The Philippine Software Industry Association (PSIA) said the country is at par with other international “mature locations” for software services as it continues to post significant growth. Moreover, the organization stated that the industry is one of the fastest growing segments of outsourcing, employing close to 50,000 workers in 2011.
Global consulting and advisory firm Everest Group identified the Philippines as a mature location for software services. The country currently has more than 50 software services operators. Other “mature locations” are China, Brazil, India, and Poland.
According to PSIA President Nora Terrado, the key growth drivers of the country’s software services sector are extensive transactions with foreign markets and increasing demand for software services.
Terrado added that the research and development activities concerning software and other platforms of technology are propelled by the mass usage of consumers in the country. In fact, last year, the country’s software industry was seen to have grown 37 percent, contributing $993 million in revenues.
On the other hand, Terrado said changes should be made regarding low wage rates, unstable employee retention rates, working permit issues, and proper vendor management processes. She stressed that locations that can overcome these challenges will definitely dominate the software services industry.