IBM Launches New Plant In Philippines
News: US technology company IBM has opened its new global delivery facility in Nuvali, Sta. Rosa City in Laguna, the Philippines, reports ABS-CBN News. Mariels Almeda Winhoffer, president and country general manager at IBM Philippines, said the move is part of the company's expansion strategy to facilitate the growth of local talent and develop further opportunities in the country. IBM said the new plant in Nuvali will provide a strategic location for IBM Global Process Services, which will drive its continued expansion in delivering innovative business solutions to its global clients.
BMI View: The Philippines IT market is forecast to grow by around 9.6% in 2013 to a value of PHP165.8bn. Over our five-year forecast period to 2017, the market should be a regional outperformer, growing at a CAGR of 9.1% in local currency terms to a total value of PHP234bn. Growth will be supported by proliferation of PC ownership as high specification, but affordable devices, becomes widely available. In this respect the Philippines has great potential via its low PC penetration, estimated at 10% in 2011, according to The Singapore Management University, particularly with support from government ICT programmes. Other contributory factors for growth include the outsourcing industry, cloud computing uptake by government and SMEs, and investment in IT in the education and healthcare sectors.