Philippines beckons Indian IT investment
Philippines seems to be looking at India to source its requirements for training and development, as well as B2B collaboration in IT and ITES.
By TNN |
NEW DELHI: Philippines seems to be looking at India to source its requirements for training and development, as well as B2B collaboration in IT and ITES rather than from the US or UK. Undersecretary IT and BPO of Phillipines Mr Amb Custodio said on Tuesday that the Philippines would welcome Indian investment in the IT and BPO industry in any form, be it joint ventures, partnerships or via mergers & acquisitions.
"We intend to develop our trade in services, hoping to build synergies between India and the Philippines," said Custodio. BPO operations in Philippines have grown by over US$ 1.7 billion and the country now accounts for 6% of the global BPO market.
The Deputy Foreign Minister of the Philippines said that the country has developed its human resources, expertise in offshore outsourcing and management expertise for services. This will help India tie-up in strategic areas with Phillipines. Phillipines has also launched initiatives in medicine and animation.
Chief Information Officer, CII, Vikram Tiwathia, said that the areas of collaborations between India and Philippines include R&D, human resource development, manufacturing, retail, banking, insurance, travel and hospitality and animation. The areas for R&D are security, biotechnology, energy & environment protection and nanotechnology.
"Penetration of ICT in rural areas is a major challenge in India," said Mr Tiwathia. ICT has grown at 28% with a total revenue of $36 billion; it contributes 4.8 % to India's GDP. Software services have grown at 32 percent and telecom at 14.4 %. The target is to have 250 million telephone connections in India by 2007.
Increasing the penetration of ICT in India will create tremendous opportunities for both Indian and Filipino companies, said Mr Tiwathia. The Indian government was committed to creating sound infrastructure for ICT and IT Enabled Services. India accounts for 65% of global market in IT off-shoring and 46% in ITES but these account for only 10% of the total market, estimated at $300 billion.
These developments are an opportunity for Filipino as well as Indian firms to invest in the quickly evolving Indian domestic market as well as jointly increase their share in $300 billion global market.
India's bilateral trade with the Philippines was $730 million in 2005-06 and comprises commodities such as iron and steel, plastics, meat, mineral fuel, rubber, cereals and chemicals. Indian companies have invested in chemicals and IT in the Philippines while Filipino investments in India are in telecom, waste processing and human resources development.
"We intend to develop our trade in services, hoping to build synergies between India and the Philippines," said Custodio. BPO operations in Philippines have grown by over US$ 1.7 billion and the country now accounts for 6% of the global BPO market.
The Deputy Foreign Minister of the Philippines said that the country has developed its human resources, expertise in offshore outsourcing and management expertise for services. This will help India tie-up in strategic areas with Phillipines. Phillipines has also launched initiatives in medicine and animation.
Chief Information Officer, CII, Vikram Tiwathia, said that the areas of collaborations between India and Philippines include R&D, human resource development, manufacturing, retail, banking, insurance, travel and hospitality and animation. The areas for R&D are security, biotechnology, energy & environment protection and nanotechnology.
"Penetration of ICT in rural areas is a major challenge in India," said Mr Tiwathia. ICT has grown at 28% with a total revenue of $36 billion; it contributes 4.8 % to India's GDP. Software services have grown at 32 percent and telecom at 14.4 %. The target is to have 250 million telephone connections in India by 2007.
Increasing the penetration of ICT in India will create tremendous opportunities for both Indian and Filipino companies, said Mr Tiwathia. The Indian government was committed to creating sound infrastructure for ICT and IT Enabled Services. India accounts for 65% of global market in IT off-shoring and 46% in ITES but these account for only 10% of the total market, estimated at $300 billion.
ADVERTISEMENT
These developments are an opportunity for Filipino as well as Indian firms to invest in the quickly evolving Indian domestic market as well as jointly increase their share in $300 billion global market.
India's bilateral trade with the Philippines was $730 million in 2005-06 and comprises commodities such as iron and steel, plastics, meat, mineral fuel, rubber, cereals and chemicals. Indian companies have invested in chemicals and IT in the Philippines while Filipino investments in India are in telecom, waste processing and human resources development.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
