PH now mature location: PSIA

THE Philippines is now considered one of five “mature locations” for software services in the world, according to the Philippine Software Industry Association (PSIA).

Citing reports from the Everest Group, PSIA president Nora Terrado said the Philippines is currently ranked with China, Brazil, India and Poland as mature locations for having more than 50 software services operators.

Terrado said during PSIA’s general membership meeting that large-scale campaigns in foreign markets as well as the growing demand for outsourced work on software services sustained the Philippine software services sector.

New digital platforms like mobile phones and other handheld devices also triggered the influx of research and development into these areas.

The Everest Group is a business advisory company that helps firms optimize their front-, mid- and back-office business services.

The Philippine software industry is sustaining a double-digit growth. PSIA reported that last year the industry grew 37 percent over the previous year and generated revenues of $993 million.

It is also among the fastest growing outsourcing sectors in the country with a manpower growth of nearly 50,000 full-time employees last year.

Improvements

Citing another report by research firm Gartner, Terrado said the Philippines can compete against other countries that are offering software services such as Vietnam, Ukraine, Argentina and Chile due to improvements on wage rates, employee attrition rates and visa issues as well as increased financial and governance vendor scrutiny.

“The countries that will overcome these hurdles will be the ones who will emerge to be more successful. The Philippines continues to surpass these concerns and we could emerge as among the most viable locations for outsourced software services,” Terrado said.

She said there are trends in the information technology outsourcing (ITO) sector that local companies can take advantage of, considering that offshore clients are becoming smarter and are demanding more value-added services.

Terrado said cloud computing and mobile data are among the new platforms where software development and service provisioning are growing at a rapid pace.

“Platforms being used as base for IT-based service offerings are not just labor-intensive but IT-intensive. And technology is shifting as the trend now is moving towards more mature cloud computing and mobility,” Terrado said.

While the Philippines is enjoying “unbridled positive perception” from the global market, Terrado said industry players should not be complacent.

Terrado advised software companies to focus more on improving competitiveness, enhancing market share and positioning, developing better talent and building a cooperative network among stakeholders.Value added “Software companies also need to provide greater, if not the best offerings that will compel companies to choose them over providers from other countries. Value-added services that enable customers to become better providers create brand loyalty as well as draw attention from other would-be customers,” she said.

PSIA is planning to provide software services to other areas identified by the Everest report, which includes Canada, Australia, United Kingdom, Norway, Sweden, Finland, France, Italy and Germany.