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Philippine trade group sees SMBs, BPO driving IT sales

14.06.2006
Increased spending by small-to-medium scale businesses (SMBs) and the hyper expansion of business process outsourcing (BPO) industries this year are boosting sales of information technology (IT) products and services, according to the computer industry's group of makers and vendors.

Computer Manufacturers, Distributors and Dealers Association of the Philippines (COMDDAP) president Juan G. Chua said members are optimistic they will perform better this year or at least sustain a 10 percent year-on-year growth in sales by the year's end.

This is despite lower profit margins due to the effects of the expanded value added tax, higher operating costs and intensified pricing pressure against stiff market competition, added Chua.

'The influx of call centers and other BPO businesses are boosting the demand for IT products and services. They are the growth engines last year and will continue to be so for the near future,' said Chua.

Sales from computer hardware and software, data management products and mobile/wireless services are expected to rise as BPO industry leaders project growth exceeding 100 percent for BPO businesses and 70 percent for call centers.

The BPO sector is anticipated to earn US$320 million this year, according to the Contact Center Association of the Philippines (CCAP). Commission on Information and Communications Technology (CICT) chairman Ramon Sales reported that the whole BPO industry generated approximately $1.8 billion last year. Total BPO growth worldwide is estimated to reach $641.2 billion in 2009.