The Philippines’ information technology (IT) industry will remain strong until the end of 2023 and in 2024 despite near-flat GDP growth and high-inflation this year, according to VST ECS president and CEO Jimmy Go.
Go, who opened the VST ECS CXO Tech Summit 2023, shared these positive forecasts on the IT landscape to participants of the annual conference.
The VST ECS executive highlighted the potential rise in investments in the IT industry. “Spending on IT services is expected to increase to over $1.50 trillion, which would represent an annual growth increase of 10.2%,” he said.
He also cited the increase in the number of data centers being built in the country: “The data center systems market ranks No. 5 on Gartner’s list of IT spending markets, expected to increase 3.7% in 2023. Data center systems sales this year will reach $224 billion, according to Gartner data. This is expected to increase by 6.1% year over year in 2024. In the Philippines, we see a surge of Data Center builds and Investments by many companies in Metro Manila, Mandaue, Cainta, and many other places.”
In addition, Go said that the device industry will return to positive growth next year, with an expected increase of 11% on global device spending year over year in 2024.
As artificial Intelligence and machine learning becoming integral to the products and services offered by major companies, users and businesses will need faster and more up-to-date devices to run the newest technologies such as Generative AI software.
Citing the Gartner report, the VST ECS boss said that by 2030, a staggering 80% of people will interact with smart robots daily. In just two years, these smart robots will become workforce partners for 90% of global companies.
Go also stressed the critical need for organizations to modernize their IT infrastructure. This allows businesses to embrace the latest technology trends, including multi clouds, quantum computing, data explosion, RPA, and more.
According to him, investments in connectivity solutions, digital infrastructure, cloud technologies, cybersecurity, big data, storage, automation, and collaboration tools remain vital to prepare for the ever-evolving tech landscape.
With that, Go also sees no signs of slowing down on business spending for software next year. It is predicted that the software industry will grow at a faster rate than any other IT segment in 2024.
“Spending on software is expected to increase over 13% year over year in 2024, surpassing over $1 trillion in spending,” he explained.
These forecasts, according to Go, affirms that IT will remain as a catalyst of change for businesses and organizations. The industry is expected to continue its role in propelling innovation and growth even in the face of broader economic challenges.
Presented by VST ECS, the CXO Tech Summit is an annual gathering of technology leaders, experts, and professionals where they discuss the latest developments and challenges in the IT field. This year’s conference was held at the Dusit Thani Hotel in Cebu from October 18 to 21.