IDC’s predictions for Philippines’ ICT industry in 2017

What does the future hold for the ICT industry in the Philippines?

By Adrian M. Reodique
Feb. 2, 2017

IDC predicts that by 2020, creating digitally-enhanced products, services and experiences will be a big focus for a quarter of the top 1,000 companies in the Philippines.

The research firm foresees digital transformation (DX) to reach macroeconomic scale in the next two to three years, which will mark the dawn of 'DX Economy'. As a result, this will change the way businesses operate, thus reshaping the global economy.

"The rise of DX definitely has an incredible effect on the market. It opens massive opportunities for businesses as it helps strengthen relationships with end users, flattens organisational structures, and redefines traditional industries," said Jubert Alberto, Business Operations Head of IDC Philippines, in a press release.

The research firm listed down the trends for the Philippines' information and communications technology (ICT) industry in 2017 and beyond.

1. Leveling up the DX

Local companies will level up their DX journey to a macroeconomic scale in the next three years. 

"Year 2020 will see Filipino companies level up their DX journey to a macroeconomic scale, as their ability to offer digitally transformed offerings and experiences becomes an important measure of competitiveness and success in the market," said Karen Rondon, Research Manager for Enterprise Computing - Networking, IDC Asia/Pacific.

In line, companies are challenged to continually improve their productivity and effectiveness while lowering costs to keep pace with the quick-changing market dynamics.

2. Forming a dedicated DX team

A quarter of Philippine organisations will have a dedicated DX/innovation teams by 2018.

"These specialised 'PH DX teams' will be in charge of formulating plans both for internal and external applications of digital technology. These include identifying and using new technologies to improve operations, creating digital marketing strategies, developing their IT capabilities, and other related initiatives," said Jan Edward Tañeca, Market Analyst of Imaging, Printing, Document Solutions (IPDS) in IDC Philippines. 

3. Government to better push technology adoption

The Philippine government will have a more strategic ICT push to enable technology adoption among organisations by 2021, especially with the establishment of the Department of Information and Communications Technology (DICT).

4. Prioritising cybersecurity

Almost a third of the top 1,000 companies in the Philippines (30 percent) will put cybersecurity a tier-1 business priority by 2018.

"In the coming years, enterprises will realise that rather than reacting to global security trends, the best-run businesses try to anticipate them. Thus, they will make cybersecurity a core part of their overall business strategy, taking into account the existing security industry trends and evolving criminal tactics and couple those factors with the organisation's risk tolerance, security programme maturity, a holistic security strategy and, most importantly, business targets," said Jan Edward Tañeca, Market Analyst for Imaging, Printing, Document Solutions (IPDS) of IDC Philippines.

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