ICT sector a $50-B industry by 2016

MANILA, Philippines - The local information and communications technology (ICT) industry is expected to contribute as much as $50 billion in annual direct revenues to the economy by 2016, a government official said.

Alejandro Melchor III, deputy executive director for ICT Industry Development of the Information and Communications Technology Office (ICTO), said the Aquino government is highly supportive of the industry and is looking at investing significantly in programs, policy development, marketing, research and talent development.

 “With government support behind the ICT industry the upside for the country is tremendous, other than the $50 billion in direct revenues, they are also projecting $150 billion in indirect investments in the economy through real estate, transport and telecommunications, banking, taxes and others,” he said.

ICTO is an attached agency of the Department of Science and Technology.

 “The ICT industry is fueled by the country’s most valuable resource, its people. The government is investing in the Filipino through investments in science and Technology-oriented training and education,” DOST Secretary Mario Montejo said.

Local ICT stakeholders from the private sector noted that the industry needs support from the government in six key areas namely, talent development, domestic ICT development, countryside industry development, advancement of ICT enabled creative industries, ICT marketing and research as well as expansion into high-value markets.

An “ICT Public and Private Partnership or iPPP” initiative was recently launched to boost the government and private sector collaboration in the development of the industry.

Early this year, President Aquino issued an executive order which creates the ICTO, replacing the Commission on Information and Communications Technology (CICT).

Sen. Edgardo Angara, chair of the Senate committee on science and technology, said the ICT industry currently provides employment to 600,000 young people in the IT-BPO sector and one and a half million in indirect jobs.

“We’re generating almost $12 billion in foreign exchange and in four years’ time, we see that both employment and revenues could more than double,” Angara said.