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Worldwide, lack of skills remains the basic problem

August 3, 2009 10:38 by jllorens

(From The Times) Global research commissioned by KPMG reveals that the economic slowdown has cooled the overheated project market to some extent, especially for large physical projects.

But the research finds that there are still fundamental problems with undercapacity.

“The performance of many projects has not been good as a result,” said Jeff Shaw, director for major projects at KPMG. “There is a shortage of skilled project managers globally, which has been alleviated only temporarily during the recession.

“We cannot rely on importing skills and it’s still expensive to cherry- pick, so we have to develop home-grown project managers.

“There is considerable concern about the industry’s ability to deliver on infrastructure requirements around the world in the medium term,” Shaw added.

“Our advice is that if projects repeatedly form part of your core business you ought to build a core capacity to have internal skills to deliver. Then, outsource to supplement your capacity during peaks as a one-off.

“Government is a particularly significant problem area; our research shows that, globally, 70% of infrastructure providers (whoever feeds into major projects) cite a lack of government effectiveness as a major constraint on delivery.”

Shaw said this was not the case in South Africa alone — in the US the rate was 72%.

Read the entire article. 


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