that there is more of a gap at the advanced skills level as many IT professionals with advanced skills leave the Kenyan market while there is not much of an influx of experienced professionals from abroad.  Another related issue is loyalty and attrition; IT professionals are perceived as migratory and there seems to be a fair bit of poaching; an opinion which is consistent with the business survey where 80% of the companies indicated that attrition has a minor to significant impact on their organizations.  Frequency and size of IT projects: The view was expressed that there may not be enough big IT projects that can result in a large pool of skilled personnel, consequently there are not enough projects that allow professionals to exhibit or develop their skills.  Availability of lower cost imported ICT labour was also cited as an inhibitor to skills supply. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 40. IT IT Skills Survey Highlights P r o Gap analysis framework f e s s i o n a l s Training/ Re- t r f r a o i m n a i b ‘Unqualified’ Students n r s o w g u a h p d o ‘Brain drain’ p es l g pe y o cia lly o a r Attrition b at hig r he S o r k a Gaps filled by expats Gap Sk i d for ill l short- Move to o term lev l m r project els s a Demand duratio n n p m Copyrighta IDC. Reproduction is forbidden unless authorized. All rights reserved. i u
  • 41. IT Skills Survey Highlights Dimensions of the gap in IT skills Technical gaps • Enterprise/busine ss application skills, software development, mobile applications • IBM and SAP related technology skills Higher-level gaps • Shortage of experienced IT Graduate-level skill gaps personnel Gap in IT • Project management • Poaching and moving prof • Problem solving abroad i.e. ‘brain drain’ ess • Innovative thinking reported; also technical staff ion • Gap between theoretical moving to management als and practical skills; tracks insistence of some • Experienced professionals experience from IT firms from abroad not coming in Quality gaps • Candidates who have certifications and educational qualifications but do not bring the expected quality • Inconsistencies in course duration and curriculum within the courses Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 42. IT Skills Survey Highlights Overall Recommendation areas and initiatives Establish specialized training Expand capacities of universities programs for Integrate ICT in education and colleges graduates • Provide infrastructure and funding • Focus on recognized skill gaps such • Incorporate more ICT elements at support as business skills and ‘soft’ skills secondary level • Address qualified teaching shortage; • Partner with training/ICT companies; • More attachment programs and Evaluate & incentivize the supply encourage investment to ensure internships with technology training availability companies to learn and apply Harmonize and monitor supply & Focus on special interest areas Improve connectivity demand • Local context and relevance e.g. ICT • Provide last-mile connectivity • Definitions and quantification of in agriculture through pricing incentives demand roles and types of skills • Innovation areas similar to m-pesa • Help middle and lower tiers of • Policy on course design and criteria • Incentivize reverse brain drain i.e. educational institutions to get to fulfil these roles Kenyans based abroad connected • Open up data to relevant stakeholders Financing & Support Review ICT curricula Promote IT as a career • Specialized funding for ICT courses • More regulation, more rigor and • Attract more people (especially youth • ICT incubators with educational standardization and females) via promotional institutions • Public-private partnership body to campaigns • Tax relief & special funds for ensure curriculum standardization • Attractive industry compensation technology focus areas • Online mechanism with Assessment standards of IT skills online Government organizations, IT companies and Educational institutions would need to collaborate extensively in the above areas to achieve the ICT skills-related objectives related to the Strategic Plan and Kenya 2030. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 43. IT Skills Survey Highlights Projects prioritization Consider Implement Expand capacities of univer High sities Review university curricula and colleg Focus on special interest Improve connectivity es areas Establish specialized progr ams for Promote IT as a career Financing & Support grad uate Integrate ICT in education s Harmonize and monitor Impact suppl y& dema nd Low Ease of implementation High Low Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 44. Residents Survey Highlights • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 45. Resident’s Survey Highlights Internet Usage at home Internet Home Penetration by Location Internet Home Penetration by SCL Base : Total Sample (750)  26% of the surveyed HH use internet  Internet usage increases by SCL levels. It is highest in Mombasa (37%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 46. Internet Usage at home Inhibitors for Not Using internet at home Q17. What are the reasons for not having internet connection at home till now? Highest in Eldoret (77%), in SCL D (77%), Highest in Kisumu (43%), in SCL C2 (39%), Highest in Nyeri (21%), in SCL AB (18%), among the 15-24 yrs (22%) Highest in Nyeri (32%), in SCL AB (17%) Highest in SCL D (36%), among the 45+ yrs (26%) Highest in Kisumu (11%)  Unavailability of PC is the main reason for not using internet from homes (58%)  The usage of internet within low SCL’s (D and C2) is mainly hindered by their inability to buy PC’s or pay for internet connection Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 47. Kind of PC, Internet Device & Mobile Service Used Q25. What kind of PC do you use? Q60. Which kind of mobile service do you use? Base : Users of PC (519) Base : Users of Mobile Phone (746) Q31. Which of the following devices have you used to access the Internet in the past 12 months?  Accessing internet is largely done from mobiles, either internet-enabled handsets (80%) or smartphones (15%)  A significant portion of PC usage (desktop or laptop) is dedicated to accessing the internet Base : Users of Internet (592) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 48. Purposes for Using PC Q27. What is your primary purpose for using the PC? Detailed by Age Detailed by Gender Overall 15 – 24 25-34 35-44 45+ Male Female (206) (219) (163) (67) (70) (313) 69% 72% 72% 76% 71% 71% 77% 70% 49% 40% 68% 64% 63% 65% 66% 67% 64% 65% 57% 42% 27% 30% 43% 47% 20% 44% 43% 59% 40% 29% Base : Users of PC (519)  Respondents use PC mainly to perform personal task (71%), especially old individuals 45+ years  Entertainment and education purposes drive respondents 15-34 yrs old to use PC. These reasons decrease significantly among older users (35+yrs)  Old males (45+ yrs) tend to use PC for work reasons much more than other demographics. Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 49. Purposes for Using the Mobile Phone Q59. Which of the following services do you actively use on your mobile device? Detailed by Age Detailed by Gender Overall 15 – 24 25-34 35-44 45+ Male Female (219) (163) (67) (70) (313) (206) 97% 96% 97% 99% 97% 96% 97% 97% 99% 88% 96% 95% 51% 52% 41% 26% 46% 45% 53% 45% 34% 23% 44% 40% 47% 41% 31% 17% 39% 34% 42% 35% 34% 24% 38% 31% 36% 31% 32% 21% 30% 32% 33% 23% 20% 10% 25% 22% 20% 17% 10% 8% 18% 12% Base : Users of Mobile Phone (746)  Calling and texting share respondents' main usage of the mobile (around 97%)  The usage of internet enabled services and PIM mainly attracts the young category (15-24 yrs). Their usage decreases significantly by age Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 50. Confidence in Using the PC Overall Q47a. How confident are you in using…  Highest confidence is recorded in the areas of text processing (68%) and working with spreadsheets(57%)  PC users are least confident in maintaining the computer (checking and solving problems, 36%) and programming (31%) Base = Users of PC Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. (n=519)
  • 51. Confidence in Using the Internet Overall Q47b. How confident are you in using…  Highest confidence is recorded in the areas of using search engines (80%) and email communication (79%)  Internet users are least confident in creating web pages / blogs (29%) Copyright IDC. Reproduction is forbidden unless authorized. AllUsers of Internet Base = rights reserved. (n=592)
  • 52. Financial Transactions on the Internet and Mobile Type of transition, Number of online Purchases Q38. Which of the following on-line / electronic (through internet or mobile) services have you used in the past 12 months? Base : Respondents Using Online Banking or purchases (510)  4 of the top 5 e-transactions are done via mobile  Online e-transactions are almost not present and include online banking (4%), utility payments (3%) and the purchase of products and services (2%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 53. Tasks Performed on the Internet Q34. Do you use the Internet to perform any of the following tasks? Detailed by Age Detailed by Gender 15 - 24 25-34 35-44 45+ Male Female (238) (182) (88) (84) (346) (246) 81% 82% 76% 57% 79% 76% 68% 70% 66% 64% 70% 65% 48% 42% 24% 29% 39% 40% 37% 27% 23% 19% 31% 26% 25% 30% 26% 33% 27% 29% 19% 34% 26% 34% 29% 25% 28% 23% 14% 8% 25% 18% 21% 25% 22% 19% 25% 18% 17% 21% 23% 29% 21% 20% 13% 10% 14% 11% 13% 11% 11% 13% 14% 16% 13% 11% 6% 11% 13% 8% 10% 7% 6% 8% 10% 5% 8% 7% 4% 5% 7% 2% 5% 4% 5% 8% 2% 5% 6% 4% 2% 4% 0% 4% 4% 1% Base : Users of Internet (592)  The main purposes for using the internet are communicating with colleagues (77%) and searching for information (68%), exceeding by far other reasons.  Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling appointments, etc.) more than younger users who look for more social, entertaining or educational activities online Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 54. Satisfaction With Internet Service Q46. The following questions are about your satisfaction with the Internet service you use. I will ask you about various characteristics of the service, for each one please select a number from 1-7, where 1 = Very dissatisfied, and 7 = very satisfied Base : Users of Internet (592)  68% of internet services are satisfied with the overall internet service. This is mainly driven by the reliability, speed and cost of this service  Internet users record lowest satisfaction with the support they are getting from providers (41%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 55. Awareness of e-Government Services Q65. Are you aware of any government services available online? If yes, have you used any for your non-work related matters in the past 12 months? Base : Total Sample (750)  Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated especially in Nyeri (23%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 56. Type of e-Government Services Used in Past 12 Months Q66. Which of the following e-government services have you used in the past 12 months for none-work related matters? Copyright IDC. Reproduction isBase = Users of e-Government Services forbidden unless authorized. All rights reserved. in Past 12 Months (n=103)
  • 57. Other e-Government Services Q68. Are there any other government services you would like to see available on line? Advertisement of Government positions 20% Application of birth certificates 13% Electronic elections 13% Processing of licenses by KRA - Any other government services you would like available online 7% Title deeds acquisition 7% Downloadable ID cards/ passports 7% How the budget is prepared/processed 7% People with disabilities should be put online 7% Show/upload government services 7% City council stickers 7% Efficiency/accountability of government related work and projects 7% Payment of council levies 7% Appointments for government positions 7% ID registration 7% None/Don’t Know : 85% Copyright IDC. Reproduction isBase = Users of e-Government Services forbidden unless authorized. All rights reserved. in Past 12 Months (n=103)
  • 58. Barriers to ICT Usage Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)? Detailed by Location Mombasa Eldoret Kisumu Nyeri Nairobi (253) (179) (98) (120) (100) 37% 36% 40% 58% 30% 41% 31% 32% 43% 25% 25% 34% 34% 38% 26% 24% 27% 19% 33% 21% 20% 18% 14% 15% 27% 21% 15% 16% 24% 20% 21% 18% 15% 3% 19% 14% 18% 6% 14% 19% 11% 7% 5% 18% 6% 8% 14% 4% 23% 2% 7% 9% 2% 16% 1% 6% 9% 8% 7% 6% 3% 7% 1% 7% 4% 0% 8% 1% 8% 1% 3% 2% 0% 3% 6% Base : Total Sample (750)  Unavailability of computers accompanied with theirs high cost as well as the costs of internet connections are the main barriers to the use of ICT  Residents of Kisumu are mostly affected by these barriers compared to respondents from other cities. Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  • 59. Recap of Main Findings  Acquiring ICT skills in Kenya is significantly affected by the overall social status of households and respondents  The unavailability of PC and internet at homes due mainly to their high cost and the inability of respondents to purchase them emerges as the main barrier against ICT knowledge  Another barrier is the absence of internet infrastructure in some neighbours which is prohibiting those who are financially capable (SCL AB) form enjoying this service  This is leading to the fact that most internet access is done via mobile or from places outside home where respondents are satisfied by its cost, speed and reliability  Usage of PC, internet and mobiles is generally limited to basic features  The same main barriers (cost and unavailability of PC and internet) that are reducing the use of internet and PC are also preventing respondents from taking ICT training courses  With these factors pressing, only 16% of respondents have been trained on ICT skills in the last year  Respondents are aiming to increase their general basic skills for using mobiles, PC and internet. They reflect less desire to learn advanced features Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 60. Business Survey Highlights • Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 61. Business Digital Presence Which of the following does your organization have at present? Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 62. Business Digital Presence Constraints for internet usage Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 63. Business Digital Presence Total number of full time employees that have access or use shared / dedicated PC Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 64. Awareness and Usage of e-government services Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 65. Satisfaction with e-government services Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 66. Recommendations IT Skills Gaps Macro Details Action Area Broad Recommendations Awareness programmes at education institutions on: business needs vis a vis courses taken; Increase type of skills in high demand for the next 3-5 years output of current MIXTURE of skills needed number of attract the youth via promotional campaigns skilled staff Include middle & lower tiers of educational institutions to get Focus connected IT Bridging programmes to involve academia, graduates and ICT Business Ski Enhance leaders Curriculum refresh and plan to do this regularly quality of lls skills Inclusion of basic soft skills courses as part of the curriculum Establishment of Industry Standards, Accreditation and Ethics body Specialized funding for ICT courses Focus Partner with training/ICT companies and ensure training availability Mechanism to balance the need for expat labour vs skills transfer value Protect local Incentivize Diaspora to reverse brain drain jobs & stem More attachment programs and internships with technology brain drain Consider companies to learn and apply Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 67. Recommendations Residential Usage Macro Details Action Broad Recommendations Area increase e-govt Awareness programmes on services currently offered and follow services Focus up on suggested online government services Re awareness increase e-govt Leverage mobile operators to update citizens on government sid services usage Focus services vis SMS (subsidized cost for government for bulk SMS). Deploy relevant USSD driven services for citizens ent Solicit feedback on content of interest, esp. from non-users Create awareness on other content and services Content - review feedback on content most used and share with ial beneficiaries of digital content funds to take ICT Adoption Consider action/innovate/respond Us Close collaboration with media to pursue the internet as a channel for delivery. ag Address costs - See macro item COST below Access - see macro item INFRASTRUCTURE and COST below Prioritized subsidies of public access centers after evaluation e Cost of services/Devices Focus Provide infrastructure support and services subsidies Re-animate local assembly initiatives through vendor PPP and with political will Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 68. Recommendations Business Usage and Costs Macro Details Action Area Broad Recommendations e-govt Awareness creation on existing content and services services Focus Leverage on high internet adoption to interact with businesses more Busi awareness via a various databases (e.g. customs, taxes, registry, immigration etc) nes e-govt s services usage Focus Roll out more services and solicit feedback on what is needed Usa Skilled Staff Monitor See SKILLS macro ge ICT Cost of services and Quality of Services - need to sensitize business Monitor users of their rights in collaboration with the sector regulator. Adoption Collaborative campaigns. Internet Consider Further subsidize public access areas, secondary schools Services Cos PC Costs Consider Revive local assembly initiatives (e.g. Nigeria with Zinox) t Mobile Device Consider Partnerships with vendors of low cost devices, tap into local application community Costs Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 69. Recommendations Channel & Infrastructure Macro Details Action Area Broad Recommendations Vendor confidence & investment Monitor See Skills Macro Above See SKILLS Macro above Focused marketing & local promotional events that explicitly illustrate strengths Foreign Chan Investment nel Nurture Tier 2 players as possible partners through capacity building, seed Focus funding, preferential treatment in government procurement Tier 1 VAR Monitor Develop plans to help elevate Tier II players into Tier I players Tier 2 VAR Business Incubation Initiatives Focus Capacity building outside urban areas and create employment Last Mile Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access Gaps Access Consider Collaborate with CCK to sensitise operators on USF Infras Backhaul to Develop a PPP framework & depart from ad hoc, covertly commercially oriented PPPs that lack synergies and leveraging value. truct remote Consider wireless/satellite technology elements in national infrastructure plans ure areas for remote areas to mix with other technologies for last mile access Offer subsidies (and reward schemes) to operators with renewable energy Power focus or innovation that address power issues Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 70. Interventions for Recommendations Macro areas addressed Financial Infrastructure Skills Residential Channel Cost Private Public Partnerships Infrastructure Skills Residential Cost Regulation Infrastructure Business Residential Channel Awareness Skills Business Residential Content Skills Business Residential Curriculum reform Skills Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 71. Thank You • • Tablet OEM Site Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.