Skills Development: The Philippine IT-BPM...

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Skills Development: The Philippine IT-BPM Story Presented by: Penny S. Bongato Executive Director, IT & Business Process Association of the Philippines

Transcript of Skills Development: The Philippine IT-BPM...

Skills Development: The Philippine IT-BPM Story

Presented by:Penny S. BongatoExecutive Director, IT & Business Process Association of the Philippines

Where are the 7,107 Islands?

The Philippines

what we do

Voice – Based Services Suppliers Homegrown Suppliers

Banking, Financial Services and Insurance IT and Software Services

NASSCOM’S Top BPOs Shared Service Centers / Captives

Who Are With Us

Maintenance, Repair, Overhaul ServicesClinical Research Outsourcing

HR Outsourcing Legal Process Outsourcing

Engineering Services OutsourcingCreative Services Outsourcing

Medical Services Outsourcing

Who Are With Us

industry

outlook

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Philippine IT-BPM industry size

2006–2014; US$ billionx% YoY Growth

1Philippines IT-BPM market as percentage of global offshore services market, in revenue termsSources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA

# FTEs

(~‘000) 236 371 424 527

3.44.5

6.17.1

8.9

11.0

13.2

16.1

18.9

2006 2007 2008 2009 2010 2011 2012 2013 2014

34%17%

25%

24%

Copyright ©2014: BPAP. All rights reserved.

19%

298 640 777

The Philippine IT-BPM 2014 Performance

31%45%

22%

917

8

1071

19%

Impact on the Philippine Economy

Note: GDP at current prices

Source: Philippine Statistical Authority (PSA); BSP; DOLE-BLES; team analysis

Total Exports

USD billions

Employment contribution

Million jobs

97.6%

2.4%

98.8

2005

94%

6%

272.0

2013

100% =

95%

5%

47.5

2005

79%

21%

76.0

2013

100% =

GDP

USD billions

IT-BPM industry contributed

6% to total Philippine GDP

by 2013

Industry’s 27% CAGR for 8 years

exceeded 6% CAGR of total

exports for the same period

The IT-BPM industry contributed

16% to annual increases in total no.

of employed individuals for the past

four years

88%

12%

1.1

2005-06

84%

16%

3.1

2010-2013

100% =

Others

IT-BPM

by the numbers

number

voiceOutsourcing Destination

by the numbers

ranked ndGlobal Outsourcing

Destination

US$

billion2014 IT-BPM Revenue

12

Million

2015 Direct Employment Forecast

13

US$

billion2015 IT-BPM Revenue Forecast

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Scalable Educated Talent Pool

Cost Competiveness

Excellent Infrastructure

Government Support & Public-Private

Partnership

Proven Track Record

Why The Philippines

77% 9%

9%

5%

IBPAP, Tholons Analysis

Revenue Contribution by Regions (%, 100% = USD 18.4 BN)

Key Global Markets

Advantage Vision

Indexed Operating Costs per FTE per Annum (BPM Market Range)

Tholons Analysis

Advantage Cost

21,300

Current FTEs

219,000

792,000

Absorptive capacity

Calabarzon Hub

• Santa Rosa

• Bacoor/Imus/Dasma

• Lipa

• Cainta

• Lucena

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Current FTEs

42,000

Absorptive capacity

Central/ Northern

Luzon Hub

• Metro Clark

• Metro Subic

• Baguio

• Tarlac

• Malolos

2

38,882

Current FTEs

133,000

461,529

Absorptive capacity

Western Visayas Hub

• Bacolod

• Iloilo City

3

24,900

Current FTEs

39,000

108,000

Absorptive capacity

Central Visayas Hub

• Cebu City

• Lapu-Lapu City

• Mandaue City

• Dumaguete

• Tagbilaran

47,700

Current FTEs

44,000

162,000

Absorptive capacity

Absorptive capacity at current yield rates

Additional capacity at targeted yield rates

NCR

10,000

117,000

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Current FTEs Theoretical capacity

1.4M

485,600787,000

Davao-GenSan Hub5

National Capital Region

70% of IT-BPM jobs are in NCR, with only 25% of PH graduates; IT-BPO is biggest private-sector job creator and employer in many tier 2‒3 cities

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Economic Growth Impact Nationwide

by the numbers

growth

milliondirect employment

by 2016

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by the numbers

US$

billion2016 IT-BPM Revenue

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industry

challenges

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Paper Screening

Initial Interview

Testing

Final Interview

Job Offer

Hire

100 Applicants

7-10 Hires

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The Recruitment Funnel

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• Assessment of Competency – Global Competitiveness Assessment Tool

• Development of interventions:• Short term• Medium term• Long Term

Our Skills Development Journey

• Conducted across 3,000 agents and 20,000 students26

• Learning Ability (Verbal and Numerical)

• English Proficiency

• Perceptual Speed and Accuracy

• Computer Literacy

• Communication

• Learning Orientation

• Courtesy

• Empathy

• Reliability

• Responsiveness

Basic Skills Behavioral (Service Orientation)

Global Competitiveness Assessment Test (GCAT)

Average Scores Per School for Communication Vis-a-Vis Industry Scores

* Communication: explaining service, keeping the customers informed in language

they can understand and listen to.

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Average Scored per School –Communication*

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• Near Hire Program ( 3 weeks to 6 months training)• Contact Center Services • Programming (C++, Java, RPG, Cobol)• Animation (2D, 3D)• Medical Transcription• Medical Coding• Game Development

Designed by industryConducted by certified training institutions and certified trainersSubsidy from the government

Industry Response to the Assessment(Short Term Solution – Needed NOW)

Service Management Specialization Track(in Undergraduate Education and K-12)

Approved by the Commission on Higher Education (CHED) and Department of Education (DepEd)

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Industry Response to the Assessment(Medium and Long Term Solution)

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• Integrated Content• Standard methods design

for scale deployment• Certification and QA of

Master Trainers

• Standards and scale deployment

• Assessment and QA of Faculty

Enabling Partners(Training institutions, Solutions providers)

Industry AssociationsIBPAP with ACPI, GDAP,

CCAP, HIMOAP, PSIA, GICC

Academe, Training companies

Industry Partner Company

• Standards: Development, Assessment/Industry Certification, QA & Continuing Development

• Over-All Governance• Industry/Career Marketing• Academe Leaders

• Co develop standards• Supply Graduates to

Industry Partner• Promote Industry &

Industry Standards

• Academe/ training companies I Strategic Partner

• Industry Branding• On the job training

Enabler

Training &

Certification

Our Framework

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Technical

Behavioral

Domain

IT

Business

Business Communication

Internship

Process

Fundamentals of IT-BPO 101

Fundamentals of IT-BPO 102

Service Culture

Systems Thinking

How does Service Management address the competencies identified in GCAT?

Committee members include :• Core industry representatives from IBM, Accenture, HP, Stream

Global, Philippine Software Industry Association (PSIA), Health Information Management Outsourcing Association of the Philippines (HIMOAP)

• Academe representatives from Asia Pacific College, Jose Rizal University, Our Lady of Fatima and member schools of Phil. Assoc. of Collegiate Schools of Business

• Other industry and academe representatives

Service Management Specialization Track under CMO No. 6 and 34, Series of 2012

IBPAP Specialization Track• Business Communications for the Global Workspace• Service Culture• Principles of Systems Thinking• Fundamentals of IT-Business Processes of Outsourcing 101 • Fundamentals of IT-Business Processes of Outsourcing 102• OJT/ Internship Program 600 hours

• 21 units (including OJT)• Approved for Business and IT courses

Service Management Specialization Track under CMO No. 6 and 34, Series of 2012

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Success Story(Pilot Run of Service Management

Program)

Targets by end of Project:685 Teachers trained in SMP

2,800 Teachers trained in Language Tracks20,000 Students enrolled in SMP

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* Funded by the Commission on Higher Education

Nationwide Roll Out of Service Management*

IT-BPM Industry

Knowledge HubProject – Online

Service Management

Asian Development Bank

Department of Finance

University of the PhilippinesOpen University (UPOU)

Asian Institute of Management (AIM)

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eSMPUnder University of the Philippines Open University funded by the

Asian Development Bank

Scholarship for 3,000 students and 900 teachers

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eSMP – Online and Blended

What’s

NEXT?

• Middle management – availability and experience

• Niche skills, i.e. investment banking• Emergence of other countries• Rise of new technologies• Impact of ASEAN integration• Perception of the IT-BPM career

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Facing the Challenges

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Customer Service Advisor

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Financial Analyst

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