ICT to the Philippines
(Last updated: 18 Jul 2011)
Trends and opportunities
ICT business opportunities
- Wireless and broadband technology and services
- Applications for social media and Web-enabled devices
- Content and solutions for mobile phones including games and e-payment
- ERP and other e-business applications such as supply chain, CRM and database
- Call centre management software and other solutions for BPOs
Why is this market attractive for Australian companies?
- The Philippine telecom and IT market continues to reflect considerable optimism despite the volatility of the local and global markets. The sector continues to be a critical tool for the country’s economic growth and has been contributing more than 10 per cent to the country’s GDP over the last decade. In 2011, the IDC expects the Philippines’ telecommunication industry to grow by six per cent, reaching US$4.5 billion.
- There is a growing interest in broadband services, with the major players in the local telecom market starting to invest heavily in the expansion of broadband access and looking at both wired and wireless broadband platforms to provide coverage.
- Most Philippine consumers, especially the young urban professionals, are early adopters of technology and always on the look-out for the latest devices, solutions and services.
- The mobile market is one of the fastest growing in the world and can be a test-bed for mobile platforms.
- As an outsourcing hub, the Philippines offers opportunities for Australian companies supplying call centre management software and other solutions for business process outsourcing. Value-added services such as technical support and product trouble shooting or basic IT and hardware consulting are also in demand.
Marketing your products and services
Market entry
Top tips to be successful in the Philippines:
- Relationships are key to success in this market. Building long term relationships is a good investment.
- Be patient and flexible. Always follow-up with your local contacts. Decision-making can take a long time even after you have submitted a proof of concept.
- Partner with a reliable and well-connected business entity who will help you understand the market and the various nuances of Philippine business culture.
How does doing business in the Philippines differ from Australia and what do Australian companies need to do in approaching this market?
- The market is price sensitive. Be prepared to negotiate on price points.
- Initial visits to the market are essential and productive but follow-up visits are more important.
- Before appointing a local representative, do your homework first. Research, network and conduct due diligence to make sure you are partnering with the right company.
- Cultural differences do exist between Filipnos and Australian even if, on the surface, Filipinos appear to be more Westernised than most of their Asian neighbours. Be sensitive to these differences.
Links and industry contacts
ICT-related resources
Business Processing Association of the Philippines – www.bpap.org
Commission on ICT – www.cict.gov.ph
Information Technology Association of the Philippines – www.itaphil.org
Internet & Mobile Marketing Association of the Philippines – www.immap.com.ph
National Telecommunications Commission – www.ntc.gov.ph
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.