Terms of Reference. Program: Youth Employment Services YES

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1 Welfare Association June 30, 2009 Terms of Reference Program: Youth Employment Services YES Main Objective: To facilitate opportunities for regional and international businesses to set up outsourcing entities in Palestine employing Palestinian human resources Needs and Feasibility Assessments Paper: Outsourcing mechanism set up and operational

2 I. Introduction Welfare Association (WA) is a private, non profit foundation established in Geneva in 1983 to support Palestinian society in sustainable development. WA beneficiaries are more than 4 million Palestinians who are served by Palestinian non-governmental organizations, community institutions and charitable organizations in the West Bank, Gaza Strip, and 48 areas, as well as in refugee camps in Lebanon. WA has been supporting the Palestinian communities in various sectors, including the Socio-Economic Development sector. Since its establishment, WA has disbursed about US$ 145 million for Socio-Economic Development-related projects including those supporting youth. The WA is concerned with the recent high unemployment level which is both cause and effect of the economic crisis in Palestine, due largely to sever restrictions on free movement of people, goods and services into, out of and within the West Bank. While the overall reason for this situation can be referred to the Israeli measures, within this context, there are accelerating factors for high unemployment, specifically: Lack of labor market relevant competencies of human resources, lack of labor market information, and inadequate linkages and resources to access local and international employment opportunities. To take concrete steps, the WA is currently preparing for the implementation of a new employment program for youth in West Bank and Gaza, titled: Youth Employment Services- YES; a 3-year program funded by the Arab Fund for Social and Economic Development, the Swiss Agency for Development and Cooperation and the Welfare Association. The total program budget is about USD4.5 millions. The goal of the program is to increase the employability of Palestinian human resources in local, regional and international markets. The program objectives are: (1) To enhance the competencies of Palestinian youth to compete for employment opportunities in the local labor market and abroad; 2) To improve the access of Palestinian youth to the information, resources, and linkages required to make informed career decisions and gain useful employment; and (3) To facilitate sound opportunities for regional and international businesses to set up outsourcing entities in Palestine employing Palestinian human resources. The program has six main components, namely: (1) youth provided with key qualifications, (2) professional business leadership development program, (3) provision of demand-driven specialized training and vocational education for existing employees and graduates of the TVET system, (4) vocational and career guidance and counseling, (5) business start-up, and (6) outsourcing mechanism. The implementation of the six components envisages to comprehensively address the existing gaps in the service provision through facilitation and support of relevant actors in these areas for the purpose of upgrading existing human Page 2 of 6

3 capital and creating new employment opportunities; building partnerships that ultimately ensure placement of targeted beneficiaries; provisioning of services using market-based service providers; and reducing reliance on Israel. To achieve the third objective To facilitate opportunities for regional and international businesses to set up outsourcing entities in Palestine employing Palestinian human resources, the program will undertake a needs/feasibility assessment study to identify outsourcing opportunities that create employment and income in Palestine and to outline concrete business plans for companies (mainly Palestinian businesses owned and/or run by Palestinians in the Diaspora) that are willing to outsource some of their business operations to Palestine. Under the current occupation situation there is a limited ability of local businesses to generate employment opportunities for the increasing number of unemployed youth in Palestine (movement restrictions, import/export restrictions, limited market access etc.). In spite of these adverse conditions it can be assumed (based on a pilot project) that there is a potential to create additional employment opportunities, if international business and especially Palestinian businesses in the Diaspora can be attracted that would outsource some of their economic operations to the opt. This especially in economic sectors that are less directly affected by the occupation measures and for which there are locally relatively well educated/skilled human resources available (e.g. IT, translation services etc.). Also do some Palestinian businesses in the Diaspora show a certain social commitment to support the Palestinian economy if they can create a beneficial situation for their business operations and the support of people in the opt at the same time. This potential to create additional employment opportunities in the opt through outsourcing is not yet sufficiently explored since there are currently no institutions or mechanisms in place that can foster the realization of such opportunities. To take practical steps, the YES program will support and facilitate the establishment of mechanisms (partnerships) to outsource at least 12 business entities to Palestine employing an estimated number of 200 persons. II. Purpose of the Study The purpose of the outsourcing mechanism set up and operational feasibility assessment study is threefold; (1) to establish linkages and connections with international businesses (mainly Palestinian Businesses in the Diaspora) that are willing to outsource some of their economic operations to Palestine, (2) to identify with these business outsourcing opportunities that could be realized in the short and medium term and (3) to outline concrete steps that would be required to realize identified outsourcing opportunities in order to generate employment. Page 3 of 6

4 III. Scope of work WA is considering the engagement of qualified consultants/consultancy firm to conduct the needs and feasibility assessment study and to provide concrete recommendations on possible outsourcing business opportunities to Palestine. The consultants will work in close collaboration with local institutions (public, private, NGOs, WA Board of Trustees, and Palestinian businesses in Diaspora) and with the WA-YES program in conducting. the needs assessment and in the of identification of the requirements for the transition ahead. They will draw on existing initiatives and partnerships, work completed by previous consultants and research institutes, and will consider possible inputs/contributions of other parties (key stakeholders) in assisting the implementation of the outsourcing component. IV. Key issues / Need Assessment Questions: The feasibility assessment will address, but will not necessarily be limited to the following tasks: To identify economic sectors with a potential to realize outsourcing opportunities (e.g. which sector, comparative advantages, potential for employment etc.). To specify and outline all the outsourcing services or operations/entities that could be outsourced to Palestine by each identified sector To identify international businesses (mainly Palestinian businesses in the Diaspora) that consider/are willing to outsource some of their operations to the opt. To identify the requirements to realize identified opportunities To recommend the most promising option to be implemented in the frame of the YES program (pro s and con s, expected impact, sustainability etc.) To elaborate concrete business plans for the most promising opportunities, outlining the practical implementation of establishing an outsourced entity (business idea, challenges, strategy/approach, timeline, resources required in terms of human resources and funds etc) To clarify what contributions of each of the different stakeholders (private companies, Yes program, others) for the proposed outsourcing opportunities would be required to realize an outsourced (who does what, who pays what?). To study and provide recommendations about the possibilities of extending the pilot outsourcing projects already in place (e.g. Korn/Ferry Int'l, Translation House etc. Page 4 of 6

5 To identify the key qualifications and requirements (institutions, laws, procedures, youth, trainings, etc) to host international businesses outsourcing their entities and operations to Palestine? To prepare a draft report comprising analysis and feasibility assessment, scoping of work to be done, setting out the pros and cons of a range of options, recommendations, and a suggested strategic plan and timeline. V. Methodology The methodology of the work should be participatory based approach, including the involvement of key actors and stakeholders. The achievement of the complex tasks described above, will require the design of an assessment process which may make use of the following tools: Desk review: Results achieved in pilot project of WA and related YES-documents WA-related reports and information Other sources Interviews with all key stakeholders relevant to the scope of work of the assignment, especially with international companies, board members of WA and Palestinian businesses in the Diaspora (it is a must). Surveys and field level interviews with expected target groups and beneficiaries Workshops to discuss and validate findings and explore possible recommendations. Review of existing case studies focusing on some of the key issues where needed (relevant experience in the opt as well as other international experience). The consultant team will be required to propose the detailed breakdown and methodology for achieving the stated objectives of the consultancy, and a detailed work plan for completing the work. VI. Time line The assignment should be completed by October 15th, 2009 by the submission of the final need assessment report. VII. Output & Deliverables The consultant is expected to deliver a high quality report including (max pages; excluding annexes): Page 5 of 6

6 1. Concrete outsourcing opportunities (economic sectors, business companies involved, type and number of employment potential etc.) 2. concrete business and implementation plans for the most promising outsourcing opportunities 3. An executive summary both in Arabic and English and a power point presentation of the results. VIII. Selection process, requirements & Qualifications The need assessment study is recommended to be undertaken by a multidisciplinary and/or multinational team of consultants. The team as a whole will need to have the following qualifications and expertise /knowledge/ and skills: Proven experience in conducting needs assessments in the related field. Shown experience in facilitating different types of consultative need assessment workshops for comparable organizations. Institutional knowledge (private, public, NGOs, with international businesses, etc). Good knowledge about key persons and stakeholders Professionally able to assess the supply/demand for the establishment of outsourcing partnerships. Work experience in the outsourcing partnerships and establishments or FDIs. IX. Support provided by WA WA will facilitate access by the consultant to relevant WA documents/reports. Page 6 of 6