Taken from
Philippines Information Technology Report
Published 13 August 2014
BMI View: We have a bullish outlook for the development of the Philippines ' IT market , which we believe will be a regional out performer over the medium term . Low penetration of products and services has left an opportunity for vendors to target the market as incomes rise and device prices decline , creating a fertile environment for a period of robust catch-up growth . Meanwhile, the booming business process outsourcing ( BPO ) industry presents a huge opportunity for enterprise sales for hardware and software vendors . Taking the market as a whole, we forecast IT spending growth of 10.9 % in 2014, with the market expected to reach a value of PHP 181.8 bn. Over the medium term emerging technologies will add to the growth momentum, particularly in the latter years of our forecast, with cloud services, big data analytics, smart infrastructure, tele-health and e-government all expected to contribute to growth .
Headline Expenditure Projections
- Computer hardware sales: PHP91.7bn in 2013 to PHP99.1bn in 2014, growth of 8.1% in local currency terms. Desktop and notebook shipments remain under pressure, but this is compensated for by the boom in tablet volumes, but, with demand shifting to lower-cost devices, increases in market value will not keep pace with unit growth.
- Software sales: PHP24.1bn in 2013 to PHP27.0bn in 2014, growth of 12.2% in local currency terms. Enterprise software penetration is low but, with the modernisation of local companies, we expect strong growth in spending, particularly for low-cost cloud enterprise resource planning systems.
- IT services sales: PHP48.2bn in 2013 to PHP55.6bn in 2014, growth of 15.4% in local currency terms. The booming outsourcing sector provides the main impetus for outperformance, but cloud computing demand is also growing.
Key Trends And Developments
- The development of the BPO industry in the Philippines is an important trend for the IT market.
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