Information and Communication Technology (ICT) Skill Gaps and Company-Level Performance

| Publication date: 19 May 2004 | NIESR Author(s): Forth, J | JEL Classification: J23, J24, J44 | NIESR Discussion Paper Number: 236

This paper draws on the ICT Professionals Survey (carried out between December 2000-February 2001) and matching post-survey financial data to examine the determinants of ICT-related Ôinternal skill gaps' and their impact on company sales performance. The most common reasons for internal skill gaps (ICT professionals lacking full proficiency in their current jobs) are reported as Ôlack of skills or experience of new technologies' and Ôfailure to train and develop staff'. Multivariate analysis reveals a significant negative relationship between the severity of ICT skill gaps and company sales performance, after controlling for capital assets, labour inputs, sector, region and other company characteristics. The analysis also provides some evidence of positive and statistically significant links between sales performance and provision of structured ICT training.

Keyword tags: 
information and communication technology, skill shortages, professional labour markets
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