TALENT TRANSFORMATION AMCHAM ICT Community March 27, 2012

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638,000 DIRECT EMPLOYMENT 2011

2.2 Million DIRECT & INDIRECT EMPLOYMENT 2011

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1.3 Million STRETCH TARGET: DIRECT EMPLOYMENT 2016

4.5 Million STRETCH TARGET: DIRECT & INDIRECT EMPLOYMENT 2016

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92%-95% OF JOB APPLICANTS DO NOT MAKE IT

20% GRADUATING STUDENTS CAPABLE

30% GRADUATING STUDENTS WILLING

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1.1 Million EMPLOYEES TO BE RECRUITED & TRAINED OVER 5 YEARS

580,000 NEEDED IN ADDITION TO CURRENT TALENT SUPPLY OVER 5 YEARS

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250,000 ITWSP POTENTIAL ADDITIONAL SUPPLY OVER 5 YEARS

7/10 2 OF ITWSP SCHOLARS GET EMPLOYED ROI IN MONTHS IN SALARY TAXES

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200,000 HIGHER EDUCATION-BASED INTERVENTIONS TALENT ADD OVER 5 YEARS: GCAT, SMP, ADEPT, EMERGING SERVICES, E-LEARNING PROGRAMS, OTHERS

20% PASS RATE ON GCAT AMONGST 45 SCHOOLS

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125,000 CAREER MARKETING TARGET ADDITIONAL SUPPLY OVER 5 YEARS

50% TARGET INCREASE IN WILLINGNESS

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50,000 IT/BPO ASSOCIATE PROGRAM TARGET YIELD OVER 5 YEARS

~800,000 HIGH SCHOOL GRADUATES WHO DO NOT START/COMPLETE COLLEGE

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1 PHILIPPINES MARKET LEADING POSITION IN CRM

832,000 CRM WORKFORCE OPPORTUNITY IN 5 YEARS

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222,000 FTE SIZE OF PHILIPPINE IT/BPO NON-VOICE 2011

1.6M FTE SIZE OF INDIA IT/BPO NON-VOICE 2011 VS. PHILIPPINES;

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580,000 ADDITIONAL SUPPLY WE ARE SOLVING FOR

13 NUMBER OF BPAP STAFF TODAY

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612 MEMBER COMPANIES (DIRECT & INDIRECT) COMPRISING BPAP

225 VOLUNTEERS IN VARIOUS TALENT IPPP PROGRAMS

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27 BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA STAFF TODAY

55 STAFF BY END 2012

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25 NEEDED COMPANY STRATEGIC PARTNERS FOR TALENT PROGRAMS

1 UNIFIED & HARMONIZED EFFORT AT TALENT TRANSFORMATION

2016: Base Case vs Accelerated Case increases jobs from 3.1 million to 4.5 million

1,312K 2,250K Indirect jobs 3.2M

% of GDP 4.7% 6.9% 8.6%

1,700K

5.2%

2011E 2010 Accelerated Case 2016

Base Case 2016

Low Case 2016

525K 900K Direct jobs 1.3M 680K

Philippines IT-BPO industry US$ billion

US$15 billion 2.4 million • Direct: 0.7M • Indirect: 1.7M ₱820 billion • Direct: ₱328B • Indirect: ₱492B

US$20 billion 3.1 million •Direct: 0.9M •Indirect: 2.2M ₱995 billion •Direct: ₱398B •Indirect: ₱597B

US$25 billion 4.5 million •Direct: 1.3M •Indirect: 3.2M ₱1,290 billion •Direct: ₱516B •Indirect: ₱774B

Export Revenues

Jobs

Taxes on Wages

640K

1,600K

5.4%

2008

What’s At Stake?

Vs Base Case, Accelerated Case adds from 2012 to 2016: 1.3 million

jobs $14B

export revenue

₱295B taxes on wages

Recession proof

2009

25% 17%

4.4% 3.7%

423K 372K

1,057K 930K

26% 22%

Achieving $25Bn by 2016 will require BPAP to drive favorable outcomes across multiple areas

Widen & deepen human capital by scaling Industry-Public-Private-Partnership (iPPP) Programs Attract & train 1.1Million talents over 5 years

includes executive & specialized skills Scale talent development programs Make IT-BP careers aspirational

Achieve Roadmap 2016 Goals by leading cross-sectoral efforts Harnesses, leads, & harmonizes

cross-sector involvement & investment in Roadmap 2016 programs

Leads the design & program management of iPPPs

Official & credible voice of the industry

Strengthen Philippine attractiveness as an investment destination through our advocacy activities

Favorable legislative & regulatory environment

Competitive & predictable fiscal incentive regime

Competitive cost structure

Road Map 2016

Build PH IT-BP brand globally through marketing programs CRM: strengthen market

leadership, attain leadership in UK, ANZ markets

HIM, F&A, HR, Multi-lingual: global market leadership

IT, CP, Engineering Services: double market share

Role of BPAP

Ecosystem

Marketing and Branding

Talent

Road Map 2016 Year 1 Talent Development

Program (Target 2011)

2011 Accomplishments

Target 2012

GCAT (10,000 tested - fit to available funding)

19,500 tested •17,000 students and 2,500 employees •negotiated 50% discount •intensive and nationwide marketing and coordination

250,000 college graduating students in 2012 •Assumes with CHED and ICTO funding •GCAT with other interventions will increase hit rate from 5-8% to 10-12%.

I-TWSP (₱350M in government funding; 60,000 trained, 42,000 hired)

65K trained, 47 near hires employed by June 2012 •₱400M in government funding for near-hire training and •₱50M for Trainers’ training

Additional 65k trained/47k employed in H2 2012 •Equivalent funding targeted for the 2nd half of 2012

Service Management (New program added in 2011)

Approved 21-unit SMP by CHED •Program created by industry and academe, •Submitted and approved by CHED in record time (4 months)

Pilot SMP with 6 schools. (no funding) Pilot SMP to SUCs with 500 teachers (if funded by SUCs)

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Road Map 2016 Year 1 Talent Development

Program (Target 2011)

2011 Accomplishments

Target 2012

AdEPT (Continue AdEPT program with new partner schools)

Completed 2 T3s run, 3 new partner schools added

Revise Curriculum and methodology by April; •Conduct 6 T3 runs with at least 10 new partner schools. •500 teachers in schools indicated in the hub/next wave cities. (SUCs) by Dec (with funding)

Service Technology Management (Introduce new program)

Initial curriculum developed by UP-ITTC

• Complete program by late 2012 • Present to CHED for approval

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Road Map 2016 Year 1 Talent Development: New Programs for 2012

Program Target 2012 TESDA Trainers’ Training • Utilize P50M funding from TESDA

• Train 1,800 trainers in various TESDA IT-BPO programs

Emerging Services

• Complete program/curriculum for the following: F&A, Healthcare, ITO (with approval from CHED and TESDA)

Associate Degree

• Grade 11 & 12 content in K-12 curriculum

Executive Development

• Complete Executive Development program

Industry Standard – Voice Assessment

• Similar to GCAT, complete study of voice assessment standard

Career Marketing

• Multi-media campaign • 4 Career Caravans / Conventions with SUCs (with funding from

SUCs/CHED)

eLearning • Complement teacher-led interventions with eLearning solutions to achieve better scale, reach and standardized delivery of instruction

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Industry Talent Transformation: 3 Phases

Phase 1: Multi-sectoral effort formation & harmonization

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BPAP

Government

Academe

Associations

IT-BPO companies

Industry Talent Transformation: 3 Phases

Phase 2: Program/Solution Design & Pilot

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Industry Consortium BPAP-Led

Government

Academe IT-BPO companies

Industry Talent Transformation: 3 Phases

Phase 3: Full Deployment & Scale

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BPAP’s role:

• Drives to industry standards

• Evolves industry standards

• Works with government

agencies

• Facilitate deployment

challenges

IT-BPO Companies

Industry Consortium BPAP-Led

Academe Community

IT-BPO Consortium & Partners Growing

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Company Name Co

GCAT Strategic Partner

SMP Strategic Partner AdEPT Strategic Partner

AP Strategic Partner

ED Strategic Partner

STM Strategic Partner

IBM x x x x xAccenture xHP xStream xSutherland x xTTSI xStellar Philippines

-x

Pointewest Tech. Corp xWNS Global Services Inc G

Cx

Serco (intelenet) Global S i

GC

x x[24]7 Inc xTeamAsia S xPrimesoft Philippines Inc G

Cx

First Advantage Phils. x xAccess Worldwide G

Cx x x x

ABM Global GC

HSBC S x x xDeltek Systems (Philippines)

S x

Ubiquitous Technologies Phils. Inc,

T3 (

Sitel Philippines Corp. Ad

x x x xEdulynx Corp A

dx

Microsoft Phils. Inc. GC

x x xIntelenet Global Services

-x x

HR Mall/ Silkroad-

x xPWC SDC Manila

ADP Philippines, Inc. xConvergys Corporation S xTeledevelopmet G

Cx

F&A Hub xBPO International xMagellan Solutions xPhoenix One x

Service Management Support Needed – Industry Professors

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Proposed Pilot Project Academic Institutions, SY 2012-13, SY 2013-14

Modality Participating Schools Class

(30 students per class)

No. of Students

HEI Specialization Track 1. Far Eastern University East Asia 1 30 1. Jose Rizal University 4 120 1. MAPUA Institute of Technology 4 120 1. Polytechnic University of the

Philippines 4 120

1. Southern Luzon Technology Foundation

2 60

Sub-totals 15 450 K to 12 Junior College 1. Asia Pacific College 2 60

1. Manila Times College 2 60 1. Don Bosco College 3 90

Sub-totals 7 210 Total 22 660

IT-BPO Company Support Required

•25 Industry Professors needed initially.

•Each to teach 1 class for 18 weeks (one semester) – 3 hours of class time per week.

• Industry Professors will teach and train teachers in the process.

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Thank You