The Perfect Storm and Opportunities in ICT and BPO
The Perfect Storm and Opportunities for thePhilippines in ICT and BPO ICT Conference & Preparatory Workshop for Region 8 August 7, 2012 Hotel Alejandro, Tacloban, Leyte Alejandro P. Melchor III Deputy Executive Director for ICT Industry Development Information & Communications Technology Office Department of Science & Technology
Philippine IT-BPO Industry: The country’s premier sunrise industry Total Employees (000s) Annual Revenue (US$B) 700 $12.0 643 $11.0 600 $10.0 525 $8.9 500 442 $8.0 $7.1 400 372 $6.1 $6.0 300 $4.9 300 236 $4.0 $3.3 200 163 $2.2 101 $2.0 $1.3 100 0 $0.0 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011Source: Business Processing Association of the Philippines (BPAP)
Philippines now #2 after India in worldwide IT-BPO, and gainingSSource: Aon Hewitt, 2011
Philippines now the preferred IT-BPO destination. Market leaders on hypergrowth mode.
ASEAN, China and India (ACI Region)now viewed as the world’s premier growth regionBy 2030:• ASEAN, China, India Region (ACI) combined GDP couldquadruple and exceed that of the US and Europe combined• ASEAN, China, India Region’s share of world investmentprojected to be 40% of global total http://www.adb.org/features/fast-facts-asean-prc-and-india-great-transformation?ref=annual-meeting/2012/features Where willPRC and India: The Great Transformation? ASEAN go? Source: ADB: ASEAN, the the investment into
Universal consensus on ICT as economic growth engine Europeans view ICT as EU’s Africa views ICT as growth engine… growth engine… http://test-naukawpolsce.pap.pl/en/news/news,373313,ict---eus-growth-engine.html Koreans view ICT as key engine for development… ASEAN views ICT as its growth engine…
ASEAN’s Economic Integration and ICT Master Plan 2015 will funnel investments to ICTGET READY FOR THE NEXT WAVE OF JOB CREATION AND INVESTMENT! Key Outcomes • ICT as an engine of growth in the ASEAN countries. • Recognition for ASEAN as a global ICT hub • Enhanced quality of life for people of ASEAN • Contribution towards ASEAN integration http://www.aseansec.org/documents/ASEAN%20ICT%20Masterplan%202015.pdf
Universal consensus on the Philippines as a star performer and tiger economy Standard & Poor’s Investment firm Kohlberg upgraded PH credit Kravis Roberts & Co views rating in July, citing the Vietnam, Indonesia, improved debt rating Philippines (VIP) as best and record high foreign ASEAN countries to invest in. currency reserves. BLOOMBERG on Jan. 20, BREAKOUT NATIONS: 2012 reported that PH is a The new “BRICs” in Asia leading Asian tiger economy, are Thailand, Indonesia, in the same league as China. Philippines (TIP). The Grant Thornton GOLDMAN SACHS: International Business PH one of the “Next Review survey revealed that 11”—the next BRICs, Filipino business executives who may rival the G7 in are the 2nd most optimistic in economic power. the world at 90%, after Peru with 96%.
WEAREINTHEEYEOFAPERFECTSTORM…A once-in-several-decades window of opportunity todramatically accelerate economic growth, jobcreation and investment.…to ensure the Philippines emerges a big winner.…to dramatically increase market share in IT-BPO.…to harness ICT as an engine of growth andinvestment magnet.…to accelerate countryside development.There has never been a better opportunity todevelop the entire Philippines!
iPPP PROGRAMS GOALS PROJECTS Stepping-Up the ICT: a $50B Industry 1- Research & Road Value Chain by 2016: Mapping • IT-BPO: $25-27B i-TalentDev.PH • All other ICT: $23-25B 2- Training & Education Next Wave Cities/ Global leadership in 3- Organizational Smarter Countryside multiple high growth Development & Capability segments BuildingDomestic ICT Industry Countryside development 4- Advocacy and through ICT & BPO Marketing i-Creative.PH 5- IT-preneurship & Increase size & Technology Business employability of talent poolICT Marketing & Research Incubators Develop knowledge 6- Policy Framework , workers with Business Environment & 21st Century Skills Investment Incentives
ECOSYSTEMS STRATEGIES PROJECTS Sustain global leadership INDUSTRY CAPABILITY in voice/contact center International Contact Center Conference and Exhibition 2012 HIM Congress 2012 CEO Meetings Global leadership (preferred Enablement Seminar Series Industry Workshops (Product dest. & top 1-3 geography) in: Development, Quality) • Healthcare Outsourcing MARKETING • HR Outsourcing Trade missions (CommunicAsia, AHIMA) International events and hosting (Shared • Finance, Accounting & Services Exchange, Asia Pacific Contact Centre Insurance Outsourcing Association Leaders Meeting 2012) Collaterals development • Creative Process Outsourcing Roadshow in the Next Wave Cities RESEARCH & INFORMATION Update Industry Road Map 2016 Double market share in: Prelim study on Corporate Services sectors • IT Outsourcing (ITO) The Department of Science & Technology (DOST) - Information • Engineering Services TALENT & WORKFORCE MOBILIZATION and Communications Technology Office (ICTO) Outsourcing (ESO) Workshops for CC IT, HR, Fin, Ops and other attached agencies • Multilingual BPO Faculty development (ELITES) T3 for Medical Coding and Billing
Next Wave Cities Program will ensure thisgrowth spreads to the entire Philippines
Next Wave Cities Program Components 1- Research & Road Mapping 2- Talent Development 3- Organizational Development & Capability Building 4- Marketing 5- IT-preneurship & Technology Business Incubators 6- Business Environment & Smarter Philippines Next Wave 7- Infrastructure & Cities TM Smarter Cities
Next Wave Cities IT-BPO Scorecard • College and high school graduates Talent • Professionals • Schools and degree programs • Airports • RoadsInfrastructure • Utilities (telecom, power, water) • Real estate • Rental • Regulatory fees and taxes Cost • Median pay • Utility costs • PEZA-approved facilities Business • ICT CouncilEnvironment • Real estate developers
Next Wave Cities Road Map:Talent Deep Dive & Location Assessment
INCENTIVES ARE A GAME-CHANGERAggressive incentives—led by LGUs—can attract locators to NWCsTax Utilities• Vat Reimbursement • No cost or subsidy for utility• Income Tax Rebate services• Corporate Business Tax Rebate EducationOccupancy • Overseas training subsidy• Rent • New hire training subsidy• Fully furnished office and • Continuous education subsidydatacenter facility• Completing and maintaining Recruitmentinternational standard facilities • Domestic campus recruiting subsidy• Repair and upkeep of facilities • Head hunter fee reimbursement •Recovery fund for certainNetwork Cost percentage of interns• IT Bandwith• Network/Telephone/Printer Set-up Retention • Lump sum per employee
iTalentDev.PH Resources posted on FacebookComing soon! Essential 21st Century SkillsPosted on Facebook July 3 Posted Aug. 5
Innov8 Business Process Management Online Simulation Game prepares students to manage IT-BPO enterprisesACTION: Convince your local college to download the free academic edition of Innov8 and use itin several class sessions to train students to manage an IT-BPO firm.http://www-01.ibm.com/software/solutions/soa/innov8/index.htmlACTION: Watch the YouTube video on how USC Marshall School of Business uses Innov8 toteach students IT-BPO operations. http://www.youtube.com/watch?v=WymKQvznzF8
I. The First Essential 21st Century Skill: CRITICAL THINKING AND PROBLEM SOLVING “Critical thinking is a desire to seek, patience to doubt, fondness to meditate, slowness to assert, readiness to consider, carefulness to dispose and set in order; and hatred for every kind of imposture.” - Sir Francis BaconCastle Strecno, in the Carpathian Mountains, North Slovakia
Harvard uses a computer gaming simulation to teach scientific inquiry and 21st century skills Harvard’s River City Project http://muve.gse.harvard.edu/rivercityproject/ How about a science grant to local game developers to create a Philippine setting 19th century historical simulation to teach scientific inquiry in Philippine Science High Schools?
Action: log onto website ofthe Partnership for 21st Century Skills http://www.p21.org/
Smarter Cities are booming in Asia… and are investment magnetsAs many as 18 Chinese cities have India plans to spend $130announced Smarter Cities plans billion building Smarter Cities
ACTION: Download the 1-page infographic on the Anatomy of a Smarter CityDownload the Smart City Infographic:http://farmwars.info/wp-content/uploads/2011/12/anatomy-of-a-smart-city-final.pdf
The “Smart City” as a brand is an investment magnetACTION: Consider developing your city as a Smarter City In response to Singapore’s iN2015 Masterplan, tech giant IBM announced a $38M investment in an Asia Pacific cloud computing data center http://www.smartplanet.com/blog/smart-takes/-8216smart-city-tech-investment-to- total-108-billion-by-2020/19541
ACTION: Study Internet Resources on Smarter CitiesCISCO: SMART + CONNECTED COMMUNITIES ACCENTURE: INTELLIGENT CITYhttp://www.cisco.com/web/strategy/smart_connected_communities.html http://www.accenture.com/us-en/pages/insight-building-managing- intelligent-city.aspx IBM: SMARTER CITIES http://www-03.ibm.com/innovation/us/thesmartercity/index_flash.html
Smarter Philippines--a DOST-wide project--by transforming systems of governance,education, health, etc. nationwide, will create a vibrant domestic knowledgeeconomy, accelerate technopreneurship, and boost domestic knowledge industries. 1- iGovPhil 4- Smarter Transportation -- i-Business Permit Lic. System and Green Technology -- Gov’t e-Services Portal -- Eco-Jeep (DOST NCRP) -- e-LGU -- UP Monorail (DOST MIRD) -- Community e-Centers -- National Information Infra -- CIO Forum & gCIO Training 2- i-TalentDev.PH 5- Smarter Healthcare -- Knowledge Workers with (PCHRD) & Nutrition (FNRI) 21st Century Skills -- Phil Health Research Registry -- Industry-driven curriculum -- Public health surveillance & -- Computer Gaming health intelligence systems -- Learning Technologies -- Sulong Pinoy anti-malnutrition -- Global Collaboration -- Nutritious brown rice 3- Smarter Industry 7- Smarter Cities 6- Smarter Disaster -- Global Leadership in IT-BPO -- Digital Ecosystem Mitigation -- $50 B ICT Industry -- Smarter Local Government Svcs -- Project Noah (DOST-PAGASA) -- i-CreativePhil -- Smarter Buildings -- Earthquake & Tsunami Early -- Smarter Agribusiness -- Smarter Environment Warning (DOST- PHIVOLCS) -- Makinariya at Teknolohiya -- Smarter Energy & Utilities -- 3D LIDAR Mapping (DOST & UP para sa Ekonomiya -- Smarter Public Safety Geodetic Engineering)
“Smarter Philippines” is the brainchild of Science & Technology Secretary Mario G. Montejo Sec. Montejo is an inventor, a trained engineer, and a successful businessman who knows how to commercialize scientific inventions. A member of the Top 100 Graduates of the University of the Philippines College of Engineering, his vision is to create a vibrant domestic knowledge economy in which Filipino technology companies and Filipino technopreneurs deliver indigenous technologies to solve the problems that beset ordinary Filipinos. iGov, the central program under “Smarter Government,” is the brainchild of the DOST Information & Communications Technology Office’s Executive Director Louis Casambre. His focus is all-out support for President Aquino’s promise of a transparent, equitable and effective government service, through ICT.
Knowledge creation, sharing of free resources and continual learning--Resources posted on Facebook Thank You • Essential 21st Century Skills • The i-CreativePhil Program • The Perfect Storm and the Next Wave Cities Program •Seeding the Digital Ecosystem to Fuel the Philippine Renaissance •Computer Gaming for Leadership Development • The DOST ICT Office’s Initiatives for the ICT & BPO Industry • The Next Wave Cities Program: Get Ready for thePlease e-mail feedback & suggestions to improve Next Wave of Growth and InvestmentOur programs to email@example.com • Seven Global Shifts: Trends and Opportunities in ICT & BPO Department of Science and Technology- Information and Communications Technology Office