January 10, 2019

Digital skills for the 4th industrial revolution

Fundación Chile and Fundación Kodea will be responsible to articulate and to implement a mechanism that will operate this enterprise. Its initial coverage will consist of 16,000 trainees in four years.

The Fourth Industrial Revolution is just around the corner. This new evolution in business and economy will call for new skills that are subject to the digital transformation in the new dawn of a global economic history. To think that there is any time left for this to impact Chile is a misconception. Chile is the region’s Top 1 computer technology consumer, and this, inextricably calls for new and updated skills that are connected to the labor requirements related to this new stage.

This context gave birth to the “Digital Talent for Chile” Program; it became a reality with the undersigning of the Ministers of Finance, Felipe Larraín, and Labor, Nicolás Monckeberg. This public-private initiative, with the articulation and implementation of Fundación Chile and Fundación Kodea, will allow bridging the digital talent gap of over 16 thousand individuals and promoting their employability in the economy of the future.

“The goal is to train people with digital skills thus improving their employability,” stated Minister Felipe Larraín, adding that it is necessary to have a workforce capable to address the various challenges of this transformation in the country, while having on board the education and training institutions and companies to develop the skills the workers and entrepreneurs require according to the demands of digital economy.

The Fourth Industrial Revolution poses enormous challenges in terms of jobs and the economy in general, as it requires that people and companies are prepared for what is happening

Felipe Larraín , Minister of Finance

The scope of this initiative is an initial coverage of 16,000 trainees in a 4 year-period, with a success rate of 70%, whether it is measured through their employment, new entrepreneurship, or continuation of studies.

The methodology of this national enterprise is unique in developing talents connected to the needs of companies that serve the society and the digital economy, managing job training processes and intermediating in generation of employment opportunities.

For Minister Larraín, “The Fourth Industrial Revolution poses enormous challenges in terms of jobs and the economy in general, as it requires that people and companies are prepared for what is happening.”

Meanwhile, the Minister of Labor emphasized the need to move forward through the public-private coordination.

This is a pioneering project. For the first time ever, the industries will be in contact with the trainers in the technological area, while searching for mechanisms that help people develop skills and gain access to quality jobs that meet the requirements of the digitized economy

Nicolás Monckeberg , Minister of Labor

By 2019, Sence, the Chilean National Training and Employment Service (Servicio Nacional de Capacitación y Empleo) will count with 3,500 million pesos to launch this initiative, setting up 24 profiles that will lead to training in programming languages such as Internet of Things (IoT), mobile interfaces, artificial intelligence, Big Data, social networks, Blockchain, among others.

This initiative is based on the experience called Tech Talent Pipeline, implemented in New York City since 2014. The model seeks to train people on the 21st century skills. So far the results have shown that 75% of the graduates are employed after graduation with a 5% dropout rate.

According to Bernardo Larraín, President of Sofofa (Sociedad de Fomento Fabril, Chile’s Manufacturers Association), “initiatives such as the ones we are presenting today also remind us that huge progress can be made adapting to these global trends by undertaking collective and collaborative actions between the government, private sector, training institutions, and civic society. As Sofofa we want to be in these two tracks; on one hand, promoting the regulatory changes that the public apparatus requires, and in the other hand, collaborating in integrating initiatives such as digital talent.”

Although Chile is the # 1 country in Latin America in consumption of computer technology, there still is a significant gap in the availability of talents that count with the necessary skills to perform successfully in the digital world. “There is a 25% deficit of professionals per year in this area, the annual gap in ICT professionals reaches 5,000 people, and the curve of enrollment in ICT associated careers is going downhill, explained Raúl Ciudad, President of Acti.

Corfo’s (Corporación de Fomento de la Producción, Chile’s Production Development Corporation) Executive Vice President, Sebastián Sichel, indicated that when in Corfo “there is a technological change process, it needs greater coordination efforts and above all, it needs to combine the available training supply with the demand from the industry. With this agreement we will be able to target the largest need, that is, the training in technological changes and in skills required for digital transformation. If we do it well the Fourth Industrial Revolution wave will not drown us, on the contrary, we will be able to easily adapt, and it will be a great opportunity for Chile.”

Fundación Chile and Fundación Kodea will be the entities responsible to articulate and implement the mechanism that identifies the demand for talent, that manages labor training processes, that evaluates the result of training, and that generates employment opportunities to face the challenges of Digital Transformation and contribute to the development of Chile through its insertion in the digital economy. In fact, for Alejandro Jadresic, Chair of Fundación Chile, there is a conviction that the path towards the development of the country is through the development of its people, “in that direction, we are dedicated to facilitating the transition of people in the process of change towards a digital economy.”

The goal is to connect people in the digital economy with real job opportunities, offering training options focused on learning-doing and supporting employment

Hernán Araneda , VP of Human Development at Fundación Chile

Along the same line, Mónica Retamal, Fundación Kodea’s Executive Director added that “this initiative is a great acknowledgement to our mission to generate projects that influence public policy, as well as a great example of how the digital economy works: in collaboration, bringing together visions and efforts of many actors who see a space of opportunity in the digital transformation.”

In addition to the abovementioned Ministries, the agreement was undersigned by Sence, Corfo, the Confederation of Production and Commerce (CPC, Chile’s Confederación de la Producción y del Comercio), Sofofa, the Chilean Association of Information Technology Companies A.G. (ACTI, Asociación Chilena de Empresas de Tecnologías de Información A.G.), the Sofofa’s Employment and Training Corporation, Fundación Chile and Fundación Kodea. Lauren Andersen, promoter of this program in New York joined all of these entities for the occasion.


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