Shortage of IT specialists: High study dropout rate dangerous for IT location

ICT status report #7 by FV UBIT shows: reforms in IT education are still urgently needed

Vienna (OTS) With more than 24,000 IT specialists missing, the shortage of IT specialists in Austria continues and is increasing. This harms the competitiveness of the entire domestic economy. For the Association of Business Consultancy, Accounting and IT (UBIT) of the Austrian Federal Economic Chamber (WKÖ), one of the main reasons lies in IT education, as chairman of the association Alfred Harl makes it clear: “The current ICT status report clearly shows that a rethinking must take place here, how new specialists can be won for the IT location Austria and existing ones can be kept in the job”.

The dropout rates at Austria’s universities, which have been very high for years, have caused headaches, averaging 37.5% and at some institutions even exceeding the 50% mark. “For years we have been observing a worryingly high dropout rate at universities and technical colleges in the ICT field. The students who drop out are exactly the IT experts that companies ultimately lack,” explains Martin Zandonella, Deputy Chairman of the UBIT trade association and goes on to say: “Tertiary education in the ICT sector must be redesigned so that the dropout rates drop.” In fact, according to the current status, a reduction of 10% would mean a good 2,000 fewer dropouts mean, which would then be available to the IT industry. “We are of the opinion that a 10% reduction in the dropout rate is feasible,” emphasizes Harl.

Dropout rates at universities still high; Austria in the lower midfield

According to the ICT status report 2022, there were 18,021 registered ICT courses at the universities in the 2021/22 winter semester. They account for around 6% of all occupied university places. Although the dropout rates for computer science studies decreased slightly, they remain high: In the computer science master’s programs, the dropout rate of 47.7% in the 2020/21 academic year is significantly higher than the dropout rate for the bachelor’s programs, which is at least partially due to so-called ‘jobouts’, i.e. students who drop out of their studies to go directly to a job. The total dropouts of the ICT bachelor’s degree courses at the universities amount to 4,318 students (dropout rate of 40.1%). “The dropouts in bachelor’s degrees are particularly painful because they are lost to IT,” says Zandonella.

For the first time, the ICT Status Report contains a comparison of selected OECD countries. In 2020, the proportion of ICT studies in the entire tertiary sector, among 16 countries considered, was 4.5% (in 2014 it was 3.8%). These shares range from 1.9% in Turkey to 8.1% in Israel, 9.9% in Finland and 10.1% in Estonia. Austria is in the middle with 5.4%. “These figures show the challenges Austria is facing in order to catch up with the IT leaders,” said the head of the study Norbert Wohlgemuth from the Carinthian Institute for Advanced Studies (KIHS).

Quota for women and expansion of computer science education as a source of new IT expertise

According to current data, the lack of vacancies results in an annual loss of added value of 4.2 billion euros or 175,000 euros per vacant position. On average, companies can only fill 75% of their vacant IT positions. “Education and high qualifications are the basic foundation for a career in the IT sector. That is exactly why it is now time to reform it in order to reduce dropout rates,” demands Zandonella. “Alternative paths into IT must be promoted quickly, for example by promoting other entry options in the IT industry, such as IT apprenticeships or the Dual Academy of the WKÖ for high school graduates and university dropouts. A focus must also continue to be on the expansion of basic IT education from elementary school, accompanied by a reform of careers advice in secondary school,” emphasizes Zandonella.

It is important to create short-term as well as long-term incentives Maria Pernegger, initiator of CoderDojo Steyr: “Children learn through play and they need access to technology and IT at a young age. Institutional offers that promote this approach are already needed in elementary education.” However, there are currently too few such offers.

A 10% increase in the proportion of women taking ICT degrees could result in an increase of more than 1,500 female graduates. These potential graduates must now be activated, emphasizes Harl Finally: “In view of the lack of skilled workers and those who will retire in the next five years, it is essential to activate all available potential that is available to the IT industry.”(PWK058/ES)

The Professional Association of Management Consulting, Accounting and IT (UBIT)

With more than 78,000 members, the professional association for management consulting, accounting and IT (UBIT) is one of the largest and most dynamic professional associations of the Austrian Federal Economic Chamber. It looks after the interests of entrepreneurs from the fields of management consulting, accounting and information technology. The aim is to optimize job-related framework conditions and to communicate the performance of the professional groups to the market. Members can take advantage of extensive advice and services.

Information at www.ubit.at // www.beratertag.at // www.ubit-oesterreich.at.

Questions & contact:

DMC – Data & Media Center
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Austrian Chamber of Commerce
T 0590 900 – 4462
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