Number of IT companies operating in PH down by 7.3%

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The number of information technology companies operating in the Philippines has dropped by 7.3 percent to 3,508 in 2017 from 3,786 in 2015.

A survey conducted by the Philippine Statistics Authority (PSA) revealed that 99.2% of these IT companies used computers and communication equipment in their business operations.

The content and media sector (99.8%) had a higher percentage of computers and communication equipment than in the ICT sector (99%).

Of the total information economy sector, 97.2 percent had Internet access, higher by 0.5 percentage point than the 96.7 percent reported Internet access in 2015.  The content and media sector (98.5%) had a higher Internet access compared with the ICT sector (96.8%).

Among the ICT industries, ICT manufacturing (97.7%) registered the highest Internet access in 2017.  On the other hand, ICT trade industries reported the lowest Internet access at 96.5 percent.

Of the total IT employees, 64 percent used computers routinely at work in 2017. This is higher by 16.1 percentage points than the 47.9 percent proportion in 2015.  Employees in the content and media sector (83.6%) had a higher percentage for this indicator compared with those in the ICT sector (62.4%).

Among the ICT industries, ICT service had the highest percentage of employees using computers routinely at work of 92.3 percent while those in the ICT manufacturing had the least at 45.0 percent.

At the national level, 57.2 percent of the total information economy employees used computers routinely at work with Internet connection or access. This was higher by 17.2 percentage points than the 40 percent reported level in 2015.

The content and media sector (80.7%) registered a higher percentage for this indicator than those in the ICT sector (55.2%). ICT service industries (87.5%) had the highest percentage of employees using computers routinely at work with Internet connection or access while ICT manufacturing industries had the least at 36.4 percent.

By region, the National Capital Region (NCR) reported the highest percentage of employees using computers routinely at work of 88 percent while Central Visayas recorded the lowest at 33.2 percent.

NCR (82.7%) and Central Luzon (20.8%) were also the regions with the highest and lowest percentages of employees using computers routinely at work with Internet connection or access, respectively.

The presence of websites of IT companies was at 44.9 percent in 2017, up by 15.4 percentage points compared with the 29.5 percent level in 2015. The content and media sector (51.1%) had a higher percentage of IE establishments with website than those in the ICT sector (42.9%).

Among the ICT industries, ICT trade (53.2%) had the highest percentage of establishments with website while ICT service (40.7%) had the lowest percentage.

More than half or 57.2 percent of the total IE establishments in NCR had websites, the highest among the regions. All IT establishments in ARMM had no website in 2017.

Majority or 77.3 percent of the total IT companies utilized wired LAN in 2017, higher by 15.7 percentage points than the proportion in 2015 of 61.6 percent. Of the total establishments in the content and media sector, 80.2 percent used wired LAN while 76.4 percent for ICT sector.

By region, 8 in every 10 IT firms used wired LAN in Central Visayas (84.2%), Northern Mindanao (82.5%) and Davao Region (83.6%).

The percentage of IE establishments using Internet for e-commerce in 2017 was at 15.1 percent, an increase of 1.6 percentage points from the 13.5 percent reported level in 2015.

The ICT sector (16.5%) had a higher percentage engaged in e-commerce via Internet than those in the content and media sector (10.9%).  Among the ICT industries, ICT trade (31.0%) registered the highest percentage for this indicator, followed by ICT manufacturing (23.7%) and ICT service (12.7%).

Among the regions, the highest percentage utilization of e-commerce via Internet was recorded in ARMM, in which one out of three establishments reported purchased of goods or services via Internet translating to 33.3 percent.

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