Half of Philippine SMEs hike IT spend

Almost half of Philippine small and medium-sized enterprises (SMEs) are increasing  their IT expenditure in 2010 to ensure the success of their businesses.

Only 10 percent say they are decreasing their IT spending this year, according to International Data Corporation’s (IDC’s) annual survey of the IT buying behavior and adoption plans of enterprises in the country.

Although SMEs appear to be inclined to invest in technology this year, reduction of total IT cost still remains as a top IT-related priority for more than a quarter of the respondents, considering that operational expenses have increased year-on-year.

“With economic prospects looking up, most SMEs regard IT as an essential tool in achieving longer-term business growth,” said Pamela Joy Sumanga, analyst for peripherals research at IDC Philippines.

“Whether in the form of adopting social media technology as a means of pushing their products and services, building more dynamic websites, reengineering back-office functions to become automated, or improving after-sales support through a sound IT and telephony system, SMEs are expected to put a lot of effort toward IT capacity building for longer-term strategic growth,” said Sumanga.

In the near future, IDC believes that SMEs in the Philippines will generally remain aggressive with regard to using technologies.

This is driven by the need to drive long-term strategic growth in order to finance pressing concerns such as product and service improvement and relationship-building initiatives.

Local SMEs are looking at spending on front-office applications and system infrastructure for software deployment plans.

Jubert Daniel Alberto, Research Manager, IT spending at IDC Philippines said: “The economy in 2010 started on good footing. This has laid the ground work for further IT growth in the coming years. Vendors should align their products and services to serve the industry-specific needs of their customers, and beef up their channel networks to reach more market segments.”