The Philippines is in the eye of a Perfect Storm. Multinationals, foreign investors, donor agencies and the local business community are all bullish on the country's ICT and BPO.

1. The Perfect Storm and
Opportunities for the
Philippines in ICT and BPO
ICT Conference & Preparatory Workshop for Region 8
August 7, 2012
Hotel Alejandro, Tacloban, Leyte
Alejandro P. Melchor III
Deputy Executive Director for ICT Industry Development
Information & Communications Technology Office
Department of Science & Technology

2. Philippine IT-BPO Industry:
The country’s premier sunrise industry
Total Employees (000s)‫‏‬ Annual Revenue (US$B)‫‏‬
700 $12.0
643 $11.0
600 $10.0
525 $8.9
500
442 $8.0
$7.1
400 372
$6.1
$6.0
300 $4.9
300
236
$4.0 $3.3
200 163
$2.2
101
$2.0 $1.3
100
0 $0.0
2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011
Source: Business Processing Association of the Philippines (BPAP)

3. Philippines now #2 after India in
worldwide IT-BPO, and gaining
SSource: Aon Hewitt, 2011

4. Philippines now the preferred IT-BPO destination.
Market leaders on hypergrowth mode.

5. ASEAN, China and India (ACI Region)
now viewed as the world’s premier growth region
By 2030:
• ASEAN, China, India Region (ACI) combined GDP could
quadruple and exceed that of the US and Europe combined
• ASEAN, China, India Region’s share of world investment
projected to be 40% of global total
http://www.adb.org/features/fast-facts-asean-prc-and-india-great-transformation?ref=annual-meeting/2012/features
Where willPRC and India: The Great Transformation? ASEAN go?
Source: ADB: ASEAN, the
the investment into

6. Universal consensus on ICT as economic growth engine
Europeans view ICT as EU’s Africa views ICT as growth engine…
growth engine…
http://test-naukawpolsce.pap.pl/en/news/news,373313,ict---eus-growth-engine.html
Koreans view ICT as key
engine for development… ASEAN views ICT as its growth
engine…

7. ASEAN’s Economic Integration and ICT Master Plan
2015 will funnel investments to ICT
GET READY FOR THE NEXT WAVE OF JOB CREATION AND INVESTMENT!
Key Outcomes
• ICT as an engine of
growth in the ASEAN
countries.
• Recognition for ASEAN as
a global ICT hub
• Enhanced quality of life
for people of ASEAN
• Contribution towards
ASEAN integration
http://www.aseansec.org/documents/ASEAN%20ICT%20Masterplan%202015.pdf

8. Universal consensus on the Philippines as
a star performer and tiger economy
Standard & Poor’s Investment firm Kohlberg
upgraded PH credit Kravis Roberts & Co views
rating in July, citing the Vietnam, Indonesia,
improved debt rating Philippines (VIP) as best
and record high foreign ASEAN countries to invest in.
currency reserves.
BLOOMBERG on Jan. 20,
BREAKOUT NATIONS: 2012 reported that PH is a
The new “BRICs” in Asia leading Asian tiger economy,
are Thailand, Indonesia, in the same league as China.
Philippines (TIP).
The Grant Thornton
GOLDMAN SACHS: International Business
PH one of the “Next Review survey revealed that
11”—the next BRICs, Filipino business executives
who may rival the G7 in are the 2nd most optimistic in
economic power. the world at 90%, after Peru
with 96%.

9. WE‫‏‬ARE‫‏‬IN‫‏‬THE‫‏‬EYE‫‏‬OF‫‏‬A‫‏‬PERFECT‫‏‬STORM…
A once-in-several-decades window of opportunity to
dramatically accelerate economic growth, job
creation and investment.
…to ensure the Philippines emerges a big winner.
…to dramatically increase market share in IT-BPO.
…to harness ICT as an engine of growth and
investment magnet.
…to accelerate countryside development.
There has never been a better opportunity to
develop the entire Philippines!

10. iPPP PROGRAMS GOALS PROJECTS
Stepping-Up the ICT: a $50B Industry 1- Research & Road
Value Chain by 2016: Mapping
• IT-BPO: $25-27B
i-TalentDev.PH • All other ICT: $23-25B 2- Training & Education
Next Wave Cities/ Global leadership in 3- Organizational
Smarter Countryside multiple high growth Development & Capability
segments Building
Domestic ICT Industry Countryside development 4- Advocacy and
through ICT & BPO Marketing
i-Creative.PH
5- IT-preneurship &
Increase size &
Technology Business
employability of talent pool
ICT Marketing & Research Incubators
Develop knowledge 6- Policy Framework ,
workers with Business Environment &
21st Century Skills Investment Incentives

12. ECOSYSTEMS STRATEGIES PROJECTS
Sustain global leadership INDUSTRY CAPABILITY
in voice/contact center  International Contact Center
Conference and Exhibition 2012
 HIM Congress 2012
 CEO Meetings
Global leadership (preferred  Enablement Seminar Series
 Industry Workshops (Product
dest. & top 1-3 geography) in: Development, Quality)
• Healthcare Outsourcing MARKETING
• HR Outsourcing  Trade missions (CommunicAsia, AHIMA)
 International events and hosting (Shared
• Finance, Accounting & Services Exchange, Asia Pacific Contact Centre
Insurance Outsourcing Association Leaders Meeting 2012)
 Collaterals development
• Creative Process Outsourcing  Roadshow in the Next Wave Cities
RESEARCH & INFORMATION
 Update Industry Road Map 2016
Double market share in:  Prelim study on Corporate Services sectors
• IT Outsourcing (ITO)
The Department of Science &
Technology (DOST) - Information • Engineering Services TALENT & WORKFORCE
MOBILIZATION
and Communications Technology
Office (ICTO) Outsourcing (ESO)  Workshops for CC IT, HR, Fin, Ops
and other attached agencies • Multilingual BPO 

Faculty development (ELITES)
T3 for Medical Coding and Billing

13. Next Wave Cities Program will ensure this
growth spreads to the entire Philippines

14. Next Wave Cities Program Components
1- Research & Road Mapping
2- Talent Development
3- Organizational Development &
Capability Building
4- Marketing
5- IT-preneurship & Technology
Business Incubators
6- Business Environment &
Smarter Philippines
Next
Wave 7- Infrastructure &
Cities TM Smarter Cities

15. Next Wave Cities IT-BPO Scorecard
• College and high school graduates
Talent • Professionals
• Schools and degree programs
• Airports
• Roads
Infrastructure
• Utilities (telecom, power, water)‫‏‬
• Real estate
• Rental
• Regulatory fees and taxes
Cost
• Median pay
• Utility costs
• PEZA-approved facilities
Business
• ICT Council
Environment
• Real estate developers

16. Next Wave Cities Road Map:
Talent Deep Dive & Location Assessment

17. INCENTIVES ARE A GAME-CHANGER
Aggressive incentives—led by LGUs—can attract locators to NWCs
Tax Utilities
• Vat Reimbursement • No cost or subsidy for utility
• Income Tax Rebate services
• Corporate Business Tax Rebate
Education
Occupancy • Overseas training subsidy
• Rent • New hire training subsidy
• Fully furnished office and • Continuous education subsidy
datacenter facility
• Completing and maintaining Recruitment
international standard facilities • Domestic campus recruiting subsidy
• Repair and upkeep of facilities • Head hunter fee reimbursement
•Recovery fund for certain
Network Cost percentage of interns
• IT Bandwith
• Network/Telephone/Printer Set-up Retention
• Lump sum per employee

19. iTalentDev.PH Resources posted on Facebook
Coming soon!
Essential 21st Century Skills
Posted on Facebook July 3 Posted Aug. 5

20. Innov8 Business Process Management Online Simulation Game
prepares students to manage IT-BPO enterprises
ACTION: Convince your local college to download the free academic edition of Innov8 and use it
in several class sessions to train students to manage an IT-BPO firm.
http://www-01.ibm.com/software/solutions/soa/innov8/index.html
ACTION: Watch the YouTube video on how USC Marshall School of Business uses Innov8 to
teach students IT-BPO operations.
http://www.youtube.com/watch?v=WymKQvznzF8

21. I. The First Essential 21st Century Skill:
CRITICAL THINKING AND PROBLEM SOLVING
“Critical thinking is
a desire to seek,
patience to doubt,
fondness to
meditate, slowness to assert,
readiness to consider,
carefulness to dispose and
set in order; and hatred for
every kind of imposture.”
- Sir Francis Bacon
Castle Strecno, in the Carpathian Mountains, North Slovakia

22. Harvard uses a computer gaming simulation to teach scientific inquiry and 21st century skills
Harvard’s River City Project
http://muve.gse.harvard.edu/rivercityproject/
How about a science grant to local game developers to create a Philippine
setting 19th century historical simulation to teach scientific inquiry in
Philippine Science High Schools?

24. Action: log onto website of
the Partnership for 21st Century Skills
http://www.p21.org/

26. Smarter Cities are booming in Asia…
and are investment magnets
As many as 18 Chinese cities have India plans to spend $130
announced Smarter Cities plans billion building Smarter Cities

27. ACTION: Download the 1-page infographic on the Anatomy of a Smarter City
Download the Smart City Infographic:
http://farmwars.info/wp-content/uploads/2011/12/anatomy-of-a-smart-city-final.pdf

28. The “Smart City” as a brand is an investment magnet
ACTION: Consider developing your city as a Smarter City
In response to Singapore’s iN2015
Masterplan, tech giant IBM announced a
$38M investment in an Asia Pacific cloud
computing data center
http://www.smartplanet.com/blog/smart-takes/-8216smart-city-tech-investment-to-
total-108-billion-by-2020/19541

29. ACTION: Study Internet Resources on Smarter Cities
CISCO: SMART + CONNECTED COMMUNITIES ACCENTURE: INTELLIGENT CITY
http://www.cisco.com/web/strategy/smart_connected_communities.html http://www.accenture.com/us-en/pages/insight-building-managing-
intelligent-city.aspx
IBM: SMARTER CITIES
http://www-03.ibm.com/innovation/us/thesmartercity/index_flash.html

30. Smarter Philippines--a DOST-wide project--by transforming systems of governance,
education, health, etc. nationwide, will create a vibrant domestic knowledge
economy, accelerate technopreneurship, and boost domestic knowledge industries.
1- iGovPhil 4- Smarter Transportation
-- i-Business Permit Lic. System and Green Technology
-- Gov’t e-Services Portal -- Eco-Jeep (DOST NCRP)
-- e-LGU -- UP Monorail (DOST MIRD)
-- Community e-Centers
-- National Information Infra
-- CIO Forum & gCIO Training
2- i-TalentDev.PH 5- Smarter Healthcare
-- Knowledge Workers with (PCHRD) & Nutrition (FNRI)
21st Century Skills -- Phil Health Research Registry
-- Industry-driven curriculum -- Public health surveillance &
-- Computer Gaming health intelligence systems
-- Learning Technologies -- Sulong Pinoy anti-malnutrition
-- Global Collaboration -- Nutritious brown rice
3- Smarter Industry 7- Smarter Cities 6- Smarter Disaster
-- Global Leadership in IT-BPO -- Digital Ecosystem Mitigation
-- $50 B ICT Industry -- Smarter Local Government Svcs -- Project Noah (DOST-PAGASA)
-- i-CreativePhil -- Smarter Buildings -- Earthquake & Tsunami Early
-- Smarter Agribusiness -- Smarter Environment Warning (DOST- PHIVOLCS)
-- Makinariya at Teknolohiya -- Smarter Energy & Utilities -- 3D LIDAR Mapping (DOST & UP
para sa Ekonomiya -- Smarter Public Safety Geodetic Engineering)

31. “Smarter Philippines” is the brainchild of Science &
Technology Secretary Mario G. Montejo
Sec. Montejo is an inventor, a trained engineer, and a successful
businessman who knows how to commercialize scientific
inventions. A member of the Top 100 Graduates of the University
of the Philippines College of Engineering, his vision is to create a
vibrant domestic knowledge economy in which Filipino technology
companies and Filipino technopreneurs deliver indigenous
technologies to solve the problems that beset ordinary Filipinos.
iGov, the central program under “Smarter Government,” is the
brainchild of the DOST Information & Communications
Technology Office’s Executive Director Louis Casambre. His focus
is all-out support for President Aquino’s promise of a transparent,
equitable and effective government service, through ICT.

32. Knowledge creation, sharing of free resources and
continual learning--Resources posted on Facebook
Thank You • Essential 21st Century Skills
• The i-CreativePhil Program
• The Perfect Storm and the Next Wave Cities
Program
•Seeding the Digital Ecosystem to Fuel the
Philippine Renaissance
•Computer Gaming for Leadership Development
• The DOST ICT Office’s Initiatives for the ICT & BPO
Industry
• The Next Wave Cities Program: Get Ready for the
Please e-mail feedback & suggestions to improve Next Wave of Growth and Investment
Our programs to budmelchor@yahoo.com
• Seven Global Shifts: Trends and Opportunities in
ICT & BPO
Department of Science and Technology-
Information and Communications Technology Office