This IDC Presentation analyzes in detail the market and competitive landscape in IT services in the Philippines from January to June 2017 (1H17). 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.
In 1H17, ICT development was at the core of the digital transformation journey of many micro, small, and medium-sized enterprises (MSMEs) looking to achieve a competitive edge in their respective industries. Competitive advantage in this segment has been defined as the ability of corporations to increase mobility and provide fast and efficient customer service to clients, which many have achieved mainly through the use of mobile applications. For large enterprises, there is greater focus on the ability of ICT to increase the scalability of operations. Most of the large enterprises in the Philippines are seeking market expansion and thus are more advanced in terms of ICT usage. Awareness of emerging technologies such as cloud, Internet of Things (IoT), and big data and analytics (BDA) continues to grow in this segment. Great emphasis is placed not only on tools used for data gathering but also on predictive analytics, which is essential for long-term strategic business planning.
Increasing demand for mobility and customer-centric services has led to stable growth for the custom application development (CAD) market in the country. In response to this, many of the major IT services vendors have been focusing on establishing collaborative business applications and solutions development programs with its corporate clients.
Local enterprises, on the other hand, are challenged in their DX journey by the lack of a clear strategy, poorly defined business outcomes, and the lack of skilled technical resources. The integration of cloud with existing architecture and seamless migration of data still pose major problems. These challenges will accelerate the use of professional services, especially IT consulting, for DX initiatives to help customers create a clear integration road map and identify potential problems.
The majority of Philippine organizations, regardless of size, have completed their cloud experimentation and testing phase. In 1H17, these businesses have become more confident about the cloud and are ready to embark on their cloud journey with their respective strategies. Based on IDC's discussion with end users, enterprises are more interested in tapping cloud providers that also operate their own datacenter facilities. This gives them the option of doing straightforward datacenter colocation, cloud hosting, or going for a hybrid setup. IDC believes that local managed cloud services providers with in-country datacenter facilities are in prime position to gain market share since they can easily advise how to implement a business cloud strategy that their customers feel comfortable and secure with.
Application development services, Hosted application management, Hosting infrastructure services, IT consulting services, IT maintenance and support, IT operations and implementation, Systems integration services