Date: 25 th October 2016
IT-BPM Transformation Journey Through 3 Industry Roadmaps § · Roadmap 2010 & Roadmap 2016: Growth, Diversification, § · Roadmap 2022: Value-based Growth, Digital Transformation, Complexity § · Human Capital insights for Philippine IT-BPM over next 6 years: – PH IT-BPM will be largest source of high value jobs – Early adaptors of digital trends : digitization, RPA, AI, data science – Most exciting future careers will be prominent and at scale in IT-BPM – Demand is there but can we supply? Analytical skills, industry depth, digital proficiency – Philippines has this unique window to shift up its value creation game
Executive Summary The Philippine IT-BPM Sector has the potential to reach US$ 38.9 Billion and employ 1.8 million FTEs given the right enabling conditions 50 2000 US$ Billions FTEs ('000) 1,800 1,689 Revenue Employment Philippine IT-BPM Sector 1,577 40 Revenue and Employment 1,467 1600 1,359 (Performance and Forecasts) 1,250 1,146 30 1200 1,044 958 858 777 20 800 640 38.9 35.5 527 32.6 29.8 27.1 24.5 22.9 20.5 10 400 18.0 15.8 13.2 11.0 8.9 0 0 2010 2011 2012 2013* 2014* 2015* 2016e* 2017p 2018p 2019p 2020p 2021p 2022p *NOTE: Numbers from 2013 onwards have been calibrated to be consistent with definitions and assumptions used in this roadmap development exercise Enabling Conditions Maintain Develop Competitive Upgrade Sustain High Pivot to Strengthen Infrastructure Talent Incentives Business Higher Value Industry in Next Wave Ecosystem and Confidence Services Association Cities™ Regulations
Executive Summary Roadmap period (2016 to 2022), the Philippine IT-BPM sector will... move up the value chain increase its share of Global market 73% mid-high skilled jobs 15.5% in 2022 from 12.6% in 2016 in 2022 increasing from 53% in 2016 hire more post-graduates grow faster outside NCR 16% in 2022 from 7% in 2016, employment grows at 11% CAGR for ITO outside NCR vs. 7% in NCR contribute significantly to job creation diversify services portfolio 42% in 2022 from non-voice 1 in 7 new jobs* from 2016 to services up from 34% in 2016 2022 * direct employment only
Executive Summary We see technology developments converging to form three major trends that will have an impact on the IT-BPM sector 1. Digital Transformation 2. Automation & AI 3. New Delivery Models Digital Marketing Convergence of Big Data Analytics, Internet of Combination of technologies such as robotics Delivery of IT services hosted over the internet Things along with expanded computing power process automation, artificial intelligence & transforming compute resources into a utility & storage machine learning A digital organization that uses Enables organizations to achieve Resources are measured at a technology as a competitive higher levels of efficiencies by granular level, allowing users to advantage in its internal and automating entire or partial pay per use for the resources external operations, potentially workflows and processes. and workloads they use. Cloud redefining its business model, Applications are widespread, services facilitate mobility by processes and customer from collecting and analyzing allowing employees, especially interface à a wider array of data to enabling basic customer remote workers to access data or outsourced services response and possibly even their files from anywhere anytime complex tasks 5
Executive Summary Between 2016 and 2022, despite an adverse impact on low skilled IT- BPM jobs, there is a potential upside of >654k net new jobs to be created JOB TYPE DAMPENING GROWTH TOTAL IMPACT (2022) Low skilled tasks Simple entry level, Cumulative* CAGR 525k TOTAL process driven tasks 2016 that require little 29% IT-BPM FTE abstract thinking or 4% autonomy 482k 1.15 mil 2022 2016 840k Mid-skilled tasks Complicated tasks 7.8% 2022 that require experience, 7% 1.80 mil abstract thinking and 12% 2022 situational response 452k 2016 UP BY ~654 k 478k High skilled tasks Complicated tasks 2022 that require 73% of the 1% specialized workforce will be expertise, 19% mid-high abstract thinking and 169k skilled autonomy 2016 Source: Frost & Sullivan analysis, IBPAP & member companies data * From 2016 to 2022
Executive Summary Following specific skills are identified to be critical to embrace new roles / opportunities in a technology-transformed IT-BPM industry General Skills Contact Center • Critical / Design Thinking • Big Data Project Managers • Project Management • Natural language processing • Basic analytics knowledge (at least SQL) • Collaborative internet architectures • Statistical and Quantitative Analysis • Decision support systems performance evaluation • Data visualization • Machine Learning and Data Mining Information Technology Health Informatics • Computer System Analysts • Health information management • Computer and information Research Scientists • Functional skills (Radiology, Pharmacology) • Python programming • Clinical informatics • Functional industry expertise (core process) • Health chemo-informatics • Natural language processing • Nano-informatics • Entrepreneurship & Business Management • Principles of evidence-based clinical practice Gaming and Animation Shared services • Virtual reality development experience • Augmented reality constructs • Mix of skills required with other sectors • Network integration and programming • Especially skills required for contact center and IT • Entrepreneurship & Business Management
Assess Talent HUMAN CAPITAL www.ibpap.org
Identified interventions on Human Capital are designed to i) expand, upgrade and attract fresh graduates and career shifters and ii) retain and upgrade existing workforce Interventions HIP-HC-01 HIP-HC-02 HIP-HC-03 Build an industry-led IT-BPM Create more high quality and Enhance Service Management talent attraction ecosystem ; effective skill development Program (SMP to SMP+) career progression path, skill avenues through evaluation, targeting specific sub sectors and mapping and advocacy accreditation & ranking mid / high end skill development § Develop a career guide for § Accredit institutions and § Increase scale and specialize each IT-BPM industry (i.e. training providers that content through SMP platform representing verticals: consistently add value to the § Establish sector-specific Healthcare, Finance, IT, most effective skills as advisory groups to curate Animation and Gaming) Key Points determined by the IT-BPM content § Create an online interactive industry § Foster industry-academe career map based on the career collaboration to develop SMP guides developed for the IT- § Establish a Ranking System BPM industry. + tracks for education providers to § Identify skills and § Improve tracking and impact ensure quality of education certifications required to assessment through tracer § Maintain (updated annually) traverse the outlined career studies an industry-vetted list of paths and associated within the training providers (public interactive career path and private) Outcomes Career clarity and Transparent demand- Increased industry Trusted avenues for branding supply readiness of hires skill development
Interventions on Human Capital also ensure consistent and sustainable funding and longer term interventions to create foundationally sound entry-level hires Interventions HIP-HC-04 HIP-HC-05 Create sustainable long-term funding Embark on a nationwide effort to mechanism for human capital enhance English proficiency across development activities, tapping on to early stage education, near hire, and more sources existing workforce § Advocate for the inclusion of the § Establish an IT-BPM Sector English Language Proficiency Initiatives Training Fund (supported Assessments for the Philippines by the government) (ELPAP) at secondary, tertiary public § Ensure flexibility in the utilization of Key Points and private education this fund (i.e. for any IBPAP- § IBPAP and partner associations to approved/certified training service provider initiate the development of English § Reach out to multilateral agencies language course content for specific programs – e.g. outreach § Create a near hire certification and to emerging cities training module Outcomes Recurring income Outcome oriented Drive up importance of sources program design English proficiency
IMPACT OF TECHNOLOGY www.ibpap.org
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