“With the country’s global reputation as an outsourcing powerhouse, seizing present opportunities in application development will not only take the country a notch higher in the global outsourcing landscape but will also bring the Philippines closer to the forefront of tech start-up innovators in North America and Asia,” consulting firm Tholons Inc. said in its report titled “Web and Mobile Application Development Landscape: Philippines.”
Tholons added that the Philippines reflects the booming rate in use of mobile, Internet and mobile Internet.
“With a relatively smaller population compared to larger regional markets such as China and India, mobile-device usage in the Philippines has remained high through the last decade,” it said.
Tholons described the Philippines as a “mobile app hungry nation.”
Citing a 2011 study by Yahoo! and the Nielsen Co., it said the country’s Internet user base has grown at a compounded annual growth rate (CAGR) of 27.8 percent since 2000, with Internet users now estimated at 30 million.
Tholons also cited a 2011 KPCB study that said the number of mobile-broadband subscribers in the country has also increased to 9 million subscribers by the second quarter of last year, posting a year-on-year growth of 87 percent.
It said this increase represented nearly 10 percent of the entire population of 95 million.
“These high usage rates have also become a compelling incentive for tertiary students in the country to pursue software-development courses, in hopes of acquiring the necessary programming skill sets to develop Web and mobile applications for the local and global markets.”
Tholons said due to this high labor demand from the IT sector, the country’s labor pool has been seeing an increase in the number of IT graduates.
The consulting firm used 2010 data from the Commission on Higher Education and said the number of graduates in IT in 2009—45,830—made IT the fifth-largest course discipline by total graduates in the country.
“With intensifying demand for application development services in key markets such as North America and Asia, application developers in the Philippines can capitalize on its small, yet rich developer community to take advantage of these growing market opportunities.”
Tholons said “as tech start-ups further proliferate and the market gets increasingly crowded, the need for application development outsourcing to remain alive and achieve profitability will be realized.”
It added that the Philippines “as an outsourcing destination for Web and mobile application development offers a balanced mix of cost, capability and creativity, precisely what today’s tech start-ups critically need.”