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ICT sector Philippines 2012.

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My take and observations of the Local ICT scene, s

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ICT sector Philippines 2012.

  1. 1. ICT Sector - PhilippinesNovember 2012MainstreamIT SectorGrowthAreasFutureTrends
  2. 2. SummaryMainstreamIT SectorGrowthAreasFutureTrendsTo know and get: A big picture perspective; currenttrends and current industry practicesObjectivesTake Aways
  3. 3. Games /Design /AnimationITES/ITO-BPOBig picture perspective of PH - ICTMobileTelecom/ISP/NetworkingDigitalCloud-SaaSEnterpriseResourcePlanningSystemsTechnologyEntrepreneur-shipUnclassified /UncategorizedOtherIndustrydevelopmentse-Commerce /e-Learning /e-Governance
  4. 4. ITES/ITO-BPO• Report from consulting firm Everest Group includes the Philippines as one of the five“mature locations” for software services in the world. We are currently ranked withChina, Brazil, India, and Poland as mature locations for having more than 50 softwareservices operators.• Sector growth in 2011 are as follows: 37% growth in revenues (US$1B) & 11% increasein workforce with 50,000 IT PROs hired.• Industry’s clients are 60% from American companies, and the rest from Europe, Japanand Asia Pacific.• IT-BPO industry in the country is also gaining ground as revenues for 2011 reached anall-time high of US$11 billion, 24 percent higher than the previous year with US$8.9billion.• Employee count has reached 638,319 during the period, up 8% from 525,000 in 2010.The voice sector has the most people hired at 416,000 followed by the knowledgeprocess-outsourcing sector with 128,650 people.MainstreamIT SectorThis covers IT Enabled Services (tech support), Software Development, IT Outsourcingand BPO voice & non-voice services
  5. 5. Telecom/ISP/Networking• Globe was first to introduce 4G technology in the Philippines in 2009, with thedeployment of its Worldwide Interoperability for Microwave Access (WiMax)network.• PLDT acquired majority interest in Digitel last October 2011 – Digitel delisted fromPSE in March 2012• 2011 - Globe was first to launch 4G Evolved High-Speed Packet Access (HSPA+)network. This year, 4G gets even better with LTE.• 2012 – PLDT upgraded their fixed line network an expansion of its Global AccessInternational Network (GAIN) that runs on 12 international cable systems andsupported by four landing stations; also, SMART has completed linking its MetroManila cell sites via fiber optic cable as part of its Fiber in the Loop (FITL)• 2012 - Globe rolled out fiber-optic cables, implementing its Long Term Evolution(LTE) technology [to serve high-speed data transmission to mobile phones and otherdata terminals --it is an infrastructure replacement, a brand new network, not anupgrade]MainstreamIT Sector
  6. 6. Other Industry Developments• Computer Sales: US$1.8bn in 2011 to US$1.9bn in 2012, +5% inUS dollar terms; given Philippines’ low PC penetration, manyprovincial markets are untapped territories.• US-PH council formed for biz and IT delivery: The PhilippineTrade & Investment Center in Silicon Valley (NOV.2012)-creation of the US-Philippines Business Support & IT DeliveryCouncil — a consortium composed of Filipino IT firms ExistGlobal, Ionics, Orange & Bronze, Terranex LLC, Rendition Digital,Ayannah, and Innerworks.• ASEAN ICT ministers to gather in Cebu for top-level regionalmeeting: Top ICT ministers & senior officials from Asean willattend the 13th Asean Telecommunications and IT SeniorOfficials Meeting & 12th Asean Telecommunications and ITMinisters Meeting with dialogs from China, India, Japan, Korea,the EU & International Telecommunications Union on Asean ICTMasterplan & policy directionstechnology analyst firm Gartner predicted by 2014, IT hiring inmajor Western markets will come predominantly from Asian-headquartered companies.New OS release fromMicrosoft: Windows 8Latest UI for Android OSMainstreamIT Sector
  7. 7. Mobile• Due to Pinoy’s orientation towards social networking in the mobile space, PHis regarded as a promising market for Smartphones. In 2011, 60% growth insmart phone sales was expected w/ shipments of around 2.9M units.• November 2012 - Philippines became the first in the world to experience anew service being tested out by search giant Google, which allows freebrowsing of emails, Internet searches and social network sharing via mobilephones called Google Free ZoneGrowthAreasPhilippines is still the “SMS/Texting Capital of the World”More than to5M MobileInternet UsersMore than78MFilipinos areon mobileMore thana BillionSMS sent perdayEstimated 40%of handsets are2.5G/3G enabled-- 94% mobile Penetration-- 88,119,840 mobile subscribers--24% of Pinoys access internet via mobile
  8. 8. Digital• In 2011, Philippines was given the title of the “Social Networking Capital ofthe World” with a Social network penetration in the Philippines is at 95%• With a general breakdown of online activities --Facebook: 93.9%; Twitter:16.1%; LinkedIn: 1.9%; Internet Use: 29.7%• The popularity of photo sharing has increased by 46% due to facebook andinstagramFilipinos areenthusiasticdigital consumers28M Filipinosare estimatedto beconnected.That’s close to1 out of 3people.93%Part of a socialnetwork –16.2M active inFacebook600,000Ave. activeBlogs1# in VideoConsumptionAt least aMillionBlog ReadersGrowthAreas
  9. 9. Digital“Other aspects ofdigital are shownin TechEntrepreneurshipand as well asunclassified/uncategorizedcategories.”GrowthAreas
  10. 10. e – commerce / governance/ learninge/m/Social – Commerce start-ups are locating and slowlysprouting in the Philippines (formal and informal)• Philippine E-commerce Act (PECA) was passed on 14th June 2000• Digital Filipino Club continues to attract more eCommerce localplayers• Cebu Pacific continues to lead w/ it’s online ticketing/sales• ZALORA leads online shopping-eCommerce boom• Group Buying sites still continues but dwindling in growth• August 2012 - Multiply social network, shifted it’s position to e-commerce specific for Philippines and Indonesia (Due to onlinemerchants who are majority users of the platform)• More local banks in the Philippines offer e-banking but the notable1stis Union Bank of the Philippines (1stbank website, online bankingservices, e-savings account “EON Cyber Account.”)GrowthAreas
  11. 11. e – commerce / governance/ learning• The Philippine Official Gazette is the official journal andpublication of the Philippine government inacted on September10, 1902 and under Pnoy, the Online version was launched lastJuly 2010; this also includes other online engagements such astwitter or the like.• A history in Technology for the Philippines, in 2010 the 1stautomated Philippine Elections was successfully held with theuse of the Precinct Count Optical Scan (PCOS) voting machine.• Mid-2012, Project NOAH was launched (Nationwide OperationalAssessment of Hazards) by DOST. This will harness technologiesand management services for disaster risk reduction throughenabling existing interventions available to the public such as:Data on Hazard Maps/areas, water level monitoring, or the likesolutions against storms, earthquake, landslides..etc..GrowthAreas
  12. 12. e – commerce / governance/ learningFormal and informal e – learning courses are gaining an acceptance in themainstream educational institutions as well as the industry.• Corporate Training - The first to adopt online corporate training methods were themultinationals. Ex. PLDT, MERALCO, Aboitiz Group through CBTs (Computer Based Trainings).• E-Learning, an emerging market – in the earlier days TESDA and CHED took on the task ofidentifying key skills needed by the industry.• NGO-Corporate-Academe Partnerships - program with a combined online course access,hands-on activities, & consultations via webinar such as Certified Blog & Social MediaEntrepreneur (thru DigitalFilipino.com) & Certified Digital Marketer Program [thru Internet &Mobile Marketing Association of the Philppines (IMMAP)] both under AdMU- Ateneo JavaWireless Competency Center & eLearning Edge• CBE thru CefTEx (Coalition for better Education – Center for Teacher Excellence) offers Mastersof Arts in Instructional Design and Technology (MA IDT - ICT integration Courses) incollaboration w/ CNU, Microsoft, Advocates for Living Values Education, Australian Council forEducational Leadership, International Society for Technology in Education andPugetsoundcenter, Washington USA.GrowthAreas
  13. 13. Technology Entrepreneurship• Filipinos are the top and most active freelancers on oDesk andFreelancer dot com; two of the top freelancer web sites online.• In Multiply.com, Pinoys cover 5M in users with about 50,000registered as “official” local merchants/sellers• Making money through the digital technology platforms has gainedmomentum through blogs, forums, social media and other relatedplatforms (group buying, Sulit, amazon, eBay, Alibaba, biddingsites..etc.)• Driving factors for online-freelancing are the ff. info. from CiscoConnected World Report 2010; Microsoft 2010 US Remote WorkingResearch: Higher ($) pay; 60% of employees believe they don’t need tobe in the office to be productive & efficient; 66% desire workflexibility; 62% believe they could fulfill their job duties at a remotelocation; 59% say their company does not have a formal policyallowing employees to work remotelyThis sector’s revenue and specific numbers are notdocumented due to it not being considered as mainstreamGrowthAreas
  14. 14. Technology EntrepreneurshipLocal Tech Start-ups slowly but surely develops and Start-Up support from NGOs,Government, Foundations and Private sector are starting to grow in number; tomention a few, please see below:Private SectorNGOs/FoundationsIncubators/Funding InstitutionsLocal Start Up EnterprisesGrowthAreas
  15. 15. + Games/Design/AnimationGame development is a US$90 billionworldwide industry, of which thePhilippines has a mere 0.02% marketshare, but things are looking prettygood at the moment.Several schools currently teach four-year courses in game development,including the University of thePhilippines, Far Eastern University andthe College of Saint Benilde, which wasthe first school to offer the full course inthe country. It will graduate its firstbatch of students with a degree inInformation Technology with aspecialization in Game Design andDevelopment in December 2012.Local gaming is ever active and development is rising. Some examples areZombie Fields – a mobile game app for iOS and Android and a Call-to-ActionEnvironmental online-facebook game from AboitizPower called ALTERSPACEGrowthAreas
  16. 16. + Games/Design/AnimationFreelance graphic artists are being hired in the global market through the webbut local PR firms, or the like initiatives are not only just getting more creative,but also are adapting to technology updates and trends> Infographics are being recognized as anew visually stimulating but is not that easyto make presentation of data/information.v Creative campaigns like the DOT’s “It’sMore fun in the Philippines” showcases therole of technology in pushing the campaign,& awareness causing it to become VIRALGrowthAreas
  17. 17. ERP Systems ERP systems automate this activity with an integrated software application. The purpose ofERP is to facilitate the flow of information between all business functions inside theboundaries of the organization and manage the connections to outside stakeholders. SomeExamples used in the Philippines are shown below:--Quickbooks (from Intuit): primarily an accounting software, which expanded to otherprocesses--Microsoft Dynamics (from Microsoft) Microsoft purchased the Great Plains Software for$1.1 billion.--Oracle eBusiness Suite (from Oracle) - Oracle PH, founded in 1990, is a 100% subsidiary ofOracle Corp. w/c sells products & services either directly or indirectly through bona fidebusiness partners--SAP (Systems, Applications, & Programs - SAP) –started in germany in 1972 and 1995 inthe Philippines with a portfolio of 500 clients (Top PH Corps. & SMEs)Enterprise resource planning (ERP) systems integrate internal and externalmanagement information across an entire organization, embracing finance /accounting, manufacturing, sales and service, customer relationship management,etc.GrowthAreas
  18. 18. Cloud-SaaS• Benefits of cloud computing—accessing data and applications stored onremote hardware by way of the Internet instead of keeping it all in yourlocal workstation—still requires a leap of logic for many. But now that aworkstation can go anywhere as a smartphone, a stripped-downnetbook, or even an e-book reader, its practically a virtual desktopoperating in conjunction with a virtual server anyway. If the user can beanywhere, so can the source for data and applications.• Software as a service (SaaS) -sometimes referred to as "on-demandsoftware", is a software delivery model in which software and associateddata are centrally hosted on the cloud. SaaS is typically accessed by usersusing a thin client via a web browser.• Cloud Computing can refer to software, infrastructure, hosting and manyother IT requirements that involves a remote server. SaaS refersspecifically to hosted software applications (Ex. MS Office-Word vs.Google Docs.)Cloud computing is the use of computing resources (hardware and software) that aredelivered as a service over a network (typically the Internet).GrowthAreasIn 2011 – NetSuitePhilippines deliversfirst Cloud ERPSuite for thePhilippine Market.LotusLive offers avariety of softwareas a service (SaaS)solutions for yourbusiness rangingfrom e-mail and Webconferencing, to anintegrated suite ofcollaboration.
  19. 19. Unclassified/UncategorizedFutureTrendsRise of Technology Events & communities (Formal/Informal)
  20. 20. Unclassified/UncategorizedInformation Security Awareness(Public and Private)• Software piracy remains rampant in the Philippines,despite the governments efforts. 7 out of 10 software isunlicensed, according to the 2011 Business SoftwareAlliance (BSA) Global Software Piracy Study.• Commercial value of unlicensed software also rose by 20%to $338 million in 2011, from about $278 million in 2010.• BSA is a staunch supporter of the Philippine governmentsefforts to combat software piracy. The Pilipinas Anti-PiracyTeam is composed of the National Bureau of Investigation(NBI), Optical Media Board, the Philippine National Policeand the Intellectual Property Office.• October 2012 – Philippine Cybercrime Prevention act waspassed and implemented w/c caused mixed reactionsfrom FilipinosFutureTrends
  21. 21. Areas of EngagementTakeawaysAreas to consider in the IT Sector to position yourself in.IT-Based Services: GlobalOutlookLarge Markets, and GrowingopportunitiesIT services typically include ITapplications and engineeringservices, while ITES involve a widerange of services delivered overelectronic networks.These are two broad segments,however, and the sophisticationof the services in each variesconsiderably.
  22. 22. Skills needed to SucceedAreas you can seek to develop and/or improve onTogether with the existence ofcompetitive telecommunicationmarkets, especially for broadbandservices, the availability of employeeskills is the single most importantfactor in growth of the IT Services andITES Sector.• Suitability for employment; that is, meeting a quality standard for work in the industry andhaving the necessary language skills. Educational content is often poorly aligned withindustry needs.• Willingness to work in the industry• Accessibility; that is, proximity of potential staff to a proposed IT/ITES site or a willingnessto relocate.• Trainability — those who could potentially become employable following short-termtraining courses.Takeaways
  23. 23. All images, quotes & the likebelong to their respective owners

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