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IDC’s ICT predictions in PH highlight importance of digital transformation

Adrian M. Reodique | Jan. 13, 2016
‘It is high time for Philippine enterprises and SMEs to move into DX.’

4.       Government focus on IT. Despite remaining as a challenge, digitalisation at a national level will be more felt this year.

In line with this, Dominguez said that the IDC expects the government to push eGovernment initiatives, which include digitalising processes and improving transparency in the government. Aside from these, eGovernment also covers initiatives on smart city and public Wi-Fi in major centres in the Philippines.

5.       Enterprise "tingi pack." Enterprise "tingi pack" or "pay-as-you-go model" will thrive among small and medium enterprises (SMEs) by the end of this year.

According to Rejano, "The enterprise tingi pack is going to be common in the consumption of IT products and services. As the demand for cloud and other IT services increases among local SMEs, the pay-as-you-go model will not only help grow the providers' business but also support SMEs in starting a business using IT tools that are budget-friendly, flexible, and competitive."

6.       Realign suppliers and partners. IDC predicts that 30 percent of IT vendors today will most likely be acquired, merged, downsized, or significantly repositioned by 2020.

"While the traditional IT suppliers are all migrating their offerings and organisations to the 3rd Platform and DX worlds, providing the customers migration paths, the impact is that they may or may not emerge from that transition as market leaders," said Rejano.

7.       Skills-based marketplaces. There will be an increase in web-based jobs in the Philippines this year, IDC predicts.

"Online freelance jobs are taking off, offering job opportunities to many Filipinos at the comfort of their homes. As of 2015, there are approximately 1.3 million online freelancers in the Philippines, a number considered to be one of the highest in the world. By 2016, there will be an additional 500,000 web-based workers to be employed in different online job platforms, specifically coming from the countryside, according to the Department of Science and Technology (DOST)," said Nicolo Santos, an analyst from IDC.

8.       Digitalised brick and mortar stores. By 2020, retailers will be provided with "brick and mortar" stores a new sources of data, in which they can use to increase patronisation through digital experiences. "There is a lot of potential to be realised from analysing the multiple data sources generated from digitalising physical stores - information that will allow retailers to both identify and target casual shoppers; and in the process, allow them to better position their products and services to stimulate loyalty to their brand," Dominguez explained.

9.       AiO cards. IDC predicts that by 2019, Filipinos will use all-in-one (AiO) cards more predominantly as DX improves interconnection among retail payment methods.

"With a flourishing retail industry, IDC believes that payment processes will be evolving significantly quicker than before as digital disruptions continue to come about. Just recently, Manila's Railway Systems (MRT, LRT 1, and LRT 2) started offering reloadable cards that can be topped up online. This is an auspicious start in the government's drive to digitalising payment methods," said Linus Go, analyst from IDC.


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