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Standing of the ICT Industry in the Philippines

The information and communications technology (ICT) sector in the Philippines includes telecommunications services like telephone and computer networks, as well as the Internet. Vendors of PBX systems that streamline communication across businesses help to service the country’s ICT industry.

Market Overview

Spending on information technology (IT) infrastructure, particularly for hardware, software, and services, is expected to reach $4.8 billion in 2018 and over $7 billion by 2022 in the Philippines. Greater business spending on ICT infrastructure, the cloud, and cyber solutions means the industry is open for increased robust opportunities for growth.

Filipinos are also moving to invest in smartphones for internet access instead of relying on desktop computers. An increase in IT spending and investments in smartphones mean a decrease in computer and PC sales.

Top markets that IT industries target include the telecommunications sector, financial services industries, business outsourcing centers, and the government. The government’s Department of Information and Communications Technology (DICT) agency, in particular, serves to provide sales opportunities for the IT sector.

Sub-Sectors of Information Technology

Most of the IT sub-sector remains dominated by U.S. and European suppliers. IT software and services, for instance, include the fiber optic network, cyber security, cloud services, networking equipment, database storage and management, and smartphones and tablets. Foreign-based companies provide these tools to help Filipino consumers connect with each other and improve efficiency and productivity.

The DICT is prepared to select a new player to introduce to the country’s telecommunications industry. One proposed criteria of selection is determining a company that can provide the highest committed level of service. This includes determining the extend of covered population, internet speed, experience in telecommunications, level of paid capital, and whether or not a relationship exists between the company and other current dominant players.

The high cost of entry may usually require that local interested parties find foreign partners from the U.S. or Asia to meet requirements and compete in this industry.

Improving National Cyber Security

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With the ICT growing at a rapid pace people become increasingly more dependent on technology. Unfortunately, this also increases risk for cybercrime and a need for improved cyber security measures. This problem is especially significant for those technologies considered critical to the operations of various industries.

The DICT provides oversight over non-government agencies that regulate the ICT sector as it is responsible for ensuring the security of ICT infrastructures, including information assets of the government, individuals, and businesses. They are developing a new framework to help protect both critical and non-critical IT infrastructure.

Their proposed National Cybersecurity Plan encourages the smooth operations of critical ICT infrastructure and public and military networks, develops measures to respond to cyber threats, encourages effective communication with law enforcement agencies, and promotes a society better educated in cyber security.

Increased security and resilience of critical and non-critical infrastructure can further push ICT improvements in the Philippines. This can improve communication channels and networks to improve the efficiency and output of the government and various businesses in order for them to maintain a better standing on the global stage.

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