Policy Statement & Submission

Proposals to Strengthen IT Manpower Supply
Comments by the Hong Kong General Chamber of Commerce

April 2001

Introduction
1. The Hong Kong General Chamber of Commerce welcomes the paper on "Proposals to Strengthen IT Manpower Supply" by the Information Technology and Broadcasting Bureau. Over the past years we have consistently been reflecting the concerns of our members over the shortage of IT personnel. It is a problem that cuts across all industries, not just the IT sector itself. We are pleased that the "Proposals" reflect the emergence of a coherent policy to deal with the problem, which is becoming critical. This paper summarises our response to the "Proposals".

2. In general, we support the proposals to strengthen IT manpower supply for Hong Kong. These proposals will help provide an immediate solution to address the shortage of IT professionals and accelerate Hong Kong's move into an information society. It will also help local expertise synergise with its Mainland counterpart, for the benefit of both.
　
Outsourcing

3. Further to the "Immediate Measures to Address IT Manpower Needs" as outlined in the paper, we suggest that an additional avenue be given due attention, namely, to encourage outsourcing of IT and Web services to Mainland China. Currently some form of such services are already available in the market, including remote services undertaken in the Mainland and rendered through the Internet. This will help ease off the shortage of IT labour supply, and could be a faster and more practical approach for some of the IT jobs in the middle-to-lower tiers. It would also be more "immediate" as the hassle, lead time and procedures in importing IT personnel into Hong Kong will be avoided. For the SMEs which find it difficult to compete with large corporations for IT professionals, outsourcing has the added advantage of lowering cost and fixed capital investment.

4. The policy implication in promoting more outsourcing to the Mainland is that there should be better information flow, especially for SMEs, on the availability of these services in Shenzhen, Guangdong and generally in the Mainland.
　
Mainland IT professionals

5. We agree that the employers should offer a remuneration package to mainland IT professionals at the same market rate as that for Hong Kong IT professionals. However, in order to ensure that our money is well-spent and our training offered is not wasted, it is suggested that the mainland IT professionals be required to sign a contract with the employer for at least 2 years' service in Hong Kong.
　
6. An effect of the admission of mainland IT professional would be to push the local IT professionals to become even more competitive. We see this as an advantage rather than a threat to local talents, as in the long term it will help upgrade the quality and standard of the IT professions. At the same time, however, to encourage employers to be committed in continuously developing local IT talents, the government may consider setting some guidance for employers on the proportion between local and mainland IT professionals, so as to ensure that the system is not abused. It should be emphasised, though, that this should be taken as indicative guideline only and not as a rule to be administered.
　
Longer term issues

7. We support the longer term proposals to nurture young talents such as the student internship programme, professional training for secondary students, promoting cooperating between universities and industry, etc.

8. In addition, we suggest that the government consider intensifying IT education at primary school level so that children will get exposed to computer and Internet at the very young age. What is important for Hong Kong is not only technical ability, but the development of an IT-oriented social culture, and that has to start early in life. One means of encouraging that, for instance, is to offer subsidies to make the prices of computer cheaper for the lower income families. Other measures like providing application software at more affordable prices and increasing the supply of residential buildings that are broadband-ready will also help.

Industry liaison

9. To be effective, the programmes need to be monitored from time to time and adjusted in accordance with changing circumstances. In that regard, we note with pleasure the government's recognition of the importance of liaising closing with industry in the implementing of these measures. HKGCC would be happy to continue to be involved in this dialogue.