|
Thursday, June 22, 2006
Group foresees higher IT spending due to BPOs
Increased spending by small-to-medium scale businesses (SMBs) and the rapid expansion of business process outsourcing (BPO) industries this year are boosting sales of information technology (IT) products and services, according to the computer industry’s group of makers and vendors.
Computer Manufacturers, Distributors and Dealers Association of the Philippines (Comddap) president Juan Chua said members are optimistic they will perform better this year or at least sustain a 10-percent year-on-year growth in sales by yearend.
This is despite lower profit margins due to the effects of the expanded value-added tax, higher operating costs and intensified pricing pressure against stiff market competition, added Chua.
Comddap is set to open today the biggest information and communications technology (ICT) exhibit and selling show in the Visayas with the theme, “I.T.’s happening in Comdapp Cebu 2006!” The event will be held at SM City Cebu Trade Hall.
Cebu Gov. Gwendolyn Garcia will lead government officials and business leaders at the event’s opening ceremonies as guest of honor.
Influx
“The influx of call centers and other BPO businesses boost the demand for IT products and services. They are the growth engines last year and will continue to be so for the near future,” said Chua.
Sales from computer hardware and software, data management products and mobile or wireless services are expected to rise as BPO industry leaders project growth exceeding 100 percent for such businesses and 70 percent for call centers.
The BPO sector is anticipated to earn $320 million this year, according to the Contact Center Association of the Philippines (CCAP).
Commission on Information and Communications Technology (CICT) chairman Ramon Sales reported that the whole BPO industry generated approximately $1.8 billion last year.
Total BPO growth worldwide is estimated to reach $641.2 billion in 2009.
Research group International Data Corporation (IDC) Philippines, in its ICT market forecast released in January, placed total IT spending of companies this year at $1.56 billion, the bulk of which or 66.5 percent will go to hardware, while services and software will account for 23.2 percent and 10.3 percent, respectively.
Factors
“The improving economic outlook of the country is also a key factor. The inflow of remittances from overseas Filipino workers, which is expected to reach around $12 billion this year, will continue to drive consumer IT spending, particularly computers and digital gadgets,” said Chua.
The head of the 44-member Comddap also cited recent technological advances, such as third-generation (3G) cellular phones, Microsoft’s new operating system called Windows Vista, growing Wi-Fi (wireless fidelity) zones, WiMAX (worldwide interoperability for microwave access) areas and increased Internet usage, especially VoIP (voice over the Internet protocol).
“All these will drive improvement in IT sales,” said Chua.
Subscribers
There are about one million dial-up Internet subscribers in the country last year, while the latest combined figures of DSL (digital subscriber line) users, both fixed line and wireless, of major telecommunications firms has reached 240,000.
With growing broadband penetration and Web-ready cellular phones or handheld computers, IDC predicts Filipino Internet users to number over 21 million by 2008.
Last year, more than one billion people worldwide had access to the Internet, with the largest concentration in Asia Pacific at 315 million.
Overall, Chua said IT is now an integral part of any business as it is no longer possible to transact, market and pay taxes, among other things, without using IT.
“The government is also helping drive IT growth not only by promoting the country as a BPO center but also by starting to adopt IT in transactions like tax filing or license applications and establishing information portals,” he said.
Chua said technology companies are also reviewing their business strategies to efficiently respond to market needs. (PR)
For Bisaya stories from Cebu. Click here. (June 22, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
