IBM forecasts more BPO investments

Less than three years before the decade comes to a close, the Philippines is bound to get more investments from the global IT services market, according to a regional IBM executive.

Stephen Braim, IBM vice president for governmental programs in Asia Pacific, believes that "now marks the beginning" of more foreign investments entering the Philippines.

IBM estimates that the global IT market is now valued at $1.46 trillion. And more significantly, the entire market favors software and services, according to the tech giant.

"There is so much more value creation that can happen in the Philippines," said Braim, speaking during a gathering Thursday last week in celebration of IBM's 70th year in the Philippines.

Braim emphasized that in today's "globally integrated" market, companies are turning towards software and services to derive much-needed innovation.

His speech echoes IBM's own strategy. After the turn of the century, when Sam Palmisano took over as CEO from Lou Gerstner, IBM's strategy became services-oriented.

From deriving more than half of its business from hardware during the early 90s, services now account for 53 percent of IBM's global business, said Braim.

Software, meanwhile, accounts for 24 percent and was the highest-growing business in its recent financial quarter this year.

IBM sees the Philippines as strategic in its IT services model, having invested delivery centers in the country that delivers business process outsourcing (BPO) services.

Overall, IBM employs more than 5,000 people in the country.

"This is a unique period in history. This is a period of skills, of investing in people," Braim said.