Story image

DX driving Philippines outsourcing market to US$500m by 2021

21 Aug 2017

Digital transformation and changing IT procurement patterns are driving IT outsourcing spend upwards in the Philippines, but multiyear and multimillion-peso deals are decreasing on the back of increased cloud use.

IDC is forecasting outsourcing services spend in the Philippines to exceed US$500 million by 2021, with IT outsourcing accounting for $269.1 million – or 53% - of overall spend.

Alon Anthony Rejano, IDC Philippines market analyst for services, says the Philippines outsourcing market is undergoing a dramatic transformation, propelled by the increasing adoption of disruptive technologies.

The analyst company says outsourcing is being seen as a way for companies to address business challenges, such as growing complexity of ICT, lack of ICT budget and the need for proper governance.

“CIOs and technology leaders tap external capabilities to support their DX initiatives, meet ever-changing customer demands, implement solutions faster and reduce cost,” Rejano says.

“In the age of greater automation, standardisation and modernisation, external providers need to keep up and redefine their value proposition, offering new delivery and consumption models,” he adds.

While IT outsourcing takes the lion’s share of the market, IDC is forecasting application management and hosting infrastructure management to account for 14% of the market each, at $71.0 million and $69.8 million respectively; while network management is expected to be worth $34.1 million – 7% of the overall market.

Endpoint management and hosted application management each account for 6% of the overall market, at $31.5 million and $30.5 million respectively.

But while the outsourcing market might be growing, IDC warns that the size and length of the deals isn’t with both decreasing as end users look at cost cutting and show inclination toward cloud.

“The outsourcing market will remain a tough market for competition in the coming years,” Rejano says.

“Local customers want to see vision and a strong offering, and while they want a partnership for the long term, they are also willing to consider new partners that offer innovation.

“Providers need to demonstrat thought leadership throughout the lifetime of the contract and provide high-quality service to help transform customers with DX agenda,” he says.

Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.
Poly appoints new A/NZ managing director, Andy Hurt
“We’re excited to be bringing together two established pioneers in audio and video technology to be moving forward and one business – Poly."