The Malta Independent 28 July 2026, Tuesday
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Consolidating Malta’s IT Sector

Malta Independent Thursday, 13 July 2006, 00:00 Last update: about 21 years ago

Last week the government and International Business Machines, better known as IBM, signed a vertical strategic alliance (VSA) that aims to continue placing the future of Malta’s economy in the area of information and communications technologies (ICT), the knowledge economy and the information society.

The agreement with IBM brings to five the number of VSAs that have been signed by the Investments, Industry and IT Ministry over the past few years. IBM now joins the likes of Microsoft, Hewlett Packard, Oracle and Cisco – leading names in the field with many years of experience, knowledge and business acumen – who will be helping the government achieve its aim to turn Malta into an ICT centre of excellence in the Mediterranean.

Minister Austin Gatt made a very important point when he said that “ICT is about people”. The agreement with IBM is extremely “people-centric”, he said, and it will give students, businesses of all sizes and Malta’s growing research and development sector many benefits and opportunities.

“It is a question of providing education and the right resources, and then taking those resources out into the real world. Partnering with IBM was a natural development, considering the fact that Malta looks for the best people with the most varied of experience,” said Dr Gatt.

Education, and providing the right resources, are key to the future of Malta’s ICT industry. The development of SmartCity@Malta depends more than anything else on its tenants finding the right people with the right skills. Creating the necessary skills-base will require more and more young people to take up courses in IT, either through the traditional route, that is the university, or by following industry-designed courses that are offered by MCAST, private training providers and the companies with whom the government has formed an alliance.

The IT ministry has been instrumental in creating the right environment for this to occur. The MyPotential scheme, which offers attractive tax bene-fits to those who take up IT courses irrespective of whether they are employed or not, individuals or corporate, is an excellent initiative. Local banks have also understood that they can play an important role by providing financial assistance on very attractive terms to those who want to embark on an IT career or improve their future prospects.

This scheme, together with the other initiatives at a local level, in schools or in local council offices, complements the activities and services that will be on offer thanks to these strategic alliances. Each partner provides the government with a particular set of skills that can be used, either selectively or together, to further consolidate Malta’s IT sector.

These fruitful agreements, coupled with a strong education campaign and adequate resources, also require the heavy involvement of local industry. IBM’s educational initiative, for example, will see local facilities being linked to the IBM Zurich Research Laboratory, which has been key to IBM’s formidable R&D activities over the years. Businesses of all sizes are also expected to benefit from the agreement, which will see a number of IBM business solutions becoming available.

Numerous research and development collaborations are also envisaged, one of which is to provide for 15 Maltese students a year at the Zurich laboratory, a specialised R&D programme for graduates, and joint Malta-IBM participation in EU-funded FP6 and FP7 projects.

The IT ministry’s holistic approach to developing an ICT strategy to build Malta’s knowledge economy is now taking shape. However, stronger synergies between the university and MCAST, and local industry is needed. Long-term efforts to narrow the digital divide, to improve IT literacy among young children and adults are just as important and must continue.

Opportunities in the IT sector are expected to grow exponentially in the coming years, both in Malta and abroad. Research has shown that IT personnel command some of the best salaries and have excellent job mobility, so encouraging the younger generation to make the most of these opportunities is a must. The government has put the goods on the table. It is up to Malta’s young people to take the next step forward.

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