By Kris M. Crrismundo
MANILA, Nov. 4 (PNA) — The local software industry is projected to grow by 20 to 25 percent this year with recent developments in the domestic market, Philippine Software Industry Association (PSIA) President Jonathan De Luzuriaga said.
Luzuriaga, during the Softcon.ph 2015 in Pasay City on Wednesday, said the strong growth of the industry is driven by expansions of big companies in the sector and the increasing number of digital start-ups in the country.
In 2014, the software sector grew by 20 percent — the second highest growth among sub-sectors of information technology-business process outsourcing (IT-BPO) — to USD2.0 billion from its previous year.
“Definitely 20 percent growth is already a given… That’s the average (growth) we’re getting and with all the activities that just happen for 2015, it is safe to assume that 20 percent is an easy target,” Luzuriaga said.
He added that BPO firms are now diversifying to IT outsourcing which will create higher revenue for the sector.
“Everyone is adding technology into the mix. And when you say technology, it’s always about software,” he said.
“If you remain in the transactional side of things, with all the trends happening globally, it will render you insignificant (figures) if you’re going to remain there as a company,” the official further said.
Last year, only the Philippines and India registered a positive growth in the global technology services while other countries experienced 30 to 33 percent drop in revenue, according to Luzuriaga.
However, the Philippines’ share to the global industry is only at 2.0 percent.
“The more important target would be the global IT market,” Luzuriaga said.
Meanwhile, he mentioned that the local software industry expects to close the year with around 100,000 full-time employees from 88,000 in 2014 and from 75,000 in 2013. (PNA)