by : Perlie C. Amper, Jazel Mae L. Caasi, Franscheline Orvette B. Domingo
Tentative Defense Schedule: September 26, 2007, 09:00am
Panelist : Ms. Novie Joy Pelobello, MSIS and Mr. Exander Barrios, MIM
Background of the Study
Information Technology is one of the most in demand job today and in the future. Companies here and abroad are fighting tooth and nail to get the best and the most competent graduates of IT and IT related courses. In terms of the global job market, India and the Philippines currently top the list of providers of IT professionals, particularly in terms of quality, availability and relative proficiency in the English language. "Considering that we have so many schools offering IT courses, the country is producing a lot of highly trainable graduates, the Philippines is in a much better position than such countries in the region as Malaysia, Thailand or Indonesia. (Montelibano, 2006)
At the recently concluded Philippine Overseas Labor Office (POLO) Command Conference in Manila, the POLOs in Asia reported that the demand for OFWs in Asia remained bright despite competition posed by other labor sending-countries and restrictive labor and nationalization policies of some host countries. he region’s continued economic growth has resulted to construction of major infrastructures and industrial projects. Consequently, it has induced a steady increase in the demand for foreign workers such as professionals (engineers, teachers and IT workers) and skilled workers. . There are also emerging opportunities for IT and healthcare workers in Taiwan, while Korea will require skilled workers in the construction and ship-building sectors. There is a rising demand for IT and related skills in Penang, Johore and Kuala Lumpur in Malaysia.
The Gulf States in the Middle East, namely: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman continue to offer vast opportunities to foreign labor in the construction, medical, tourism, retail, energy, engineers and planners, telecommunication, operation and maintenance, hotel and restaurant and IT sectors. These sectors are experiencing growth and expansion due to major infrastructure projects, expansion of exploration and production of the oil and gas sectors.
In Europe, there are skills shortage in Demark are IT specialists, engineers, and physicians. (poea.gov.ph/mus/my.2007/html). For the past years, the government had been documenting thousand of ICT professionals for more than 20 destinations worldwide, primarily in the USA, Saudi Arabia, Singapore, Australia, New Zealand and Canada (POEA Report).
The Philippines has a vast source of well-trained and highly skilled educated ICT professionals. Most ICT professionals are involved in software development, specifically as programmers and system analysts. They are into web design, computer networking, e-commerce/web development and multi-media technologies. Aside from technical skills, Filipino IT professionals are proficient in strategic planning, project management, customer service skills, interpersonal skills and creative thinking and presentation skills. The Philippines is recognized as major outsourcing center for companies in the United States, Japan and Europe. (Bernabe, 2001)
Filipino IT practitioners, including technicians and programmers who are very much in demand all over the world acquiring a stature of proficiency second to Indian programmers who are dominating the IT outsource market today. Quality and expertise distinguish the Filipino IT professional. Filipinos find it easy working on legacy applications as well as fourth generation languages. Thousand of Filipinos are adept with mainframes and experiences in minicomputer operations. In the US, Filipino animators brought box office hits to Universal Studios, and other big movie companies.
A major telecommunications company in the country loses 100-200 engineers and 100 information technology (IT) workers to foreign companies on a yearly basis. They have lose about 16% pf their workers after to two to three years working with them. Most of their workers are being recruited in companies in the US, Singapore, United Kingdom and other countries in Europe (MSN/Sunnex)
The Philippine government continues to pursue the development of its human resources in the ICT sector as it envisions turning the Philippines into the E-Service Center in Asia. The principal strengths of the Philippine IT industry include a well educated, price competitive labor force. English proficient, with a growing track record of successful IT work, fast growing telecom infrastructure, government interest in the industry, less regulation than those of some of its neighbors, good capabilities to dealing with foreign partners, and strong entrepreneurship. (Ocampo-Guerrero)
According to CHED reports, the Philippines produces roughly 400,000 graduates a year, about 105,000 of which hold business-related degrees, with engineering and technology following with 42,000 graduates, tailed by 32,000 graduates holding math- and IT-related degrees. These graduates, if employed in any IT or BP job, will need to be trained in the industry standards set by their employers. Once employed, employers must address retooling and retention and other HR concerns.
One of the greater challenges to overcome is the exodus of skilled professionals who could otherwise have a fulfilling career in the country in general and in outsourced IT services in particular. This includes teachers who are looking for greener pastures in other industries, locally if not abroad. (Terrado 2007)
During the National Manpower Summit held in 2006, the Cyber Industry has high manpower demand both in the local and foreign labor market. It is one of the priority sectors of the government and in the last National Human Resource Development Conference conducted in April 2007, the supply to meet the high demand for IT professionals has been the top priority of the government. (DOLE Report).
Region XI is now becoming an IT hub as more call centers are putting up their business in Davao City. At present, there are five (5) call centers and more are expected to come. More call-center companies might relocate to the regions as the strong peso forces them to look for a cheaper pool of English-proficient workers outside Metro Manila to cut down on labor cost, trade officials in the city said.
Mr. Lou Pasawa, City Director of the Department of Trade and Industry (DTI), said he expected this to happen now that the value of the peso nears 45 to the dollar, forcing call-center and business process outsourcing (BPO) companies to cut down on cost by relocating or expanding their existing operations to the provinces. He confirmed plans of the New York-based BPO Sutherland Global Services to put up a 1,000-seat call center in Davao CIty. If plans push through, he said, Sutherland, which has operations in Makati and Clark, will be the sixth call-center company to set up operations here. The expansions and relocation of more companies here will provide additional opportunities for jobseekers in Davao. The presence of global call center in Davao will boost up the caliber of the job seekers in the region as they will get trained to be ready for competing on jobs overseas. (DTI Report)
Statement of the Problem
The study aims to determine the opportunities of IT graduates abroad.
Most specifically, the researchers sought to answer the following:
1. What is the need of the overseas market on
1.1 What countries have high demand for
1.2 What particular IT job has high
1.3 What IT job orders are filled?
2. What are the IT courses offered in the
colleges and universities in Davao City?
3. What are the opportunities of IT graduates in
Objectives of the Study
The main objective of the study is to assess the opportunities in the overseas employment which could be availed of by IT graduates and professionals.
Specifically, the study is undertaken to:
1. Determine the need of the overseas market in
1.1 Determine the countries which are in
need of IT graduates and IT
1.2 Determine which particular job has
high demand overseas.
1.3 Determine the particular demand
filled in by IT professionals and
2. Determine the courses offered in college and
universities in Davao City.
3. Determine the prospects of IT graduates for
1. IT courses offered by the schools in Davao
City does not correspond the job offers
2. IT graduates have lesser employment
Significance of the Study
The study is significant because it could provide valuable information that would show the prospects of IT in the overseas employment market. It would also provide information on the particular countries that have demand for IT. The study would also provide information on what particular IT course has high demand overseas.
While there are many bits of reports and news items that provided information on the demand for IT, there is no single document that would provide comprehensive study on the subject that would help the academe and the students in their IT undertakings.
The study will guide high students in assessing their marketability overseas if and when they decide to take up IT course. It will guide them which school they could enroll the said course. It will also enable them to choose the particular IT course they will enroll given the facts and figures presented in this study.
Theoretical/ Conceptual Framework
With globalization, it is expected that the outflow of our workers especially professionals will be the scenario. POEA Administrator Rosalinda Baldoz told that despite competition posed by other labor-sending countries and restriction on labor and nationalization policies of some countries, Filipinos including IT professionals have high and bright employment prospects in big companies abroad. These can be gleaned from the numerous job orders from private licensed recruitment agencies that contain IT vacancies from foreign principals being processed daily by the Philippine Overseas Employment Administration, an attached agency of the Deparrtment of Labor and Employment (DOLE). Meanwhile, schools in Davao City continue to offer courses on IT as it is aware of the big potential of their future graduates. At present, the huge need for IT and which particular IT job has high demand in the overseas market is not documented in a single and specific report or instrument that will capture the trend in the deployment of IT workers. There is no single document that tells which IT courses are much needed in the overseas market.
The basic system approach is widely used to facilitate understanding of the interaction of individuals, groups and organizations and their environment for various purposes. The recruitment agency submits job orders on the IT vacancies to POEA. When they are able to find the right applicant for the job, it will submit all the documents to the POEA for the processing of the overseas employment certificate which serves as the exit pass and the travel tax exemption of the worker. It is presented in the Ninoy Aquino International Airport upon their departure. With the OEC the said worker becomes a documented Overseas Filipino Worker. The POEA in its data bank has the deployment report of all processed and deployed OFWs. The workers that apply to recruitment agencies are graduates of different schools that offer IT courses. These schools offer different courses on IT because it is not only good for their business but also the potentials of their graduates to find jobs. The POEA becomes part of two large systems-the Recruitment Agencies and the Academe.
According to Gibson,etc. al (1991), there are a number of elements in the organization that interact interdependently. In the simplest terms, the organization takes resources (inputs), processes these resources and returns them in a changed form (output). In this context, the inputs are the job orders submitted by recruitment agencies to POEA which are filled up by their recruits to be issued by the POEA and the IT courses offered by the schools. The processes are submission of these recruitment agencies to POEA for the processing and issuance of the necessary overseas employment certificates to their recruits as well the education of thee students by the different schools that offer IT courses. The output is the overseas employment prospects of IT graduates Cohen, et.al (1994) stated that organizations are so interrelated with their environment. The job orders of recruitment agencies are to be filled up by IT graduates from different schools which are responsible for their education that could be responsive to the needs of foreign principals. Anderson (1995) theorized that educational institutions sometimes fail to prepare their students to adjust readily and effectively to the changing technologies of the modern world. Thus, the output on the documentation on IT job prospects and the graduates of IT courses will provide a valuable input the government, the recruitment agencies and the schools in the employment and education of workers to respond to the IT prospects in the overseas market. Hence, this study.