Case Interview Fundamentals: Lesson 22 [Drill: Philippines Service Exports]

A lot of candidates are super scared of public sector cases, and for good reason. I mean, it's much harder to structure, you're not used to it, and each public sector case is different from the other. I mean, it's completely different to get a sanitation case than a case on education versus a case on some sort of health policy, for example, increasing taxation for smokers.

sanitation case than a case on education uh versus a case on uh some sort of health policy, for example, uh increasing taxation for smokers.

And because each public sector case is so different, people get scared of them. That's normal, but you shouldn't be scared. If you've gone through the context breakdown technique already, you have noticed that having a public sector framework or building a public sector framework isn't that different than adapting a business situation framework or a three C's framework to your specific case. And with that technique, you can structure any case. Also, some people are scared or uncertain if they're going to find the right issues, right? You've gone to business school, or maybe you didn't, but you have an interest in business. So, you may have a pretty good business sense, but what about "public sector sense"? How can you develop that? And if you've gone through the context breakdown technique video, you've also noticed that it's actually pretty simple to come up with insightful issues.

public sector framework isn't that different than adapting a business situation framework or a a three C's framework to your specific case. And with that technique, you can structure any case. Also, some people are scared or uncertain if they're going to find

You just figure out what is the role of each part of the system within the system. So, the role of each category, of each bucket within the whole system, and you ask questions: what, who, why about the role of that part of the system. Now, in this drill, we're going to apply all of that into practice. So, the drill is about the government of the Philippines trying to stimulate its service exports industry. So, it's kind of business-related. It's related to the economy of a country, but it's still public sector because it's not a business trying to maximize profits. It's a government trying to do something with their country's economy.

you develop that? And if you've gone through the context breakdown technique video, you've also noticed that it's actually pretty simple to come up with uh insightful issues.

As with every framework drill, if you're in skill-building mode, if you're learning how to create these structures, even if you know how to create good structures or business cases, but you're not so sure about public sector cases, then take 10 to 15 minutes to structure or even longer if you feel the need for it. It pays off because you're going to learn a lot more. Now, if you already know how to do this, and very few of you are going to be in this category because I know of no other resource that teaches you how to create your own frameworks for public sector cases. But if you already know how to do it, if you're in time improving mode, then take two to three minutes to structure, so you practice your timing for a more realistic scenario. Ninety-nine percent of you guys are going to be in skill-building mode, and that's fine.

system. Now, in this drill, we're going to apply all of that into practice. So, the drill is about the government of Philippines trying to stimulate its service exports industry. So, it's kind of business-related. It's related to the economy of a country, but it's still

That's how you learn how. That's how you develop your skills. So, let's jump right into the case question.

As with every framework drill, if you're in skill-building mode, if you're learning how to create these structures, even if you know how to create good structures or business cases, but you're not so sure about public sector cases, then take 10 to 15

Your client is the government of the Philippines, and they have noticed a trend of small and large businesses from English-speaking developed countries hiring Filipinos as virtual assistants for jobs such as web design, presentation design, so PowerPoint design, administrative tasks, and even for more complex tasks such as data analysis, social media marketing, and programming.

category because I I know of no other resource that teaches you how to create your own frameworks for public sector cases. But, if you're if you already know how to do it, if you're in time improving mode, then take two to three

They've talked to workers and employers in this booming industry, and they have found that these firms from other countries are doing this. They're hiring Filipinos because of their excellent English, their good skills, hard and soft skills, and their incredible work ethic. And also because of their relatively low salary. So, you can hire a Filipino data analyst or web designer or virtual assistant in general for much lower wages than you can in English-speaking developed countries such as the US, Canada, Australia, the UK, and so on. The workers love it because they get flexible work and they're paid more than the average for domestic jobs. So, due to these factors, the government wants to stimulate this new sector and have the Philippines become a global hub for outsourcing services. For this task, they've asked for your help. What factors would you analyze to help them stimulate this booming sector?

That's how you learn how That's how you develop your skills. So, let's jump right into the case question.

So, in other words, how should the government of the Philippines stimulate its service exports industry? So, they're exporting services in such a way.

and even for more complex tasks such as data analysis, social media marketing, and programming.

So, let me just do simple comments here. There's a lot of context in this case question. This is typical of McKinsey, but it can happen in other firms as well. It happens more often at McKinsey. Other firms more often give a simpler scenario with fewer factors, less information so that you can ask about it, but it happens in every consulting firm.

ethic. And also because of their relatively low salary. So, you can hire a Filipino data analyst or web designer or virtual assistant in general for much lower wages than you can in English-speaking developed countries such as the US, Canada, Australia,

There's two things to have in mind if this happens. The first one is use the richness of information provided in the question.

Philippines become a global hub for outsourcing services. For this task, they've asked for your help. What factors would you analyze to help them stimulate this booming sector?

Your interviewer expects that and these things are there for a reason as everything in a case interview. And this reason is to see if you can connect the dots. So, your interviewer is actively looking to whether or not you're using the information they gave you or not. The second point to have in mind is you can ask clarification questions even though the question is that rich in information. But they better be really good clarification questions. I won't ask any in this case because it seems like the problem is well defined to me. But if you were to ask questions, just two examples of good ones is first: is there a specific metric that the government is interested in such as job creation or raising income or increased GDP? A second clarification question that you could ask is, for example, is the government looking for short-term stimulation or more into the long-term to shift a bit of the country's economy into this type of work?

So, let me just do uh uh simple comments here. There's a lot of context in this case question. This is typical of McKinsey, but it can happen in other firms as well. Uh it happens more often at McKinsey. Other firms,

So, just to give you an idea of what good clarification questions look like. But the point is you'll not get away asking mindless clarification questions because there's so much information already. So, if you're asking things that are not that relevant, the interviewer is going to be like, "Whoa, guy. I just gave you this much information and you're asking me this question? Doesn't make sense." Okay? So, now it's time for you to pause the video and structure your case. Ten to 15 minutes if you're in skill-building mode, that's probably the mode you're in. And then come back to the video and watch my own answer. Now, here's my answer to the question. And one thing to notice here, which is pretty interesting, is the interviewer could have asked me, "Well, how would you help them grow this or what would you do in their place?" And that would have made things a lot harder. But instead, what they did was they asked me what factors would I want to analyze. And by asking these specific questions that are with this specific phrasing, which is pretty common at McKinsey mainly, but can happen in other firms as well, they're making my job a lot easier.

There's two things to have in mind if this happens. The first one is use the richness of information provided in the question.

If they had asked me how would I help them or what should they do, then I would need to create a step-by-step plan. But instead, they're just asking me what factors would I analyze. So, I don't have to create a step-by-step plan, which makes things a lot easier. And actually, it's how most projects start. You start by looking into things, and then you go on to restructure the problem and find a solution. So, let's see what factors would I analyze. I'd analyze six main categories. The first is the demand. Who are and what kinds of services is the demand looking for? Second factor, the workforce in the Philippines. What kinds of jobs can our people do and also what kinds of jobs do they want to do?

information they gave you or not. The second point to have in mind is you can ask clarification questions even though the question is that rich in information. But, they better be really good clarification questions. I won't ask any in this case because it seems

Third, the types of jobs. So, that's kind of how the demand interacts with the workforce. What are the types of jobs that exist and what are the advantages and disadvantages of each one and how can we capture the best types of jobs to our country?

GDP? A second clarification question that you could ask is for example, is the government looking for short-term stimulation or more into the long-term to shift a bit of the country's economy into this type of work?

The fourth are what I'm calling the brokers, which are the companies or whoever ma

relevant, the interviewer is going to be like, "Whoa, guy. I just I just gave you this much information and you're asking me this question?

Doesn't make sense. Okay? So, now it's time for you to pause the video and structure your case. 10 to 15 minutes if you're in skill building mode, that's probably the mode you're in. And then come back to the video and watch my own

answer. Now, here's my answer to the question. And one thing to notice here, which is pretty pretty interesting, is the interviewer could have asked me, "Well, how would you help them grow this or what would you do in their place? And

that would have made things a lot harder. But instead, what they did was they asked me what factors would I want to analyze. And by asking these specific questions that are with this specific phrasing, which is pretty common at

McKinsey mainly, but can happen in other firms as well, they're making my job a lot easier.

If they had asked me how would I help them or what what should they do, then I would need to create a step-by-step plan. But instead, they're just asking me what factors would I analyze. So, I don't have to create a step-by-step

plan, which makes things a lot easier. And actually, it's how most projects start. Uh you start by looking into things, and then you go on to restructure the problem and find a solution. So, let's see what factors would I analyze. I'd analyze six main

categories. The first is the demand. Who are and what kinds of services is the demand looking for? Second factor, the workforce in Philippines. What kinds of jobs can our people do and also what kinds of jobs do they want to do?

Third, the types of jobs. So, that's kind of how the demand interacts with the workforce. What are the types of jobs that exist and what are the advantages and disadvantages of each one and how can we capture the best types of jobs to our country?

The fourth are what I'm calling the brokers, which are the companies or whoever matches the demand with the workforce. I imagine that these international companies are not calling random Filipinos to to to offer them work. They're probably going through some broker, which could

be a marketplace, some kind of a an internet website that lists these people, or maybe a company that hires these people, and so on.

Uh fifth, the infrastructure, so everything that surrounds these workers and let them work. And then finally, the government, because we as a government have a role here and can we fulfill that role?

So, let's start with the demand first. The first thing I would look into the demand is from which countries and which industries are these companies that are currently hiring our people.

And I just want to get a lay of the land to see who are these people? Are they Are these multinational companies? Are these small companies? In which proportion for each? And from which industries? Are these software companies

or maybe, I don't know, engineering companies? We need to to to take a look at that just to see who's giving work to our people uh now, because these are probably the most interested people. Second, what are they

looking for when they outsource these kinds of services to a country like the Philippines? So, one hypothesis here is they they just want to cut costs and uh and that's it, which wouldn't be a really good hypothesis because as we

offer more of these services and our people start earning more, then there won't be a lot of upside after that. But maybe, maybe they're looking for other things as well. For example, maybe they're looking for people to work on some tasks

overnight. So, their business runs more smoothly. So, because the Philippines is in a different time zone from most of the western world, this could be the case.

Or maybe they're looking for uh sure, cost savings, but also skilled people who can speak really good English and who are really friendly. And this might give us a competitive advantage over other countries that might not have such a good English-speaking population

and so on. So, these are some hypotheses that I'd look for here. But the point is, what are the specific things these companies are looking for when they hire our services or the services of our people?

Third, what types of jobs that these uh companies have, what kinds of tasks can be outsourced versus what they're outsourcing now? So, my hypothesis here is that maybe they are outsourcing basic tasks mainly, but there's a lot of other tasks that

they could be outsourcing if we had the people with the skills or if they knew that we had the people with the skills.

So, maybe they could be outsourcing uh software engineering. And it seems like they're doing a bit of that, but maybe they could be doing more. Maybe uh they could be outsourcing not just design web design, but also design in

general. So, branding, for example. And I want to know just to see if there's uh room for growth in the future. And then fourth, what are their concerns and obstacles when doing this? For the companies that are interested in

outsourcing uh work to the Philippines, but that are not currently doing that, why are they not doing that? And the hypothesis here is that we as a government can clear some of these obstacles, some of these concerns, and

increase this market. Now, let's look into the workforce. There's a few things that I would look here. First, how skilled is the workforce or our population in the types of jobs these companies are outsourcing? So, for example, when they hire a web designer

from the Philippines uh or maybe even a personal assistant, are these people really skilled and uh competitive in terms of skill with people in their own country, in their developed countries, or are they just a cheap alternative? If they're just a

cheap alternative, maybe we want to change that. Second, how well do they communicate in terms of language and cultural differences? So, in the first bullet point, I was looking at hard skills. Uh now I'm looking at communication, culture, understanding of cultural

differences, and more into the soft skill side. And third, are these people are are Filipinos interested in working in this type of job? And if so, why or why not?

And the idea here is just to understand, we as a government, are we stimulating an industry that uh has the population interested in working in this? My hypothesis is that yes, they're interested. I mean, they're doing it already without any stimulus. And also,

it seems like the job pays more, gives them more flexibility, perhaps uh lets them in in working uh more uh advanced work or more interesting work. But we want to check that with the population, with the people who are

working these jobs. Maybe they're just doing it because they have no alternative, and they very much prefer working in other industries. So, it would make sense to stimulate these other industries.

Now, onto types of jobs, a few issues. First, what are the types of jobs that are outsourced to other countries and not to the Philippines and why? One that comes to mind here is a lot of IT stuff

is outsourced to India. Maybe it's not to the Philippines, and I'd like to understand why not uh if we could grab some of that as well.

Uh second, how can the Philippines move up in the value chain into higher paying jobs?

So, I've talked a little bit about that earlier, but the idea here is to kind of create a ladder for the jobs uh that we have. So, maybe we're doing a bit of coding, but not yet software design and

not yet user experience uh design for software or higher levels of coding and I'd like to know what are the next steps to have Filipinos earn a larger wage because I'd like to simulate those better.

Third, what are the new industries that are coming up that we can specialize early as a country? So, I remember a few years ago where when social media started uh becoming a big deal and there was this new job which was social media marketers

and these people I mean, it was kind of a new job. No one took it seriously at first and now it's a huge industry. It's a job that employs a lot of people and whoever became good at that at first probably has a big

advantage now. So, I'm trying to look a bit ahead to see what are the new industries that are coming up that we can specialize. So, maybe AI I don't know, maybe something blockchain related. The I don't know if it makes

sense. But the idea is to be ahead of the curve so that we can get better paying jobs and maybe even become a global reference in these types of work of jobs or work.

Now, onto the brokers. As I've mentioned, they're businesses and marketplaces are potentially. I want to know what are the main ones that connect companies to the Filipino workforce and I want to just get an understanding of who they are, why they do it, and maybe

talk to these people to understand how attractive this market is, and how what are the main difficulties.

These people probably have a lot of information about the demand and about the workforce that is information earned on the field.

So, I'd like to talk to some of these brokers. And here I'm looking at marketplaces online, probably, maybe offline as well, but also businesses that might employ Filipinos to sell their work to companies abroad.

And then the second thing here is how can we stimulate more and better brokers? If we are to stimulate this market, these guys could be a key because how is the demand supposed to find the workforce? How are the workers

supposed to find the demand? And I guess that the answer is with brokers. We could think of having a government broker, but I think the private sector would probably do this better.

Fifth bucket, infrastructure. I see three types of infrastructure. First, telecom internet because these guys are going to be doing remote work. Second, training. So, what are the schools, private or public, and what are the resources that the country private or

public sector offer to Filipinos to learn these skills? Social media marketing, coding, being a good personal assistant. I mean, there are personal assistants that are paid a lot of money because they're able to organize and schedule an executive's

work and schedule very efficiently and effectively. So, we we want our our population to be good at doing these types of jobs. And finally, money transferring. How easy it is to money to transfer money from foreign companies to Filipinos?

This could be a hurdle because if if it takes a lot of time for a Filipino to get paid or if they're suffering huge fees from banks or whoever's doing this or if it's too hard for companies to to

exchange money, we want to make it as as easy as possible. And finally, as the government, we have a role to do this project and try to make it better for the other five buckets. Let's put it that way. But

also, we want to taxation for this type of job to be not too high and not too complex.

Probably as simple as possible. I can see that it could be really complex and the hypothesis here is that it's a service export.

It's hard for the government to control it unless the government's prepared to do it. And if it's something new, maybe the government doesn't know how to handle it, so they make it complex, so they they get paid. But we don't want to

put barriers into this new industry because of complexity. And the second thing is the bureaucracy.

Is it making this work informal or unfeasible? And the idea here is if the government or the work ministry or something like that, if they don't have a framework to to think about this type of work, then maybe it's hard for

people to be legal doing this type of work or be doing this type of work in a way that gives them job security, maybe social benefits or social security, and so on. And we want to make this type of work as

clean and legal, I'd say, as well seen by authorities as possible if we want to stimulate this industry.

So, these are the main factors that I'd look for, uh, that I'd analyze in order to help the government of Philippines stimulate the service exports industry and I'd start with a study of demand and of the workforce.

But, I think the easiest way to get all this information is going through to the brokers. So, I want to to study the demands and the workforce because these are the two main parties here.

Uh, so the I'd ask the questions within those buckets, but if I were to uh actually get these answers the most efficient way, I'd probably spend a couple days talking to the main brokers, to the main businesses and marketplaces that connect

the two sides because my hunch is that they have a lot of good information.

But, I'd start with those two buckets first just to see if there's a match between demand and workforce.

Now, let's debrief this case for a bit. It was pretty long framework. It is a complicated complicated complex problem.

Uh, so let's try to understand the decision makers, the interfaces considered following our step-by-step approach to build our own frameworks as we've discussed in the context breakdown technique video and also the function in the system. So, if you're able to

understand how I got to those buckets as decision makers, as interfaces, and if you understand uh, what's their function in the system so you can understand why I asked those specific questions, then you're going to understand how I

made this framework and this is the main topic of this debrief. After that, I'm going to do a business sense quote-unquote because it's not business uh debrief so I can talk through some of the main issues in this case. So,

this is an economic system, right? We're talking about an economic relationship between the Philippines and the rest of the world in a specific industry. So, we need to think about supply and demand as with always all economic systems. So,

this makes sense for the two first buckets. Demand, which is the demand of course, and the workforce, which is the supply of work. And what about their function in the system? The function of the demand in this system is to generate

quality work for Filipinos. And you can define quality in a variety of ways, but I think the simplest is work that pays well.

This is why these people are working for these international companies. And the function of the workforce is to do these jobs with skill and motivation. So, everything I've asked about the demand is uh some in some way regarding their

ability to generate quality work for Filipinos. And everything I've asked about the workforce is in some way regarding to whether they can do these jobs with skill and whether they're motivated to do these jobs.

Now, as with many supply demand relationships, there are things in the middle. There are things that help the demand meet supply and the supply meet demand. And the two things here are types of jobs and brokers. So, types of jobs is the

kind of conceptual interface between demand and workforce because they determine what these people are doing and to whom.

And they determine the wages and the skill needed. So, I need to understand what type of what types of jobs are these people doing to these companies?

And what types of jobs do we aspire them to do? Right? So, if we just take it for granted that they're just going to be virtual assistants, I mean, that's fine. That's a a fine job to have, but maybe we want

them to be better paid in the future. And then, to do that, uh they're going to need different skills so that they can do different types of jobs. So, we need to understand that. Also, we want them to

do jobs that are here to stay. So, uh I didn't speak of that, but it would be a good uh hypothesis to raise. What if a lot of these jobs are uh automatized by AI in the future?

Wouldn't we be creating an economy that's uh fragile? Maybe we want to do types of work that is harder to be automatized. Maybe design work, maybe uh programming uh instead of scheduling, which is something that maybe Google uh automatizes in some way in the near

future. So, I didn't raise that issue, that hypothesis, and probably I should have. It's a really good one.

And then, the other interface between the man and supplier, the brokers. They match demand with the workforce. They can be real brokers.

So, actual marketplaces, uh places where the demand meets the supply directly. Or they can be companies that hire the Filipinos.

And the international companies just hire the services of these companies. And they take on the demand risk. So, they're employing Filipinos uh with stable employment. And if demand surges, they make some money. If demand drops, maybe they make less money or

even uh have a loss for a few months or years. Uh so, they take on the demand risk. So, I've called these guys brokers because they match demand with the workforce.

And we need to understand how they do it, and they probably have an important role in the system. Otherwise, they can be theoretical demand and theoretical supply, but if they never meet, then it's not going to happen. It's going to be all latent, and

we're going to be losing an opportunity here. Now, the two other things that I've considered are infrastructure and government. And these are kind of structural interfaces. They're not direct interfaces between the demand and supply. They're things around the system

that makes the system work. Call it the lubricant oil in a machine, if you will.

So, the oil doesn't make the machine work. It enables the machine to work. So, the infrastructure is there to give Filipinos the tools that they need to work. And these tools can be real tools such as internet, bandwidth, telecom

services, and and uh payment systems, but they can also be kind of metaphorical tools such as training. But they need these things to to do the work. Other And if these things are not in place, maybe they want

to work, maybe they have the potential skills to do that, but they can't do it.

And the other one is the government. First function of the government is to help kick-start the system, which is why they're hiring us. So, I didn't talk [clears throat] much about that. This is all the other things that

they need to understand to know how to proceed. But the other function of the government is to allow Filipinos to have job security in this type of work. So, they know that they can do this, and they will be able to provide for their

families. Now, one thing I didn't mention here is competition. And there are two points I want to make about this. The first one is it could work. I mean, other countries are outsourcing hubs such as India.

And maybe we want to study these other countries uh because we want to know how do they get demand for exporting services through through the service industry of their citizens.

And are we in competition with them? Can we do something about it? Well, you could use a bucket like that. It's nothing wrong using it. But our goal is not to force fit the three C's.

Our goal is to think from first principles and to understand what types of decision makers and interfaces do we need to consider. What is their function in the system? And thus, what types of questions do we need to ask to help

these clients, the government of the Philippines, to to achieve their goal. And I personally don't think competition is that relevant of a bucket.

Uh and the reason is let's say India exports a lot of services and perhaps even some of the same types of services, presentation design, web design, uh coding.

What can we do about it as a government? We can't tell them not to do it. We can't directly uh improve our own product or services a company can uh because we're a government. All we can do is to give the tools of our to our

citizens to improve to the brokers or the businesses that uh connect these people with the demand. All we can do is to enable our our country to be competitive.

We can't do much about other countries. So, I can see uh how this category would be relevant.

But, if you found interesting, insightful questions, and you chose to do it, that's fine. Just try to think for yourself if you used the competition bucket. If you really had interesting things to think about it, and if you had actual

interesting questions, or if you were just force-feeding the three Cs, and just working via inertia, just doing what you're used to do in a business case, because this is not a business case.

So, think for yourself if you if you actually thought from first principles of or if you were just using something you're used to use.

Now, to our business sense debrief, and I put business sense in in air quotes because it's not business, it's public sector, although it is economics.

Uh but, anyway, uh let's talk about the issues in this case. There are four issues that I call required issues, which means if you didn't talk about them in some way, shape, or form, then you made a mistake, and your interviewer

is going to notice that. And the first one is you need to talk about what is the demand looking for, including the criteria for outsourcing. How do they choose if they outsource or not, and how do they choose to where? Is it just

cost? Is it uh do uh English language skills? Is it hard skills? Is it friendliness?

Uh I don't know. Taxation, bureaucracy. All the things that I've talked about in the framework that are related to what is the demand looking for? If you don't know what is demand looking for, you can't do anything as a government or

even as a business, you can't know what to do unless you understand why uh these companies are outsourcing to the Philippines.

Second required issue is latent demand. So, uh I gave some clues in the case question and the thing here is this new industry is uh emerging on its own. It's just happening. The government didn't do anything about it. So, it's probably not

well explored yet. Not because the government didn't do anything about it because but because it's so new and everyone's trying to make sense of it. So, there's probably a lot of potential demands that didn't uh become real demands yet. Maybe because

the the the the clients and the companies abroad have concerns and objections. Maybe because our population isn't trained into something really important for these companies.

Uh and we could train them. Uh maybe because uh just one industry abroad has uh found out that they can do this, maybe the software industry, but other industries that could benefit from it are not aware yet.

So, you need to talk about latent demand because that's what's going to make this uh this industry develop in the country.

The development of the industry needs to come from somewhere and this is the potential demands that is not used yet.

Or in other words, latent demand. Third required issue is the types of jobs, and this is first because it's important. You need to know what these guys are working on, but second, it's mentioned in the case question. I've mentioned a ton of types

of jobs that these guys are doing, and I kind of categorize them into simpler jobs and more sophisticated jobs, social media marketing, uh programming, and so on.

And I was giving clues here. I was giving clues that you need to look into that because it's important.

You need to look into the types of jobs that I mentioned and the types of jobs that I didn't mention, and maybe that that they're not doing yet, but they could be doing. And also, I gave clues that there are jobs that

are more advanced than others, which is important because uh it's implied that they pay more as well, which is nice from a government perspective because they want their citizens to earn more uh so that the economy can develop.

Finally, hard and soft skills versus job requirements. So, as we talk about types of jobs, latent demand, what is the demand looking for, these things are uh interrelated in this last bullet point, which is what are the hard and soft skills that our

citizens have? And what are the job requirements for type for each type of job, for each type of client? Uh because if we can match those, then we can develop this, and this could be one key for uh the case.

Uh maybe the answer of to how should the government of Philippines stimulate its service exports industry is by matching their citizens' hard and soft skills versus the job requirements of the types of jobs that they want their citizens to be working at. And

maybe it's not. I don't know. You need You need data to confirm or disconfirm that, but this is a really strong hypothesis.

Now, there are two what I call standout issues. So, issues that make you stand out to your interviewer. And there are probably more. As in every case, I can't predict uh every insightful uh thing that can come up, but I can

give examples of those so you can see what these look like. One of them is how to get better paying work in the future. And as a bonus, new job trends. So, what I mean by this is uh

you as a government can be thinking about how to get work for your citizens through this new uh service experts industry.

But, you can also think about how to use this as a platform to develop the skills of your citizens to become much better.

So, just to to give you an analogy of what I mean by this is maybe two decades ago, 20 years ago, China was known for manufacturing uh poor quality, really cheap products.

[snorts] And I'm making a generalization here, so any of you guys who are Chinese uh don't get offended by this, but it's just how it was back then, at least in many people's minds.

And China could have uh kept manufacturing this and grown their economy through more cheap stuff.

Uh but, what they chose to do instead was to use the money that came in as they were selling a lot of stuff to the rest of the world to develop their skills, their technology, their factories, their workforce, so that they

could build better stuff. And nowadays, they're leaders in many many technologies. So uh just to give one example, why is the iPhone manufactured in China? One reason is it's cheaper than in the US. Another reason is a lot of the suppliers who

have the technology are in China. So, for example, the leader in uh small cameras for smartphones is in China, and it's a Chinese company, and as far as I know, no company in the West knows how to do smartphone cameras, the

small cameras that go in your iPhone, as well as they do. So, same thing here.

How can the Filipinos, they they might start doing uh low-wage job, but they could use this to develop the skills to get better-paying work in the future.

So, the government can think of that, and this makes your structure stand out. As a bonus, think of new job trends.

This could be positive or negative. On the positive side, what are the new uh uh jobs that are emerging in the world that are not really job categories yet, but that will be in the future? So, just like social media marketing was maybe 5

or 10 years ago, what are the jobs that are coming up? And on the negative side, what jobs are going to be automated through software?

Right? Uh you don't see you don't see a lot of spell checkers nowadays. There were people who worked with that back then. You don't see a lot of those nowadays because software does it all.

And there are many jobs that are going to be automated away, and you don't want to be doing those jobs because you're going to train a whole population to do that, and then 3 years from now, uh some guy in a garage in Silicon

Valley just or maybe Google develops a software that does that work. And then the second issue is infrastructural factors. And I'm putting this in a generic way here because it doesn't really matter if you get all of them, but the idea is to show

the interviewer that you understand that there's a lot more to to the system than just having the right workers and having the demand. You need also the training. You need good internet. Maybe the Philippines is isolated because they're

island they're they're a nation of several islands and maybe a lot of those islands don't have good internet because no one's done the the no one's passed the the ocean cables.

And if you're to develop this this industry, you need the infrastructure to do so. And the financial infrastructure as well. And there might be other types of infrastructure that I missed, but the idea is you need to bring some

infrastructural factors to stand out. And if you did so, you will stand out because a lot of candidates will go through this case and not mention internet connection. I know it sounds silly, but it is really really important. If you want to develop an

economy thinking about the infrastructure is something that I wouldn't say most candidates wouldn't do, but I would say that a lot of candidates would not. And if you did, you will stand out in some way.

Okay. So, I hope this video gives you more clarity on how to structure public sector cases.

It's not hard if you know how to think from first principles, if you try to understand the role of each uh part of the system within the system, but it's definitely different than structuring business cases because for most public sector cases, you'll not

have seen the the problem uh or a similar problem before, and I hope that I gave you the sense as well with this type of case of stimulating an industry. And I hope you've liked it, and I'll see you in the

next video.