Information Technology in The Philippines

Impacts of National Information Technology Environments on Business

Software Development

The software and services subsector has been a consistent export winner, with export revenues reaching US$206 million in 1996, up by 51% from the US$125 million in 1995, which was a phenomenal increase from the US$66 million in 1994. Target exports by year 2000 is US$300 million.1 Most of the country's software exporters only serve as subcontractors for bigger software producers in other countries such as the United States.

Given the export statistics, Philippine market share is very minimal considering the size of the world market. Worldwide IT industry revenues topped US$1 trillion in 1996, with the US reporting $747 Billion or three fourth of the worldwide IT revenues for 1996. The figures represent growth of 6.5% and 7.8% over 1995 figures, respectively. The world software market was reported at US$253.9 billion in 1996, up by a tenth from US$230.8 billion in 1995.2

Though the IT21 Agenda is making efforts to increase the nation's niche market in software production, still, many major players are US owned businesses who have decided to move their software services in the Philippines for the Asia-Pacific region. Some of these players are:

  • Andersen Consulting Manila
  • Computer Associates Philippines
  • Linux Philippines Corporation
  • Microsoft Philippines
  • Oracle Philippines

    There are several software resellers in the country, some of these are listed below:

  • ACA-Pacific Philippines
  • Phil-Data Business Systems, Inc.
  • Compulab, Inc.

    As seen in the chart below, there has been a significant increase in the IT spending by various sectors. The software industry is increasing as more and more Filipino users and businesses move online, purchasing individual PCs and software for those machines to handle their growing economy. Though these numbers are a bit outdated, the 67% change in sales for software (US$35,000 in 1995) shows a significant increase in interest and demand for software in the Philippines. As well, it projects a healthy boost in revenue and optimism for software development, ensuring that this industry will continue to grow in the Philippines. However, sales are still a small percentage of total IT sales in 1995 (US$2.2 million) and the software industry must still continue to push investment and growth in software development in order to make its presence in the Philippines recognized. Recent assistance from foreign players will have a large impact on the software development success as companies such as Andersen Consulting, Microsoft, and Oracle offer various training programs, teaching engineers and computer science graduates software solutions to meet their clients' needs.

    Net Sales (in PhP) of the Country's Top 350 IT companies, 1994-19953  


    Sector 1995 1994 % Change
    Hardware 7,800,458 5,559,357 40
    Software 1,401,254 838,086 67
    Computer Peripherals 15,274,284 10,134,188 51
    Computer Accessories and Supplies 3,245,984 1,784,566 82
    Computer Services 3,287,344 2,431,626 35
    Networking/Online Services 39,025 19,206 103
    Other Office/Business Machines 2,527,670 1,887,910 34
    Telecommunications Services 39,998,002 32,139,721 24
    Telecommunication Equipment and Accessories 15,579,127 12,233,523 27
    Total 89,153,148 67,028,523 33
     

     

     

     

     

     

     













    This site was developed for
    Impacts of National Information Technology Environments on Business
    Kogod School of Business
    American University, Washington, DC.

    Created by Bree Connally

    This page was last updated: December 11, 1999