Hardware still dominates Philippine SMEs overall IT spending, says IDC

July 26, 2005

Manila, July 26, 2005 – IDC's latest research entitled Philippine SME IT 2005: Usage and Preferences Survey provides analysis of and insights into the buying behavior of small and medium-sized enterprises (SMEs) around IT products and services, showing quantifiable opportunities that can be addressed by information and communication technology (ICT) vendors and service providers.

The study reports that SME IT adoption in the country is still centered on hardware buying, as these firms still have immense needs to build robust IT infrastructures in order to run strategic solutions that would help them improve their business processes. PCs receive the biggest allocation in the hardware segment.

IDC further observes that SME adoption of software solutions remains largely focused on security, storage, systems management and enterprise resource management (ERM), since these are basic solutions that organizations incorporate in their operations need.

Also, when purchasing IT products and services, SMEs are found to be particular on desired features and capabilities that are made more attractive through warranty services and competitive pricing. IT players should take note that the business expectations and strategies of SMEs are crucial factors that they should consider to be able to tap huge market opportunities .

"Vendors should focus on delivering products and services that are SME-centric, while also arming their offerings with efficient after-sales support and competitive pricing, in order to capture the vast opportunities from the SME sector. Long-term branding strategy, as well as usage of various channels, will also be of major significance," says Jubert Daniel Alberto, senior analyst, IDC Philippines.

Looking forward, SMEs are still bound to operate in the same level of IT expenditure for the rest of 2005. Hardware buying is still seen to characterize the bulk of spending.

For more information about purchasing the research, please contact Hazmi at +603-2169-7526 or hyusof@idc.com. For press enquiries, please contact Stephen Chong at +603-2169-7521 or ckchong@idc.com.

Contact

Chong Chee Kian
Events & Marketing Executive
Tel: +603-2169-7521
Fax : +603-2163-5098
Email:ckchong@idc.com