DEVELOP INDONESIAN HUMAN

RESOURCES FOR GLOBAL OUTSOURCING

INDUSTRIES
PREPARED BY :

LINKQ

PRESENTATION OBJECTIVES :
To provide input for Indonesian Education
Department to create program of specialist
(high school level) to compete with other
countries (India & Philiphines) as the main
players in global outsourcing industries
To develop our people skills, quality and
availability for the industries to substitute our
current offshore workers to be more higher
level of resources

GLOBAL OUTSOURCING INDUSTRIES

POTENTIALS

SOURCE: TECHNOLOGY PARTNERS INTERNATIONAL INC.

OUTSOURCING POTENTIALS INCREASED

ANNUALY BY 7 % (Technology Partners International Data)
2007 Annual Revenue to Service providers
around $78.7 Billion
y/y growth : 7.3%; 5 year CAGR : 5.3%; 2,701
active contracts
2015 potentials available around $ 125 Billion
with estimated growth by 7% per year

OUTSOURCING TERMINOLOGIES
BY TYPE OF FUNCTIONS OUTSOURCED :
- IT Outsourcing (ITO) :
delegating some or (all) of the IT functions to one or
more external partner(s)
- Business Process Outsourcing (BPO):
delegating fully or partially business functions to one or
more partner(s)

BY LOCATION WHERE THE OUTSOURCED

SERVICE IS PROVIDED :
- On-site : the service is provided at the customer site
- Off-site : the service is provided off customer site

OUTSOURCING TERMINOLOGIES
CONTD

BY GEOGRAPHICAL PROXIMITY OF THE OUTSOURCING

PARTNERS
- On-shore outsourcing : outsourcing within the country
- Near-shore outsourcing : outsourcing to a firm with
delivery of service is not far outside the country (nearby
territory)
- Off-shoring or off-shore outsourcing is to outsource the
business functions to a company outside the country or
overseas e.g : India, Philiphines

BPO AREA OF BUSINESS FUNCTIONS

Contact/ Call Centre outsourcing

Human Resources Outsourcing
Claims Processing Outsourcing
Back Office Outsourcing : Finance &
accounting, Human Resources management,
payment services, Payroll, customer care,
supply management, marketing,
transcription(medical, legal), data entry,
backoffice operation, Help Desk, Reception,
etc.

WHERE DOES INDONESIA STAND IN

THIS BPO INDUSTRY?
Based on AT Kearney report, Indonesia
has increased its overall attractiveness
from 13th in 2005 into 6th in 2007 and
become the 5th in 2009 for global BPO
country direction.
Refer to A.T Kearney Global Services Location Index,
2009

QUALITY OF WORKFORCE IS IMPORTANT

IN BPO

3 (THREE) CATEGORIES AS INDEX

METRICS FOR OFFSHORING
ATTRACTIVENESS
( Source : A.T.
Kearney)

Financial Structure Attractiveness (40%)

People skills and availability (30%)
Business Environment (30%)

INDEX METRICS

(Source : A.T.Kearney)

INDONESIA AS POTENTIAL COUNTRY FOR

BPO
FACTS :
-

Indonesia has 8.08 score in financial attractiveness after India

with score 8.15. Philipines has 7.98 score.
In term of business environment; Indonesia score is 3.31;
compare to India 4.35 and Philipines 4.12 in score.
Indonesia has people skills and availability score of 4.89; India
s score is 8.26 and Philipines score is 3.90.

STRENGTH :
-

Indonesia has a large population (3rd) after China and India

Has a large workforce in low cost
Competitive wages, rent and electrical costs
Relatively low tax burden

CHALLENGES FOR INDONESIA IN BPO

INDUSTRY
- Indonesia to do education enforcement to improve and develop
quality of
workforce to increase the score in people skills and availability to
compete
in the BPO markets
- Indonesia continuously improves the business environment with
political
and economic stability in the country to compete with the main
BPO
players (India & Philipines)
- Indonesia maintains as the second highest score after India in
financial
attractiveness
- Indonesia has a high potential to become a BPO player after

Note :
A.T. KEARNEY Global Services Location Index 2009, shows INDONESIA has
increased
its overall attractiveness to the 5th place

Note :
A.T. KEARNEY Global Services Index 2009 shows Indonesia stands still in
score for people skills attractiveness and makes the overall attractiveness
become 5.69 (slightly reduced)

Note :
A.T.Kearney Global Services Index 2009 shows Indonesia remain similar in the financial
attractiveness from 2007 and slightly reduction in the business attractiveness; with overall
attractiveness slightly reduced; eventhough has moved up to the 5th place.

EDUCATIONAL ENFORCEMENT:
Improved quality of education in English
Speaking skills and computer literacy/ applied
Today, the availability of people with english
speaking skills is mostly overqualified (more
high level) and considered as high cost
workforce

INDONESIA WORKFORCE/ HUMAN RESOURCES

CULTURE & CHARACTERS
(Link:Q experience)

Indonesia already has a good basic culture and

characters of workforce and can be trained to
fit in the requirement of this outsourcing
industry :
- Patient
- Politeness
- Accuracy
- Eager to learn

FAST TRACK SOLUTION

To build vocational school (equal to high school
level) specializing in :
- English Language (ESL Method)
- Hospitality
- Applied Computer/ IT literate
To support and show global exposure in English
language speaking skills of its workforce
Note :
ESL English as a Second Language more conversation/
communication and writing than grammar studies

TARGETED WORKFORCE DEVELOPMENT

FOR BPO INDUSTRY

Undergraduate/ postgraduate
level of workforce

Vocational school/ high

school level of workforce
Lower level education
of workforce/ TKI

INDONESIA TARGET ACHIEVEMENT

This fast track education will generate HR quality
in a greater amount to fill in the BPO industries
To substitute Indonesian workforce in a higher level
of workforce for overseas market (previously TKI)
Indonesia will significantly develop middle level of
resources in the country
To generate higher foreign exchange income for
Indonesia
Increase huge number of intelectual voter, to
improve the quality of future election result

POTENTIALS LOCATION AS PILOT PROJECT

(DISCUSSION)

Special Vocational School : Targeted on English

speaking, Hospitality & Applied Computer
Pilot locations for development : Bali,
Jogyakarta, Ambon, etc.
Teachers : young fellows or visitors from
Australia, USA or other English speaking
countries