Philippines IT-BPO Market
Segmentation
By Type
Contact centers were witnessed to dominate the Philippines IT-BPO
market with a huge revenue share of ~% in the year 2018P, thereby catering to
growing significance of providing omni-channel customer support. A contact
center is nothing but an extension of call center with additional services such
as VoIP Telephone services, Email, text chat, fax services and direct website
interface. It was followed by segments including software development,
transcription, animation and other BPOs who collectively captured a revenue
share of ~% in the Philippines IT-BPO Market in the year 2018P.
By Export and Domestic Markets
The export earnings of the Philippines
IT industry were witnessed to increase from PHP ~ billion in the year
2012 to PHP ~ billion in 2018P, thus showcasing a five year CAGR of ~% over the
review period 2012-2018P. The US has been the top exporter for the Philippines
IT-BPO industry, thereby accounting for ~% revenue share in 2013. The segment
was followed by domestic revenues of the Philippines IT-BPO market were
witnessed to increase from PHP ~ billion in 2012 to PHP ~ billion in 2018P,
therefore displaying five year CAGR of ~% over the review period 2012-2018P. Some
of the major domestic players operating within the country’s IT-BPO segment are
Fusion BPO Services Philippines Inc, Transec BPO Solutions Inc, Staffvirtual
Outsourcing Philippines and others.
Competition Scenario in the Philippines
IT-BPO Market
The Philippines IT-BPO market was observed to be mildly fragmented
with the presence of both international as well as domestic players, out of
which the top ~ international players collectively captured ~% revenue share in
the year 2012 whereas, the total revenues derived from all ~ international
players were evaluated at PHP ~ billion. The sector’s demand for new jobs
continues to grow year on year, benefitting from the lower operational costs
and the high literacy rate of the Filipino workforce. Also, numerous IT parks
and business hubs inside and outside of Metro Manila city are attracting MNCs to
set up their shop in the Philippines.
Market Share of Major Players
Operating within the Philippines IT-BPO Market
Accenture operations within the Philippines dates back to the mid
1980’s when the company saw an opportunity to introduce IT to the country and
hired Filipino talent to execute those technologies. The company established
itself as market leader in terms of revenues by capturing ~% revenue share in
the Philippines IT-BPO industry in the year 2014. In the BPO segment, Accenture
operations scaled up to Gen 5 and Gen 6 BPO, thus offering advanced outsourcing
and innovative solutions to its clients. In the Philippines, Convergys started
with a single contact center in the Manila region which was opened in the year
2003. The Company is exclusively focused on helping other companies to find new
ways thus, enhancing the value of their customer relationships and deliver
consistent customer experiences across the globe. It was followed by other
companies such as Convergys, JPMorgan, 24/7 Customer Philippines,
Telephilippines Inc. and others.
Philippines IT-BPO Market
Future Outlook and Projections
The BPO industry in the Philippines is expected to get influenced by
emergence of AIS (Artificial Intelligence Systems) for instance, Al- powered
translators which would affect the wide use of English in the country. The
market revenues are further estimated to increase to PHP ~ billion by the year
ending 2023E, thus showcasing a CAGR of ~% over the forecast period 2018P-2023E.
Introduction of new job roles such as cyber-security, mobile app development,
social media and data science mobile app development has reduced the country’s
dependence on call centers. As a result, it may create a negative impact on the
country’s IT-BPO industry in near future. Additionally, expansion of BPO hubs,
especially in rural areas can turn out to be the next best thing in the Philippines.
How Philippines Software Market
is Positioned?
Over the past few decades, software development in the Philippines has
become one of the more established sub-sectors of the country’s IT and IT-ES
industry along with the presence of both domestic and international firms who
are capable of delivering services and products that match up with the rigid
global standards. In accordance with the Philippines Software Industry
Association (PSIA), there are approximately ~ software companies operating in
the Philippines. In total, the overall industry has employed approximately ~
software developers. Additionally, they estimated that ~ million IT professionals
doing consultancy work.
The Philippines remains one of the most cost competitive locations in
the global IT industry and offers great potential for growth in software
segment to foreign investors who are looking to invest, focusing on full-stack
tech based digital solutions while the local niche players can work towards
applications development and applications publishing in the Philippines. The
Philippines overall software market revenues were witnessed to increase from
PHP ~ billion in 2012 to PHP ~ billion in the year 2018P, thereby showcasing a
five year CAGR of ~% during the review period 2012-2018P. Beyond contact
centers, the Philippines have been gaining traction in the field of software
development.
Over the past few years, the technology sector has also witnessed more
robust IT counseling, thereby including implementation, deployment and Administration
of IT systems In comparison to the other Southeast nations like China and
India, critical factors that are adding momentum to the country’s software
industry are its cultural and west-accent similarities especially with the US;
cost competitiveness and good knowledge in terms of IT background, thereby
proving to be a more useful resource. By taking advantage of large talent pool
consisting of a large number of college-educated workforces, engineers and
application based developers all across the nation; the Filipino government has
opened regional centers in Metro Manila and other tier 2 & 3 cities in
order to provide low-cost labor to firms based in Europe, North America and
Australia. Major Players operating within the Philippines software industry are
IBM, Accenture, Genpact; UST Global, Pointwest, Existglobal, Capgemini, HP and
others.
Philippines Software Market
Segmentation
By Software Development and
Software Publishing
Software development segment within the Philippines was witnessed to
dominate the country’s software industry with a massive revenue share of ~% in
the year 2018P. Some of the major software developers and IT consulting firms
in the Philippines include Accenture, Azeus Systems, RCG IT, IBM, SVI, SPI and
others. These companies along with other local firms and subsidiaries of
foreign development houses carry out business operations ranging from testing
and software maintenance to app system development and systems analysis and
design. Among software publishing in the Philippines, application based
software have clearly dominated the market with a revenue share of ~%, thus
evaluated at PHP ~ billion in the year 2018P. Gaming software development has
been gaining traction in the country. On the other hand, system based software
followed with ~% revenue share, thus evaluated at PHP ~ billion in 2018P among
the country’s software publishing segment. The overall software publishing
segment captured the remaining revenue share of ~% in 2018P.
Philippines Software Market
Future Outlook and Projections
Over the forecast period 2018P-2023E, the Philippines software market
is expected to grow owing to increasing number of software-centric startups
within the country. At present, there are about ~ startups in the country
focusing towards software development. The market revenues are further expected
to reach a total of PHP ~ billion by the year ending 2023E, thus showcasing a
CAGR of ~%. Over the long term, the country’s software market will strive for a
bigger share in the overall IT industry, as a result of which homegrown talents
and techno-preneurs will get more significant opportunities to showcase their
potential. Additionally it will further push Philippines into new areas of
software services such as Robotics Process Automation (RPA) and Artificial
Intelligence (AI).
How Philippines Antivirus
Market is Positioned?
Virus protection software industry in the Philippines has come a long
way in the past 30 years. Previously, infections were rare and malicious in
nature whereas, post internet scenario saw increase in cyber-attacks. In
retrospect, the early days of fighting a virus were old-fashioned as the first
tools used towards tackling viruses were signature checkers that looked for
changes in the file systems and applications that matched known patterns, and
then flagged/blocked the programs from running.
Whereas now, the approach has shifted from traditional signature tools
towards heuristic virus protection, using modern software that could detect the
presence of virus and then remove it. Rising usage of internet has led to
increase in the total number of financial transactions done online, for
instance banking, shopping and multiple trading activities which have made it
compulsory for big enterprises to opt for latest anti-virus solutions.
Philippines anti-virus market was evaluated at PHP ~ million in the year 2012
which witnessed an increase to PHP ~ million in 2018P, thus growing at a five
year CAGR of ~%. The growing concern of cyber security and prevention among
virus attacks have led several Filipino companies to adopt for total security
solutions consisting of internet security, anti-spyware, anti-malware,
anti-virus and others. Antivirus software is an essential link to overall
security chain, therefore protecting the end user’s computers from many viruses
including worms and Trojan horses.
The emergence of mobile based platforms and cloud-based enterprise
applications coupled with advanced technologies such as fingerprint
identification and biometrics have forced users to install Smartphone
protection for both android and IOS system using anti-virus solutions. Major
Players and their Service Offerings: Some of the major players operating within
the Philippines anti-virus industry space include Trend Micro, Symantec, Quick
Heal, Eset, AVG and others. These players provide the latest security tools
that scan the end user’s network, end points, and overall wire data and use big
data analytics to find anomalies and then treat them accordingly. Major
anti-virus players have also started to provide robust as well as affordable
anti-virus solutions for a varied range of businesses in accordance with their
needs and preferences.
Philippines Antivirus Market
Segmentation
By Enterprise and Retail
Customer
The growth in the number of viruses coupled with the increasing speed
at which they are spreading has led almost every business enterprise to opt for
an effective anti-virus solution in the Philippines. For a well-established
organization, time and money incurred towards recovering from a virus-attack
can prove to be a more costly affair than purchasing anti-virus solution
beforehand. In the year 2018P, enterprise segment dominated the Philippines
anti-virus market with a massive share of ~% in terms of revenue whereas, the
retail segment was witnessed to capture the remaining ~% revenue share in the
Philippines antivirus market.
By Offline and Online Sales
The offline sales segment within Philippines was observed to dominate
the country’s anti-virus market with massive revenue share of ~% in the year
2018P as major players in order to tap clients have set up multiple sales
agents offline rather than waiting for customers to get online and then make
the final purchase. Compared to the offline segment, the online sales of
anti-virus solutions captured the remaining ~% revenue share in the Philippines
in the year 2018P. Major online sales channel include E-commerce and
advertisement websites.
By Security Type
Total security solution provides a complete package of secure features
for an enterprise’s or a customer’s data safety. The segment dominated with a
revenue share of ~% in the Philippines antivirus industry in the year 2018P. Internet
security solutions followed total security with a revenue share of ~% in the
Philippines antivirus industry. Lastly, the anti-malware, spyware and antivirus
solution segments collectively captured the remaining ~% revenue share in the
Philippines antivirus market in the year 2018P.
Comparative Landscape in the
Philippines Antivirus Market
Competition within the antivirus industry was witnessed to be
moderately concentrated with the presence of limited number of players in
Philippines. Some of the leading companies in this segment are international
namely Trend Micro, Sophos, Norton McAfee, Symantec, Kaspersky Lab, Avast, ESET
and others. However, domestic firms have also been emerging in this market.
With fast evolving threat landscape in the Philippines, Anti-virus companies
are gaining momentum in the country as more and more corporations are unable to
manage their private documents. Majority of the business enterprises in the
Philippines were observed to shift from traditional antivirus and blacklisting
methods to latest upgraded anti-theft software. Also, Filipino companies
increased their security spending in order to tackle the widespread issue of
illegal cyber activities. These companies are offering multiple value added
services such as total security; enter level security (anti-malware,
anti-spyware and anti-virus) and internet security solutions.
Philippines Antivirus Market
Future Outlook and Projections
Over the forecast period, Philippines antivirus market revenues are
expected to take a hike to PHP ~ million by the year ending 2023E, therefore
showcasing a CAGR of 13.2% from 2018P-2023E. Increasing number of cyber threats
and illegal activities in the country will give a boost to the Philippines
antivirus industry in the near future. Security spending over the long term
will grow as more and more people are realizing the need to protect their
respective assets against criminal activities. Externally, the country also
continues to deal with terrorist activities, especially in the southern parts
of the Philippines. On the other hand, internal thefts are forcing end users to
look for security solutions in the country. The newly created Department of
Information and Communications Technology (DICT) has developed a cyber-security
plan to institutionalize the adoption and implementation of Information
Security Governance and risk management approaches.
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
