Economy


Software outsourcing sector sees higher revenues in 2013




Posted on September 17, 2012


THE LOCAL software outsourcing sector is poised to hike its revenues next year, citing increased market demand, the Business Processing Association of the Philippines (BPA/P) said in a statement.

Nora K. Terrado, president of Philippine Software Industry Association (PSIA), said the association is maintaining its growth outlook of 27% for this year, while it is eyeing a 30% boost for next year.

"Because of increased market demand, we hope to build a momentum and sustain the current growth rate of 27%," Ms. Terrado said in a statement over the weekend.

"By 2013, PSIA aims to achieve 30% year-on-year revenue or $1.5 billion and increase employment by 25%, which corresponds to about 80,000 employees," she added.

Asked for additional details, PSIA Director Tae Abe-Abion said growth will also be driven by the qualified talent supply locally, and Filipino innovation.

TALENT, INNOVATION
"I would say qualified talent supply, innovation to create Philippines’ own software intellectual property and international marketing to make Philippines known in software and ITO (information technology outsourcing)," Ms. Abe-Abion said in a text message yesterday.

Already, the software outsourcing sector has been regarded as one of the growth drivers of the local outsourcing industry, BPA/P Chief Executive Benedict C. Hernandez said in the same statement.

"The Philippine software industry is positioned competitively in the global market," Mr. Hernandez said in the same statement.

Last year, the software industry grew by 27% to $993 million in revenues and 50,000 employees, making it the fastest growing sector of the local outsourcing industry.

"These gains clearly demonstrate the potential of the Philippine software industry in an environment in which demand for these value-added services is increasing exponentially," Mr. Hernandez said.

Industry revenues, which grew by an annual 24% to $11 billion last year, are expected to reach as much as $25 billion by 2016, equivalent to about 10% of the global pie, BPA/P had said. -- Cliff Harvey C. Venzon