Software Development

ESP 2006 software development track to tackle niche market leadership
PSIA-sponsored sessions to feature industry updates, best practices and case studies

(Manila, Philippines, February 16, 2006) - The Philippine Software Industry Association (PSIA), an organization of approximately 80 software firms, is presenting the software development conference track at the e-Services Philippines (ESP) 2006 conference and exhibit. The announcement was made by PSIA president and Gurango Software Corporation managing director Fermin Taruc.

According to Taruc, who was recently re-elected president of PSIA, the group's participation in ESP 2006 is aligned with its efforts to boost global awareness of the world-class capabilities of local software development firms. "Building 'Brand Philippines' is one of PSIA's main advocacies," said Taruc. "This direction is part of FLY HIGH 2010, which is basically a consolidation of the action plans and initiatives that the industry is set to take over the next four years."

Under FLY HIGH 2010, PSIA and government agencies such as the Department of Trade and Investment (DTI), Board of Investments (BOI) and the Commission on Information and Communications Technology (CICT) will take the lead in increasing the local industry's brand equity. "We intend to achieve this in a number of ways, including improving local competencies by promoting adherence to international quality standards as well as addressing opportunities presented by 'niche market' leadership," said Taruc.

Gartner Research estimates the worldwide market for software solutions and application development at $500 billion annually. While India exports over $8 billion in software solutions and services annually, the Philippines exports just $200 million, according to DTI and Business Process Association of the Philippines (BPA/P) data. While actual exports are anecdotally thought to be much higher, Taruc says there are huge opportunities for growth.

Taruc doesn't believe that competition with India serves an inhibitor of growth in Philippine software exports. Rather, he says that India has done a better job marketing its software sector. "Despite the disparity in exports, it is a mistake to assume that the business opportunities the Philippines is losing end up in India. The Philippines excels in niche markets - markets for which local capabilities are well-suited - which are distinct from those of India," Taruc said.

Such niche markets include mobile/wireless applications, animation, and gaming. In fact, according to the official FLY HIGH: Philippine Software 2010 report, the market for mobile games alone is estimated at $2.2 billion. Local firms have likewise developed expertise in specific functional areas such as finance and manufacturing, maintenance, support, and migration of legacy mainframe and mid-range systems.

"To increase our market share, our efforts should be directed towards developing these niche markets, increasing our capabilities in these particular areas, and marketing the country's expertise in these specific niches," said Taruc.

"Niche market" leadership is the focus of ESP 2006's software development conference track. and will feature presentations on industry trends, case studies and best practices. The track will take place February 17, 2006, from 1 to 5 p.m., at the EDSA Shangri-La Hotel.

"We have prepared a lineup of presentations and speakers that we believe will be of interest to participating software firms," said Taruc. The conference, which will be moderated by PSIA executive director Mon Villar, will feature a number of foreign speakers and local industry experts.

Thomas Rolf, business development manager of the European IT Services Center (EITSC), will discuss EITSC's Common Quality Language (ComQuaL) initiative and its role in helping Philippine software firms explore the emerging European market. Shinichiro Kato, an IT expert from the Japan External Trade Organization, will present the Japanese Certification Model, including its standards of quality, for software firms looking to outsource services and solutions to Japan. ADTX Systems, Inc. vice president, Tadashi Ishikawa, will tackle the opportunities for market leadership in the engineering and design software/embedded systems niche.

Local experts who are set to present during the conference include Taruc; Beth Lui, Accenture managing director; Joselyn Capistrano, Capability Maturity Model Integration (CMMI) authorized instructor and Standard CMMI Appraisal Method for Process Improvement lead appraiser, SQME Professionals, Inc.; and Chito Bustamante, Chikka Asia COO.

Taruc will open the conference with a presentation on industry updates, to be followed by Lui's presentation on best practices in software development. Capistrano will discuss the Capability Maturity Model, which is widely acknowledged as the standard for assessing the software engineering capability development of firms. Lastly, Bustamante will present how Chikka Asia positioned itself in the global market as the world's first mobile "text" messenger. The conference will be concluded with a speech by BOI Governor Armin Raquel-Santos.

"ESP is just one of the promotional efforts for which we are collaborating with the government. PSIA intends to continue to cooperate with other entities, in other capacities, for the development and growth of the software development industry," Taruc said.

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