Philippine Contact Center Industry Overview

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Representing the Countrys IT IT-Enabled
Services Industry
Mitch L. Locsin Executive Director
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Business Processing Association of the Philippines

• Private sector-led organization representing the
  six (6) different sectors of IT-enabled services
  industry and their support industries
• One-stop information and advocacy gateway
• Formed from the merger of the Contact Federation
  Philippines Outsource Philippines
• Created to give the BPO industry a single point
  of contact for the world

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Agenda

• Industry Overview
• Contact Center
• Business Processing (Back Office Operations)
• Animation
• Medical Legal Transcription
• Engineering Design
• Software Design
• Human Resource Profile per Sector
• Human Resource Challenges
• Current Programs to Address Challenges

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Contact Center Overview

• A contact center is an umbrella term that refers
  to reservations centers, help desks, information
  lines or customer service centers, regardless of
  how they are organized or what types of
  transactions they handle. In its most
  sophisticated form, the term refers to a voice
  operations environment that provides a full range
  of high-volume, inbound or outbound call-handling
  services, including customer support, operator
  services, directory assistance, multilingual
  customer support, credit services, card services,
  inbound and outbound telemarketing, interactive
  voice response and web-based services.

• As of 1st Quarter, 2005
• Total Seats 70,000
• Total Full Time Employees 112,000
• Estimated Revenues in 2005 US 1.1 Billion
• With a Growth Rate in 2005 100

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Contact Center HR Profile

• Excellent English communication skills
• Customer service propensity
• College education
• Sales orientation
• Computer and internet savvy
• Flexibility / Willingness to work in shifts

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Contact Center HR Challenges

• Increasing demand for qualified front-line agents
• High mortality rate of applicants
• Attrition rate and retention rate of employees
• Need for English proficient people

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Contact Center Programs

• Organization BPA/P - CCAP
• Contact Center course/module developed
• Company partnerships with Universities
• Contact Center orientation and awareness campaign
  in Universities and Schools
• Development of provincial locations as contact
  center hubs
• English language campaigns
• Job fairs / provincial tours and recruitment

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Business Processing Overview

• Business process servicing or outsourcing refers
  to the increasing trend of relocating entire
  business back office functions to either
  self-owned or third-party service providers,
  typically in low-cost locations. There are around
  60 Back Office Operations in the country with
  22,500 full time employees with revenues of US
  180 Million for 2005
• Philippines advantages as a Business Processing
  destination

• Time Zone
• Quality of Labor Pool (Accountants, Auditors,
  Medical Prof, etc..)
• Strategic location in Asia
• Availability of prime yet low-cost real estate
• Cost-competitive telecommunications / business
  infrastructure
• Expatriate-agreeable lifestyle
• IT-supportive policies and incentives

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Business Processing HR Profile

• Excellent English communication skills
• IT proficiency
• Multicultural adaptability
• High degree of trainability
• Customer service orientation
• Flexibility
• Superior work ethic
• Domain knowledge in specific business process
  (Accounting, Litigation, HR, Insurance, etc)

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Business Processing HR Challenges

• High demand for qualified labor pool
• Adoptability to the software that the company
  applies
• Competition with traditional companies
• Perception that English proficiency is not a
  requirement

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Business Processing Programs

• Organization BPA/P
• HR development initiatives mostly done through
  in-house or company specific programs

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Animation Overview

• Animation is the technique in which each frame
  of a film or movie is produced individually,
  whether generated as a computer graphic, or by
  photographing a drawn image, or by repeatedly
  making small changes to a model and then
  photographing the result with a special animation
  camera. When the frames are strung together and
  the resulting film is viewed at a speed of 16 or
  more frames per second, there is an illusion of
  continuous movement. Generating such a film is
  very labor intensive and tedious, though the
  development of computer animation has greatly
  sped up the process.

• Total animation studios in the country 32
• Twenty (20) years in the Philippines
• Total Full Time Employees 4,500
• Estimated Revenues in 2005 US 90 Million
• With a Growth Rate in 2005 40

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Animation HR Profile

• World-class talent
• Boundless creativity
• English proficiency
• Ability to comprehend concepts and storylines
• Exposure to different cultures
• Speed in delivering drawings / output

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Animation HR Challenges

• Availability of animators in the country
• Philippine animators seeking job opportunities
  abroad (Around 200 Animators are being poached
  each year to other countries)
• Skills and manpower development
• Animation training / schools
• Financial support

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Animation Programs

• Organization Animation Council of the
  Philippines Inc. (ACPI) BPA/P
• Competition in Multimedia schools
• (Ateneo de Naga winning 1st place sending
  students to France for animation training)
• BPA/P in a partnership with the University of
  Makati to set up a premier animation
  industry-backed training facility

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Medical Transcription Overview

• Medical Transcription (MT) means accurately and
  swiftly interpreting/ encoding electronically the
  oral dictation of physicians and other healthcare
  professionals regarding patient assessment,
  workup, therapeutic procedures, clinical course,
  diagnosis, prognosis, out-patient follow-ups,
  etc. in order to document patient care and
  facilitate healthcare services. These documents
  eventually become part of patients permanent
  files.

• Total MT Firms 51
• Total MT Schools 9
• MT Professionals 5,500 employed
• Estimated Revenues in 2005 US 80 Million
• Performance Level 98 99 accuracy rate,
  turnaround time of 12 to 24 hours

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Medical Transcription HR Profile

• College education Medical / Science courses
• Above-average knowledge of English punctuation
  and grammar
• Excellent auditory skills
• Advanced proofreading and editing skills
• Versatility in use of transcription equipment and
  computers
• High degree of trainability
• Customer service orientation

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Medical Transcription HR Challenges

• Availability of trained manpower
• Medical professionals seeking job opportunities
  in other countries
• Training institutions offering medical
  transcription courses
• Length of MT training before becoming productive
• Resistance to off shoring and outsourcing from
  American industry

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Medical Transcription Programs

• Organization Medical Transcription Association
  Industry Association of the Philippines Inc.
  (MTIAPI) BPA/P
• Policies / Regulations to MT standards

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Engineering Design Overview
Engineering design services in RP can be
categorized as 1) In-House 2)
Subcontracted/Outsourced by clients

• Total Number of Full Time Employees 2,800
• Total Number of Engineering Design Companies 14
• Estimated Revenues in 2005 56 Million

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Engineering Design HR Profile

• College Education
• (Basic Engineering Courses)
• English proficiency
• Competitiveness
• Computer proficiency
• CAD

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Software Development Overview

• Software engineering is the practice of using
  selected process techniques to improve the
  quality of a software development effort.  This
  is based on the assumption, subject to endless
  debate and supported by patient experience, that
  a methodical approach to software development
  results in fewer defects and, therefore,
  ultimately provides shorter delivery times and
  better value.  The documented collection of
  policies, processes and procedures used by a
  development team or organization to practice
  software engineering is called its software
  development methodology (SDM) or system
  development life cycle (SDLC).

• Total software development firms 300
• Total IT professionals 14,000
• Estimated Revenues in 2005 US 204 Million

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Software DevelopmentHR Profile

• College education IT related courses
• Technical and analytical skills
• Business skills
• English proficiency
• Certification CMM

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Software Development Programs

• Organization Philippine Software Industry
  Association (PSIA) BPA/P
• Philippine Software Industry 2010 Fly High
  Program
• Orientation and awareness campaign in
  Universities and schools

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Some More Challenges We Are Facing In The
Philippines

• The lack of good English Proficient good
  Communications skilled labor pool in the
  Philippines
• The lack of peace and order perception of the
  country (bombings, kidnappings, etc) media
  seems to only highlight negative events which may
  deter foreign investors from considering our
  country.
• Lack of awareness in the industry in general by
  some regions BPA/P and Government agencies like
  DTI, BOI, CITEM, and CICT are working on this
  though.
• Depletion of quality teachers its a chain
  reaction Lack of qualified teachers due to brain
  drain equals lack of quality students.

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Summary

• The Philippines can excel in all of the
  e-Services sectors
• English proficiency is required by all sectors
• Contact Centers have the highest demand, but is
  also more advanced in terms of Human Capital
  Development
• Areas of opportunity for employing large numbers
  of workers Business Processing, Medical
  Transcription
• Niche area for creative talent Animation
• Leveraging on our level of IT and Technical
  proficiency in Software Development and
  Engineering Design

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• For More information regarding the association,
  please visit our website at www.bpap.org
• Thank You