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Friday, July 27, 2007
Revenues in IT to hit $218M

A study commissioned by IBM Philippines revealed that the information technology (IT) market in southern Philippines have potential revenues of $218 million.

Results of a research study conducted by Information Data Corp. in 2005 and 2006 revealed a strong potential market for the IT industry in Central Visayas, Western Visayas, Davao, Northern Mindanao, Central Luzon as well as in Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon).

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A chunk of the market will be coming from clients, servers, services and software developments, said Charis Fiel Divinigracia, IBM territory business manager for southern Philippines.

“Companies are now starting to automate. They merge IT with business people to create strategic game plans to meet the competition. If we get 100 percent of the $218 million, then so much the better,” she said.

This is why, Divinagracia said, IBM will align itself with the industry to be able to take advantage of the market growth in Central Visayas. IBM has identified Cebu as its main focus, she added.

Expansion

With Cebu’s position as IT hub for Visayas and Mindanao, she said the province has been considered by IBM Philippines as a market for expansion.

Investments in additional sites, manpower, center hubs, promotions and marketing with value partners are expected in the province within the next two years as part of the company’s geo-expansion program. This program is simultaneously being
carried out in the Asean region, Divinagracia said.

In terms of additional service centers, she said the company is currently scouting for prospective areas in key business centers in Cebu that are available for lease.

Last November 2006, IBM Philippines opened its office for Visayas at the i2 Building at the Asiatown IT Park.

The office, also known as the IBM Family Office, includes a part center hub where value partners can hold their meetings and conferences. It also doubles as a service center.

Divinagracia said the office provides customers in Visayas and Mindanao value-added service.

“This means IBM clients in Visayas and Mindanao no longer have to call or visit the Manila office for after-sales services and to order IBM hardware and software,” she said.

Roadshow

To strengthen its position in the local retail and wholesale market, IBM Philippines conducted a roadshow yesterday at the Waterfront Cebu City Hotel and Casino, which is also a component of its geo-expansion initiative.

The roadshow highlighted IBM’s business partners and retail brand solutions like point-of-sales machines used by leading fastfood chains and department stores.

The company’s local business solutions provider is Alliance Software.

“We want to grow and develop our local clients who can run on our platform by making them ‘built on express’ partners,” said Marian Cruz, IBM territory marketing manager, adding that this is the company’s way of developing co-branding with local partners.

IBM Philippines has 484 valued partners nationwide and 65 of these are found in southern Philippines.

IBM Philippines is the holding group of the IBM Group of Companies with subsidiaries that include IBM Solutions Delivery, IBM Business Services and IBM Daksh. (MMM)

For Bisaya stories from Cebu. Click here.

(July 27, 2007 issue)
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