Date: 25th 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

8.9 11.0 13.2 15.8 18.0 20.5 22.9 24.5 27.1 29.8 32.6 35.5 38.9 527

640 777

858 958

1,044 1,146

1,250 1,359

1,467 1,577

1,689 1,800

0

400

800

1200

1600

2000

0

10

20

30

40

50

2010 2011 2012 2013* 2014* 2015* 2016e* 2017p 2018p 2019p 2020p 2021p 2022p

FTEs

('00

0)

US$

Bill

ions

Revenue Employment

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

Philippine IT-BPM Sector Revenue and Employment (Performance and Forecasts)

Enabling Conditions

Upgrade Talent

Ecosystem

Maintain Competitive Incentives

and Regulations

Strengthen Industry

Association

Develop Infrastructure in Next Wave

Cities™

Sustain High Business

Confidence

Pivot to Higher Value

Services

*NOTE: Numbers from 2013 onwards have been calibrated to be consistent with definitions and assumptions used in this roadmap development exercise

Executive Summary

Roadmap period (2016 to 2022), the Philippine IT-BPM sector will...

increase its share of Global market

15.5% in 2022 from 12.6% in 2016

grow faster outside NCR

employment grows at 11% CAGR outside NCR vs. 7% in NCR

contribute significantly to job creation

1 in 7 new jobs* from 2016 to 2022

move up the value chain 73% mid-high skilled jobs in 2022 increasing from 53% in 2016

hire more post-graduates 16% in 2022 from 7% in 2016, for ITO

diversify services portfolio 42% in 2022 from non-voice services up from 34% in 2016

* 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

Digital Marketing

A digital organization that uses technology as a competitive advantage in its internal and external operations, potentially redefining its business model, processes and customer interface à a wider array of outsourced services

Convergence of Big Data Analytics, Internet of Things along with expanded computing power

& storage

1. Digital Transformation 2. Automation & AI 3. New Delivery Models

Combination of technologies such as robotics process automation, artificial intelligence &

machine learning

Enables organizations to achieve higher levels of efficiencies by automating entire or partial workflows and processes. Applications are widespread, from collecting and analyzing data to enabling basic customer response and possibly even complex tasks

Delivery of IT services hosted over the internet transforming compute resources into a utility

Resources are measured at a granular level, allowing users to pay per use for the resources and workloads they use. Cloud services facilitate mobility by allowing employees, especially remote workers to access data or their files from anywhere anytime

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

Low skilled tasks Simple entry level, process driven tasks that require little abstract thinking or autonomy

High skilled tasks Complicated tasks that require specialized expertise, abstract thinking and autonomy

Mid-skilled tasks Complicated tasks that require experience, abstract thinking and situational response

JOB TYPE DAMPENING TOTAL IMPACT (2022)

TOTAL IT-BPM FTE

1.15 mil 2016

1.80 mil 2022

UP BY ~654 k

GROWTH

29%

7%

1%

4%

12%

19%

452k

840k

169k

478k

7.8%

525k

482k

2016

2022

CAGR Cumulative*

73% of the workforce

will be mid-high skilled

Source: Frost & Sullivan analysis, IBPAP & member companies data

* From 2016 to 2022

2016

2022

2016

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 • Critical / Design Thinking • Project Management • Basic analytics knowledge (at least SQL) • Statistical and Quantitative Analysis • Data visualization

Contact Center • Big Data Project Managers • Natural language processing • Collaborative internet architectures • Decision support systems performance evaluation

• Machine Learning and Data Mining

Information Technology • Computer System Analysts • Computer and information Research Scientists • Python programming • Functional industry expertise (core process) • Natural language processing • Entrepreneurship & Business Management

Health Informatics • Health information management • Functional skills (Radiology, Pharmacology) • Clinical informatics • Health chemo-informatics • Nano-informatics • Principles of evidence-based clinical practice

Gaming and Animation • Virtual reality development experience • Augmented reality constructs • Network integration and programming • Entrepreneurship & Business Management

Shared services

• Mix of skills required with other sectors • Especially skills required for contact center and IT

www.ibpap.org

HUMAN CAPITAL

Assess Talent

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

HIP-HC-01 Build an industry-led IT-BPM talent attraction ecosystem; career progression path, skill mapping and advocacy

§  Develop a career guide for each IT-BPM industry (i.e. representing verticals: Healthcare, Finance, IT, Animation and Gaming)

§  Create an online interactive career map based on the career guides developed for the IT-BPM industry.

§  Identify skills and certifications required to traverse the outlined career paths and associated within the interactive career path

HIP-HC-02 Create more high quality and effective skill development avenues through evaluation, accreditation & ranking

§  Accredit institutions and training providers that consistently add value to the most effective skills as determined by the IT-BPM industry

§  Establish a Ranking System for education providers to ensure quality of education

§  Maintain (updated annually) an industry-vetted list of training providers (public and private)

Key

Poi

nts

Out

com

es

Career clarity and branding

Transparent demand-supply

Increased industry readiness of hires

Trusted avenues for skill development

HIP-HC-03 Enhance Service Management Program (SMP to SMP+) targeting specific sub sectors and mid / high end skill development

§  Increase scale and specialize content through SMP platform

§  Establish sector-specific advisory groups to curate content

§  Foster industry-academe collaboration to develop SMP+ tracks

§  Improve tracking and impact assessment through tracer studies

Inte

rven

tions

Interventions on Human Capital also ensure consistent and sustainable funding and longer term interventions to create foundationally sound entry-level hires

HIP-HC-04 Create sustainable long-term funding mechanism for human capital development activities, tapping on to more sources

§  Establish an IT-BPM Sector Initiatives Training Fund (supported by the government)

§  Ensure flexibility in the utilization of this fund (i.e. for any IBPAP-approved/certified training service provider

§  Reach out to multilateral agencies for specific programs – e.g. outreach to emerging cities

HIP-HC-05 Embark on a nationwide effort to enhance English proficiency across early stage education, near hire, and existing workforce

§  Advocate for the inclusion of the English Language Proficiency Assessments for the Philippines (ELPAP) at secondary, tertiary public and private education

§  IBPAP and partner associations to initiate the development of English language course content

§  Create a near hire certification and training module

Key

Poi

nts

Out

com

es

Recurring income sources

Outcome oriented program design

Drive up importance of English proficiency

Inte

rven

tions

www.ibpap.org

IMPACT OF TECHNOLOGY

Technology evolution will drive IT-BPM industry & workforce transformation – interventions are required across the skill spectrum

HIP-IT-01 Actively advocate for a strategic Science, Technology, Engineering, and Mathematics (STEM) policy framework

§  Establish a Strategic National Science, Technology, Engineering and Mathematics (STEM) Action Plan

§  Establish a STEM Industry and Education Advisory Group including perspectives from education, industry and research institutions

§  Induce an Environment of Continuous Improvement in Schools

HIP-IT-02 Establish a High Entry Placement Program (HEPP) targeted at graduates to directly take on value-added work (mid and high skill roles)

§  Provide opportunity for employment of high skilled jobs among college-graduate job seekers

§  Identify top performers and groom them through specially designed industry immersion programs

§  Target talent pool that today looks for other engineering / professional careers

§  Develop skill sets required by the industry

Key

Poi

nts

Out

com

es

Extended pool for mid & high-skill roles

Industry-led talent identification

Elevated Career Branding

Inte

rven

tions

Technology evolution will drive IT-BPM industry & workforce transformation – interventions are required across the skill spectrum

HIP-IT-03 Establish Higher Education Technology Consortiums (HETCs) to enable the creation of high-skilled specialists

§  A series of HETCs based on industry requirements (e.g. Analytics, Clinical Research, Augmented Reality)

§  Plan for and advocate demand for specific high-end skills

§  Advocate avenues for attracting technology talent –Hackathons, Gamification, Analytics charade

§  Develop relationships that effectively utilize institutional and agency resources

HIP-IT-04 Establish a program to upskill existing manpower in specialized competency areas

§  Industry-defined high end training skills (such as Python programming, big data project management, bioinformatics, data visualization etc.)

§  Establish relationships with top technology schools such as Carnegie Melon University (CMU) and Massachusetts Institute of Technology to curate executive training programs

§  Establish a corpus / seed fund for IBPAP to identify the training providers

Inte

rven

tions

K

ey P

oint

s O

utco

mes

Extended pool for mid & high-skill roles

Industry-led talent identification

Elevated Career Branding

Success Stories

Thank you!

Success Story – Michael Dela Pena

§  Started his career at SITEL as an agent in 2004. §  Has experience from multiple industry verticals

such as technology, retail, manufacturing, media & publishing, healthcare, travel & transport, telecommunications and banking

§  Advanced to various support roles, and with his background in information technology, he had a clear advantage to prosper in the business process outsourcing (BPO) industry.

§  Now SITEL’s Vice President of Operations. §  Responsible for SITEL’s North Luzon region’s

business growth, employee satisfaction and operational excellence in supporting over a dozen clients

Vice President of Operations – Sitel Philippines Corporation

Success Story – Tobey Kwe

§  Started as Agent eTelecare 2005 §  Team Leader (2006) §  Training Supervisor – eTelecare (2006-2008) §  Training Manager – eTelecare (2008-2009) §  Program Manager L&D Client Services –

Stream Global Services (2009-2010) §  Regional Training Manager, Asia Pacific –

Stream Global Services (2010-2011) §  Associate Vice President for the Asia-Pacific

region -Sutherland Global Services (2012 – present)

§  Responsible for leading the Consultant Learning Services team.

Associate Vice President and Regional Head for Consultant Learning, Philippines, Malaysia and China – Sutherland Global Services

17

Success Story – Carlo Jose

§  Started as Team Leader – eTelecare (2000) §  Operations Manager (2003-2004) –

eTelecare §  Asst Vice Pres for Operations – HSBC

(2004) §  VP Operations – HSBC (2005-2008) §  Site Director – HSBC, Virginia (2008) §  Senior Vice Pres, Operations – HSBC

Philippines (2008-2011) §  Center Manager – HSBC (2010-2012) §  President and Head of GSC Ops,

Philippines (2012-2013) §  Global Academy Head, HSBC, London , UK

(2013 – Present) §  Global Head of Development, HSBC

London UK (2015 – Present)

Program Director, HSBC University

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Current Salary Scale – Software Industry

Current Salary Scale – Software Industry

Contact Center Pay ranges – Estimated Monthly Cash Compensation only*

Customer Service Rep/ Technical service Rep (P16k – P30k)

Sr. Team Leader (P50 – P80K)

Team Leader (P30k -60K)

Shift Manager (P60K -100K)

Sr. Ops Manager (P150K – 250K)

Operations Manager (P100K – 150K)

Program Director/ Site Director (P300K up)

*Compensation depends on size of IT-BPM Operations