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May 2017 - IDC Presentation - Doc # AP42526517

2H16 Country Report on IT Services — Philippines

Author: Alon Anthony Rejano Market Analyst
On-line Presentation

This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in the Philippines from July to December 2016 (2H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project oriented, outsourcing, and support and training services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.

Micro, small, and medium-sized enterprises' focus on ICT is driven by basic infrastructure/connectivity requirement. Business needs are evolving as business behavior grows and changes, of which innovation has been taken into account to create competitive advantage. Meanwhile, besides productivity and efficiency, large enterprises are looking for market expansion and development platform to accelerate the innovation process. Large enterprises are more advanced in terms of ICT usage. Awareness of emerging technologies such as cloud, Internet of Things, and Big Data and analytics has grown in this segment.

Enterprises in the Philippines remained conservative and lacked planning in their ICT implementations. While a verticalized approach in selling solutions and technologies is needed, there is an opportunity for service providers to activate an ecosystem to support verticals' perspectives. The business needs of enterprises are growing and evolving. This indicates a new perspective on how lines of business provide an opportunity to be tapped on by service providers. The skill sets to connect and enable digitalization in vertical industries will be significantly game-changing.

The increasing adoption of disruptive technologies in the country drives the growth of professional services, especially systems integration and IT consulting. Customers, in general, have become more aggressive in adopting innovation related to digital transformation (DX). Even though budgets continue to be squeezed further, working with prospects on innovation may be the best way to get organizations to adopt a DX initiative. As organizations increasingly want to become digitally enabled, the spending on DX led by implementation projects around cloud and analytics will mostly offset traditional systems integration projects (e.g., enterprise resource planning implementation).