The South Australian government has partnered with Microsoft to stand up a new traineeship program aimed at developing IT-related skills in the state.

According to SA Minister for Innovation and Skills David Pisoni, the Microsoft Traineeship Program will help build workforce capability in IT and cloud computing, and increase IT traineeships.

The state will provide around AU$200,000 in funding for the program which will provide about 40 people with two-year traineeships from September.

Launched in New South Wales late last year, the traineeships combine on-the-job, paid work experience with a Certificate IV in Information Technology and a Microsoft Azure Certification delivered through TAFE SA.

See also: Microsoft Azure: A cheat sheet (TechRepublic)

"Participants do not need a degree or any previous work experience, as they will be provided with training as well as being employed by MEGT. Host businesses in the Microsoft Partner Network, in metro and regional areas will provide the participants with on-the-job work and experience," Pisoni said.

"It's critical for our state's future economic success that our workforce is suitably skilled to meet industry needs -- particularly at a time of unprecedented opportunity in sectors such as space, cybersecurity, and defence."

Companies who are participating in the South Australian program include Compnow, Datacom, DXC Technology, and HCL.

See also: Indian giant HCL forms digital partnership with Cricket Australia

The program is part of the Skilling South Australia initiative, which is a partnership with the federal government to create 20,800 new apprenticeships and traineeships over four years.

"By working with strategic delivery partners TAFE SA, Prodigy Learning, and MEGT, as well as a network of Microsoft partner businesses in South Australia, we aim to create a new pipeline of exceptional IT talent and create exciting career opportunities for South Australians," Microsoft Australia managing director Steven Worrall added.

The government of South Australia on Tuesday announced its 2019-20 state Budget, allocating official coin to a handful of new initiatives and those already announced, with the government looking to secure Adelaide as the "innovation capital of the nation".

The Budget included the funding allocated to the Adelaide City Deal that was announced earlier this year.

With AU$551 million over 10 years, the Adelaide City Deal -- a partnership between the state government, the federal government, and the City of Adelaide -- is hoping to deliver a suite of initiatives to create the skilled and productive jobs of the future, boost Adelaide's population through migration and planning reforms, and enhance cultural experiences by generating greater opportunities in the state's tourism sector.

Under the deal, Lot Fourteen in the north-eastern corner of Adelaide's CBD will be converted into an innovation precinct.

Lot Fourteen will host the headquarters of the Australian Space Agency, its mission control facility, and the Australian Space Discovery Centre, with Prime Minister Scott Morrison previously noting it will also boast "major cultural attractions, high-tech businesses, and world-class education facilities".

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