PH joins elite list of mature locations for software services

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[/caption] This was revealed by Philippine Software Industry Association (PSIA) president Nora Terrado during the PSIA?s first general membership meeting for 2012 held in Makati City recently. Citing the Everest report, Terrado said the Philippines is currently ranked with China, Brazil, India, and Poland as mature locations for having more than 50 software services operators. The Dallas-Texas-based Everest Group advises top corporations on how to improve business processes by tapping global services. A combination of large-scale campaigns to foreign markets as well as growing demand for outsourced work on software services have drummed up support for the Philippines? software services sector, Terrado said. Terrado also noted that new digital platforms, particularly mobile phones and other handheld devices, are becoming more widely used by consumers, causing an influx of research and development into these areas. The Philippine software industry has been growing at a double-digit pace. In 2011, it grew 37 percent over the previous year and generated total revenue of $993 million. It is also among the fastest growing outsourcing sectors in the country, reporting a manpower growth of nearly 50,000 full-time employees last year. Citing another report by research firm Gartner, Terrado said the Philippines can still compete against other countries that are offering software services, such as Vietnam, Ukraine, Argentina, and Chile largely because these countries are overcome by several challenges such as low-wage rates, high employee attrition rates, visa issues, and increased financial and governance vendor scrutiny, among others. ?The countries that will overcome these hurdles will be the ones who will emerge to be more successful. The Philippines continues to surpass these concerns and we could emerge as among the most viable locations for outsourced software services,? Terrado said. The IT executive added that there are certain trends in the information technology outsourcing (ITO) landscape that the software industry sector in the Philippines can take advantage of. For one, offshore clients are becoming smarter and are demanding more value-added services from their providers, she noted. But Terrado said that, while the Philippines is enjoying unbridled positive perception from the global market, it does not mean industry players should be complacent. Software companies, according to her, must still focus on competitiveness, enhancing market share and positioning, develop better talent, and build a cooperative network among relevant stakeholders. ?The Philippines is already in a leading position in the global sourcing market. To retain its position, the country?s software companies must anticipate, envision, maintain flexibility, think strategically, and make changes to create or sustain a viable future for the industry and the country,? she added. Terrado said that PSIA targets to provide software services to other source geographies identified by the Everest report, which includes Canada, Australia, the United Kingdom, Norway, Sweden, Finland, France, Italy, and Germany. ]]>

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