The Philippines, though ranked high in attractiveness as provider of information technology-business process management (IT-BPM) services, is facing an annual talent gap of 100,000 to 200,000 which can balloon to 300,000 to 400,000 by 2028 if not addressed.
These are among the findings of Kearney in a study “Building future proof digital talent in the Philippines” presented yesterday at the IT-BPM Talent Summit in Makati City.
The study cited several factors causing the talent supply gap in the country.
For one, the number of IT graduates in the Philippines has stagnated in the past five years at 80,000 per year.
The study added Philippines has lower STEM (science, technology, engineering and mathematics.) graduates’ penetration of 29 percent compared to Indonesia and Malaysia of 34 to 45 percent.
The study also said the IT-BPM industry suffers a high attrition rate of 25 percent.
In its Global Services Location Index, the Philippines placed 9th out of 60 countries in terms of attractiveness but ranked low in digital resonance at 35th due to low ranking in digital skills (22th), cybersecurity rating and legal code adaptability (29th) corporate activity and innovative output (41st).
“With current trajectory, talent supply will not be able to cover the demand requirements,” the study said, noting that the IT-BPM industry is projected to grow by 10 to 12 percent at compounded annual rate.
“The Philippine government needs to consider a holistic policy response; this means addressing four main digital and ICT talent challenges: build future talent, retain existing talent, upskill existing talent and plug short-term gaps with foreign talent as needed.
Another interesting finding of the study is the “large digital salary gap “ among comparable countries.
While this makes importing talent difficult for the Philippines, Kearney said this can become a key competitive advantage by boosting local talent supply.”
In his remarks at the event, Trade Secretary Alfredo Pascual stressed the need “to develop the digital talents of the Philippines’ human resources and make them globally competitive to sustain and fuel the growth of our IT-BPM industry. “
“We cannot be complacent… we must support education and training programs that focus on digital skills, including coding, data analytics, artificial intelligence, and cybersecurity,” said Pascual, who witnessed the formation of an inter-agency Technical Working Group and co-signed the Statement of Commitment for government’s support and dedication to the growth and expansion of the IT-BPM industry.
His co-signees include Education Secretary Sara Duterte; Information and Communication Secretary Ivan John Uy; Commission on Higher Education Commissioner Dr. Prospero De Vera; Labor Secretary Bienvenido Laguesma; Science and Technology Secretary Dr. Renato Solidum; Technical Education and Skills Development Authority director general Danilo Cruz; and Information Technology Business Process Association president Jack Madrid. Irma Isip
