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7 Global Shifts


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Describes 7 Global Shifts transforming the world, and how the Government's strategies are positioning the Philippines to rapidly ascend with these forces as tailwinds.

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7 Global Shifts

  1. 1. Seven Global Shifts: Trends and Opportunities in ICT and BPO SEIPI-ASITEP Convention SMX Convention Center June 6, 2012Alejandro P. Melchor IIIDeputy Executive Director for ICT Industry DevelopmentDepartment of Science & TechnologyInformation and Communications Technology Office
  2. 2. The 1st Global Shift:The Flat WorldGlobal Integration Integration & the New Era of Global The fall of communism and the riseof Information & CommunicationsTechnology (ICT) have created the flatworld and the New Era of GlobalIntegration. The playing field has been leveled,and nations can compete for work inthe global knowledge industry likenever before. 2
  3. 3. 1972 2006 the world is round the world is flat “The Blue Marble” Photo taken from Apollo 17 Last human mission to the moon3
  4. 4. In a globally integrated flat world, both ICT and Business Process Outsourcing become massiveThe Good News: the Philippines is globally competitive at both!Source: IBM Almaden R&D Lab Briefing for DOST and CICT, 2010
  5. 5. The 2nd Global Shift:The Emergence of a Global Platform for Work The deepening of global trade, capital and information flows, enabled by a “flat world” is changing where and how business value is created. This is driven by the core principle of global integration: When everything is connected, work flows. Where it flows and how it gets integrated is shaped by three forces. “Like water flows to find its level... Work will flow to places where it can best be done.” Economics Expertise Open Business Environment 5
  6. 6. Three Drivers of Global Workflow:2. Economics:  Cost and profit potential3. Expertise:  Importance of having better skills, ideas and solutions  Ever increasing premium on innovation4. Openness:  “Open for business” environment, competitive policy 6
  7. 7. India & Philippines Closest to Ideal in Labor Quality vs Cost 7
  8. 8. India & Philippines have best talent competitiveness index for BPOSource: BPAP, Everest Global, Outsource2Philippines, 2010
  9. 9. Philippines and India have best Labor Demographics Profile: they will have a 10-20 year median ageadvantage over other countries by countries by the year 2025 advantage over other 2025 by the year 2025 Years Median Age 2025 50 Median Age 2000 40 10-20 year difference in Median AgeMedian Age median age 1975 30 20 10 JapanWest US ChinaIndia JapanWest US ChinaIndia Phil JapanWest US ChinaIndia Phil Europe Europe Europe Source: U.N. Department of Economic & Social Affairs, Population Division Source: U.N. Department of Economic & Social Affairs, Population Division 9
  10. 10. Philippines #2 in worldwide IT-BPO after India Source: Aon Hewitt analysis
  11. 11. However, India a victim of its own success• Tier I cities saturated• Wage inflation• Rampant poaching• Attrition• Fiscal scandals• Terrorist attacks• New taxes
  12. 12. The 3rd Global Shift: From MultinationalCorporation to Globally Integrated Enterprise • Most valuable assets are the knowledge it creates and the ideas of its employees—intellectual capital. • Since it operates without borders, a Globally Integrated Enterprise places work where it is done best.
  13. 13. Philippines now preferred destination forthe premier Globally Integrated Enterprises
  14. 14. The 4th Global Shift: Global Knowledge WorkersIn High Demand in Global Knowledge Economy Between 2010 and 2020, the US, Europe, Japan, China, and India will face a shortfall of 32 Million technically specialized professionals. In the US alone, there is a shortage of 1.5 Million knowledge workers today. In the Philippines, ICTO projects a shortage of 700,000 knowledge workers for IT-BPO alone by 2016.
  15. 15. Talent Development Programs will address anticipated shortfall of 700,000 knowledge workers for IT-BPO alone by 2016
  16. 16. We are solving for a talent supply shortfall of700,000 to meet the 1.43M IT-BPO jobs by 2016 Target TESDA Training for Work Scholarships 250,000 potential additional supply over 5 yrs BPAP-led higher education 200,000 interventions over 5 yrs Career Marketing Campaign 100,000 additional supply over 5 yrs DOST & ICTO Scholarships 50,000 High school IT-BPO associate program 50,000 Other interventions (ICTO’s HEI 50,00 programs, corporate training & CSRs)
  17. 17. The 5th Global Shift: Rise of Smart Cities as a driving force for national progress
  18. 18. Next Wave Cities Program will spread jobs and investments throughout the archipelago
  19. 19. Next Wave Cities Program Components Research & Road Mapping Talent Development Marketing Capability Building Business Environment Infrastructure & Real Estate Next Wave Resource Mobilization Cities TM & Incentives
  20. 20. The 6th Global Shift: ICT as an engine of growth
  21. 21. Philippine Digital Strategy plus ICTO’s Industry Development Programs will produce $50B in ICT Industry revenues by 2016
  22. 22. Domestic ICT Industry Development Program Goal: Accelerate development of entire ICT Industry , increasing investments, export revenues and job creation. 2012 Target: ICT Industry Mapping ProjectTelecoms Broadcast & Media Others (IT Services)Software & Apps Development ICT INDUSTRY MAPPING ICT- Enabled CreativesComputer Hardware Semiconductors & Electronics
  23. 23. The 7th Global Shift: ASEAN, China and India as the world’s premier growth engineBy 2030:• ASEAN, China, India Region (ACI) combined GDP couldquadruple and exceed that of the US and Europe combined• ACI share of world investment projected to be 40% ofglobal total• ACI Region will comprise almost half the middle class ofthe world• ASEAN’s middle class population expected to rise from24% in 2010 to 65% in 2030• Wages in ASEAN, China and India will rise 3-fold Source: ADB: ASEAN, the PRC and India: The Great Transformation?
  24. 24. ASEAN ICT Master Plan 2015 ASEAN as the premier global ICT Hub Pillars1. Economic 2. People 3. Innovation Transformation Empowerment and Engagement To nurture a Key OutcomesTo promote trade & creative , • ICT as an engine of entrepreneurship To enhance quality innovative and growth in the ASEAN in the ICT sector. of life through green ICT sector countries. And Build an ICT affordable and engine of sectoral equitable ICT • Recognition for ASEAN as change. a global ICT hub • Enhanced quality of life Foundation for people of ASEAN4. Infrastructure Development- To provide the next generation infrastructure enabling policies. • Contribution towards ASEAN integration5. Human Capital Development- To develop a skillful ICT workforce and knowledgeable community.6. Bridging the Digital Divide- To evaluate countries and people through ICT Capabilities
  25. 25. THANK YOU!