IT-BPO Situationer and ICT Industry Development Programs

IT-BPO Situationer and the DOST-ICTO’sICT Industry Development Programs AmCham ICT Committee Meeting March 27, 2012 Alejandro P. Melchor III Deputy Executive Director for ICT Industry Development Department of Science & Technology Information & Communication Technology Office

Philippines has pulled away from the pack and established itself as the clear global #2 after India in worldwide IT-BPOSSource: Aon Hewitt

Philippines has become the destination of choice. The world’s top locators are on hyper-growth mode.IBM’s Global Location TrendsAnnual Report 2010 stated thatPhilippines surpassed India in2010 as world’s #1 location for But talent supply is the constraint to growthbusiness support services(IT-BPO, shared services, RHQ)

PARADIGM SHIFT: LOCATORS ARE LOOKING AT TIER 2 & 3 CITIES. IN INDIA, 80% OF IT-BPO GROWTH IS TIER 2 & 3Source: Tholons

The Stars are Aligned…• …to dramatically increase PH market share in IT-BPO…• …to attain world leadership in multiple high- growth segments of Global IT-BPO• …to accelerate countryside development• …to decisively propel the country to global competitiveness in the Knowledge EconomyINFORMATION & COMMUNICATIONS TECHNOLOGY OFFICE

ICT Industry Development Programs Talent Development Designed to iPPP- Stepping-Up the Value Chain enable the ICT Industry Public to generate Private Next Wave Cities US $50B in directPartnership revenues by for ICT; Domestic ICT Industry 2016 DevelopmentJoint 5-year • IT-BPO $33B ICT-Enabled Creative Industries • All other ICTInvestment Development $17B program ICT Marketing & Research

$33B target for PH IT-BPO is based on a high-growth scenario featuring 20% CAGR and vigorous iPPP growth initiatives* Year Export Revenues (20% CAGR) 2011 $11.0 B 2012 13.2 2013 15.8 2014 19.0 2015 22.8 2016 27.4 Domestic outsourcing 2016 5.6 Total: $ 33B• The high-growth scenario: PH IT-BPO export revenue reaches US $55B level by2020, fueled by a 20% compound annual growth rate (CAGR).• PH increases market share substantially in several high-value niches.• Domestic market and domestic outsourcing substantially larger.• Supply of skilled labor and revenue earnings per employee grow at high rate.• PH investment climate will be especially positive.• Substantive progress in public-private partnership initiatives to spur industry growth. *ICT-BPO Industry Growth, Transformation and Impact: Opportunities and Challenges for the Philippines- forthcoming book by Raja Mitra, Senior Consultant World Bank and ADB. Quoted with the author’s permission.

ICT Workforce Capability Development Program National e- Competency Framework Aims to augment Global National ICT Competitiveness efforts of CHED and Skills Registry Assessment TESDA and support Database Globally- Tool (GCAT) BPAP’s programs in competitive order to triple the size Filipino ICT of ICT Talent Pool by Workforce 2016, improve employability by IT Professional Industry Driven Certification Curriculum 200%, and develop the Core Skills required by Industry One e-Learning Portal

Stepping up the Value Chain Program We are #1 in call centers and we Voice BPO intend to become market leader in UK & Australia 1. Healthcare Information Management Outsourcing We intend to 2. Finance & Accounting attain world Outsourcing leadership in 4 more 3. HR Outsourcing fast growing services 4. Creative Process Outsourcing We intend to 1. Information Technology Outsourcing (ITO) double our market 2. Engineering Services share in 3 other fast Outsourcing (ESO) growing services 3. Multilingual BPO

We aim to harness Philippine competitive advantages to attain world leadership infour more fast growing services and double our market share in 3 others

PH Healthcare Outsourcing segment grew by 172% in 2011… 11 we can be global leader in this est. $65B opportunity$590B administration cost givesrise to a $30.5B est. offshoringtarget from US healthcarelegislation alone…The Philippines has a competitiveadvantage to dominate thisoffshoring opportunity, with its largetalent pool of certified nursesSource: Healthcare InformationManagement Associationof the Philippines (HIMOAP) The global opportunity is much larger, what with at least 6 other geographies having similar healthcare legislation…and more coming!

12Philippines has competitive advantages to increase marketshare in IT Outsourcing, Engineering Services OutsourcingFilipino IT professionals arebecoming a global brand;actively recruited by othercountriesPhilippines has 3rd largest poolof engineers in Asia Pacificafter China and India

Next Wave Cities™ Dynamic NWC Road Map countryside development through ICT• Significantly increase the Career Marketing/ jobs and International Talent revenues Marketing Development generated by NWCs• Increase from 3 to 8 Centers of Excellence by 2016• Increase from 5 to 10 NWCs in Global Top Technology 100 by 2016 Business Incubators TELOF Transformation

Next Wave Cities Location Assessment Model

Philippine ICT Industry Development ProgramAims to develop a 10-Year Road Map, IndustryMapping and Growth Programs for the:- IT-BPO Industry- Computer Hardware Industry- Software and Applications Development Industry- ICT-enabled Creative Industries- Semiconductors & Electronics- Telecommunications

ICT-Enabled Creative Industries Program will propel PH past Korea and China by 2016PORTFOLIO (IP/Content) & the Philippine Brand Exhibits,Fairs,IP Awareness Legislation support* Trade MissionsEntrepreneurship Strategic Programs Collaterals Roadmap & IndustryCreative Skills Policies MappingTalent Building Enabling Marketing & Environment Research Animation, Games, Comics, etc. THE INCUBATION LAB

Marketing & Research Program-Career Opportunities Marketing-International Marketing & Geo Footprint expansion-Market Intelligence-Technology Foresight

IT-BPO Situationer and ICT Industry Development Programs

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IT-BPO Situationer and ICT Industry Development Programs Presentation Transcript

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