IT Industry Outlook In the Philippines 2021
In the future, the Philippines' information technology is expected to be one of the developing markets, necessitating hardware, software, and other IT services. IT technology is employed in libraries, hospitals, banks, stores, jails, hotels, airports, train stations, and other places through database management.
Eclectus Technologies®
Growth and Forecast
In 2020, the IT-BPM industry grew by 1.4 percent to 1.8 percent; however, growth is likely to speed up again in 2021 and 2022, with digital transformation driving much of it. Big Data and Analytics (BDA), Internet-of-Things (IoT), Automation and Artificial Intelligence (AI), and Cloud Computing are among the major Business 4.0 developments, all of which rely significantly on the IT-BPM industry. The Philippines is creating the groundwork to stay up with quickly changing times and increase its technology adoption and competitiveness by developing the AI Roadmap. In 2020, IT Services, Contact Centers and BPOs, and Animation all saw declines, while Global In-house Centers and Healthcare Services saw modest improvements, albeit growth rates will be lower than in 2019 owing to COVID-19.
In the forecast term, increasing software AI and automation, usage of Data Analytics in end-user enterprises, as well as the breadth and promise of the global information technology industry, are all expected to grow significantly. Acquisitions in the IT business have had a substantial influence on the industry's growth during the previous decade.
What it Means For Other Industries
The technical industry is undergoing a significant transformation in terms of acquisitions and investments. Social media networking platforms are providing prospects for information technology innovation. Companies have expanded their operations, developed greater expertise, and increased revenue as a result of acquisitions in the industry.
The Philippines is the largest offshore-nearshore site for healthcare services delivery, and the category is likely to continue to develop, owing to rising worldwide demand, particularly in light of COVID-19. The game development sector in the Philippines is likewise on the verge of a boom. As indigenous enterprises take advantage of global video game industry prospects, the local sector continues to flourish, with an enlarged market share and breadth of services. As a result, there's a growing chance that the next blockbuster video game may have a Filipino influence.
The country's industrial and service industries are powered by the information technology and software development industry. This industry contributes significantly to the improvement of the corporate environment, increased production and efficiency, and improved customer satisfaction. As a result, the Philippine government has gone above and beyond to ensure that these industries continue to thrive as the country prepares to jump into Industry 4.0.
Industry Spending
The Philippines' IT spending will be bolstered by private and government consumption. Because of their enormous potential for industrial growth, cloud computing and the Internet of Things are critical for market expansion in the medium future. The IT software and service component of the business has grown at the quickest rate in the last decade, aided by significant government assistance. Furthermore, the Philippines' market demand is being driven by widespread computer use, increasing internet access, and increased internet penetration. According to information technology market research, the rivalry is becoming more intense year after year as new applications and product portfolios emerge.
COVID 19
By the fourth quarter, the Philippine IT-BPM sector had already begun to show signs of recovery. In the latter half of the year, there was also a noticeable increase in IT Outsourcing (ITO) projects as customers spent more in digitalization to minimize prevalent challenges created by the epidemic and to improve their Business Continuity Plans (BCPs). While certain businesses are particularly hard hit by the pandemic, like as travel, hospitality, and tourism, IT-BPM enterprises are hiring in areas like healthcare, e-commerce, telecommunications, and logistics. Financial (e.g., fintech, insurance, financial administration), gaming, and animation are all growing in popularity, which is good news for the IT-BPM business. In addition, international and worldwide corporations will consider outsourcing or offshoring more of their activities to save money, which might boost the local economy.
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