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ICT Investment Trends in the Philippines: Technology and business initiatives push ICT investments strategy

ICT Investment Trends in the Philippines: Technology and business initiatives push ICT investments strategy

Summary

ICT Investment Trends in the Philippines, presents the findings from a survey of 64 Philippine enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Philippine enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.

The report illustrates the core technologies that enterprises are investing in, including IoT, enterprise applications, business intelligence, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in the Philippines. Through GlobalData’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in the Philippines.

Driven by buoyant domestic demand, and stable macroeconomic environment of low inflation and low debt to GDP ratio, Philippine enterprises are looking forward to increase their ICT budget in order to expand their operations and compete globally. According to the Asian Development Bank (ADB) forecasts, GDP growth accelerated from 5.9% in 2015 to 6.8% in 2016, and is expected to reach a moderate level of 6.4% and 6.6% in 2017 and 2018, respectively.

In particular, it provides an in-depth analysis of the following -

  • How ICT budgets are set to change in 2017 in terms of their overall size
  • Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting
  • Distribution of ICT money in areas such as the networks, applications, service desk, and data centers
  • Which ICT functions Philippine enterprises are interested in outsourcing
  • Philippine enterprises’ investment priorities based on their budget allocations across core technology categories such as IoT, enterprise applications, business intelligence, and cloud computing
  • Factors that are influencing Philippine enterprises’ investments in each technology category
  • How Philippine enterprises’ IT budgets are currently allocated across various segments within a technology category
  • Philippine enterprises’ distribution of their ICT budget across various segments within a technology category
  • Vendor satisfaction ratings for various core and advanced technology categories
  • Insight into Philippine enterprises’ preferred buying approaches
  • Business and IT objectives that Philippine enterprises are looking to achieve through their IT investment strategies
  • Factors that are influencing Philippine enterprises’ decisions to select an ICT provider
Scope
  • Network and communications equipment, software licenses, application services, and network services are the segments primarily attracting a major proportion of the budget allocation in their respective domains of hardware, software, services, and telecommunications.
  • With regards to technology priorities, Philippine enterprises are keen to invest in enterprise applications, business intelligence (BI), IoT, and cloud computing as the highest percentage of respondents are planning to spend on these domains in the coming two years.
  • GlobalData’s survey results further reveals that Philippine enterprises value ‘competitive advantage’ to be an important factor guiding their investment strategies, while ‘solution design’ and ‘expertise in industry’ is their primary preference criteria for choosing ICT vendors.
Reasons to buy
  • Understand how the Philippine enterprises ICT landscape is set to change in 2017 to prioritize your target market
  • Comprehend how ICT money are being allocated by Philippine enterprises in specific verticals and size bands to improve your market penetration
  • Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
  • Realign your sales initiatives by understanding the current strategic objectives of Philippine enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (IoT, enterprise applications, business intelligence, and cloud computing)
  • Prioritize your focus areas by understanding which factors are influencing Philippine enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business objectives that Philippine enterprises are looking to achieve through their ICT investment strategies


  • Key findings
  • Key implications for ICT vendors
    • Philippine enterprises are investing in various ICT domains in 2017 to achieve competitiveness
    • Survey demographics
    • Philippine enterprises are investing heavily in various ICT domains in 2017
    • Hardware expenditure leads the list of external ICT budget allocations among Philippine enterprises
    • Network & communications equipment constitutes the major portion of hardware expenditure among Philippine enterprises
    • Software licenses constitute the largest share of the average software budget allocations among Philippine enterprises
    • Application services is dominating third-party IT services expenditure among Philippine enterprises
    • Network services are dominating the telecommunications expenditure among Philippine enterprises
    • Cost effectiveness and higher scalability and flexibility are driving Philippine enterprises to invest in SaaS
    • Private cloud is preferred by Philippine enterprises to safeguard their data on the cloud
    • Philippine enterprises are investing largely in data centers to manage the growing volume of business and customer data
    • Applications is the most popular outsourcing function among Philippine enterprises
    • Philippine enterprises are focusing their investments in autoID & mobility technologies
    • Microsoft leads the list of IoT vendors among Philippine enterprises
      • Enterprise resource planning (ERP) and vertical-specific solutions are expected to gain traction among Philippine enterprises in the next two years
    • Philippine enterprises consider Adobe to be the leader in the enterprise applications domain
    • Philippine enterprises are focusing on increasing their investments in social sentiment analysis and real-time business intelligence
    • Microsoft leads the list of BI vendors among Philippine enterprises
    • Investments in the SaaS is set to gain momentum among Philippine enterprises
    • Google is the most popular cloud computing vendor among Philippine enterprises
    • Competitive advantage is the prominent business objective influencing IT investment strategy
    • Solution design and expertise in your industry remain the most important criteria for choosing an ICT provider
    • The IT department holds the key decision making responsibility for cloud-based products among Philippine enterprises
    • Appendix
    • Definitions

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