Challenge 10.5

Why does this Challenge need to be solved?

Digital economy skills shortages and gaps are acutely felt by employers nationally, and at a Glasgow Region level jobs like software developers are in high demand, whilst at the same time, basic digital skills are lacking in many workplaces.

We are on the precipice of a transformative decade across all of Scotland’s industries, driven by AI and technological advancements. There remains uncertainty about exactly what type of digital skills will be required across all jobs as many of the exact applications of these new technologies are yet to be fully understood. 

It is vital that industry and organisations have access to a digitally attuned workforce that can provide the skills and capabilities needed now and in future to support a rapidly expanding digital economy. To achieve this, we must better understand the current and changing needs of employers, as well as the available talent emerging through education and training provision. Identifying mismatches between the demand for and supply of Digital Economy skills in Scotland will help inform policy and demonstrate the need for regional skills interventions.

In particular, this Challenge is driven by an identified gap in granular data available at Glasgow City Region level on both the supply and demand of Digital Economy skills.

There is a lot of existing data and insight that helps to inform skills policy and interventions, however there are some identified gaps that, if filled, could enrichen the existing evidence base. For example:

• Skills Demand: There is a requirement for greater granularity in the data available, covering measures such as job postings for Digital Economy roles as well as information on time it takes to fill vacancies – and if roles are going unfilled. There is also a need to understand where these jobs are located and what skills and experience employers are requesting.

• Skills Supply: There is a requirement for detailed information on the talent pipeline for the Digital Economy in Glasgow City Region. This includes information on formal skills provision, which is not always publicly available and more disparate sources of provision beyond standard educational routes into Digital Economy roles. For example, private provision, immersive programmes, and online offers such as micro-credentials.

Due to the fast-changing nature of the Digital Economy, there is a requirement for skills demand and supply data in the Glasgow City Region to be explored over various time periods to inform policy and the development of regional initiatives.  In particular, there is a need for this information to cover the immediate demand/supply (nowcasting) and also short, medium, and long-term periods (forecasting).

Whilst this is not an exhaustive list of requirements, it provides some examples of the types of data and insights required to solve this Challenge.

Solving this Challenge also requires consideration of the job roles and skills are in scope and this might require looking to the broad digital economy rather than just the tech sector. The widely used Standard Industrial Classification (SIC) and Standard Occupational Classifications (SOC), may have limitations for the digital economy as skills and occupations change quickly, and these skills are no longer just in demand in tech companies. Standard approaches to data and insight may therefore need to be supplemented with real-time information to provide a fuller picture.

In order to have a thriving Glasgow Region digital ecosystem in the Glasgow City Region, it is important that data and insight about skills demand, skills supply and skills mismatch is readily available to inform policy and interventions.  An essential part of this process is the collation and analysis of data and insight from a variety of sources, alongside the ability to tell a story with the evidence, create actionable insight and make this available to partners.

The data must be as comprehensive as possible if we are to encourage an inclusive talent pipeline whether from colleges, universities, people changing jobs or those retiring – and supports business and economic growth. Mapping routes into Digital Economy roles, from quantifiable data on current employment, future demand and provision would enable a strategic approach to meeting employer needs and help Glasgow’s Digital Economy thrive.

Challenge sponsors are interested in proposals that address the following outcomes; 

• A better understanding of the number, type and category of professional tech/digital job vacancies across the Glasgow City Region now and in the future 

• A meaningful understanding of the skills requirements related to tech/digital roles and how these map to the advertised vacancies 

• A breakdown of the different skills provision pathways to support these roles both now and the future. 

• The ability to understand areas of demand versus supply and plan accordingly to meet those needs both now and in the future. 

How will we know the Challenge has been solved?

When we are able to harvest all relevant internal and external data on skills demand, skills supply and skills mismatch in the region into a useful tool to support Glasgow City Region and partners.

Specifically, Challenge Sponsors will have visibility of:

• Digital Economy Skills Demand: including measures such as current employment, job postings and skills requested by employers. (list not exhaustive).

• Digital Economy Skills Supply: including the number of entrants and graduates of relevant provision/skills (covering school, apprenticeships, college, university and other private provision) to provide an overview of the talent pipeline. (list not exhaustive).

• Digital Economy Skills Mismatch: analysis of high-level gaps in supply vs demand, including detail on the gaps for specific skills and roles.

The solution should be comprehensive and robust, however, noting the complexity of the Challenge, there may be elements that cannot be fully addressed by a technology solution. Overall, the solution should aim to support the Challenge Sponsors in utilising the evidence to develop policy and relevant interventions by adding value to what is currently available.

The supplier would be expected to factor in time to consult with Challenge Sponsors, industry experts and stakeholders to draw on their expertise to agree and validate definitions of the following elements of the work:

• What constitutes Digital Economy jobs and skills.

• Relevant timescales (e.g., immediate, short, medium, and long); and

• Courses/types of provision (note – the supply of skills may come from providers out with the Glasgow City Region).

Integrated Digital Skills and Professional Digital Skills have been broadly defined in the Digital Economy Skills Action Plan and this provides a starting point for discussions.

Who are the end users likely to be?

Glasgow City Region local/regional governments and government-sponsored agencies with a responsibility and remit to support the digital economy skills agenda.

In time, other stakeholders may use the information generated to assist them in planning and adapting their future curriculum, for example colleges, universities and other training providers.

In addition, private sector companies looking to map talent to emerging industry opportunities and tech recruiters keen to access reliable data on regional talent intelligence may also have an interest in the output(s).

Has the Challenge Sponsor attempted to solve this problem before?

Research has identified that while there is a range of existing data and insights to support the Challenge, no single current solution is available that solves the Challenge in its entirety.

Some products available on the market such as those which provide job posting data primarily focus on the demand side and not on the supply side. Job posting data providers also typically scrape from advertised online vacancies and insight suggests digital technology employers are increasingly using alternative online and offline recruitment practices.

Skills Development Scotland’s Sectoral and Regional and the Data Matrix provide evidence and insight on the current and future demand for skills, including robust forecasts.

Other sources of information also includes the ScotlandIS annual tech survey and data held/published by recruitment companies.

The tool that developed should take account of how all of these existing types of data sources identified above can be harnessed as well as offering significant value.

Are there any interdependencies or blockers?

Digital economy vacancies may be hidden or missing from generic job sites, using alternative channels including word-of-mouth, subject matter forums and private website postings to advertise demand. In addition, the rise of fractional or “quiet” hiring which relies on using internal talent, temporary workers like contractors, in demand freelancers or gig workers to fill tech projects should be considered.

Will a solution need to integrate with any existing systems / equipment?

While this should not limit the supplier in identification of a solution, it would be useful if data could be integrated to support current licensed datasets, for example Real-Time Industrial Classifications (RTICs) c/o The Data City.

Any technologies or features the Challenge Sponsor wishes to explore or avoid?

CivTech is tech agnostic. As long as the proposed solution offers the opportunity to solve the Challenge in question, we will consider it.

That said, any proposed solution must be capable of integrating with existing systems as required by the specific Challenge and its Challenge Sponsor, and if appropriate be compatible with current and developing Scottish Government infrastructure.

Much is currently being made of the potential of advanced AI. In truth, just about all the products CivTech has developed over the past few years have AI as part of the tech stack but there is no obligation on your part to go down this route – either with componentry such as machine learning and pattern recognition, or indeed LLMs.

We are looking for the best solution, whatever technology used.

The Challenge Sponsors are open to all technologies and platforms that can provide the usability and functionality that is required. This should include but is not limited to being user friendly, segment-able, continually updated, provide detailed and layered search functionality and deployable on desktop as well as mobile devices.

What is the commercial opportunity beyond a CivTech contract?

The commercial opportunity is in the scalability. A product that works for Glasgow City Region - the largest in Scotland – should be replicable across other regions in Scotland and the UK and to national level – for both public and private sectors usage alike.

Skills shortages in the digital sector are a worldwide issue.

Neither are skills shortages unique to the digital sector. Other professions are also suffering problems - for example the health and care, and hospitality sectors. Therefore the right solution could be applied to other skills as well as the broader scope of digital, itself layered from foundational upwards.

Glasgow City Region is also interested in the Challenge from an innovation skills perspective, the ability to understand the number and categories of innovation jobs across the region and to map against supply to have a clear pathway of provision to employment.

The Data Lab, as part of their annual skills landscape review, will be keen to engage the partner to aid their team in the delivery of this activity.

Who are the stakeholders?

There are a range of stakeholders from across the challenge sponsor teams that will be available include;

• Glasgow City Council Digital Economy team

• The Data Lab - Data Skills for Work and Data and AI/Machine Learning specialist(s)

• Skills Development Scotland - Evidence and Impact, Sectoral and Regional teams

• Representation from the Glasgow City Region Intelligence Hub and Glasgow City Council Innovation Teams

• Glasgow City Council Head of Employability and Skills

• ScotlandIS Project Lead for Skills

• Tech UK

In addition to the named stakeholders, the applicant would be expected to identify how they would bring in expertise from other organisations who could help them deliver the challenge outcomes. This is expected to include partners who understand areas such as research, skills and/or the digital economy.

Who’s in the Challenge Sponsor team?

• Glasgow City Council / Glasgow City Region

• The Data Lab

What is the policy background to the Challenge?

In order to have a thriving digital ecosystem in Glasgow City Region we recognise the importance of a clear skills pathway which nurtures and encourages both diverse talent and prospective employers to engage. This need is reflected in the recently refreshed Digital Strategy for the City.

The Digital Economy Skills Action Plan (DESAP) identified supporting a vibrant digital technologies sector as one of its five opportunity areas which will contribute to economic growth. Support for skills requirements for the sector is essential as it makes an essential contribution to the ambitions of the Scottish Government’s National Strategy for Economic Transformation (NSET).

The publication of the Scottish Government’s Scottish Technology Ecosystem  Review; the Digital Scotland Strategy; Scotland's Artificial Intelligence Strategy; and the Strategic Framework for a Cyber Resilient Scotland since the onset of the pandemic have all underlined the importance of enhancing digital skills to deliver across several social and economic outcomes. Together they set an ambition for Scotland to be a digital nation. This encompasses a range of issues, including the need to overcome digital exclusion and the need to enhance digital innovation to underpin economic growth.