DOLE Workforce Development Summit Cyberservices The Sectoral Picture

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DOLE Workforce Development SummitCyberservices
The Sectoral Picture

• Damian Dondi Mapa, CICT Commissioner
• 21 February 2006
• Bayview Hotel, Manila

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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.h
  tm

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Cyberservices Defined

• From Wikipedia Cyberservices are services
  delivered over cyberspace. Therefore,
  "cyberservices" 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 copy-editing 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.
• http//en.wikipedia.org/wiki/Cyberservices

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Cyberservices
Cyberservices
ICT Services
ICT-Enabled Services
E-Services
IT Services
IT-Enabled Services
Tele Services
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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
• 3.3B by 2006
• 4.9B by 2007
• 6.6B by 2008
• 9.1B by 2009
• 11.7B by 2010

Source CICT, BOI, BPA/P (See attached exhibits.)
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SidebarHiring 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
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THE PHILIPPINES LABOR SUITABILITY LEADS RUSSIAS
AND CHINAS BUT LAGS EASTERN EUROPE
From McKinsey September 2005 Report The
Philippines Offshoring Opportunity
Of 100 graduates with the correct degree, how
many could you employ if you had demand for
all?Percent
Countries
Engineer
Finance/accounting
Generalist
Eastern Europe
Russia
Czech
Poland
Hungary
Asia
China
Philippines
India
Malaysia
Latin America
Brazil
Mexico
42
35

• All suitability rates are empirically based on a
  total of gt100 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 adjustedpost 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
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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
• 2 times bigger
• China
• 160,000
• 3 times bigger

IT, CS, and all Engineering (excluding Civil
Engineering) Source McKinsey Global Institute
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Workforce Mobilization

• By Source
• 2.45m college graduates, 2006-2010 450-550k
• 4m Unemployed, 6m Underemployed 100-120k
• 1m Overseas MigrantWorkers 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, Tagbilaran,
  Cagayan de Oro, General Santos 300k
• Emerging Tagbilaran, Zamboanga, San Fernando (La
  Union), others 150k

Philippine Cyberservices Corridor
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PGMA on the PCC

• President Gloria Macapagal-Arroyoat the
  Philippine Investment ConferenceMarch 9, 2005 at
  Lapu-lapu City, Cebu
• our cyberservices corridor actually stretches
  600 miles from Baguio in Northern Luzon to
  Zamboanga in Mindanao
• its served by a 10B high-bandwidth fiber
  backbone and digital network
• http//www.ops.gov.ph/speeches2005/speech-2005_ma
  r09.htm

• President Gloria Macapagal-Arroyoat the Cebu
  ICT 2005 ConferenceJune 22, 2005 at Cebu City,
  Cebu
• 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.
• the concept of the cyberservices corridor is
  gaining ground!
• http//www.ops.gov.ph/speeches2005/speech-2005_ju
  n22.htm

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Benefits of the Corridor

• Job Generation
• 1 million jobs
• A new middle class
• 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

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Issues for Workforce Development

• Common Themes
• Career Advocacy
• Curriculum Review and Faculty Retraining
• English Proficiency
• Segment Specific Needs and Issues
• Animation
• Software Development
• Medical Transcription
• Back Office Processing
• Customer Contact

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Common Themes

• Across Segments

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Career Advocacy

• Long-term career option
• Prospects for advancement
• Quality of life issue
• Audience career shifters, parents, high-school
  students, college students

Issue How do we get more Filipinos to be
interested in a career in cyberservices?
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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?
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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?
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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.

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School Initiatives

• Mapua Institute of Technology FuturePerfect
  helping to develop their English curriculum and
  to retrain English teachers.
• Negros Occidental High School and Elementary
  English Teachers trained in the use of
  Small-group Communicative Methodology for the
  Conversational English Classroom.

• Camarines Sur A mix of private and state college
  English Teachers trained in Small-group
  Communicative Methodology for the Conversational
  English Classroom.
• Asia-Pacific College 7 English subjects, with
  one on Voice and Accent Training, supplied by
  IBM-Daksh.

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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.
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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

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Segment Presentations

• Animation, Joy Bacon
• Software Development, Beng Coronel
• Medical Transcription, Myla Rose Reyes
• Back Office Processing, Mitch Locsin
• Customer Contact, Jojo Uligan

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Exhibits

• Cyberservices Revenue
• Cyberservices Workforce Forecast
• Cyberservices Job Generation Breakdown, 2006-2010
  Forecast
• Summary of Tertiary Graduates

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Source CICT, BOI, BPAP and its Member
Organizations
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Source CICT, BOI, BPAP and its Member
Organizations
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Source CICT, BOI, BPAP and its Member
Organizations
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