According to the report, the Philippine software services industry export revenues hit US$725 million at the end of 2010 compared to US$568 million in 2009, which was considered the weakest year for the industry since 2004.
Of this figure, 57% of export revenues came from the United States, followed by the United Kingdom with 25 percent. Lesser but still significant revenue contributors to the software industry in the Philippines are Canada (5%), Japan (5%), and Europe (4%). Other markets like Australia, Middle Eastern countries, and those in the Asia Pacific region contributed to 1% each.
The study, “Tholons-PSIA Software Skills Inventory Report” was commissioned by the Philippine Software Industry Association (PSIA) and funded by then Commission on Information and Communications Technology (CICT) to evaluate the status and the current landscape of the local software development and services sector.
PSIA president Nora Terrado said the Tholons study gives the PSIA a full view of the local industry performance. It also provides the organization the information on what areas of improvement it would focus on.
“The industry was able to survive the entire course of the global economic crisis, which pushed many industries to the brink. The PSIA remains steadfast in its goal to put the Philippines as a global hub for outsourcing services, particularly on software development and services,” Terrado said.
Employment rate also went up by 27.60% in 2010 as the number of FTEs hit 44,962, up from just 35,300 in 2008 and 2009 where hiring remained flat. The leading service line revenue sources of the local industry for foreign markets remain to be application maintenance (18.23%), followed by software testing (12.56%), and custom application development (11.54%).
Product engineering or actual software product development accounted for 7.01% of the local industry, closely followed by system infrastructure support service (6.75%).
Source: Manila Bulletin www.mb.com.ph