DOLE Workforce Dev Summit March2006

DOLE Workforce Development Summit
Cyberservices – The Sectoral Picture
Damian “Dondi” Mapa
CICT Commissioner
March 2006
Commission on Information and Communications Technology
2005 State of the Nation Address
[In 2005] the government launched
the Philippine CyberServices
Corridor, an ICT belt stretching over
600 miles from Baguio City to
Zamboanga which is envisioned to
provide a variety of cyberservices at
par with global standards.
http://www.news.ops.gov.ph/sona2005-execsummary.htm
“Cyberservices” Defined
Cyberservices are services delivered over
cyberspace. It is a catch-all phrase that
includes all of the following:
Teleservices (services delivered via phone,
such as directory inquiries or credit card
cancellations),
E-Services (discrete transactions serviced
via the internet, such as a tax payment, an
e-book download, or an e-learning session),
IT Outsourcing (IT or ICT services, such as
remote network diagnostics or system
administration),
IT-enabled services or ITES (batched
services, such as digital animation or copyediting or medical transcription),
ICT-enabled services (real-time services,
such as having office receptionists located
remotely), and
Business Process Outsourcing or BPO
services, such as loans processing at a
remote location.
Source: http://en.wikipedia.org/wiki/Cyberservices
Cyberservices
ICT
Services
ICT-Enabled
Services
E-Services
IT
Services
IT-Enabled
Services
Tele
Services
Philippine Cyberservices Industry
Total Employment
101,000 in 2004
163,000 in 2005
266,000 by 2006
403,000 by 2007
569,000 by 2008
795,000 by 2009
1,083,000 by 2010
Total Revenues
$1.3B in 2004
$2.1B in 2005
$3.5B by 2006
$5.2B by 2007
$7.2B by 2008
$9.7B by 2009
$12.8B by 2010
Source: CICT, BOI, BPA/P (See attached exhibits.)
Sidebar:
Hiring Rate vs. Absorption Rate
Hiring Rate
Company measure
Micro-economic
From 3% to 10%
Absorption Rate
Industry measure
Macro-economic
As high as 30%
1 2 3 4 5 6 7 8 9 10 15 20 25 30 35 40 45 50 55 60 70 80 90 100
From McKinsey September 2005 Report: The Philippines’ Offshoring Opportunity
THE PHILIPPINES’ LABOR SUITABILITY LEADS RUSSIA’S AND CHINA’S
BUT LAGS EASTERN EUROPE
“Of 100 graduates with the correct degree, how many could you employ if you had demand for all?”
Percent
Countries
Eastern
Europe
Asia
Russia
Engineer
Czech
50
Poland
50
Hungary
50
China
15
30
3
25
30
10
15
25
25
35
Malaysia
30
50
20
20
8
13
13
20
20
15
India
Mexico
10
40
10
Brazil
Generalist
20
10
Philippines
Latin
America
Finance/accounting
25
42*


35*
11
All suitability rates are empirically based on a total of >100
interviews with HR professionals working in each country
Only for Doctors and Nurses, same suitability rate than for life
science researchers was assumed due to a lack of interviews
*
Mexico is the only country where interview results (higher number) were adjusted
post mortem since interview base was thinner and risk of misunderstanding high
Source:
Interviews with HR managers, HR agencies and Heads of Global Resourcing centers; McKinsey Global Institute
6
Philippines vs.
India and China
2003 Population (Mil)
Philippines
– 81.6
India
– 1,065
– 13 times bigger
China
– 1,292
– 16 times bigger
2003 BPO Employables*
Philippines
– 60,000
India
– 130,000
– Only 2 times bigger
China
– 160,000
– Only 3 times bigger
*IT, CS, and all Engineering (excluding Civil Engineering)
Source: McKinsey Global Institute
Workforce Mobilization
By Source
2.45m college graduates,
2006-2010
450-550k
4m Unemployed,
6m Underemployed 100-120k
1m Overseas Migrant
Workers
100-120k
1m Filipino Diaspora
100k
Career Shifters and
Retirees
100-150k
By Location
Tier 1: Metro Manila, Metro
Cebu, Metro Davao 550k
Tier 2: Baguio, Dagupan,
Cabanatuan, Tarlac, Sta.
Rosa, Batangas, Lipa,
Legazpi, Naga/CamSur,
Bacolod, Tacloban, Iloilo,
Dumaguete, Cagayan de Oro,
General Santos
300k
Emerging: Tagbilaran,
Zamboanga, San Fernando
(La Union), others
150k
“Philippine Cyberservices Corridor”
President Arroyo on
the Philippine Cyberservices Corridor
President Gloria Macapagal-Arroyo
President Gloria Macapagal-Arroyo
at the Philippine Investment Conference
March 9, 2005 at Lapu-lapu City, Cebu
at the Cebu ICT 2005 Conference
June 22, 2005 at Cebu City, Cebu
“our cyberservices corridor
actually stretches 600 miles from
Baguio in Northern Luzon to
Zamboanga in Mindanao”
“Over the past 12 months call
centers have opened in Iloilo,
Cagayan de Oro, and Baguio. BPO
operations have sprung up in
Legaspi and Tacloban. Medical
transcription centers have been
established in Dumaguete, Davao,
and Naga.”
“it’s served by a $10B highbandwidth fiber backbone and
digital network”
“the concept of the cyberservices
corridor is gaining ground!”
http://www.ops.gov.ph/speeches2005/speech-2005_mar09.htm
http://www.ops.gov.ph/speeches2005/speech-2005_jun22.htm
Benefits of the Corridor
Job Generation
– 1 million jobs by 2010
– A new middle class with strong purchasing power
Regional Development
– From Baguio to Zamboanga
– Changing the face of the nation
Locator Options
– Cost vis lifestyle vis scalability vis retention
Dispersion of Demand
– Minimize wage inflation and poaching/attrition
Issues for
Workforce Development
Common Themes (across segments)
– Career Advocacy
– Curriculum Review and Faculty Retraining
– English Proficiency
Segment Specific Needs and Issues
–
–
–
–
–
Customer Contact (prepared with CCAP)
Animation (prepared with ACPI)
Software Development (prepared with PSIA)
Medical Transcription (prepared with MTIAPI)
Back Office Processing (prepared with BPAP)
Common Themes
Across Segments
Commission on Information and Communications Technology
Career Advocacy
Long-term career option
Prospects for advancement
Quality of life issue
Audience: career shifters, parents, highschool students, college students
Issue: How do we get more Filipinos to be interested in a career in cyberservices?
Curriculum Review
Exposure to application of ICT in business
processes
Improved proficiency in keyboarding and
communication skills
Competency in productivity tools
Faculty retraining to deliver revised
curriculum
Issue: Are we preparing Filipinos to be knowledge workers in an information society?
English Proficiency
Media, especially TV, has de-emphasized
English
Lack of support for use of English in
family, society
Lack of English teachers
Five (5) “near hires” for every hire
Issue: What can we do to avoid job rejection due to lack of English proficiency?
Recommendations
College
English to be taught all 4
years.
1/3 of all English lessons
will be conversational
English.
Retrained English
teachers to run the
English Course for other
teachers throughout the
school term.
High School
1/3 of English classroom
time be dedicated to
conversational English.
English-only zones will be
imposed and enforced.
Retrained English
teachers to run English
courses for other
teachers throughout the
school year.
School Initiatives
Camarines Sur,
CALABARZON: College
Teachers trained in the
use of Small-group
Communicative
Methodology for the
Conversational English
Classroom.
Negros Occidental: same
training for Elementary
and High School
Teachers
Mapua Institute of
Technology:
FuturePerfect helping to
develop their English
curriculum and to retrain
English teachers.
Asia-Pacific College: 7
English subjects, with one
on Voice and Accent
Training, supplied by
IBM-Daksh.
Assessment Initiatives
Future Perfect
– Uses certified assessors to rate ability to discourse
and interact using the Business Processing Language
Assessment Scales (BUPLAS)
Prospeak
– Uses computer-generated prompts to test and score
candidates calling into the Prospeak Testing System
BPA/P E4E (English for Employment)
– Uses a 5-level assessment tool for oral English
“Near hires” can opt to attend a 100- to 200-hour English training
program that will enable them to interview with BPO companies.
“English is Cool” Campaign
Short term: Call Center and BPO
– 250,000 to reach the required call center level
– Bring the next 1,000,000 to trainable level
Mid-term: trainers & professionals
– Train the Teachers programs
– Improve practice among professionals in service industries,
management positions
– Enroll 50,000 students or professionals into fast-track classes
Long-term: basic education
– More than 450,000 students graduate every year
– Millions in lower grades
Spearheaded by the European Chamber of Commerce
PEP Campaign
“Promoting English Proficiency” (PEP)
– MOA signed in October 2003
– Led by the American Chamber of Commerce with 11 member
federations and umbrella organizations; 45 project partners
PEP Components:
 Certification
 Training
 Advocacy
PEP Initiatives
Certification
– Internationally recognized
tests;
– Test of English for
International Communication
(TOEIC): most widely used
international standard of
English proficiency in the
workplace; and
– Administered in corporations
and schools to employees,
teachers, and students.
Training
– Computer-assisted
learning using DynEd
Multimedia Solutions;
– 15 Computerized English
Language Centers
(CELCs) installed in
various schools and
companies with thousands
already trained; and
– Teacher training by the
Ateneo Center for English
Language Teaching
(ACELT).
PEP Website www.promote-english.org
Segment Concerns
1.
2.
3.
4.
5.
Customer Contact
Animation
Software Development
Medical Transcription
Back Office Processing
Commission on Information and Communications Technology
Customer Contact Segment
As of 1st Quarter, 2006






Still the fastest growing segment in the Philippines
Customer Contact Centers in the Philippines: 105
Total Full Time Employees: 112,000
Total Seats: 70,000
Estimated Revenues in 2005: US$ 1.6 B
With a Growth Rate for 2005: 75%
Contact Center Overview
YE A R
No . o f C a ll
C e n te r s
E s t. No . o f
S e a ts
E s t. No . o f
E m p lo y e e s
E S T . RE V E NUE
(US $ M illio n)
2000
4
1 ,5 0 0
2 ,4 0 0
24
2001
13
3 ,5 0 0
5 ,6 0 0
56
2002
31
7 ,5 0 0
1 2 ,0 0 0
120
2003
60
2 0 ,0 0 0
3 2 ,0 0 0
320
2004
72
4 5 ,0 0 0
6 7 ,0 0 0
920
2005
100+
7 0 ,0 0 0
1 1 2 ,0 0 0
1 ,6 0 0
Key Players in the Country
Third Party Providers: Sykes, Convergys, PeopleSupport, Clientlogic,
ePLDT Parlance, ICT Group, Ambergris, Teletech, eTelecare, etc…
Captives: Dell, AOL, JPMorgan, Siemens, HSBC, AIG, IBM Daksh, etc..
Demand Side - Quantitative
Agent Qualifications (Mo. Sal. 10-25k)
– Educational Attainment: majority with 2-4
years college education; for technical support
- ICT-related courses
– Additional Training
• Pre-hire: English proficiency/interview
skills (100+ hours)
• Internal or outsourced: soft skills (40-80
hours of: accent neutralization, oral
fluency and accuracy, culture training,
customer service, business writing) ;
sales and telemarketing for outbound
• Internal: product training (2-6 weeks)
– Work Experience: n/a
– Skills/Competencies: English proficiency (oral
and written), computer literacy, customer
service aptitude
• Languages in demand: Spanish,
French, Mandarin, Cantonese, Korean,
Japanese, etc.Oral and written
proficiency a plus (commands salary
premium)
– Certifications
• TESDA Certification for Contact Center
Agent (planned)
– Others: willingness to work on shifts
Team Leader/Supervisor Qualifications (Mo. Sal.
20-35k)
– Educational Attainment: same as Agent
– Additional Training: same as Agent,
Leadership programs;
– Work Experience: typically 1-3 years as an
agent
– Skills/Competencies:
supervisory/coaching/leadership skills
– Certifications: n/a
– Others: willing to work in shifts; demonstrated
managerial maturity
Middle Manager Qualifications (Mo. Sal. 50-100k)
– Educational Attainment: same as Agent
– Additional Training: same as Supervisor; plus
Business Management training
– Work Experience: typically 2-3 years as
supervisors, or 1-2 years as managers
– Skills/Competencies:
supervisory/coaching/leadership skills;
account management skills; project planning
and management
– Certifications: n/a
– Others: willing to work in shifts; demonstrated
managerial maturity
Demand Side - Qualitative
Total Employees
Incremental Growth
Growth Rate
Historical
2004
2005
64,000
112,000
48,000
75%
Factors
Exited the Industry (20%)
Actual Demand
Expected Sources of Labor Pool
College Graduates
Non-degree
Career Shifters
2006
179,200
67,200
60%
Forecast
2007
2008
259,800 337,700
80,600
77,900
45%
30%
2009
422,100
84,400
25%
2010
506,500
84,400
20%
35,800
103,000
52,000
132,600
67,500
145,400
84,400
168,800
101,300
185,700
66,950
15,450
20,600
103,000
86,190
19,890
26,520
132,600
94,510
21,810
29,080
145,400
109,720
25,320
33,760
168,800
120,705
27,855
37,140
185,700
Growth is expected to continue, with labor demand
peaking at 85,000 per year in 2010. However actual
demand in 2010 will be 185,000 due to a large number
(20%) of workers exiting the segment each year.
Supply Side - Capacity
How many graduates are needed?
How many graduates with the right degree?
How many pass initial screening?
How many are interested?
What is the forecast shortfall?
2006
66,950
302,914
2007
86,190
314,817
2008
94,510
326,721
2009
109,720
338,626
2010
120,705
350,527
35%
40%
40%
45%
45%
106,020
125,927
130,688
152,382
157,737
42%
42%
45%
50%
60%
44,528
(22,422)
52,889
(33,301)
58,810
(35,700)
76,191
(33,529)
94,642
(26,063)
Last year (2005), approximately 45,000 college
graduates joined this segment. This year, 67,000
graduates are needed. If this year’s graduate pool is only
as good as last year’s, the 2006 shortfall will be 22,000.
Shortfalls are also predicted for 2007-2010 unless drastic
changes are undertaken to improve screening rates and
interest levels.
What needs to be done?
Career Advocacy to Parents, Students, Career
Shifters (to increase interest level)
English Proficiency Assessment and Pre-hire
Training (to increase passing rate)
Life Adaptation Seminars and Lifestyle Support
e.g. 24x7 Support Services such as Sports Gyms,
Banks, Dental and Health Care, Entertainment (to
reduce exit rate)
Keyboarding Proficiency
Supervisory Skills Training
Industry Certification
Improved English Faculty/Training in Schools
Segment Concerns
1.
2.
3.
4.
5.
Customer Contact
Animation
Software Development
Medical Transcription
Back Office Processing
Commission on Information and Communications Technology
Animation Industry
As of 1st Quarter, 2006
–
–
–
–
–
Total animation studios in the country: 40
Twenty (20) years in the Philippines
Total Full Time Employees: 4,500
Est Revenues in 2005: US$ 54 Million
With a Growth Rate in 2005: 38%
Capabilities:
2D, 3D
Interactive Gaming (PC Gaming & Console Games)
Medical Animation
Visualization
e-Learning Courses
Animation Industry
Key Players in the Country:
Holy Cow! Animation, Artfarm Asia, Digital Exchange, Top Draw
Animation, Toei Animation, Top Peg Animation and Creative Studio,
Creative Asia,Geebo Digital, Toon City, etc…
Flicks Outsourced to the Philippines:
Tom & Jerry, The Jetsons, Adams Family, Scooby Do, The Mask,
Dragonball Z, Lilo & Stich, The Incredibles, Dexter Laboratories,
Power Puff Girls, 1 Piece, etc…
Demand Side - Quantitative
Total
Incremental
Growth Rate
Historical
2004
2005
3,000
4,500
1,500
50%
Factors
Exited the Industry (5%)
Actual Demand
By Type of Skill
Entry-level Animators
TP/IB Checkers
Key/BG Checkers
Key Animators
Directors
Production Managers
Production Assistants/Coordinators
Trainors
Total
100
20
20
20
3
1
2
2
168
60%
12%
12%
12%
1.8%
0.6%
1.2%
1.2%
100%
2006
6,800
2,300
50%
2007
9,900
3,100
45%
340
2,640
500
3,600
1,571
314
314
314
47
16
31
31
2,640
2,143
429
429
429
64
21
43
43
3,600
Forecast
2008
13,900
4,000
40%
2009
18,800
4,900
35%
2010
24,400
5,600
30%
700
4,700
940
5,840
1,220
6,820
2,798
560
560
560
84
28
56
56
4,700
3,476
695
695
695
104
35
70
70
5,840
4,060
812
812
812
122
41
81
81
6,820
Demand Side - Qualitative
Entry-level Animator Qualifications (Mo. Sal. 8–12k)
– Educational Attainment: preferably high
school graduate
– Additional Training: in-house course for inbetweening, clean-up (3 – 6 months)
– Work Experience: n/a
– Skills/Competencies: drawing, reading
– Certifications: n/a
– Others: willing to work overtime and under
tight deadline pressure
Key Animator Qualifications (Mo. Sal. 15–25k)
– Educational Attainment: at least high school
graduate
– Additional Training: enhanced in-betweening
– Work Experience: 3-5 yrs experience as inbetweener
– Skills/Competencies: advanced inbetweening, storyboard interpretation,
character development, communication skills
– Certifications: n/a
– Others: willing to work overtime and under
tight deadline pressure
TP/IB Checker Qualifications (Mo. Sal. 10–12k)
– Educational Attainment: preferably high
school graduate
– Additional Training: n/a
– Work Experience: at least 2-3 yrs as painter,
in-betweener
– Skills/Competencies: interpretation of
exposure sheets, instruction sheets
– Certifications: n/a
– Others: recognized for quality work, willing to
work overtime and under tight deadline
pressure
Key/BG Checker Qualifications (Mo. Sal. 10–12k)
– Educational Attainment: preferably high
school graduate
– Additional Training: n/a
– Work Experience: at least 2-3 yrs as painter,
in-betweener
– Skills/Competencies: storyboard
interpretation, communication skills, works
well with director, exposure to acting/theater
arts, sensitivity to cultural nuances
– Certifications: n/a
– Others: recognized for quality work, willing to
work overtime and under tight deadline
pressure
Demand Side - Qualitative
Director Qualifications (Mo. Sal. 60–100k)
– Educational Attainment: n/a
– Additional Training: in-house on-the-job
training with proficiency exam
– Work Experience: 10 years in the media arts,
preferably with experience as assistant
director
– Skills/Competencies: exceptional storytelling
skills and ability to interpret script
– Certifications: n/a
Assistant Director Qualifications (Mo. Sal. 40–60k)
– Educational Attainment: n/a
– Additional Training: in-house on-the-job
training with proficiency exam
– Work Experience: 5 years in the media arts,
preferably with experience as checker
– Skills/Competencies: communication skills,
checking skills, knowledge in cinematography
– Certifications: n/a
Production Manager Qualifications (Mo. Sal. 50–
80k)
– Educational Attainment: preferably with
college degree in engineering, mass
communications, business management
– Additional Training: industry seminars on
management and supervision
– Work Experience: with at least 1 yr
experience as production assistant
– Skills/Competencies: people management,
leadership and communication skills
– Certifications: n/a
Production Assistant Qualifications (Mo. Sal. 8–
12k)
– Educational Attainment: preferably college
graduate
– Additional Training: in-house training on
process (1 month)
– Work Experience: n/a
– Skills/Competencies: computer literacy,
communication/correspondence skills
– Certifications: n/a
Demand Side - Qualitative
Editor/Compositor Qualifications (Mo. Sal. 20–30k)
– Educational Attainment: n/a
– Additional Training: use of software editing tools
– Work Experience: 2-3 years cinematography and filmmaking
– Skills/Competencies: computer literacy, communication
skills, knowledge in cinematography and film-making
– Certifications: vendor-based
Digital Ink-and-Paint Qualifications (Mo. Sal. 8–12k)
– Educational Attainment: n/a
– Additional Training: use of software tools
– Work Experience: n/a
– Skills/Competencies: computer literacy
– Certifications: n/a
Supply Side - Composition
Animators: w hat %age of entry-level animators sourced this year w ill be
College animation courses, not necessarily w /degree
Fine arts and related courses, not necessarily w /degree
Graduates of 3rd party animation course
Career shifters, internal training needed
Prod Mgrs: w hat %age of production managers sourced this year w ill be
Promoted from w ithin, addl training needed
Other college degree
Fine arts, masscom and related courses, not necessarily w /degree
Career shifters, internal training needed
2006
10%
80%
0%
10%
2007
10%
55%
30%
5%
2008
10%
60%
30%
0%
2009
10%
60%
30%
0%
2010
10%
60%
30%
0%
2006
10%
20%
30%
40%
2007
10%
20%
30%
40%
2008
10%
20%
30%
40%
2009
10%
20%
30%
40%
2010
10%
20%
30%
40%
Supply Side - Capacity
How many graduates with the right degree?
How many pass initial screening?
How many from 3rd Party Training Schools?
What is the total forecast supply?
2006
3,000
2007
3,300
2008
3,630
2009
3,993
2010
4,392
25%
30%
35%
40%
45%
750
500
1,250
990
650
1,640
1,271
975
2,246
1,597
1,463
3,060
1,977
2,194
4,170
How many animators are needed?
1,571
2,143
2,798
3,476
4,060
What is the forecast shortfall?
(321)
(503)
(552)
(416)
111
Need to increase level of enrollment in animation
and multimedia courses through career
advocacy
Need to increase passing rate by increasing the
quality of graduates
Supply Side Constraints
Content-related Issues
– Quality of graduates: will they be acceptable to the industry?
– Industry plays a role in checking on final output of the students.
Faculty-related Issues
– Where to find enough good teachers/trainors?
– Mix between trainors of Western style vs. Anime style
Facility-related Issues
– HW/SW affordability for animation workstations
Regulatory Concerns
– Knowledgeability of TESDA personnel who assess/certify
animation schools
– Strict implementation of faculty certification
Others
– Brain drain (to countries such as India, Singapore, Australia, US)
What needs to be done?
Short-term
–
–
–
–
–
–
–
–
–
Industry checking of students’ final projects (industry/academe)
Industry-based curriculum development of schools
Tracking of animation training centers & schools
Facilities for student projects/simulations
Establish ACPI Training & Production Center
Capability building of in-house management skills
Tracking of skills advancement within the industry
Career Advocacy Campaign
Conference with TESDA RDs and PDs
Medium-term
– Trainor Development Program
– Benchmarking with international standards e.g. Gobelins
Long-term
– Reduce “brain drain”
Segment Concerns
1.
2.
3.
4.
5.
Customer Contact
Animation
Software Development
Medical Transcription
Back Office Processing
Commission on Information and Communications Technology
Software Development Industry
As of 1st Quarter, 2006
–
–
–
–
–
Software Development Companies: 300
Total IT professionals: 12,000
Estimated Revenues in 2005: US$ 204M
With a Growth Rate for 2005: 20%
New Developments: Philippine Software
Industry Association (PSIA) 2010 Fly High
Program
Key Players in the Country: Accenture,
Headstrong, Microsoft, IBM Solutions,
Jupiter Systems, Oracle, ADTX
Solutions, Gurango, Sun
Microsystems, Intel Microelectronics,
NEC, etc…
FLY HIGH:
PHILIPPINE SOFTWARE 2010
F
L
Y
H
I
G
H
Fifty software development companies aligned
with international quality standards
Locate operations of 50 foreign software
development companies in the Philippines
Yes to Brand Philippines
Hire 100,000 new software development workers
and support improved Recruitment, Retooling
and Retention
Increase intellectual compliance rate for software
by 3% per year
Government software investment to increase 10%
per year
Have the social and physical infrastructure in
place to support the industry’s goals
Demand Side - Quantitative
SW Development - primarily Export
SW Development - Domestic & in house
Total
Incremental
Growth Rate (primarily Export)
Growth Rate (Domestic & in house)
Factors
Migration Abroad (5%)
Actual Demand
Historical
2004
2005
10,000
12,000
21,000
25,000
31,000
37,000
6,000
19%
2006
15,600
31,300
46,900
9,900
30%
25%
2,300
12,200
2007
20,300
40,700
61,000
14,100
30%
30%
3,100
17,200
Forecast
2008
26,400
54,900
81,300
20,300
30%
35%
4,100
24,400
2009
34,300
71,400
105,700
24,400
30%
30%
2010
44,600
92,800
137,400
31,700
30%
30%
5,300
29,700
6,900
38,600
Demand Side - Qualitative
Programmer Qualifications
(Mo. Sal. 15-20k)
– Educational Attainment:
College Degree in IT, Math, or
Engineering or equivalent
Business IT Degree
– Additional Training: 6-12
weeks of Internal Training
– Work Experience: n/a
– Skills/Competencies: aptitude
for programming, analytical
skills, communication skills
– Certifications: n/a
Supply Side - Composition
SUPPLY SIDE COMPOSITION
Programmers: w hat %age of programmers sourced this year w ill be
College grad w ith ICT-related degree, no addl training needed
College grad w ith ICT-related degree, internal training needed
College grad w ith other degree, internal training needed
Career shifters, internal training needed
SUPPLY SIDE CAPACITY
No. of programmers
from ICT-related degree
other degree
career shifters
2006
5%
50%
35%
10%
100%
2007
5%
50%
35%
10%
100%
2008
10%
40%
35%
15%
100%
2009
10%
40%
35%
15%
100%
2010
10%
40%
35%
15%
100%
2006
2007
2008
2009
2010
6,710
4,270
1,220
12,200
9,460
6,020
1,720
17,200
12,200
8,540
3,660
24,400
14,850
10,395
4,455
29,700
19,300
13,510
5,790
38,600
Supply Side - Capacity
No. of programmers
from ICT-related degree
from other degree
2006
2007
2008
2009
2010
Total Graduates
Absorption Rate
42,047
15%
43,700
15%
45,352
20%
47,004
20%
48,657
25%
Total Graduates
Absorption Rate
58,611
5%
60,914
5%
63,217
10%
65,521
10%
67,823
15%
Total Supply
1,220
10,458
1,720
11,321
3,660
19,052
4,455
20,408
5,790
28,128
(403)
(1,339)
(1,742)
(2,905)
(2,974)
(5,879)
(3,130)
(2,218)
(5,348)
(5,449)
(3,843)
(9,292)
(7,136)
(3,337)
(10,472)
from career shifters
Surplus/(Shortfall)
from ICT-related degree
other degree
Supply Side Constraints
Content-related Issues
– Lack of content that covers the entire life cycle, e.g. focused on coding
instead of on software engineering, thus necessitating internal training cost
of 6-12 weeks
Faculty-related Issues
– Faculty not updated on latest development theories/techniques; or they lack
industry exposure and soft skills
Facility-related Issues
– Exposure to tools on version management, source code control, etc.
– Extra facility for student projects
Regulatory Concerns
– Local/National Certification is no longer a high-priority area
– Market forces currently dictate the kind of certification needed, i.e.
internationally-recognized or vendor certification
Others
– Poaching from abroad especially at experienced/skilled levels
– 15% absorption rate, need to increase to 25%
What needs to be done?
Short-term
– Career advocacy programs for career shifters and students/parents
(PSIA, DOLE)
– Annual skills inventory and job survey (PSIA)
Medium-term
– Increase absorption rate from colleges
• Review syllabi for new IT curriculum for implementation by June 06 and
to establish mechanism for continuous review (PSIA, PSITE &
CHED/TPITE)
• Improve instructor skills (PSIA, PSITE & CHED/TPITE, CICT)
• Institute higher screening standards for IT-related degrees (PSIA,
CHED)
• Industry internships and OJTs (PSIA to develop template/standards)
– Incubator facilities for student projects, e.g. Ateneo Wireless
Competency Center, CICT Digital Media Arts Lab (CICT, DOST)
Long-term
– Reduce “brain drain” through incentives (DOF, DOLE)
Segment Concerns
1.
2.
3.
4.
5.
Customer Contact
Animation
Software Development
Medical Transcription
Back Office Processing
Commission on Information and Communications Technology
Medical Transcription Services
As of 1st Quarter, 2006 (Medical Transcription)
•
•
•
•
•
•
Total MT Firms: 50
Total MT Schools: 13
MT Professionals: 5,500 employed
Estimated Revenues in 2005: US$ 70 Million
With a Growth Rate for 2005: 80%
Performance Level: 98 – 99% accuracy rate,
with a turnaround time of 12 to 24 hour
Key Players in the Country:
– eData Services, SPI Technologies, SVI Corporation,
Medscribe Asia, Transkripsyo Inc., Total Transcription
Solutions, Inc., Dictation Source, Pilipinas Data
Contracts Corporation, etc…
Demand Side - Quantitative
Total
Incremental
Growth Rate
New Jobs By Type of Skill
Transcriptionists
Editors
Trainors
Historical
2004
2005
4,000
5,500
1,500
38%
2006
13,800
8,300
150%
2007
24,800
11,000
80%
6,225
2,075
110
8,250
2,750
46
Forecast
2008
42,200
17,400
70%
13,050
4,350
58
2009
71,700
29,500
70%
2010
114,700
43,000
60%
22,125
7,375
76
32,250
10,750
100
Demand Side - Qualitative
Transcriptionist Qualifications (Mo. Sal. 10-12k)
– Educational Attainment: college degree
– Additional Training: MT course, 3-6 mos.
– Work Experience: n/a
– Skills/Competencies: computer literate,
proficiency in writing & listening, familiarity
with medical terminologies
– Certifications:n/a
– Others: willing to work in shifts
Editor Qualifications (Mo. Sal. 15-20k)
– Educational Attainment: college degree (with
preference for allied health degrees)
– Additional Training: Editor course (usually inhouse)
– Work Experience: typically 2-3 years as MT
– Skills/Competencies:
supervisory/coaching/leadership skills
– Certifications: n/a
– Others: willing to work in shifts
Facilitator Qualifications (Mo. Sal. 10-15k)
– Educational Attainment: college degree
– Additional Training: MT course
– Work Experience: typically 1-2 years as MT
– Skills/Competencies:
coaching/leadership/communication skills
– Certifications: n/a
Lecturer Qualifications (150-450/hour)
– Educational Attainment: college degree
(medical degree required for medical
subjects)
– Additional Training: MT and Editor
– Work Experience: n/a
– Skills/Competencies: communication skills
– Certifications: n/a
Supply Side - Composition
Transcriptionists: w hat %age sourced this year w ill be
Nurses direct from college, internal training needed
Nurses w ho graduated from a 3rd party MT course
Allied health w ho graduated from a 3rd party MT course
Other college grad w ho graduated from a 3rd party MT course
Career shifters w ho graduated from a 3rd party MT course
Editors: w hat %age of editors sourced this year w ill be
Promoted from w ithin, addl training needed
Transferred from another MT company
2006
2%
3%
45%
30%
20%
2007
2%
3%
40%
35%
20%
2008
2%
3%
40%
35%
20%
2009
2%
3%
40%
35%
20%
2010
2%
3%
40%
35%
20%
2006
80%
20%
2007
80%
20%
2008
80%
20%
2009
80%
20%
2010
80%
20%
Supply Side - Capacity
2006
No. of transcriptionists that can be trained by
Internal HR of MTSOs
3rd Party MT Training Schools
No. of editors that can be trained by
Internal HR of MTSOs
3rd Party MT Training Schools
Surplus/(Shortfall)
Transcriptionists
Editors
2007
2008
2009
2010
7,500
9,800
12,700
16,500
21,500
1,245
750
1,650
980
2,610
1,270
4,425
1,650
6,450
2,150
1,275
(80)
1,550
(120)
(5,625)
(1,300)
(10,750)
(2,150)
(350)
(470)
Need to open up large number of MT schools
offering entry level courses in order to meet
forecast number of graduates this year (7,500).
Supply Side Constraints
Content-related Issues
– For Transcriptionists, industry has standard defined
– For Editors, no standard defined
Faculty-related Issues
– No major issues
Facility-related Issues
– No major issues
Regulatory Concerns
– Registration of schools with TESDA esp. in provinces
Others
What needs to be done?
Short-term
– Conference with TESDA RDs and PDs
– Career Advocacy Campaign (DepEd, CHED, MTIAPI)
– Aggressive Marketing of Philippine MT Industry (DTI,
DFA, MTIAPI)
Medium-term
– Assessment and Certification for MTs and Editors
(TESDA, MTIAPI)
– Self-Regulation of Quality (MTIAPI)
Segment Concerns
1.
2.
3.
4.
5.
Customer Contact
Animation
Software Development
Medical Transcription
Back Office Processing
Commission on Information and Communications Technology
Business Processing
(Back Office Operations)
As of 1st Quarter, 2006
–
–
–
–
No. of Service Providers: 60
Total Full Time Employees: 22,500
Estimated Revenues in 2005: US$ 180 Million
With a Growth Rate for 2005: 50%
Key Players
Captives: AOL, AIG BPSI, Chevron Texaco,HP, HSBC, Procter &
Gamble, Flour Daniel, Henkel Financial Services, Deutsche Bank,
Citibank Crescent Services, Shell Shared Services, Manulife,
Alitalia, Watson Wyatt, etc…
Third Party Providers: Accenture, American Data Exchange, SVI
Corp, SPI Technologies, DAKSH eServices, The Environments
Collaborative, Eximius BPO, BayanTrade Dotcom, etc…
Range of Services
Current Services:
Arising Services: (KPO)
- Accounting and bookkeeping
- Legal Transcription
- Market Research and Analysis
- Account maintenance
- Litigation Support
- Intellectual Property Mgmt
- Accounts receivable collection - Content Development
- Accounts payable administration - Contract Summarization
- Payroll processing
- Publishing
- Asset management
- Travel Services Back Office
- Financial analysis and auditing - Loan processing
- Inventory control and purchasing
- Health Insurance
- Expense and revenue reporting - General Insurance
- Financial reporting
- Sales and marketing
- Human resources administration - Tax reporting
- Customer Management
- Financial leasing
- Credit card administration
- Transaction management
- Factoring and stock brokering
- Sourcing and Procurement
- Revenue management
- Logistics
- Transaction processing
- Disaster recovery
- Business data processing
- Business Intelligence
- Database management
- Network management
- Supply chain management
- Warehouse and inventory Mgmt
Demand Side - Quantitative
Total Employment
Incremental
Growth Rate
Historical
2004
2005
15,000
22,500
7,500
50%
Factors
Exited the Industry (10%)
Actual Demand
By Type of Skill
Human Resources
Finance/Accounting - Transaction
Finance/Accounting - Complex
Engineering
ICT Operations
General
Supervisors
Total Workforce to be Developed
30%
35%
5%
12%
9%
5%
4%
100%
Forecast
2008
123,900
51,000
70%
2006
40,500
18,000
80%
2007
72,900
32,400
80%
2009
210,600
86,700
70%
2010
337,000
126,400
60%
4,100
22,100
7,300
39,700
12,400
63,400
21,100
107,800
33,700
160,100
6,630
7,735
1,105
2,652
1,989
1,105
884
22,100
11,910
13,895
1,985
4,764
3,573
1,985
1,588
39,700
19,020
22,190
3,170
7,608
5,706
3,170
2,536
63,400
32,340
37,730
5,390
12,936
9,702
5,390
4,312
107,800
48,030
56,035
8,005
19,212
14,409
8,005
6,404
160,100
Demand Side - Qualitative
HR Analyst Qualifications (Mo. Sal. 13-18k)
– Educational Attainment: mostly HRrelated college degree e.g.
Psychology, HR Applications; other
degrees such as Industrial Engineering
– Additional Training: from 4 – 12 weeks
training on industry practices such as
compensation and benefits policies,
etc.
– Work Experience: n/a
– Skills/Competencies: analytical skills,
oral and written language proficiency
(advanced English), communication
skills
– Certifications: n/a
– Others: willing to work on shifts
Fin Analyst Qualifications (Mo. Sal. 13-18k)
– Educational Attainment: mostly
Business-related college degree;
Accounting preferred for bookkeeping;
Political Science, Economics
– Additional Training: mostly internal 4 –
12 weeks on specific business
processes, e.g. Portfolio Management
– Work Experience: n/a
– Skills/Competencies:
quantitative/analytical, computer
literacy, oral and written language
proficiency (advanced English),
communication skills
– Certifications (not mandatory): Certified
Public Accountant, Chartered Financial
Analyst (for complex)
– Others: willing to work on shifts
Demand Side - Qualitative
Engineering Qualifications (Mo. Sal. 18-25k)
– Educational Attainment: mostly
Engineering-related college degree;
Business degree also
– Additional Training: mostly internal 4 –
12 weeks on specific business
processes, e.g. Procurement
Management
– Work Experience: n/a
– Skills/Competencies:
quantitative/analytical, computer
literacy, oral and written language
proficiency (advanced English),
communication and negotiation skills
– Certifications: n/a
– Others: willing to work on shifts
ICT Operations Qualifications (Mo. Sal. 1318k)
– Educational Attainment: mostly ICTrelated college degree; Engineering
degree also
– Additional Training: 4 – 12 weeks on
specific technical operations
processes, e.g. Network Administration
– Work Experience: n/a
– Skills/Competencies:
quantitative/analytical, computer
literacy, oral and written language
proficiency (advanced English),
communication skills, process aptitude
– Certifications: Vendor-specific as
needed
– Others: willing to work on shifts
Demand Side - Qualitative
Generic Qualifications (Mo. Sal. 12-15k)
– Educational Attainment: mostly college
degree
– Additional Training: 4 – 12 weeks
internal
– Work Experience: n/a
– Skills/Competencies:
quantitative/analytical, computer
literacy, oral and written language
proficiency (advanced English),
communication skills
– Certifications: n/a
– Others: willing to work on shifts
Additional Qualifications
Languages in demand
– Spanish, French, Mandarin,
Cantonese, Korean, Japanese, etc.
– Oral and written proficiency a plus
(commands salary premium)
Engineering/Architecture Licenses
– Under GATS, mutual recognition
allows licensed Filipinos to practice
their profession in countries that have
cross-certification agreements with the
Philippines
Supply Side for HR
2006
70%
20%
5%
5%
2007
70%
20%
5%
5%
2008
70%
20%
5%
5%
2009
70%
20%
5%
5%
2010
70%
20%
5%
5%
Total Graduates
Absorption Rate
16,243
25%
16,881
25%
17,519
25%
18,158
25%
18,796
25%
Total Graduates
Absorption Rate
128,602
1%
133,655
1%
138,709
1%
143,763
1%
148,816
1%
332
5,678
6,630
596
6,152
11,910
951
6,718
19,020
1,617
7,594
32,340
2,402
8,589
48,030
(1,906)
955
(952)
(6,499)
741
(5,758)
(12,738)
436
(12,302)
(24,567)
(179)
(24,746)
(38,528)
(913)
(39,441)
HR: w hat %age of HR analysts sourced this year w ill be
College grad w ith HR-related degree, internal training needed
College grad w ith HR-related degree, and 3rd party training
College grad w ith other degree, internal training needed
Career shifters, internal training needed
Source of HR analysts
from HR-related degree
from other degree
from career shifters
Total Supply
Total Demand
Surplus/(Shortfall)
from HR-related degree
other degree
Total Surplus/(Shortfall)
Supply Side for Finance/Acctg
2006
70%
20%
10%
2007
70%
20%
10%
2008
70%
20%
10%
2009
70%
20%
10%
2010
70%
20%
10%
Total Graduates
Absorption Rate
128,602
10%
133,655
10%
138,709
15%
143,763
15%
148,816
20%
Total Graduates
Absorption Rate
55,752
1%
57,943
2%
60,134
3%
62,325
4%
64,515
5%
884
14,302
8,840
1,588
16,112
15,880
2,536
25,146
25,360
4,312
28,369
43,120
6,404
39,393
64,040
6,672
(1,210)
5,462
2,250
(2,017)
232
3,054
(3,268)
(214)
(8,620)
(6,131)
(14,751)
(15,065)
(9,582)
(24,647)
FA: w hat %age of Fin/Acctg analysts sourced this year w ill be
College grad w ith FA-related degree, internal training needed
College grad w ith other degree, internal training needed
Career shifters, internal training needed
Source of F/A analysts
from FA-related degree
from other degree
from career shifters
Total Supply
Total Demand
Surplus/(Shortfall)
from FA-related degree
other degree
Total Surplus/(Shortfall)
Supply Side for Engineering
2006
70%
30%
2007
70%
30%
2008
70%
30%
2009
70%
30%
2010
70%
30%
Total Graduates
Absorption Rate
55,752
5%
57,943
5%
60,134
7%
62,325
7%
64,515
10%
Total Graduates
Absorption Rate
128,602
1%
133,655
1%
138,709
2%
143,763
2%
148,816
3%
Total Supply
Total Demand
4,074
2,652
4,234
4,764
6,984
7,608
7,238
12,936
10,916
19,212
Total Surplus/(Shortfall)
931
490
1,422
(1,116)
492
(624)
(4,692)
(1,006)
(5,698)
(6,997)
(1,299)
(8,296)
Eng'g: w hat %age of Eng'g analysts sourced this year w ill be
College grad w ith Eng'g-related degree, internal training needed
College grad w ith other degree, internal training needed
Source of Eng'g analysts
from Eng'g-related degree
from other degree
Surplus/(Shortfall)
from Eng'g-related degree
other degree
(438)
(93)
(530)
Supply Side for ITO
2006
90%
5%
5%
2007
90%
5%
5%
2008
90%
5%
5%
2009
90%
5%
5%
2010
90%
5%
5%
Total Graduates
Absorption Rate
42,047
5%
43,700
5%
45,352
7%
47,004
7%
48,657
10%
Total Graduates
Absorption Rate
55,752
1%
57,943
1%
60,134
2%
62,325
2%
64,515
3%
Total Supply
Total Demand
99
2,759
1,989
179
2,943
3,573
285
4,663
5,706
485
5,022
9,702
720
7,522
14,409
Total Surplus/(Shortfall)
312
458
770
(1,031)
401
(630)
(1,961)
917
(1,043)
(5,442)
761
(4,680)
(8,102)
1,215
(6,887)
ITO: w hat %age of ITO analysts sourced this year w ill be
College grad w ith ICT-related degree, internal training needed
College grad w ith other degree, internal training needed
Career shifters, internal training needed
Source of ITO analysts
from ICT-related degree
from other degree
from career shifters
Surplus/(Shortfall)
from ICT-related degree
other degree
Supply Side Summary
HR: Urgent need for HR-related degree
F/A, Engineering and IT Operations:
Current supply seems adequate for 2006,
but as sub-segment matures, this may turn
into a shortfall quickly
Supply Side Constraints
Content-related Issues
– Current emphasis on auditing; should be on bookkeeping
– Need more exposure to automated systems, e.g. ERP, HRIS
Faculty-related Issues
– Lack of Faculty proficiency in English which results in subject
matter not being taught in English
– Teachers must be able to teach automated applications
– Brain drain of qualified faculty
Facility-related Issues
– More automated applications rather than manual ledgers
Regulatory Concerns
– Strict implementation of English as medium of teaching
Others
– Reluctance to work night shift
– Roughly 25% attrition (10% involuntary, 15% voluntary)
What needs to be done?
Short-term
– Approach of teaching English should shift to ESL (DepEd/CHED,
Academic Organizations e.g. COCOPEA, PAPSCU, PASUC)
– Advocacy (Industry, Media)
• Support “English is Cool” campaign
• Career track advocacy to college students
• Course of study advocacy to high school students (and parents)
– Use of automated transaction systems such as ERP, HRIS (with
appropriate faculty retraining) wherein industry partners with
academe (COCOPEA, PAPSCU, PASUC w/BPAP)
Medium-term
– Development of curriculum for specific needs of the BPO
industry for entry level and middle-management (CHED,
CEDFIT, BPAP)
• Separate course focused on bookkeeping and transaction-keeping
rather than auditing
• Need for industry to establish standards
Exhibits
1.
2.
3.
4.
Cyberservices Revenue
Cyberservices Workforce Forecast
Cyberservices Job Generation
Breakdown, 2006-2010 Forecast
Summary of Tertiary Graduates
Commission on Information and Communications Technology
Cyberservices Revenue (Estimates in US$ M, based on Workforce Forecast)
2004
920
Customer Contact
Growth
Back Office
120
Growth
Software Development
170
Growth
Medical Transcription
42
Growth
Animation
39
Growth
Engineering Design
17
Growth
Other Data Transcription
20
Growth
Legal Transcription
2
Growth
Digital Content
2
Growth
TOTAL
1,332
Growth
2005
1,610
2006
2,580
2007
3,740
2008
4,860
2009
6,080
2010
7,290
75%
60%
45%
30%
25%
20%
180
320
580
990
1,680
2,700
50%
78%
81%
71%
70%
61%
204
265
345
465
604
740
20%
30%
30%
35%
30%
23%
70
150
280
470
800
1,280
67%
114%
87%
68%
70%
60%
54
71
89
125
169
220
38%
31%
25%
40%
35%
30%
26
39
68
109
164
230
53%
50%
74%
60%
50%
40%
31
43
60
85
110
143
55%
39%
40%
42%
29%
30%
3
5
8
12
17
22
50%
67%
60%
50%
42%
29%
6
11
22
45
84
168
200%
83%
100%
105%
87%
100%
2,184
64%
3,484
60%
5,192
49%
7,161
38%
9,708
36%
12,793
32%
Source: CICT, BOI, BPAP and its Member Organizations
Cyberservices Workforce Forecast (Based on Industry Reports for 2004-2005)
2004
64,000
2005
112,000
2006
179,200
2007
259,800
2008
337,700
2009
422,100
2010
506,500
75%
60%
45%
30%
25%
20%
22,500
40,500
72,900
123,900
210,600
337,000
50%
80%
80%
70%
70%
60%
12,000
15,600
20,300
26,400
34,300
44,600
20%
30%
30%
30%
30%
30%
5,500
13,800
24,800
42,200
71,700
114,700
38%
151%
80%
70%
70%
60%
4,500
6,800
9,900
13,900
18,800
24,400
50%
51%
46%
40%
35%
30%
2,800
4,200
6,700
10,700
16,100
22,500
40%
50%
60%
60%
50%
40%
3,000
4,200
5,900
8,300
10,800
14,000
40%
40%
40%
30%
30%
700
1,100
1,700
2,400
3,100
50%
50%
50%
40%
30%
500
1,000
2,000
4,000
8,000
16,000
150%
100%
100%
100%
100%
100%
163,250
266,000
403,400
568,800
794,800
1,082,800
Growth
62%
63%
52%
41%
40%
36%
New Jobs Generated
62,750
43,000
102,750
72,000
137,400
112,000
165,400
141,000
226,000
161,000
288,000
182,000
Customer Contact
Growth
15,000
Back Office
Growth
Software Development
10,000
Growth
Medical Transcription
4,000
Growth
3,000
Animation
Growth
Engineering Design
2,000
Growth
Other Data Transcription
2,000
Growth
Legal Transcription
300
450
Growth
200
Digital Content
Growth
TOTAL
100,500
Original Job Gen Targets
Source: CICT, BOI, BPAP and its Member Organizations
Cyberservices Job Generation Breakdown, 2006-2010 Forecast
Customer Contact
Back Office
Software Development
Medical Transcription
Animation
Engineering Design
Other Data Transcription
Legal Transcription
Digital Content
New Jobs Generated
2005
48,000
7,500
2,000
1,500
1,500
800
1,000
150
300
62,750
2006
67,200
18,000
3,600
8,300
2,300
1,400
1,200
250
500
102,750
Source: CICT, BOI, BPAP and its Member Organizations
2007
80,600
32,400
4,700
11,000
3,100
2,500
1,700
400
1,000
137,400
2008
77,900
51,000
6,100
17,400
4,000
4,000
2,400
600
2,000
165,400
2009
84,400
86,700
7,900
29,500
4,900
5,400
2,500
700
4,000
226,000
2010
84,400
126,400
10,300
43,000
5,600
6,400
3,200
700
8,000
288,000
Discipline Group
Architectural and Town Planning
Business Admin and Related
Engineering and Technology
Fine and Applied Arts
Humanities
Law and Jurisprudence
Mass Comm and Documentation
Mathematics
Information Technology
Medical and Allied
Natural Science
Social and Behavioral Science
*Total Cyberservices-inclined
Other Disciplines
Grand Total
2006
3,100
128,602
55,752
1,706
5,954
2,894
6,543
2,859
42,047
31,400
5,814
16,243
302,914
151,904
454,818
Source: Commission on Higher Education
Summary of Tertiary Graduates per Year
2007
2008
2009
2010
2011
3,222
3,344
3,466
3,588
3,710
133,655 138,709 143,763 148,816 153,870
57,943
60,134
62,325
64,515
66,706
1,773
1,840
1,907
1,974
2,041
6,188
6,422
6,656
6,890
7,124
3,008
3,122
3,236
3,349
3,463
6,800
7,057
7,314
7,571
7,828
2,971
3,083
3,196
3,308
3,420
43,700
45,352
47,004
48,657
50,309
32,634
33,868
35,102
36,336
37,570
6,042
6,271
6,499
6,727
6,956
16,881
17,519
18,158
18,796
19,434
314,817 326,721 338,626 350,527 362,431
157,874 163,843 169,812 175,783 181,753
472,691 490,564 508,438 526,310 544,184
2012
3,831
158,924
68,897
2,108
7,358
3,577
8,085
3,533
51,961
38,804
7,184
20,072
374,334
187,723
562,057