Philippine IT market to be a regional Outperformer

It has been reported that anticipation is in the air that Philippine IT market is to turn into a regional outperformer over the next few years, with spending increasing from a projected US$2.5bn in 2010 to around US$4.0bn in 2014. Over the forecast period, with aid from the government on bridging the digital divide and other ICT programmes, the Philippines offers correspondingly high growth potential, although its has a lower PC penetration than many other Asian countries.Reflecting upon the fundamental market equation of rising incomes and low PC penetration, it estimated IT spending compound annual growth rate (CAGR) at 12% for 2010-2014. In 2009, US$26 was the per capita spent on IT which was far lower than in other Asian countries such as Malaysia, and even China. The forecast says that it will rise to US$41 by 2014.

It is expected that the wage rises for civil servants in the 2010 budget should help to boost consumer spending. There is an anticipation that 30% of the IT spending that takes place in the business process outsourcing (BPO) industry will continue to grow. Surveys last year indicated that many of the Philippines' BPO executives felt that the impact of the global economic crisis had not significantly slowed expansion.In a policy address in August 2009, President Arroyo cited the provision of low-cost desktops to public high school teachers and students as one of six priority areas for her cabinet. The Department of Education, under Chief Jesli Lapus, has unveiled a plan to provide computers in an additional 200 schools, split evenly between elementary and high schools.