My take and observations of the Local ICT scene, s

1. ICT Sector - Philippines
November 2012
Mainstrea
m
IT Sector
Growth
Areas
Future
Trends

2. Summary
Mainstream
IT Sector
Growth
Areas
Future
Trends
To know and get: A big picture perspective; current
trends and current industry practices
Objectives
Take Aways

3. Games /
Design /
Animation
ITES/
ITO-BPO
Big picture perspective of PH - ICT
Mobile
Telecom/ISP/
Networking
Digital
Cloud-SaaS
Enterprise
Resource
Planning
Systems
Technology
Entrepreneur-
ship
Unclassified /
Uncategorized
Other
Industry
developments
e-Commerce /
e-Learning /
e-Governance

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 with
China, Brazil, India, and Poland as mature locations for having more than 50 software
services operators.
• Sector growth in 2011 are as follows: 37% growth in revenues (US$1B) & 11% increase
in workforce with 50,000 IT PROs hired.
• Industry’s clients are 60% from American companies, and the rest from Europe, Japan
and Asia Pacific.
• IT-BPO industry in the country is also gaining ground as revenues for 2011 reached an
all-time high of US$11 billion, 24 percent higher than the previous year with US$8.9
billion.
• 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 knowledge
process-outsourcing sector with 128,650 people.
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IT Sector
This covers IT Enabled Services (tech support), Software Development, IT Outsourcing
and BPO voice & non-voice services

5. Telecom/ISP/Networking
• Globe was first to introduce 4G technology in the Philippines in 2009, with the
deployment of its Worldwide Interoperability for Microwave Access (WiMax)
network.
• PLDT acquired majority interest in Digitel last October 2011 – Digitel delisted from
PSE 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 Access
International Network (GAIN) that runs on 12 international cable systems and
supported by four landing stations; also, SMART has completed linking its Metro
Manila 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 other
data terminals --it is an infrastructure replacement, a brand new network, not an
upgrade]
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IT Sector

6. Other Industry Developments
• Computer Sales: US$1.8bn in 2011 to US$1.9bn in 2012, +5% in
US dollar terms; given Philippines’ low PC penetration, many
provincial markets are untapped territories.
• US-PH council formed for biz and IT delivery: The Philippine
Trade & Investment Center in Silicon Valley (NOV.2012)-
creation of the US-Philippines Business Support & IT Delivery
Council — a consortium composed of Filipino IT firms Exist
Global, Ionics, Orange & Bronze, Terranex LLC, Rendition Digital,
Ayannah, and Innerworks.
• ASEAN ICT ministers to gather in Cebu for top-level regional
meeting: Top ICT ministers & senior officials from Asean will
attend the 13th Asean Telecommunications and IT Senior
Officials Meeting & 12th Asean Telecommunications and IT
Ministers Meeting with dialogs from China, India, Japan, Korea,
the EU & International Telecommunications Union on Asean ICT
Masterplan & policy directions
technology analyst firm Gartner predicted by 2014, IT hiring in
major Western markets will come predominantly from Asian-
headquartered companies.
New OS release from
Microsoft: Windows 8
Latest UI for Android OS
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IT Sector

7. Mobile
• Due to Pinoy’s orientation towards social networking in the mobile space, PH
is regarded as a promising market for Smartphones. In 2011, 60% growth in
smart phone sales was expected w/ shipments of around 2.9M units.
• November 2012 - Philippines became the first in the world to experience a
new service being tested out by search giant Google, which allows free
browsing of emails, Internet searches and social network sharing via mobile
phones called Google Free Zone
Growth
Areas
Philippines is still the “SMS/Texting Capital of the World”
More than to
5M Mobile
Internet Users
More than
78M
Filipinos are
on mobile
More than
a Billion
SMS sent per
day
Estimated 40%
of handsets are
2.5G/3G enabled
-- 94% mobile Penetration
-- 88,119,840 mobile subscribers
--24% of Pinoys access internet via mobile

8. Digital
• In 2011, Philippines was given the title of the “Social Networking Capital of
the 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 and
instagram
Filipinos are
enthusiastic
digital consumers
28M Filipinos
are estimated
to be
connected.
That’s close to
1 out of 3
people.
93%
Part of a social
network –
16.2M active in
Facebook
600,000
Ave. active
Blogs
1# in Video
Consumption
At least a
Million
Blog Readers
Growth
Areas

9. Digital
“Other aspects of
digital are shown
in Tech
Entrepreneurship
and as well as
unclassified/
uncategorized
categories.”
Growth
Areas

10. e – commerce / governance/ learning
e/m/Social – Commerce start-ups are locating and slowly
sprouting 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 local
players
• 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 online
merchants who are majority users of the platform)
• More local banks in the Philippines offer e-banking but the notable
1st
is Union Bank of the Philippines (1st
bank website, online banking
services, e-savings account “EON Cyber Account.”)
Growth
Areas

11. e – commerce / governance/ learning
• The Philippine Official Gazette is the official journal and
publication of the Philippine government inacted on September
10, 1902 and under Pnoy, the Online version was launched last
July 2010; this also includes other online engagements such as
twitter or the like.
• A history in Technology for the Philippines, in 2010 the 1st
automated Philippine Elections was successfully held with the
use of the Precinct Count Optical Scan (PCOS) voting machine.
• Mid-2012, Project NOAH was launched (Nationwide Operational
Assessment of Hazards) by DOST. This will harness technologies
and management services for disaster risk reduction through
enabling existing interventions available to the public such as:
Data on Hazard Maps/areas, water level monitoring, or the like
solutions against storms, earthquake, landslides..etc..
Growth
Areas

12. e – commerce / governance/ learning
Formal and informal e – learning courses are gaining an acceptance in the
mainstream educational institutions as well as the industry.
• Corporate Training - The first to adopt online corporate training methods were the
multinationals. 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 of
identifying 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 Media
Entrepreneur (thru DigitalFilipino.com) & Certified Digital Marketer Program [thru Internet &
Mobile Marketing Association of the Philppines (IMMAP)] both under AdMU- Ateneo Java
Wireless Competency Center & eLearning Edge
• CBE thru CefTEx (Coalition for better Education – Center for Teacher Excellence) offers Masters
of Arts in Instructional Design and Technology (MA IDT - ICT integration Courses) in
collaboration w/ CNU, Microsoft, Advocates for Living Values Education, Australian Council for
Educational Leadership, International Society for Technology in Education and
Pugetsoundcenter, Washington USA.
Growth
Areas

13. Technology Entrepreneurship
• Filipinos are the top and most active freelancers on oDesk and
Freelancer dot com; two of the top freelancer web sites online.
• In Multiply.com, Pinoys cover 5M in users with about 50,000
registered as “official” local merchants/sellers
• Making money through the digital technology platforms has gained
momentum through blogs, forums, social media and other related
platforms (group buying, Sulit, amazon, eBay, Alibaba, bidding
sites..etc.)
• Driving factors for online-freelancing are the ff. info. from Cisco
Connected World Report 2010; Microsoft 2010 US Remote Working
Research: Higher ($) pay; 60% of employees believe they don’t need to
be in the office to be productive & efficient; 66% desire work
flexibility; 62% believe they could fulfill their job duties at a remote
location; 59% say their company does not have a formal policy
allowing employees to work remotely
This sector’s revenue and specific numbers are not
documented due to it not being considered as mainstream
Growth
Areas

14. Technology Entrepreneurship
Local Tech Start-ups slowly but surely develops and Start-Up support from NGOs,
Government, Foundations and Private sector are starting to grow in number; to
mention a few, please see below:
Private Sector
NGOs/Foundations
Incubators/Funding Institutions
Local Start Up Enterprises
Growth
Areas

15. + Games/Design/Animation
Game development is a US$90 billion
worldwide industry, of which the
Philippines has a mere 0.02% market
share, but things are looking pretty
good at the moment.
Several schools currently teach four-
year courses in game development,
including the University of the
Philippines, Far Eastern University and
the College of Saint Benilde, which was
the first school to offer the full course in
the country. It will graduate its first
batch of students with a degree in
Information Technology with a
specialization in Game Design and
Development in December 2012.
Local gaming is ever active and development is rising. Some examples are
Zombie Fields – a mobile game app for iOS and Android and a Call-to-Action
Environmental online-facebook game from AboitizPower called ALTERSPACE
Growth
Areas

16. + Games/Design/Animation
Freelance graphic artists are being hired in the global market through the web
but 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 a
new visually stimulating but is not that easy
to make presentation of data/information.
v Creative campaigns like the DOT’s “It’s
More fun in the Philippines” showcases the
role of technology in pushing the campaign,
& awareness causing it to become VIRAL
Growth
Areas

17. ERP Systems
 ERP systems automate this activity with an integrated software application. The purpose of
ERP is to facilitate the flow of information between all business functions inside the
boundaries of the organization and manage the connections to outside stakeholders. Some
Examples used in the Philippines are shown below:
--Quickbooks (from Intuit): primarily an accounting software, which expanded to other
processes
--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 of
Oracle Corp. w/c sells products & services either directly or indirectly through bona fide
business partners
--SAP (Systems, Applications, & Programs - SAP) –started in germany in 1972 and 1995 in
the Philippines with a portfolio of 500 clients (Top PH Corps. & SMEs)
Enterprise resource planning (ERP) systems integrate internal and external
management information across an entire organization, embracing finance /
accounting, manufacturing, sales and service, customer relationship management,
etc.
Growth
Areas

18. Cloud-SaaS
• Benefits of cloud computing—accessing data and applications stored on
remote hardware by way of the Internet instead of keeping it all in your
local workstation—still requires a leap of logic for many. But now that a
workstation can go anywhere as a smartphone, a stripped-down
netbook, or even an e-book reader, it's practically a virtual desktop
operating in conjunction with a virtual server anyway. If the user can be
anywhere, so can the source for data and applications.
• Software as a service (SaaS) -sometimes referred to as "on-demand
software", is a software delivery model in which software and associated
data are centrally hosted on the cloud. SaaS is typically accessed by users
using a thin client via a web browser.
• Cloud Computing can refer to software, infrastructure, hosting and many
other IT requirements that involves a remote server. SaaS refers
specifically to hosted software applications (Ex. MS Office-Word vs.
Google Docs.)
Cloud computing is the use of computing resources (hardware and software) that are
delivered as a service over a network (typically the Internet).
Growth
Areas
In 2011 – NetSuite
Philippines delivers
first Cloud ERP
Suite for the
Philippine Market.
LotusLive offers a
variety of software
as a service (SaaS)
solutions for your
business ranging
from e-mail and Web
conferencing, to an
integrated suite of
collaboration.

19. Unclassified/Uncategorized
Future
Trends
Rise of Technology Events & communities (Formal/Informal)

20. Unclassified/Uncategorized
Information Security Awareness
(Public and Private)
• Software piracy remains rampant in the Philippines,
despite the government's efforts. 7 out of 10 software is
unlicensed, according to the 2011 Business Software
Alliance (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 government's
efforts to combat software piracy. The Pilipinas Anti-Piracy
Team is composed of the National Bureau of Investigation
(NBI), Optical Media Board, the Philippine National Police
and the Intellectual Property Office.
• October 2012 – Philippine Cybercrime Prevention act was
passed and implemented w/c caused mixed reactions
from Filipinos
Future
Trends

21. Areas of Engagement
Takeaways
Areas to consider in the IT Sector to position yourself in.
IT-Based Services: Global
Outlook
Large Markets, and Growing
opportunities
IT services typically include IT
applications and engineering
services, while ITES involve a wide
range of services delivered over
electronic networks.
These are two broad segments,
however, and the sophistication
of the services in each varies
considerably.

22. Skills needed to Succeed
Areas you can seek to develop and/or improve on
Together with the existence of
competitive telecommunication
markets, especially for broadband
services, the availability of employee
skills is the single most important
factor in growth of the IT Services and
ITES Sector.
• Suitability for employment; that is, meeting a quality standard for work in the industry and
having the necessary language skills. Educational content is often poorly aligned with
industry needs.
• Willingness to work in the industry
• Accessibility; that is, proximity of potential staff to a proposed IT/ITES site or a willingness
to relocate.
• Trainability — those who could potentially become employable following short-term
training courses.
Takeaways

23. All images, quotes & the like
belong to their respective owners