Call Center Career PreseCALL CENTERntation

7/29/2019 Call Center Career PreseCALL CENTERntation

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Copyright 2012: Business Processing Assoc of the Philippines. All rights reserved

12th National PESO Congress

October 12, 2012, Baguio Country Club

Nathan Andaya, Executive Director for Human Resources

CAREER DEVELOPMENT IN THE IT-BPO INDUSTRY


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The Philippines IT-BPO industry has grown rapidly

Philippine IT-BPO industry size

20062011; US$ billion

x% YoY Growth

1 Philippines IT-BPO market as percentage of global offshore services market, in revenue termsSources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA

# FTEs(~000) 240 370 423 525

Globalshare1

5% 6% 6% 7% 8%

3.2

4.8

6.1

7.1

8.9

11.0

2006 2007 2008 2009 2010 2011

~50%~26%

~16%

~25%

1 Copyright 2012: BPAP. All rights reserved.

FTEs Revenue(US$M)

%inc.

fr10

Voice BPO 416,000 7,400 21%

Non-voiceBPO/KPO

128,650 2,058 24%

ITO 49,908 993 37%

Health InfoMgt & Care

24,700 277 172%

EngineeringServices

9,030 172 5%

Animation 8,640 128 -10%

GameDevelopment

1,391 8 13%

TOTAL FTEs 638,319 11,036 24%

~24%

300 638

8%


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15%20% CAGR over next 5 years expected

Philippines IT-BPO industry

US$ billion

Sources: BPAP data; Everest analysis; World Bank and IMF projections

1325K 2250KIndirect

employment600K 1100K 3.2M

% of GDP 2.7% 4.8% 7.0%4.5% 9.0%

1700K

6.0%

2006 20102009 Road Map2016

Baseline2016

CAGR:

22%

CAGR:~25%

CAGR:

14.5%

PPP

CAGR:~19%

Low-end2016

CAGR:9%

525K 900KDirect

employment240K 423K 1.3M680K


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Larger tax base with even larger multiplier effectsthrough consumption

Food

Transport and

Communications

T

axes

22.5 billion 16 million

Bench jeans&

535,000iPads 80 billion

Investmentsin financialinstitutions

73.7 billion Contribution of

5,000/month torental of 1.2 millionHHs

232.7 billion 2.4 billion

Chickenjoy meals

and 24.7 billion VAT

110 billion 200,000 classrooms &

3.3 million families

receiving maximum

CCT for a year

45.4 billion 3.2 billion

jeepney rides & 45 million P500

prepaid cards

Note: Based on consumption and savings of average Filipino family in the income 8th and 9th docile (in constant 2010 dollars)Sources: National Statistics Office; team analysis

~US$12.9 billion annual salaries and benefits

DIRECT PAYROLL ONLY (@ YEAR 2016)

41%

13% 8%4%14%

20%

ACCELERATED CASE


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The Philippine talent value proposition:large pool of young, English-speaking talent

Source: CHED 2010; CIA World Factbook 2010; NSO 2011

Suitability rates are empirically based on a total of >80interviews with HR professionals working in each country

Number of college degreegraduates

2009 Annualgrowth

Medical and natural sciences,

allied fields

132,244

Business, accounting, and related

fields

107,272

Social and behavioral sciences,

education

68,764

Engineering and architecture 50,734

IT-related and mathematics 47,928

Fine arts, masscom, humanities 12,269

TOTAL Tertiary level 469,654 5.8%

Pop Labor force Unemp rate Literacy

World 6,768M 3,179M 8.7% 82.0%

India 1,130M 509M 7.8% 61.0%

China 1,330M 814M 4.3% 91.6%

Brazil 201M 102M 8.1% 88.6%

Philippines 100M 39M 7.4% 92.6%

Abundant labor force of 39+ million

460,000+ college graduates per year 3,000+ CPAs

English proficiency & other languages

Affinity with Western culture

Customer service orientation

Highly trainable

Cost effective High level of commitment and loyalty

2010: 481,862 graduates, 2.6% growth


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Talent supply gap, is it a problem?

Annual Demand and Supply projectionsof entry-level industry talent PH IT-BPO000 FTEs

63

84 87

103

88

137

155149

172

198

229

264

0

40

80

120

160

200

240

280

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Effective addressable supply (BaseCase)

Total talent demand (Accelerated Case)

Widening gap will accelerate cost and quality pressures


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Paper

screening

Te

sting

F

inalinterview

Joboffer

Initia

linterview

HIRE!

Walk-in applicants

Employee Referral

Job /campus fairs

Applicants respondingto Advertisement innewspapers

100 applicants 5-8 hires!

Recruitment hit rate: 5-8% only

Applicants respondingto Advertisementonline

Recruitment Process


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Quality of talent supply is a problem

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 1 5 16 1 7 18 19 20 2 1 22 2 3 24 25 2 6 27 2 8 29 30 31 3 2 33 3 4 35 36 3 7 38 3 9 40 41 42 4 3 44 4 5

Schools #1 - 45

PercentileS

cores

Average Scores Per School for Basic Skills Overall Vis-a-Vis Industry ScoresGCAT Baseline

Industry Range

Based on testing of 15,500 students from 45 schools, vastmajority fall below industrys minimum competency requirement


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How BPAP is trying to address talent supply problems

Program Description

1. Global CompetitivenessAssessment Tool(GCAT)

An industry-developed test to assess competencies in basic skills for employment in

IT-BPO & GIC* and other service industries (*captives)

2. Advance English Pre-Employment Training(AdEPT)

A 100-hour English-proficiency course, using industry-developed courseware, offered

in colleges as an elective

3. TESDA Industry

Training for WorkScholarship Program (I-TWSP)

A near-hire bridging program for different IT-BPO services subsidized by

government, co-managed by industry

4. TESDA TrainersTraining (T3)

The development of new T3 programs for IT-BPO TESDA courses to fill large

trainers gap for I-TWSP

5. Emerging Services A program to address the training and education needs of specialized services

6. Associate Program A program to develop 6- to 12-month IT-BPO training courses for high schoolgraduates not going directly to college

7. Service ManagementProgram (SMP)

A 21-unit minor or specialization track taken by business and IT majors in college

intending to go into IT-BPO & GIC or other service industries

8. Service TechnologyManagement (STM)

A post-graduate certificate or masters program for graduates and career shifters

wanting to enter IT-BPOs & GICs as team leaders or managers

9. Executive Development A leadership and management program for current IT-BPO & GIC managers andexecutives or industry shifters


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Will these programs solve the problem?

2011 2012 2013 2014 2015 2016

Demand

Others

SMP

Career Marketing

GCAT

ITWSP

Supply


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10


12/23

Growth of IT-BPO industry means economicgrowth of the entire Philippines

21,300

CurrentFTEs

219,000

792,000

Absorptivecapacity

Calabarzon Hub

Santa Rosa

Bacoor/Imus/Dasma

Lipa

Cainta

Lucena

1

CurrentFTEs

42,000

Absorptivecapacity

Central Luzon Hub

Angeles/Clark

Cabanatuan

Olongapo/Subic

Tarlac

Malolos

2

25,600

CurrentFTEs

128,000

461,000

Absorptivecapacity

Western Visayas Hub

Bacolod Iloilo City

3

24,900

CurrentFTEs

39,000

108,000

Absorptivecapacity

Central Visayas Hub

Cebu City

Lapu-Lapu City

Mandaue City

Dumaguete

Tagbilaran

47,700

Current

FTEs

44,000

162,000

Absorptive

capacity

Absorptive capacityat current yield rates

Additional capacityat targeted yieldrates

NCR

10,000

117,000

4

CurrentFTEs

Theoreticalcapacity

1.4M

485,600787,000

Davao-GenSan Hub5

National Capital Region

75% of IT-BPO jobs are in NCR, with only 25%of PH graduates; IT-BPO is biggest private-sectorjob creator and employer in many tier 23 cities


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Philippine IT-BPO employment projections to 2016

12


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Absorptive Capacity

IT-BPO FTEs

000 FTEs

20

100

60

140

180

NCR

Metro

Cebu

Established IT-BPO locators are importers of talent


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Absorptive Capacity

IT-BPO FTEs

000 FTEs

60

50

4030

20

10

80

70

Next Wave Cities capacities are untapped


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0

20

40

60

Cognitive Ability English Proficiency Computer Literacy Perceptual Speed andAccuracy

NCR LUZON-NonNCR VISAYAS

Learning ability and English proficiency warrant attention


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Career Progression Voice /Non Voice

16

Customer Service Rep/ Technical service Rep

Sr. Team Leader

Team Leader

Shift Manager

Sr. Ops Manager

Operations Manager

Program Director/

Site Director


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Pay Ranges for call center agents

17

* Source: Towers Watson (Jan. 2012)


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Pay Ranges with allowances Voice (call center) *

18

* Source: Towers Watson (Jan. 2012)


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Pay ranges Estimated Monthly Cash Compensation only*

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Customer Service Rep/ Technical service Rep (P16k P27k)

Sr. Team Leader (P40k P60K)

Team Leader (P30k -40K)

Shift Manager (P60K -80K)

Sr. Ops Manager (P150K 200K)

Operations Manager (P80K 150K)

Program Director/

Site Director (P200K up)

*Compensation depends on size of IT-BPO Operations** Rates are based on MM data


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In Animation (career progression and pay ranges)*

20

Animation Directors

Assistant Directors

Checkers

Layout Checkers/ Supervisors

2D Traditional & Digital animators

Assistant Animators

Digital Painters

Digital Background artists

Compositors

P80k - P150K

P60k - P70K

P30K - P40k

P40K - P50K

P23K - P70K

P15K - P40K

P12K-P20K

P20K - P40KP30K - P50K

* Monthly basic pay (Estimate only)


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In Animation (career progression and pay ranges)*

21

* Monthly basic pay (Estimate only)

Programmers (games/E-learning)

3D Model Rigger

3D Modeller

3D Texture and Lighting

Concept Artists/designers

Production Managers

Production AssistantsStoryboard Artists

P25K - P40K

P25K - P40K

P15K - P30K

P15K - P25K

P30K - P50K

P40K - P60K

P15K - P20K

P40K - P60K


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