ICT: Driving the Philippine Economy

This article from mergeralpha.com focuses on one of the leading economic drivers in the Philippines that propels it to new heights–the information and communications technology (ICT) sector. This is where huge amounts of income come from to help boost and strengthen the country's economy, which is already gaining lots of ground with Asian leaders lately. Local government officials have said that the Philippines has already established the groundwork for this industry by having a reliable connectivity, transmission backbone networks and cable landing stations. These make the Philippines world-class in terms of its IT-BPO (Business Process Outsourcing) designed infrastructure, not only in its central hub of Manila, but in different provinces as well.

Major Expectations Driven by ICT

The ICT industry is expected to deliver US$ 50 billion worth of revenues by 2016 amid the continued strengthening of the Philippines’ peso. Country’s information technology and business process outsourcing (IT-BPO) industry is expected to deliver revenues amounting to $25 billion, while other ICT services such as animation is expected to deliver the other $25 billion by 2016. In 2013 alone, the IT-BPO industry’s revenues was expected to hit US$13 billion from US$11 billion in 2012, while its workforce is expected to increase to 765,000 from 643,000. BMI also forecasts Philippines IT market to be a regional outperformer over the medium term due to the low penetration of products and services, an opportunity for vendors, and the rapid expansion of the BPO industry. With government support behind the ICT industry the upside for the country is tremendous, other than the US$50 billion in direct revenues we are also projecting US$150 billion in indirect investments in the economy, through real estate, transport and telecommunications, banking, taxes and others.

The country has continually challenged the Asian leaders in the IT-BPO arena, the likes of India and Malaysia included. This is due to its huge potential from low PC penetration and aggressiveness towards its economy and income. The Philippines has already gained its global reputation early on as a call center/IT-BPO hub, but now with companies like Japan’s Nippon Telegraph and Telephone Corp (NTT) Group looking to invest in the Philippines, its growing IT market is moving to much higher value processes such as research and development. These are signs affirming the nation’s constant progress in terms of business opportunities in the technology industry. 

Read the Original Article: http://mergeralpha.com/articles/philippines-information-and-communications-technology-ict-sector-2/

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