Major vertical industries in the Philippines are aiming to maximize IT spending and adapt to the changing business landscape at the lowest cost possible, reports an IDC survey.
These industries include energy, financial services, healthcare, manufacturing, the public sector and retail.
Released Friday, the study revealed that the financial services industry is expected to continue investing in IT next year.
"The positive business outlook brought on by the recent economic recovery has afforded an anticipated increase in IT expenditure. Although IT spending is expected to increase year-on-year in 2011, organizations in the Philippines are heavily influenced by the Pinoy tendency to maximize investments and optimize hardware refresh cycles," said Adeb Byron M. Rabelas, analyst for networking equipments and IT services research at IDC Philippines.
The research firm believes 2010 has been the "launch pad" for further recovery in the market. It adds that the market has witnessed significant growth across various segments, which was "primarily driven by the transformation in business objectives from the vendor, service provider community and end-user segments".
The firm found that since the start of the year, end-users have begun to actively look for products and services at a relatively lower price to help cope with the effect of the recent economic downturn.
"Given the current global economic situation, primary verticals in the country are expected to maintain their aggressiveness when it comes to IT utilization. These organizations continue to see IT as an integral part of their day-to-day operations," said IDC.
Jubert Daniel Alberto, research manager for IT spending at IDC Philippines, added: "Vertical markets in the Philippines are geared toward strengthening IT infrastructures through bigger investments on hardware products and deeper commitment to spend on software and services. Differing requirements also characterize the needs of vertical markets. This need can only be addressed by further product specialization, as well as burgeoning distinctive services."
To optimize business opportunities in 2011, Jubert advised IT vendors and providers to "provide vertically optimized offerings and end-user programs, bring value to their customers, fortify channel network bases, and expand market education on cloud computing, green IT, and converged infrastructures".