ICM Business Outlook Survey Results January 2017
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1 ICM Business Outlook Survey Results January
2 Background In late December 2016, SiTF conducted its annual Business Outlook Survey to gather the views and feedbacks from the industry on: 2017 outlook Current manpower/talent situation 181 responses were received. 2
3 2017 Outlook 3
4 Top places for business opportunities Q: In the next 12 months, I envisage that my top business opportunities are in : (please prioritise your top 5): ASEAN Investment by Singapore based companies in technologies Singapore Government Procurement 56% 53% 62% Rest of Asia (Outside ASEAN, India, China) China India Australia/NZ North America Europe Africa South America 38% 31% 23% 20% 13% 10% 6% 5% Top places for business opportunities 4
5 Top 5 concerns Q: In the next 12 months, I envisage my company s top 5 concerns are: Overall Recruiting right talents Slow down in economy 75% 70% Increase cost of manpower Retaining talents Increase competition 50% 45% 57% Slow down in Government spending Uncertain forex that will impact both cost and revenue Increased Regulations and Compliance Disrupted by new business model High Rental Disrupted by new technologies Protestionistic measures in Countries that the organisations have business in Other (please specify) 25% 20% 17% 17% 15% 15% 10% 9% 5
6 Top 5 concerns (MNC) Q: In the next 12 months, I envisage my company s top 5 concerns are: MNC Business concerns Recruiting right talents Slow down in economy 69% 75% Increase competition 56% Retaining talents Increase cose of manpower Uncertain forex that will impact both cost and revenue Disrupted by new business model Slow down in Government spending Disrupted by new technologies Protestionistic measures in Countries that the organisations have business in Increased Regulations and Compliance Increased Regulations and Compliance 44% 34% 28% 25% 22% 22% 16% 9% 6% 6
7 Top 5 concerns (SME) Q: In the next 12 months, I envisage my company s top 5 concerns are: SME Business concerns Slow down in economy Increase cose of manpower Recruiting right talents 71% 68% 76% Retaining talents 54% Increase competition 37% Slow down in Government spending Uncertain forex that will impact both cost and revenue High Rental Increased Regulations and Compliance Disrupted by new business model Disrupted by new technologies Protestionistic measures in Countries that the organisations have business in 25% 22% 22% 20% 13% 10% 8% 7
8 Top 5 concerns (Startup) Q: In the next 12 months, I envisage my company s top 5 concerns are: Startup Business concerns Recruiting right talents 91% Slow down in economy Increase competition Increase cose of manpower Retaining talents 56% 53% 43% 43% Slow down in Government spending Increased Regulations and Compliance Disrupted by new business model Disrupted by new technologies Uncertain forex that will impact both cost and revenue Protestionistic measures in Countries that the organisations have business in High Rental 28% 21% 18% 18% 9% 9% 6% 8
9 5 Hottest Tech Q: What do you think will be the 5 hottest technology trends in 2017? Top 5 hottest technology from most to the least Big Data and Data Analysis Cybersecurity AI Nano sensors and IOT Cloud/Client Computing Machine Learning Mobile Apps Blockchain Augmented Reality/Virtual Reality Robotics Autonomous Vehicle Wearables Next Gen Batteries Speech Technology Gamification Others 3D Printing 47% 40% 39% 39% 33% 31% 30% 24% 19% 13% 11% 10% 6% 6% 5% 57% 64% 9
10 Manpower 10
11 Current talent situation Q: Please indicate the statement that reflects your organization's talent situation best: Overall There are vacancies but not enough qualified LOCAL candidates to fill the jobs (Suitable applicants are mostly foreigners) 45% There are vacancies but no suitable candidates to fill the jobs 24% Insufficient local candidates We have no vacancies 18% There are vacancies and we have many suitable applicants (both local and foreigners) 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 11
12 Current talent situation Q: Please indicate the statement that reflects your organization's talent situation best: MNC SME Startup There are vacancies but not enough qualified LOCAL candidates to fill the jobs (Suitable applicants are mostly foreigners) 44% There are vacancies but not enough qualified LOCAL candidates to fill the jobs (Suitable applicants are mostly foreigners) 50% There are vacancies but not enough qualified LOCAL candidates to fill the jobs (Suitable applicants are mostly foreigners) 34% There are vacancies and we have many suitable applicants (both local and foreigners) 28% There are vacancies but no suitable candidates to fill the jobs 24% There are vacancies but no suitable candidates to fill the jobs 27% There are vacancies but no suitable candidates to fill the jobs 21% We have no vacancies 21% We have no vacancies 24% We have no vacancies 6% There are vacancies and we have many suitable applicants (both local and foreigners) 5% There are vacancies and we have many suitable applicants (both local and foreigners) 13% 0% 20% 40% 60% 0% 20% 40% 60% 0% 20% 40% 12
13 Finding suitable candidates Q: You have difficulty finding suitable candidates in (please indicate your top 5 challenges): Looking for suitable candidates in: Programmers and developers Business Development Cybersecurity Specialists System Architects Engineers Marketing (Digital/Social Media) Management (Project) Data Analyst UX designer IT support Governance and compliance Website designer Telemarketeers Call centre (help line) Legal (Example Agile contract / IP / copyright ) 40% 38% 36% 34% 28% 27% 21% 19% 12% 8% 7% 3% 3% 52% 50% 0% 10% 20% 30% 40% 50% 60% In general, ICM industry is lacking in talents with IT and business technical skills. 13
14 Bridging talent gaps Q: To bridge any talent gap in your organization, pick the top 5 actions that your organization undertakes or most likely to undertake: Overall Employ contractors/part-timers/freelancers Upgrade existing workforce to take on more work 56% 61% Adopt and deploy technology to reduce manpower Review work process to cut down work Employing foreigners to fill the job Moving work to offshore 49% 48% 45% 42% Actively interview and recruit unemployed PMETs (> 45 Years old) Outsource 31% 36% Others 8% 0% 10% 20% 30% 40% 50% 60% 70% 14
15 Bridging talent gaps (MNC) Q: To bridge any talent gap in your organization, pick the top 5 actions that your organization undertakes or most likely to undertake: MNC Upgrade existing workforce to take on more work 61% Employing foreigners to fill the job 54% Employ contractors/part-timers/freelancers 54% Adopt and deploy technology to reduce manpower Actively interview and recruit unemployed PMETs (>45 years old) 43% 43% review work process to cut down work 36% Moving work to offshore 32% Outsource 14% 0% 10% 20% 30% 40% 50% 60% 70% 15
16 Bridging talent gaps (SME) Q: To bridge any talent gap in your organization, pick the top 5 actions that your organization undertakes or most likely to undertake: SME Employ contractors/part-timers/freelancers 58% Upgrade existing workforce to take on more work 57% Review work process to cut down work 55% Adopt and deploy technology to reduce manpower 53% Employing foreigners to fill the job 46% Moving work to offshore 46% Outsource Actively interview and recruit unemployed PMETs (>45 years old) 33% 33% 0% 10% 20% 30% 40% 50% 60% 70% 16
17 Bridging talent gaps (Startup) Q: To bridge any talent gap in your organization, pick the top 5 actions that your organization undertakes or most likely to undertake: Startup Employ contractors/part-timers/freelancers 77% Upgrade existing workforce to take on more work 50% Adopt and deploy technology to reduce manpower 43% Outsoure 40% Moving work to offshore 40% Review work process to cut down work Actively interview and recruit unemployed PMETs (>45 years old) Employing foreigners to fill the job 40% 37% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 17
18 PMETs 18
19 PMETS Q: Do you have concerns employing PMETS who are >45 years old? Q: What are your key concerns employing PMETs who are >45-year old? (Pick top 3) Do you have concerns employing PMETS? No, 75% Don't Know/ Not applicable, 11.43% Yes, 13.57% Not equipped with the right knowledge and capabilities High remuneration package Not able to cope with the speed and workload Ability to unlearn and relearn Health and stamina Does not want to have heavy workload Others Concerns 11% 26% 21% 32% 47% 42% 53% Not hands on Not willing to work overtime 11% 5% 0% 20% 40% 60% 19
20 PMETS Q: Should more be done to help PMETs who are >45 Year old and have not been employed for more than 6 months to re-join the work force? Should more be done to help PMET No, 2% Don't Know/ Not applicable, 14% It all depends on, 19% Comments by respondents: 1. Attitude & aptitude to learning 2. Remuneration expectation 3. Government policies and grants Yes, 65% 20
21 Suggestions to help PMETs Q: What are the suggestions you have to help companies to give senior PMETs a chance? 1. Providing grants 2. Government to fund reskilling of PMET for about a year to incentivize SMEs to employ them as well as to give them the necessary time to be more efficient and productive in their works. 3. Create a freelance or part-time talent pool that industry can tap on based on ad-hoc needs 4. Place paid internships/training courses for senior PMETS to re-enter. 5. PMETs can work as freelancer so that (1) the payroll pressure and MOM laws don't apply (2) PMETs are not limited to working for Singapore companies (3) PMETs can explore new avenues without being held to long term commitments. 21
22 Profile of Respondents 22
23 Respondents profile Number of respondents: 181 Job title Type of business 15% 4% 7% 6% 68% C-level (CEO, CIO, CTO, CMO etc)/ President/MD Vice President Director Senior Manager/Manager Others 16% 3% 4% 28% 8% 6% 5% 5% 19% Digital Media/Entertainment E-Commerce Fintech Hardware IT Service Networks & Communications Retail Software Applications Telecommunications and Network Wholesale/Distribution 2% 4% Others 23
24 Respondents profile Number of respondents: 181 Employee Size Annual Turnover 1% 3% 8% 5% < 10 13% <S$1m 12% 12% 40% 11 to to to to to 1000 > % 4% 10% 40% S$1m-10m S$10.1m-30m S$30.1m-50m S$50.1m-100m >S$100m Don't know Don't know 14% 10% 26% 24
25 Respondents profile Number of respondents: 181 Organization Type 3% 21% 20% MNCs SMEs Startup Don't know 56% 25
26 26
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