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Philippines Information Technology Report Q2 2016

Philippines Information Technology Report Q2 2016

BMI View: The Philippines IT market is forecast to maintain a trend of strong growth over the mediumterm based on the supportive economic environment. We envisage a CAGR of 10.2% over 2016-2020 to atotal value of PHP314.1bn in 2020, making the Philippines an outperforming market in the Asia Pacificalongside other markets with relatively low exposure to depressed commodities markets such as Vietnamand India. A trend of rising household incomes will support a deepening of the retail market, while theexpanding middle class increases the scope for wider margins to vendors. This economic trend will alsoresult in buoyant enterprise confidence that will boost spending on software and services. While the corescenario is bullish, we caution that the Philippines is not immune to regional economic uncertainty, and thepotential for a hard landing in China is a significant downside risk.

Latest Updates & Industry Developments

Computer Hardware Sales: PHP109.2bn in 2016 to PHP151.2bn in 2020 at a compound annual growthrate (CAGR) of 8.0%. Our bullish household income outlook underpins our view for a deepening of thePC market and easing price sensitivity in the middle class to drive IT hardware spending growth.

Software Sales: PHP30.7bn in 2016 to PHP50.1bn in 2020 at a CAGR of 11.5%. The ongoingmodernisation of Philippine enterprises will create new avenues for software vendors, while lower-costsoftware-as-a-service solutions have the potential to deepen the market to a greater number of small- andmedium-sized enterprises.

IT Services Sales: PHP69.8bn in 2016 to PHP112.7bn in 2020 at a CAGR of 12.8%. We expect thegrowth momentum of the business process outsourcing and cloud computing markets will ensure ITservices growth outperformance extends over the medium term.


BMI Industry View
SWOT
IT SWOT
Industry Forecast
Latest Updates
Structural Trends
Table: IT Industry - Historical Data And Forecasts (Philippines 2013-2020)
Industry Risk/Reward Index
Table: IT RRI Score Breakdown By Region
Table: Asia Pacific IT Risk/Reward Index - Q2 2016
Market Overview
Hardware
Software
Cloud Computing
IT Services
Industry Trends And Developments
Regulatory Development
Table: Regulatory Authorities In The Philippines
Competitive Landscape
International Companies
Table: Google
Table: Lenovo
Table: Teleperformance
Local Companies
Table: Microsourcing
Table: Stream Global Services
Regional Overview
Demographic Forecast
Table: Population Headline Indicators (Philippines 1990-2025)
Table: Key Population Ratios (Philippines 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Philippines 1990-2025)
Table: Population By Age Group (Philippines 1990-2025)
Table: Population By Age Group % (Philippines 1990-2025)
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

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