Information technology (IT) spending in the Philippines is expected to reach $12.3 billion in 2025 with focus on cloud-based and data center services, according to International Data Corp. (IDC).
IDC data showed IT spending in the country will increase by 32 percent from $9.35 billion in 2020.
In a virtual media briefing, Sudev Bangah, IDC managing director for Asean region, said IT spending in Asean countries, including Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, could grow at a compound annual growth rate (CAGR) of 6.3 percent from $64.7 billion in 2020 to $88.7 billion in 2025.
Bangah added the IT spending is focused on cloud-based and data center services, but this is expected to double if fixed line, mobile and telecommunications spending will be included.
In the recent IDC Future Enterprise Resiliency Survey 2022 conducted by IDC, the top three digital initiative priorities by governments in Asia Pacific were policies that promote the development of technology, regulation around responsible use of artificial intelligence and the use of technology to create smart cities.
This alludes to the notion there is a high imperative to achieve a digital first economy in Asia Pacific.
IDC said this is not surprising given that in 2022, it expects more than half of the global economy will be based on or influenced by digital as most products and services utilize a digital delivery model or require digital augmentation to remain competitive.
Asean economies, just like the rest of the world, have been impacted by disruptive forces such as global health crisis, rising costs, supply chain disruptions and geopolitical tensions that have provided the impetus for these economies to rethink and realign how business is conducted, it added.
However, impetus alone will not be sufficient without a clear digital roadmap and priorities to drive Asean economies into a digital-first future, IDC said.
It noted the need for Asean organizations to build digital resiliency and innovation to be able to pivot quickly to any form of disruption, which will help them to drive ahead the Asean digital economy and keep abreast with the rest of the world.
