Mitch L. Locsin Executive Director

1. Representing the Country’s IT & IT-Enabled Services Industry Mitch L. Locsin Executive Director

2. Business Processing Association of the Philippines Private sector-led organization representing the six (6) different sectors of IT-enabled services industry and their support industries One-stop information and advocacy gateway Formed from the merger of the Contact Federation Philippines & Outsource Philippines Created to give the BPO industry a single point of contact for the world

3. Agenda • Industry Overview • Contact Center • Business Processing (Back Office Operations) • Animation • Medical & Legal Transcription • Engineering Design • Software Design • Human Resource Profile per Sector • Human Resource Challenges • Current Programs to Address Challenges

4. Contact Center Overview A contact center is an umbrella term that refers to reservations centers, help desks, information lines or customer service centers, regardless of how they are organized or what types of transactions they handle. In its most sophisticated form, the term refers to a voice operations environment that provides a full range of high-volume, inbound or outbound call-handling services, including customer support, operator services, directory assistance, multilingual customer support, credit services, card services, inbound and outbound telemarketing, interactive voice response and web-based services. As of 1st Quarter, 2005 • Total Seats: 70,000 • Total Full Time Employees: 112,000 • Estimated Revenues in 2005: US$ 1.1 Billion • With a Growth Rate in 2005: 100%

5. Contact Center HR Profile • Excellent English communication skills • Customer service propensity • College education • Sales orientation • Computer and internet savvy • Flexibility / Willingness to work in shifts

6. Contact Center HR Challenges • Increasing demand for qualified front-line agents • High mortality rate of applicants • Attrition rate and retention rate of employees • Need for English proficient people

7. Contact Center Programs • Organization: BPA/P - CCAP • Contact Center course/module developed • Company partnerships with Universities • Contact Center orientation and awareness campaign in Universities and Schools • Development of provincial locations as contact center hubs • English language campaigns • Job fairs / provincial tours and recruitment

8. Business Processing: Overview Businessprocess servicing or outsourcing refers to the increasing trend of relocating entire business back office functions to either self-owned or third-party service providers, typically in low-cost locations. There are around 60 Back Office Operations in the country with 22,500 full time employees with revenues of US$ 180 Million for 2005 Philippines’ advantages as a Business Processing destination: • Time Zone • Quality of Labor Pool (Accountants, Auditors, Medical Prof, etc..) • Strategic location in Asia • Availability of prime yet low-cost real estate • Cost-competitive telecommunications / business infrastructure • Expatriate-agreeable lifestyle • IT-supportive policies and incentives

9. Business Processing: HR Profile • Excellent English communication skills • IT proficiency • Multicultural adaptability • High degree of trainability • Customer service orientation • Flexibility • Superior work ethic • Domain knowledge in specific business process (Accounting, Litigation, HR, Insurance, etc)

10. Business Processing: HR Challenges • High demand for qualified labor pool • Adoptability to the software that the company applies • Competition with ‘traditional’ companies • Perception that English proficiency is not a requirement

11. Business Processing: Programs • Organization: BPA/P • HR development initiatives mostly done through in-house or company specific programs

12. Animation: Overview Animation is the technique in which each frame of a film or movie is produced individually, whether generated as a computer graphic, or by photographing a drawn image, or by repeatedly making small changes to a model and then photographing the result with a special animation camera. When the frames are strung together and the resulting film is viewed at a speed of 16 or more frames per second, there is an illusion of continuous movement. Generating such a film is very labor intensive and tedious, though the development of computer animation has greatly sped up the process. • Total animation studios in the country: 32 • Twenty (20) years in the Philippines • Total Full Time Employees: 4,500 • Estimated Revenues in 2005: US$ 90 Million • With a Growth Rate in 2005: 40%

13. Animation: HR Profile • World-class talent • Boundless creativity • English proficiency • Ability to comprehend concepts and storylines • Exposure to different cultures • Speed in delivering drawings / output

14. Animation: HR Challenges • Availability of animators in the country • Philippine animators seeking job opportunities abroad (Around 200 Animators are being poached each year to other countries) • Skills and manpower development • Animation training / schools • Financial support

15. Animation: Programs • Organization: Animation Council of the Philippines Inc. (ACPI) – BPA/P • Competition in Multimedia schools (Ateneo de Naga winning 1st place – sending students to France for animation training) • BPA/P in a partnership with the University of Makati to set up a premier animation industry-backed training facility

16. Medical Transcription: Overview Medical Transcription (MT) means accurately and swiftly interpreting/ encoding electronically the oral dictation of physicians and other healthcare professionals regarding patient assessment, workup, therapeutic procedures, clinical course, diagnosis, prognosis, out-patient follow-ups, etc. in order to document patient care and facilitate healthcare services. These documents eventually become part of patients’ permanent files. • Total MT Firms: 51 • Total MT Schools: 9 • MT Professionals: 5,500 employed • Estimated Revenues in 2005: US$ 80 Million • Performance Level: 98 – 99% accuracy rate, turnaround time of 12 to 24 hours

17. Medical Transcription: HR Profile • College education: Medical / Science courses • Above-average knowledge of English punctuation and grammar • Excellent auditory skills • Advanced proofreading and editing skills • Versatility in use of transcription equipment and computers • High degree of trainability • Customer service orientation

18. Medical Transcription: HR Challenges • Availability of trained manpower • Medical professionals seeking job opportunities in other countries • Training institutions offering medical transcription courses • Length of MT training before becoming productive • Resistance to off shoring and outsourcing from American industry

19. Medical Transcription: Programs • Organization: Medical Transcription Association Industry Association of the Philippines Inc. (MTIAPI) – BPA/P • Policies / Regulations to MT standards

20. Engineering Design: Overview • Engineering design services in RP can be categorized as: • 1) In-House • 2) Subcontracted/Outsourced by clients • Total Number of Full Time Employees : 2,800 • Total Number of Engineering Design Companies: 14 • Estimated Revenues in 2005: 56 Million

21. Engineering Design: HR Profile • College Education (Basic Engineering Courses) • English proficiency • Competitiveness • Computer proficiency • CAD

22. Software Development: Overview Software engineering is the practice of using selected process techniques to improve the quality of a software development effort.  This is based on the assumption, subject to endless debate and supported by patient experience, that a methodical approach to software development results in fewer defects and, therefore, ultimately provides shorter delivery times and better value.  The documented collection of policies, processes and procedures used by a development team or organization to practice software engineering is called its software development methodology (SDM) or system development life cycle (SDLC). • Total software development firms: 300 • Total IT professionals: 14,000 • Estimated Revenues in 2005: US$ 204 Million

23. Software Development:HR Profile • College education: IT related courses • Technical and analytical skills • Business skills • English proficiency • Certification: CMM

24. Software Development: Programs • Organization: Philippine Software Industry Association (PSIA) – BPA/P • Philippine Software Industry 2010 Fly High Program • Orientation and awareness campaign in Universities and schools

25. Some More Challenges We Are Facing In The Philippines • The lack of good English Proficient & good Communications skilled labor pool in the Philippines • The lack of peace and order perception of the country (bombings, kidnappings, etc) – media seems to only highlight negative events which may deter foreign investors from considering our country. • Lack of awareness in the industry in general by some regions – BPA/P and Government agencies like DTI, BOI, CITEM, and CICT are working on this though. • Depletion of quality teachers – it’s a chain reaction: Lack of qualified teachers due to brain drain equals lack of quality students.

26. Summary • The Philippines can excel in all of the e-Services sectors • English proficiency is required by all sectors • Contact Centers have the highest demand, but is also more advanced in terms of Human Capital Development • Areas of opportunity for employing large numbers of workers: Business Processing, Medical Transcription • Niche area for creative talent: Animation • Leveraging on our level of IT and Technical proficiency in Software Development and Engineering Design

27. For More information regarding the association, please visit our website at: www.bpap.org Thank You