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.

1. Seven Global Shifts:
Trends and Opportunities
in ICT and BPO
SEIPI-ASITEP Convention
SMX Convention Center
June 6, 2012
Alejandro P. Melchor III
Deputy Executive Director for ICT Industry Development
Department of Science & Technology
Information and Communications Technology Office

2. The 1st Global Shift:
The Flat WorldGlobal Integration Integration
& the New Era of Global
 The fall of communism and the rise
of Information & Communications
Technology (ICT) have created the flat
world and the New Era of Global
Integration.
 The playing field has been leveled,
and nations can compete for work in
the global knowledge industry like
never before.
2

3. 1972 2006
the world is round the world is flat
“The Blue Marble”
Photo taken from Apollo 17
Last human mission to the moon
3

4. In a globally integrated flat world, both ICT and
Business Process Outsourcing become massive
The Good News: the Philippines is globally competitive at both!
Source: IBM Almaden R&D Lab Briefing for DOST and CICT, 2010

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. Three Drivers of Global Workflow:
2. Economics:
 Cost and profit potential
3. Expertise:
 Importance of having better skills,
ideas and solutions
 Ever increasing premium on
innovation
4. Openness:
 “Open for business” environment,
competitive policy
6

7. India & Philippines Closest to Ideal in Labor Quality vs Cost
7

8. India & Philippines have best talent
competitiveness index for BPO
Source: BPAP, Everest Global, Outsource2Philippines, 2010

9. Philippines and India have best Labor Demographics
Profile: they will have a 10-20 year median age
advantage 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 Age
Median 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. Philippines #2 in worldwide IT-BPO after India
Source: Aon Hewitt analysis

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. The 3rd Global Shift: From Multinational
Corporation 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. Philippines now preferred destination for
the premier Globally Integrated Enterprises

14. The 4th Global Shift: Global Knowledge Workers
In 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. Talent Development Programs will address anticipated shortfall of
700,000 knowledge workers for IT-BPO alone by 2016

16. We are solving for a talent supply shortfall of
700,000 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. The 5th Global Shift: Rise of Smart Cities as a
driving force for national progress

18. Next Wave Cities Program will spread jobs and investments
throughout the archipelago

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. The 6th Global Shift: ICT as an engine of growth

21. Philippine Digital Strategy plus ICTO’s Industry
Development Programs will produce $50B in
ICT Industry revenues by 2016

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 Project
Telecoms Broadcast & Media Others (IT Services)
Software & Apps Development
ICT INDUSTRY MAPPING
ICT- Enabled Creatives
Computer Hardware Semiconductors & Electronics

23. The 7th Global Shift: ASEAN, China and India
as the world’s premier growth engine
By 2030:
• ASEAN, China, India Region (ACI) combined GDP could
quadruple and exceed that of the US and Europe combined
• ACI share of world investment projected to be 40% of
global total
• ACI Region will comprise almost half the middle class of
the world
• ASEAN’s middle class population expected to rise from
24% 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. ASEAN ICT Master Plan 2015
ASEAN as the premier global ICT Hub
Pillars
1. Economic 2. People 3. Innovation
Transformation Empowerment
and Engagement To nurture a Key Outcomes
To 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 ASEAN
4. Infrastructure Development
- To provide the next generation infrastructure enabling policies. • Contribution towards
ASEAN integration
5. 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. THANK YOU!