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Academe – Industry Collaboration through the Global Competitiveness
Assessment Tool (GCAT)
November 5, 2011
NICP, Gen San
The Philippines’ IT-BPO industry has grown rapidly since Road Map 2010 was launched in 2007
Philippine IT-BPO industry size
2006-2009; US$ billion x% YoY Growth
1 Philippines IT-BPO market as percentage of global offshore services market, in revenue terms
Sources: BPAP; Everest analysis
# FTEs
(~„000) 240 300 370 423 525
Global
share1 5% 6% 6% 7% 8%
Impact over 5 years
Contribution
to GDP
4%–5% of annual GDP
Employment
generation
Largest private sector
new job creator
300,000 direct
Up to 0.7 million–
1.0 million indirect jobs
Foreign
exchange
earnings
Significant export
impact
Third-largest export
earner on net value
add basis
Growth of
Next Wave
Cities™
Catalyzed growth of
10+ Next Wave Cities™
adding over 50,000
jobs
~50%
~26%
~14%
~20%
The industry is showing initial signs of diversification beyond traditional areas of strength
Philippine IT-BPO service segments
US$ billion
Philippine IT-BPO source markets
US$ billion
Note: 2006 Split per ICT Survey of IT and ITES; 2010 estimates from Everest-O2P survey
Sources: BPAP; Everest-O2P survey
Voice BPO
Non
Voice
BPO
IT/ESO
3.2 8.9 100% =
U.S.
UK/EU
APAC
3.2 8.9 100% =
Domestic
Philippines has become COE for BPO due to depth of talent available in this sector
Current Services: - Accounting and bookkeeping - Legal Transcription - Account maintenance - Litigation Support - Accounts receivable collection - Content Development - Accounts payable processing -Contract Summarization -Fund adm/reconciliation - Editing, Sub-titling, Translation - Payroll processing - Publishing - Retail banking support -Health Services revenue cycle - Asset management - Travel Services Back Office - Financial analysis and auditing - Credit/Loan processing - Inventory control and purchasing - Health Insurance - Expense and revenue reporting - General Insurance - Financial reporting - Sales and marketing - Human resources administration - Tax reporting - Customer Management - Financial leasing - Credit card administration - Transaction management - Factoring and stock brokering - Sourcing and Procurement - Revenue management - Logistics - Transaction processing - Disaster recovery - Business data processing - Business Intelligence - Database management - Network management - Supply chain management - Warehouse and inventory Mgmt
Arising Services: (KPO) - Market Research and Analysis
- Intellectual Property Management
- Account Risk Management
-Equities/Portfolio research & analysis
3 Copyright ©2010: Business Processing Association of the Philippines. All rights reserved.
It has also spread beyond NCR as credible Tier-2/3 destinations emerge
2007
2010E
Distribution of FTEs by delivery location
Percentage, FTEs; 2007: ~297K; 2010: ~530K FTEs
* Others includes inter-alia Cavite, Baguio, Cagayan de Oro, Davao, Dumaguete, Iloilo, Lipa and Malolos / Bulacan
Sources: BPAP; Everest analysis
Key takeaways
Expansion into Next Wave
towns has increased with
~80,000 FTEs spread
across Tier-2/3 towns
across the country
Rapid growth in
employability across Next
Wave Cities has increased
pool of talent supply in
Philippines
The global offshore services market is growing at a healthy but slower pace, and will more than double by 2016
Global offshore services market size
US$ billion
~2.3 ~2.7 ~3.4 ~3.6 ~7.6 Number of
offshore jobs
(millions)
~3.8
Sources: Everest analysis; NASSCOM
62-74 76-88
94-106 98-110
256-268
IT/ESO
BPO 20-24
42-50
26-30
50-58
34-38
60-68
35-39
63-71 120-124
136-144
105-125
40-45
65-80
CAGR:
~15 %
CAGR:
10-15 %
IT-BPO Projections to 2016
Sources: BPAP data; Everest analysis; World Bank and IMF projections
Philippines IT-BPO industry
US$ billion
1325K 2250K Indirect
employment 600K 1100K 3.2M
% of GDP 2.7% 4.8% 7.0% 4.5% 9.0%
1700K
6.0%
2006 2010 2009 Road Map
2016
Baseline
2016
CAGR:
22%
CAGR:
~25%
CAGR:
14.5%
PPP
CAGR:
~19%
Low-end
2016
CAGR:
9%
525K 900K Direct
employment 240K 423K 1.3M 680K
US$ 4.5 bn
• Direct: US$ 1.8 bn
• Indirect: US$ 2.7 bn
US$ 6.0 bn
• Direct: US$ 2.4 bn
• Indirect: US$ 3.6 bn
US$ 7.5 bn
• Direct: US$ 3.0 bn
• Indirect: US$ 4.5 bn
US$15 billion US$20 billion US$25 billion
Taxes
on
Wages
Talent: 2016 talent requirements will reverse the current demand-supply situation by 2011
Effective addressable
supply
440
1,300
2009 Future
employment
(2016E)
3X increase
IT-BPO industry employment
„000s FTEs
Annual Demand and Supply projections of entry-level industry talent –
Philippines IT-BPO
„000 FTEs
Talent demand („Target scenario‟)
Effective addressable Talent supply (as-is)
Source: Everest analysis
Global Competitiveness Assessment Test (GCAT)
(formerly known as BPAP National Competency Test)
Recruitment Process
Pap
er s
creen
ing
Testin
g
Fin
al in
tervie
w
Job
offe
r
In
itial in
tervie
w
HIRE!
Walk-in applicants
Job fairs
School/campus fairs
Applicants responding to Advertisement in newspapers
100 applicants 5-8 hires!
Applicants responding to Advertisement online
• Hiring qualified people remains the biggest issue facing business
process outsourcing industry today.
• Job mismatch – what does this really mean? The students lack the
required competencies needed for them to get hired.
• What are these competencies, particularly in the IT-BPO industry?
How can we improve competencies if we don’t articulate to the
academe what we are looking for?
Rationale
What is GCAT?
• Industry-initiated assessment program
• Proactively generates industry-ready talents for
the Philippine IT-BPO industry
• Standardizes the competency assessment
system for applicants in the IT-BPO sector
The PreVisorTM Solution
“Best of Breed” - 80+ years
combined experience
Over 45 million tests delivered
138 of Fortune 500 use
PreVisor
Extensive experience in most
industries and job types
• Operations in 50 countries with tests delivered in
over 150 countries and 30 languages
>50% of Global Fortune 500 >40% of Fortune 500 >80% of FTSE >50% of ASX
Servicing…
Previsor’s Global Presence
Companies using Previsor
Basic Skills
• Learning Ability (Verbal and Numerical)
• English Proficiency
• Perceptual Speed and Accuracy
• Computer Literacy
Behavioral
• Service Orientation
Components of the GCAT
GCAT - Industry Partners participated in initial study
BPAP • Accenture (CCAP) • Access Worldwide (CCAP) • ANZ • Aegis PeopleSupport (Baguio)
(CCAP) • Baker & McKenzie Global Services • Chartis • Hinduja (CCAP) • HSBC • Infinit-O • Ingram Micro • Integra • Intelenet • NYK TDG • Open Access Marketing • Pettigrew • Sitel • Stream (CCAP) • Sutherland (Camsur) (CCAP) • Teleperformance (CCAP) • WNS (CCAP)
CCAP • Pacific Hub • Visaya KPO • Concentrix
PSIA • Pointwest Technologies • Headstrong • HP • RCG IT
HIMOAP • Total Transcription Solutions Inc. • mX Secure • SPi Global • ZipIt Solutions
No. of employees assessed – 2,500
Colleges and Universities participated in 2010-2011 GCAT (NCR)
• Centro Escolar University – Makati • Centro Escolar University – Manila • De La Salle – College of St. Benilde • Emilio Aguinaldo College – Manila • FEU Diliman • FEU Morayta • Jose Rizal University • Lyceum Manila
• Mapua Intramuros • Mapua Makati • National Teachers’ College • STI (Caloocan, Fairview,
Pasay,) • University of Makati • University of Sto. Tomas
BAGUIO • AMA • Saint Louis University • University of Cordilleras • STI – Baguio BULACAN • Centro Escolar University –
Malolos • STI (Balagtas, Baliuag) PAMPANGA • Angeles University Foundation • Holy Angel University • University of the Assumption
LAGUNA/CAVITE/ BATANGAS • De La Salle University –
Dasmarinas • Emilio Aguinaldo College – Cavite • Lyceum Laguna • St. Michael’s College of Laguna • STI (Calamba, San Pablo,
Tagaytay)
Colleges and Universities participated in 2010-2011 GCAT (Luzon)
Total graduating students (collegiate) assessed - 15, 500
CEBU • Cebu Doctors’ University • STI – Mandaue BACOLOD
• ABE • Bacolod City College • Bago City College • Binalbagan Catholic College • Carlos Hilado Memorial College • Colegio de San Agustin • Colegio de Sta. Rita • La Consolacion College • STI
• University of Negros Occidental • University of St. La Salle • Visayan Maritime Academy Global
One • Western Visayas Institute of
Technicians • West Negros University
Colleges and Universities participated in 2010-2011 GCAT (Visayas)
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Schools #1 - 45
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Average Scores Per School for Basic Skills Overall Vis-a-Vis Industry Scores
Industry Range
Average Scores Per School – Overall Basic Skills
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Schools #1 - 45
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Average Scores Per School for Learning Ability Vis-a-Vis Industry Scores
Average Scores Per School – Learning Ability
* Effective use of verbal reasoning, numerical and analytical reasoning; ability
to learn work-related tasks, information, processes, policies; ability to
perform when working with relatively complex information such as report,
correspondence, and research.
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Average Scores Per School for English Proficiency Vis-a-Vis Industry Scores
Average Scores Per School – English Proficiency
* Candidate‟s knowledge of English grammar and English reading
comprehension.
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100
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Average Scores Per School for Computer Literacy Vis-a-Vis Industry Scores
Average Scores Per School – Computer Literacy
* Timed; simulations asking candidates to open, close, save, delete, and
rename files, to access and search the Internet, to send e-mails with
attachments, and to perform other basic Microsoft Windows tasks.
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20
30
40
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60
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80
90
100
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Average Scores Per School for Perceptual Speed and Accuracy Vis-a-Vis Industry Scores
Average Scores Per School – Perceptual Speed and Accuracy
* Visual comparison test which measure the candidate‟s ability to efficiently
compare information and detect errors.
Key Findings
• Two lowest scores in the competency exam:
– Learning ability
– English proficiency
• Learning ability includes analytical skills and critical
thinking
• English proficiency – interventions at the collegiate level
may not be enough to address current gap between
what is now versus what the industries need
Note: Spoken English is not currently assessed by GCAT
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Average Scores Per School for Behavioral Component Overall Vis-a-Vis Industry Scores
Average Scores Per School – Overall Behavioral Skills
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Average Scores Per School for Communication Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) – Communication*
* Communication: explaining service, keeping the customers informed in language they can
understand and listen to.
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Average Scores Per School for Learning Orientation Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) –Learning Orientation*
* Learning orientation: willingness to learn product and service information
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Schools #1 - 45
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Average Scores Per School for Courtesy Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) – Courtesy*
* Courtesy: politeness, respect, consideration, access and friendliness of personnel
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100
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Schools #1 - 45
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Average Scores Per School for Empathy Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) – Empathy*
* Empathy: Knowing the customer and making the effort to understand the customers‟
needs
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100
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Schools #1 - 45
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Average Scores Per School for Reliability Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) – Reliability*
* Reliability: consistency of performance and dependability
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core
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Average Scores Per School for Responsiveness Vis-a-Vis Industry Scores
Average Scores Per School (Behavioral Skills) – Responsiveness*
* Responsiveness: willingness and readiness of employees to provide service
Key Findings
• Scores on Service Orientations show intrinsic Filipino
culture of service
• Responsiveness and reliability – components with
highest scores
• Learning orientation and communication – could still be
further improved
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Learning Ability
English proficiency
Perceptual Speed
Computer literacy
Co
mp
ete
ncy
Sco
res
GCAT Results
Year 2
Year 1
BNCT baseline
Desired Outcome with GCAT (for Schools over time)
• Schools can use GCAT to measure improvement year on year • Industry scores may change over time
GCAT: How Can it Help You?
Thank you!
49
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