Gov't to drive growth of RP IT sector: report

ABS-CBN News

Posted at May 12 2009 07:21 PM | Updated as of May 13 2009 03:21 AM

The Philippines' information technology (IT) services sector will see growth this year on the back of government initiatives, according to a report from consulting firm Ovum Plc.

In a report entitled "IT services market in the Philippines: a fledgling ready to take flight," Ovum said the government's various initiatives for technology adoption will drive the IT services sector's growth as these will provide opportunities for vendors that cater to domestic demand.

"While currently Philippines is a small IT services market in revenue terms, less attractive than other South East Asian countries such as Singapore, Vietnam, or Malaysia, it offers good opportunities for vendors focused on the public sector," said research author Deepika Chaubey, who is also managing analyst at Ovum.

"The various initiatives by the government will provide significant opportunities to IT services vendors in the region, and services such as implementation, integration and security will witness increased demand," he added.

Ovum said that the government is planning to establish a central authority for compiling data from financial institutions, which would facilitate easier verification of a borrower's credit worthiness.

It added that the government would be initiating the computerization of all public schools and the adoption of e-learning in urban areas.

"Once the database is fully built, there will be a sharp increase in the issuance of credit cards in the country, which will further increase the demand for data management, networking and security services," the report said.

In October last year, the Department of Education signed a five-year deal with software firm Oracle Corp. worth $380 million to roll out the latter's ThinkQuest technology program (an online learning platform) for 500 public elementary schools.

Once all public schools are computerised, the demand for web-based learning platforms, education management systems, assessment and data services, and networking services should increase, offering numerous opportuities to IT vendors.