The Impact of the Philippines’ New K-12 Program on its IT-BPM Industry

14 Jun 2016
by Prashray Kala, Rohitashwa Aggarwal

$999.00

Executive Summary

The education system in the Philippines is undergoing a major overhaul in 2016, with the 10-year school system (kindergarten+10) being replaced by a 12-year school system (kindergarten+12). This is likely to have a significant impact on the talent planning and supply for the Philippine Information Technology and Business Process Management (IT-BPM) industry. The IT-BPM industry is one of the largest manpower magnets in the country and employs more than 1.2 million people—many straight out of college. This unhindered supply of graduate talent pool is critical to the industry’s future growth.

Our recent conversations with industry stakeholders indicate that there is a certain lack of clarity on implementation and implications of this program, commonly referred to as the K-12 program, on the IT-BPM industry. This lack of clarity has propagated various apprehensions among IT-BPM companies about how this will impact their talent model or plans to expand the scale and scope of services being delivered from the Philippines.

This Everest Group viewpoint takes a closer look at the perceived issues or myths, surrounding the impact of the K-12 program on the IT-BPM industry. We also provide possible strategies that organizations can employ to mitigate the potential risks. The three most widespread myths regarding K12 program that we have debunked in this viewpoint are:

  • There will be no graduate job-seekers in 2020 and 2021
  • The availability of skilled talent will decline in the future due to extra years of schooling required
  • Graduate students will be less inclined to join the IT-BPM industry
 

Page Count: 8