Austria

IT Workforce

Executive Summary

The University of Vienna was established in 1365 and is Austria's oldest and largest university. Education is important and overall the system is well-developed. The country’s public school and university systems are free. Beyond the nine years of mandatory education there are a range of vocational- technical and university preparatory tracks involving one to three additional years of education. After the introduction of Vision 2005, Austria began to focus and make improvements on the areas of research and technology in education. The following section describes these actions, as well as the language skills and wages of the Austrian workforce.

 

 

Education

Austria has a well-developed education system; a highly educated society is more apt to embrace new technology. The literacy rate (defined as persons aged 15 and over who can read and write) in Austria is 98 percent of its population. This is uniform with Germany and Switzerland who both have a 99 percent literacy rate.

Austria’s Vision 2005 strongly focuses on the country’s education system. While the system is generally satisfactory, the Council that oversees Vision 2005 recognizes that it is not competitive in terms of research and technology. One subject area that will be revamped and/or promoted further is information and communication technologies (multimedia technologies, e-business, digital content, micro-electronics, telecomm).By revamping/promoting such subjects, Austria aims to develop the country’s scientific and technical knowledge base.

The Council’s goal is to double the number of graduates in the innovative disciplines. In order to achieve this goal, the Council is improving the quality and the accessibility of the Education system. The tuition system will also be modified to make a university education more affordable, especially at universities and colleges specializing in areas of research and technology. In 2001, tuition fees at polytechnic institutes were EUR 377.22 per semester per student.

By 2006, approximately € 72.7 million will be spent on IT programs that teach basic IT skills up to expert proficiency. The programs, which were launched by the Federal Ministry of Education, Science, and Culture, are part of a larger program called e-FIT (16). There are eight “fields of activity” with programs and goals, as follows:

Program

Goal

Teaching with New Media

To train 120,000 teachers on Internet skills

IT Education Offensive

 

To better prepare students for IT-related jobs

To equip all public Austrian schools with Internet access

Education Gateway

Internet portal to serve as a central access point to all relevant information for all levels of education and training in Austria

Science and Research

To position Austria as a leader in some areas of e-basic research as well as applied e-research in pre-competitive and competitive product development by fostering co-operative programs among universities

Continuing Education in IT (Circus Internet)

To encourage lifelong learning for adults by establishing adult education competence centers

Culture in Cyberspace

To preserve and provide access to Austria's cultural heritage

E-government in Education

To introduce public management into the Austrian educational system in order to make administrative procedures easier with new technologies

Infrastructure

To provide the technological base for all other fields of activity, mainly to gain high-speed access to international networks for ACONet and the Austrian School Network (ASN)

The Ministry’s goal is to provide all Austrian citizens with an Internet competency and therefore increase its usage. By making training accessible to everyone, the government hopes to stimulate interest in the ICT sector.

 

 

Language Skills

Due to English being the primary language used in technology, it is imperative that countries teach English language skills in order to participate in IT. Austria is a country of many languages. German is the official language, but Czech, Croatian, Hungarian, Romany, Slovene, and Slovak can also be found. Although many European languages are offered, English is the most common second language studied. Austrian students begin their language studies in grades three and four but 800 hours of English lessons are required to complete the pre-vocational year (in the United States this would be the final year in high school) (23). In 1997, students in secondary schools and Engineering colleges are required to take eleven courses in English. Most programs require a final project in English in order to graduate. Even students who attend vocational schools are required to take English lessons.

Though hours of study are required many Austrians lack the proficiency necessary to carry on a simple conversation. This is a weakness for Austria since English is the language of technology.

 

 

Wages

Wages in Austria’s IT sector are not competitive with other countries. According to PayScale.com (19), it is more lucrative to have a career in marketing than one in information technology. Salaries improve with education though. A diploma in Computer Engineering Technology (the equivalent of a high school diploma in the United States) receives a median of $31,486, whereas a B.S. in Information Technology can expect a median salary of $66,788.

Median Salary by Job

Job Title

Salary

Project Engineer

$39,963

Computer/Network Support Technician

$40,133

Network & Computer Systems/Administrator/Systems Programmer

$42,288

Information Systems Manager

$49,220

Marketing Manager

$78,110

Source: PayScale.com (2003)

Median Salary by Skill

Job Title

Salary

C++

$30,881

Microsoft Office

$30,881

Microsoft Windows 3.x, 95/98/Me, 2000, or XP (General Use)

$33,908

Network Management/Administration

$36,330

WindowsNT/2000/XP Netoworking

$40,133

Java

$48,440

SQL Server (Microsoft)

$48,440

Internet Information Server (IIS)

$50,000

Source: PayScale.com (2003)

Median Salary by Industry

Job Title

Salary

Healthcare Services

$16,094

IT Networking

$32,556

IT - Computer, Software

$40,133

IT - Computer, Hardware/Systems

$44,286

Engineering

$48,440

Telecommunications

$48,440

Consulting Services

$61,330

Marketing

$78,110

Source: PayScale.com (2003)

Median Salary by Degree

Job Title

Salary

Diploma, Computer Engineering Technology

$31,486

Bachelor of Engineering Honors

$36,330

Bachelor of Science in IT (BSIT)

$66,788

Master of Science in Mechanical Engineering

$72,660

Master of Science in Advertising (MS)

$75,082

Master of Business Administration (MBA)

$114,330

Source: PayScale.com (2003)

Median Salary by Product Activity

Job Title

Salary

Instruments, Process Control Equipment

$31,545

Networking Equipment

$36,330

E-Commerce, B2B

$40,133

Telecommunications Equipment

$44,444

Foods, Beverages

$62,972

Computing Solutions - Hardware

$66,788

Industrial Gases

$72,660

Financial Services

$75,082

Source: PayScale.com (2003)

 

 

The Global Information Technology Report 2003-2004

Rankings on various variables can help to put an issue into perspective. The Global Information Technology Report 2003-2004 (1) uses the Networked Readiness Index as a basis of comparison, scoring countries on a scale of one to seven. This is “a nation’s or community’s degree of preparation to participate in and benefit from information and communication technology (ICT) developments.” It is a comparison of 102 countries in three component areas: Environment, Readiness, and Usage. The Index identifies three stakeholders in ICT: individuals, businesses, and governments. The Readiness Index assesses (score 1-7) the capability of the stakeholders of an economy to access and utilize the ICT. Overall Austria, Germany, and Switzerland were very comparably scored in the Readiness Component, ranking 15, 12, and 13 consecutively.

The Individual Readiness Sub-index refers to the stakeholders’ capability (Readiness) to use and benefit from ICT. Modes of accessibility and usage rates of the Internet are important factors of the sub-index. In 2000, Austria spent $1,476.50 per capita or approximately six percent of its GDP on education. This has been the approximate annual percentage since 1995.

Education is important in Austria, as evidenced by its high enrollment rate. Tertiary (high school) enrollment was 57 percent of the population in 2001.

 

Austria

Switzerland

Germany

Public Expenditure on Education, 2000

$1,476.50

$2,043.27

$1,116.49

Public expenditure on education per capita

 

 

 

 

Tertiary Enrollment, 2001

57.7

42.1

46.3

Gross tertiary enrollment rate in percent, 2001 or most recent

 

 

 

 

Quality of Math and Science Education, 2003

5.84

5.86

4.11

Math and science education in your country's schools (1=lag far behind most other countries, 7=are among the best in the world)

Source: The Global Information Technology Report 2003-2004

Another important sub-index under the Readiness Component is the Business Readiness Sub-index, which refers to the readiness of businesses and the ease of businesses to set-up operations and to hire talented employees. The quality of Austria’s business education is an important factor in this sub-index. Its score is comparable to that of Germany. Without trained businessmen and women, technology and innovation will only go so far. It is these individuals who provide manage the operations and marketing of Austria’s products and services.

 

Austria

Switzerland

Germany

Quality of Business Schools, 2003

5.24

6.03

5.33

Management of business schools in your country are (1=limited or of poor quality, 7=the best in the world)

Source: The Global Information Technology Report 2003-2004

The Environment Component evaluates the country’s environment in facilitating the development and use of ICT. Overall, Austria was 21st out of the 121 countries surveyed. Germany ranked 17th; Switzerland, fourth.

One of the Environment Component’s sub-indexes is the Market Environment, which evaluates the presence of the appropriate human resources and ancillary businesses to support a knowledge-based society. An aspect of the Market Environment is “Brain Drain” or the rate that the country’s talented people leave the country to pursue opportunities. The country received a score of 4.57 (score 1-7), which indicates that a certain number of Austrians are looking elsewhere to pursuing opportunities unavailable in Austria.

 

Austria

Switzerland

Germany

Brain Drain, 2003

4.57

5.29

4.31

The country's talented people (1=normally leave to pursue opportunities in other countries, 7=almost always remain in the country)

Source: The Global Information Technology Report 2003-2004