ICT Sector in the Philippines



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ICT Sector in the Philippines Dr. Emma V. Teodoro President, CAI-STA, Philippines, Inc. Trustee, Philippine Exporters Confederation Council member, Export Development Council Chairperson, Networking Committee of Trade Policies and Procedures Simplification

Outline Background Challenges and Opportunities Government Policies Private Sector Role Areas of Cooperation Background ICT fastest growing sector of the Philippine economy IT-BPO Contact center operation Back office processing/shared services Software development Architectural and engineering services Animation services Transcription services Games development Communications

Background Total services sector export revenues in 2007 US$ 8.4 billion IT/BPO revenues US$4.9 billion in 2007 & target of US$ 6.8 billion in 2008 Employs 400,000 Priority sector in the government development plan Background Internet usage to reach 21.5 million in 2008 according to IDC forecast Every corner has an internet café main use is gaming or entertainment, surfing and emailing

Challenges and Opportunities Volatile currency exchange rate Increasing salary Manpower development Management of growth Infrastructure development Development of other cities outside Manila Government Policies Office of the President Computerization and networking of government agencies top priority Commission on Information and Communications Technology nation-wide ICT coverage E-Commerce Act Department of Trade and Industry, PEZA and Board of Investments Promote investments and facilitate business Intellectual Property Rights Data privacy guidelines

Government Policies Manpower development Mobilization of Technical Education and Skills Development Authority (TESDA) to train 70,000 near hires government gives Php 350 million training grant Department of Education curriculum and teacher development geared towards knowledge industry Commission on Higher Education curriculum that raises standards Government Policies National Telecommunications Commission (NTC) Republic Act No. 7925 to promote and govern the development of Philippine telecommunications and delivery of public telecommunications services Republic Act No. 6849 to provide for the installation, operation and maintenance of public telephones in each and every municipality Executive Order No. 59 compulsory interconnection of authorized public telecommunications carrier Executive Order No. 109 improve provision of local exchange carrier service Executive Order No. 467 policy on operation and use of international satellite communications service.

For more Information IDC Reports The Philippines Telecommunications Report 2008 by Business Monitor Regulation of the Telecommunications/ICT Sector The Philippine Experience 1900 2007 BPA/P report Private Sector Role BPA/P Business Processing Association of the Philippines (BPA/P) Contact Center of the Philippines (CCAP) Animation Council of the Philippines (ACPI) Medical transcription Industry Association of the Philippines (MTIAPI) Philippines Software Industry Association (PSIA) Game Developers Association of the Philippines (GDAP) Philippine Electronics and Telecommunications Foundation (PETEF) Information Technology Association of the Philippines (ITAP) Legislative advocacy Data privacy bill Labor laws Training Investments

Areas of Cooperation Standardization Joint manpower development program Advocacy for easier movement of people to be able to share expertise and skills Standardization Classification of Activities: Animation Process of giving the illusion of movement to cinematographic drawings, models, or inanimate objects thru 2D, 3D, etc. Includes 2D animation from layouts to final compositing, digital ink and paint service, 3D animation using the latest software like Maya, XSI, 3DStudio Max, etc., Pre-production service from storyboarding, character & production design, key backgrounds and layouts, 3D and 2D animation for games, flash animation for animated series (broadcast quality).

Standardization Classification of Activities: BPO/Shared Services Backroom operations and shared financial and accounting services: The recording of commercial transactions for businesses or others; preparation of financial accounts; examination of financial accounts and the certification of their accuracy; Standardization Classification of Activities: BPO/Shared Services Outsourcing for market research and public opinion polling: Investigation on market potential, acceptance, and familiarity of products and buying habits of consumers for the purpose of sales promotion and development of new product, including statistical analyses of the results; investigation on collective opinions of the public about political, economic and social issues and statistical analysis thereof;

Standardization Classification of Activities: BPO/Shared Services Outsourcing for business & management consultancy activities: The provision of advice, guidance or operational assistance to businesses (and the public service); arbitration and conciliation between management and labor; activities of management holding companies; Standardization Classification of Activities: BPO/Shared Services Processing of data employing either the customer s or a propriety program: complete processing of data supplied by the customer, data entry services, scanning of documents; management and operation on a continuing basis of data-processing facilities belonging to others; time share computer services; web hosting;

Standardization Classification of Activities: BPO/Shared Services Data base activities and online distribution of electronic content: Online distribution of content, but not to units where online publishing is done in additional forms of publishing; assembly of compilations of data from one or more sources; provision of on-line access to proprietary databases; on-line data base publishing; on-line directory and mailing list publishing; other on-line publishing, including e-book; web search portals; internet search sites, internet gamesites, internet entertainment sites, and electronic learning; and Standardization Classification of Activities: BPO/Shared Services Hardware Consultancy: Consultancy on type and configuration of hardware with or without associated software application.

Standardization Classification of Activities: Contact Center Answering and transmitting call from clients by using human operators, automatic distribution, computer telephone integration, interactive voice response systems or similar methods to receive orders, provide information, deal with customer requests for assistance or address customer complaints, debt collection, collective handling of letters, faxes, e-mails, postal mail catalogues, web-site inquiries and chats and the collection of info from customers during in-store purchasing. Standardization: Outsourcing for Architectural & Engineering Services Consulting, civil engineering design, architectural drawings, engineering drafting, printed circuit design, wireless devices, display technology, electronic components, printers, CAD/CAM, geographic information system, digital mapping.

Standardization Classification of Activities: Transcription Transfer of data from one form (voice / oral) to another (paper or electronic) such as medical history, diagnosis, prognosis and outcome, depositions, hearing and court tapes. Standardization Classification of Activities: Software Development Analysis and design, prototyping, programming and testing, customization, reengineering and conversion, installation and maintenance, education and training of systems software, middleware and application software, software development management;

Standardization Classification of Activities: Software Publishing Production, supply and documentation of ready-made (non-customized) software: operating systems; business and other applications; computer games for all platforms; and Standardization Classification of Activities: Software Consultancy Development, production, supply and documentation of made-to-order software based on orders from specific users; web page design; software maintenance.

Standardization Classification of Activities: Others Other IT enabled services not elsewhere classified. Manpower Development Program Joint development of courses Publication of courses Investment in training institutions

Advocacy Easier movement of people - visa Sharing of experts technical and management Manpower sharing skills and language