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lovephileo's review
Investment Sector: Emerging Markets Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
2 months ago Tags: IT information technology Telecommunication Add Tag |
A look from the year 2008 ahead - expansion, optimization and consumer dynamism will have the greatest impact on the Philippine IT market and telecommunications. It has already become a buzzword, contributing immensely to the country's economic growth.
RP-IT Market strength:
Business Monitor International (BMI) expects the Philippines to be one of the region's high growth IT markets from this year onwards, with annual spending increasing from $2 billion mark in 2008, reaching US$2.0273 billion. Strong consumer growth provides ground for optimism, despite some potential challenges including the strong peso and rising wages. RP also remains a favoured destination for BPO operations, which accounts for around 30% of IT market, and there is an ambitious of five year plan for the sector. Survey shows that most companies expect expenditures on IT to rise and SMB growth is expected to be strong particularly for hardware.
IT vendors are reporting a greater demand in the Philippines for branded PCs as opposed to white boxes. The branded PC share in many other Asian countries is around 50%, but only 20% in the Philippines, indicating considerable room for development. The consumer market will drive growth in the notebook market this year. The portability of notebooks and the need to be mobile have become essential to the computing lifestyle. Further, improvements in the wireless infrustructures have led to the growing availability of wireless technology (WIFI) in areas such as schools, malls, coffee shops and restaurants. These developments have benefited end users immensely. In addition, IT will see the entry of new players making waves in specific segments of the mobile phone market; multi-media offerings in the forms of digital and audio content, to utilize new capabilities brought about by new networks and technologies that were built in the last two years aside from the basic voice and data offerings. Information Technology also anticipates the interest level in 3G to increase this year, falling prices of handsets and availability of more models catering to different purchasing skews, will further drive 3G phone ownership.
Growth in the IT service sector continues to be driven by sustained growth particularly BPO and call center services. BMI forecasts a value US$713mn in 2008, up from US$637mn in 2007. Due to evolving demand, vendors are having to pay more attention to value-added services such as technical support and product troubleshooting and basic IT and hardware consulting. Call centres are, unsurprisingly projected to be the biggest single source of earnings for IT service providers accounting for around 30% opf revenues. Overall IT market CAGR is put at 9% for the 2007-2012 period.
Moreover, strong government commitment towards IT development and manpower training will enable Philippines to become a significant player in the global information society. RP will explore possible amendments to laws, to create, amend or appeal laws and propose budgets that will make RP competitive in the information and communication technology industry. The implementation of a decentralized development program by the government , better economic conditions and an improved digital infrastructure will encourage vendors to invest in more sales and marketing efforts to capture market opportunities in areas outside Metro Manila.
RP-IT Cloudy Environment (IPRP)
IT is one of the top three industries in the world that has been filing for Intellectual Property Rights Protection (IPRP). It represents more than 10% of the protected commercialized technologies in the world, next to tele-communications. In 2007, the US came out with the most number of international filings in teh Patent Cooperation Treaty (PTC) of WIPO. Countries like Japan, Germany and France are also among those that have high number of international filings in the PTC. In Asia, Korea and Japan are among the top countries with the most PCT filings. Sadly, the Philippines has had very few patent filings. It has been ranked low in global surveys of innovation, especially when it comes to patent filing. Figures from the IP Philippines show that about 97% of patent applied for and granted belong to foreign applicants and only about 3% belong to Filipinos. It is not surprising that this country is ranked 71st out of 131 countries in the 2007-2008 Global Competitiveness Report of The World Economic Forum on technological readiness or ability to adopt technology from home or abroad to enhance the productivity of its industries.
Experiences of countries show that patent applications provide a good indicator of a country's technological innovation capacity and performance. In a sense, this might become a setback from the Philippine IT economy for not having been espousing stronger intellectual property rights protection to protect innovations. And finally, it may slow the creation of wealth and jobs for the countrywide.
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WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER
Transcript Editor, Marketing Officer-podwriter transcriptions, Event organizer, Entrepreneur, owner of memokitchen.com site at memokitchen.com
Transcript Editor, Marketing Officer-podwriter transcriptions, Event organizer, Entrepreneur, owner of memokitchen.com site at memokitchen.com
Transcript Editor, Marketing Officer-podwriter transcriptions, Event organizer, Entrepreneur, owner of memokitchen.com site at memokitchen.com