We forecast steady growth in IT spending in the Philippines over 2017-2021, with the mainengine coming from enterprise investment in software and services as they expand and modernise in theface of regional competition. Meanwhile, the hardware outlook is weaker due to the negative impact ofsmartphones on PC sales, though vendors should be able to capitalise on higher prices as households gainadditional purchasing power.
Latest Updates & Industry Developments
Computer Hardware Sales: PHP83.4bn in 2017 to PHP90.7bn in 2021 at a compound annual growthrate (CAGR) of 2.1%. The PC market has been put on a permanently lower trajectory by competitionfrom smartphones that is cannibalising tablet and low-end notebook demand.
Software Sales: PHP46.1bn in 2017 to PHP71.3bn in 2021 at a CAGR of 11.5%. Demand for newapplications from key verticals such as outsourcing, financial services, and retail will drive softwaresegment outperformance.
IT Services Sales: PHP72.7bn in 2017 to PHP108.5bn in 2020 at a CAGR of 10.5%. There is scope forservices sales growth in traditional services from both the public and private sector, while there will behigher growth opportunities as cloud computing adoption increases.