Transcript Roadmap 2010 - Bureau of Local Employment

CAREER DEVELOPMENT IN THE IT-BPO INDUSTRY
12th National PESO Congress
October 12, 2012, Baguio Country Club
Nathan Andaya, Executive Director for Human Resources
Copyright 2012: Business Processing Assoc of the Philippines. All rights reserved
The Philippines’ IT-BPO industry has grown rapidly
FTEs
Philippine IT-BPO industry size
2006–2011; US$ billion
x%
YoY Growth
11.0
8.9
7.1
6.1
4.8
3.2
2006
~24%
~25%
%
inc.
fr ’10
Voice BPO
416,000
7,400
21%
Non-voice
BPO/KPO
128,650
2,058
24%
ITO
49,908
993
37%
Health Info
Mgt & Care
24,700
277
172%
Engineering
Services
9,030
172
5%
Animation
8,640
128
-10%
Game
Development
1,391
8
13%
638,319
11,036
24%
~16%
~26%
~50%
2007
Revenue
(US$M)
2008
2009
2010
2011
# FTEs
(~‘000)
240
300
370
423
525
638
Global
share1
5%
6%
6%
7%
8%
8%
TOTAL FTEs
1 Philippines IT-BPO market as percentage of global offshore services market, in revenue terms
Sources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA
1 Copyright ©2012: BPAP. All rights reserved.
15%‒20% CAGR over next 5 years expected
Philippines IT-BPO industry
US$ billion
PPP
CAGR:
~19%
CAGR:
~25%
CAGR:
14.5%
CAGR:
22%
CAGR:
9%
2006
2009
2010
% of GDP
2.7%
4.5%
4.8%
6.0%
7.0%
9.0%
Direct
employment
240K
423K
525K
680K
900K
1.3M
Indirect
employment
600K
1100K
1325K
1700K
2250K
3.2M
Sources: BPAP data; Everest analysis; World Bank and IMF projections
Low-end
2016
Baseline
2016
Road Map
2016
Larger tax base with even larger multiplier effects
through consumption
DIRECT PAYROLL ONLY (@ YEAR 2016)
Transport and
Communications
₱232.7 billion
 2.4 billion
Chickenjoy meals
and…
 ₱24.7 billion VAT
₱45.4 billion
 3.2 billion
jeepney rides & ₱22.5 billion
 45 million P500  16 million
prepaid cards
Bench jeans
&
 535,000
₱80 billion
iPads
 Investments
in financial
institutions
13% 8%
4%
14%
41%
20%
₱110 billion
 200,000 classrooms &
 3.3 million families
receiving maximum
CCT for a year
Taxes
Food
₱73.7 billion
 Contribution of
₱5,000/month to
rental of 1.2 million
HHs
ACCELERATED CASE
~US$12.9 billion annual salaries and benefits
Note: Based on consumption and savings of average Filipino family in the income 8th and 9th docile (in constant 2010 dollars)
Sources: National Statistics Office; team analysis
The Philippine talent value proposition:
large pool of young, English-speaking talent
Number of college degree
graduates
2009
Annual
growth


Medical and natural sciences,
allied fields
132,244
Business, accounting, and related
fields
107,272

Social and behavioral sciences,
education
68,764
Engineering and architecture
50,734
IT-related and mathematics
47,928
Fine arts, masscom, humanities
12,269
TOTAL Tertiary level

469,654





5.8%
Pop
2010: 481,862 graduates, 2.6% growth
Abundant labor force of 39+ million
460,000+ college graduates per year
3,000+ CPAs
English proficiency & other languages
Affinity with Western culture
Customer service orientation
Highly trainable
Cost effective
High level of commitment and loyalty
Labor force
Unemp rate
Literacy
World
6,768M
3,179M
8.7%
82.0%
India
1,130M
509M
7.8%
61.0%
4.3%
91.6%
China
1,330M
814M
Suitability
rates are empirically
based on a total
of >80
interviews with HR professionals working in each country
Brazil
201M
102M
8.1%
88.6%
Philippines
100M
39M
7.4%
92.6%
Source: CHED 2010; CIA World Factbook 2010; NSO 2011
4
Talent supply gap, is it a problem?
Widening gap will accelerate cost and quality pressures
280
264
Total talent demand (Accelerated Case)
240
229
200
Annual Demand and Supply projections
of entry-level industry talent – PH IT-BPO
‘000 FTEs
198
172
160
155
149
137
120
Effective addressable supply (Base
Case)
103
84
80
88
87
63
40
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Recruitment Process
Job offer
Testing
Applicants responding
to Advertisement in
newspapers
Initial interview
Job /campus fairs
Paper screening
Employee Referral
Final interview
Walk-in applicants
HIRE!
Applicants responding
to Advertisement
online
100 applicants
5-8 hires!
Recruitment hit rate: 5-8% only
Quality of talent supply is a problem
Average Scores Per School for Basic Skills Overall Vis-a-Vis Industry Scores
GCAT Baseline
100
90
Percentile Scores
80
70
60
50
40
30
20
10
0
0
1 2
3
4 5
6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
Schools #1 - 45
Based on testing of 15,500 students from 45 schools, vast
majority fall below industry’s minimum competency requirement
Industry Range
How BPAP is trying to address talent supply problems
Program
Description
1. Global Competitiveness
Assessment Tool
(GCAT)

An industry-developed test to assess competencies in basic skills for employment in
IT-BPO & GIC* and other service industries (*captives)
2. Advance English PreEmployment Training
(AdEPT)

A 100-hour English-proficiency course, using industry-developed courseware, offered
in colleges as an elective
3. TESDA Industry
Training for Work
Scholarship Program (ITWSP)

A near-hire bridging program for different IT-BPO services subsidized by
government, co-managed by industry

The development of new T3 programs for IT-BPO TESDA courses to fill large
trainers gap for I-TWSP
5. Emerging Services

A program to address the training and education needs of specialized services
6. Associate Program
 A program to develop 6- to 12-month IT-BPO training courses for high school
graduates not going directly to college
7. Service Management
Program (SMP)
 A 21-unit minor or specialization track taken by business and IT majors in college
intending to go into IT-BPO & GIC or other service industries
8. Service Technology
Management (STM)
 A post-graduate certificate or master’s program for graduates and career shifters
wanting to enter IT-BPOs & GICs as team leaders or managers
4. TESDA Trainer’s
Training (T3)
9. Executive Development  A leadership and management program for current IT-BPO & GIC managers and
executives or industry shifters
Will these programs solve the problem?
Demand
Others
SMP
Career Marketing
GCAT
ITWSP
Supply
2011
2012
2013
2014
2015
2016
10
Growth of IT-BPO industry means economic
growth of the entire Philippines
75% of IT-BPO 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
1 Calabarzon Hub
• Santa Rosa
• Bacoor/Imus/Dasma
792,000
• Lipa
• Cainta
• Lucena
21,300
Current
FTEs
5
NCR
Absorptive capacity
at current yield rates
2 Central Luzon Hub
• Angeles/Clark
• Cabanatuan
• Olongapo/Subic
• Tarlac
461,000
• Malolos
219,000
25,600
Absorptive
capacity
Current
FTEs
Additional capacity
at targeted yield
rates
3 Western Visayas Hub
• Bacolod
Absorptive
• Iloilo City
capacity
128,000
108,000
Davao-GenSan Hub
117,000
24,900
10,000
42,000
Current
FTEs
Absorptive
capacity
National Capital Region
1.4M
485,600
Current
FTEs
787,000
Theoretical
capacity
Current
FTEs
4 Central Visayas Hub
• Cebu City
• Lapu-Lapu City
• Mandaue City
• Dumaguete 47,700
• Tagbilaran
Current
FTEs
39,000
Absorptive
capacity
162,000
44,000
Absorptive
capacity
Philippine IT-BPO employment projections to 2016
393
NWCs
NCR
149
918
490
2011
2016
12
Established IT-BPO locators are importers of talent
‘000 FTEs
180
Absorptive Capacity
IT-BPO FTEs
140
100
60
20
NCR
Metro
Cebu
Next Wave Cities’ capacities are untapped
80
‘000 FTEs
70
60
50
40
30
20
10
Absorptive Capacity
IT-BPO FTEs
Learning ability and English proficiency warrant attention
60
40
20
0
Cognitive Ability
English Proficiency
NCR
Computer Literacy
LUZON-NonNCR
VISAYAS
Perceptual Speed and
Accuracy
Career Progression – Voice /Non Voice
Program Director/
Site Director
Sr. Ops Manager
Operations Manager
Shift Manager
Sr. Team Leader
Team Leader
Customer Service Rep/ Technical service Rep
16
Pay Ranges for call center agents
* Source: Towers Watson (Jan. 2012)
17
Pay Ranges with allowances – Voice (call center) *
* Source: Towers Watson (Jan. 2012)
18
Pay ranges – Estimated Monthly Cash Compensation only*
Program Director/
Site Director (P200K up)
Sr. Ops Manager (P150K – 200K)
Operations Manager (P80K – 150K)
Shift Manager (P60K -80K)
Sr. Team Leader (P40k – P60K)
Team Leader (P30k -40K)
Customer Service Rep/ Technical service Rep (P16k – P27k)
*Compensation depends on size of IT-BPO Operations
** Rates are based on MM data
19
In Animation (career progression and pay ranges)*
Animation Directors
Assistant Directors
P80k - P150K
P60k - P70K
Checkers
Layout Checkers/ Supervisors
P30K - P40k
P40K - P50K
2D Traditional & Digital animators
Assistant Animators
P23K - P70K
P15K - P40K
Digital Painters
Digital Background artists
Compositors
P12K-P20K
P20K - P40K
P30K - P50K
* Monthly basic pay (Estimate only)
20
In Animation (career progression and pay ranges)*
Programmers (games/E-learning)
P25K - P40K
3D Model Rigger
P25K - P40K
3D Modeller
P15K - P30K
3D Texture and Lighting
P15K - P25K
Concept Artists/designers
P30K - P50K
Production Managers
P40K - P60K
Production Assistants
P15K - P20K
Storyboard Artists
P40K - P60K
* Monthly basic pay (Estimate only)
21
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