Philippine software industry pegged at $1.16 billion in 2013

Philippine Software Industry Association president Joey Gurango gave his projections about where the software industry is headed at the first software conference in the Philippines (Softcon.ph).

The Philippines’ software industry has potential, and software-centric startups will play a big role in it. This is according to the Philippine Software Industry Association (PSIA) president Joey Gurango.

To back this up, PSIA’s data shows the country currently has around 400 to 600 software companies in the country. From this number, the software industry expects its export revenue (products and services provided to other countries) to reach around $1.16 billion by the end of 2013. On average, this would make each of these companies earn around $1.9 to 2.9 million dollars. The local market is also expected to contribute around $100,000.

But apart from these contributions by the medium-to-large software companies in the country, a number of aspiring startups can still contribute to this growth. Joey says there are around 300 startups in the country focusing on software development. Indeed, we have already seen a few startups launch their mobile and web applications in the Philippines.

Helping startups grow

Joey says there is a need for more businesses to get involved in software-centric product development to harness the growth of the Philippines. To help with this, the PSIA created the Software Products Incubation Group of the Philippines (SPRING.ph) in 2011. It aims to be an avenue for Filipino entrepreneurs to develop their ideas into a viable product or service.

It conducts a quarterly event called Launchpad where selected startups can develop their idea or products. This quarter, it has accepted 15 startups.

Part of the help it gives are mentorship, development of business plans, connections to both public and private institutions who can help them get grants and funding, and product pitching to foreign venture capital firms. SPRING.ph also sets up marketing subsidies for companies with market-ready products, and establishes partnerships with different companies like software companies, telcos, and more.

One of the startups in the Philippines we spotted earlier this year, CodeToki, a platform for graduates to find employment, is one of the startups it has trained.

Startups is a community of the youth

In a close look at today’s startup community in the Philippines, Joey says the ideas of the youth are quite viable. While there are individuals who are executing on good ideas after graduation, he has also met some 14- to 18 year-old kids who have the ability to think of disruptive ideas.

That’s why it’s important to provide the youth with information through programs like Spring, says Joey. It “allows them to make better decisions.”

The association is looking to have at least 10 startups that can create at least $1 million in revenue by 2016. “Our goal is to be a 5-billion dollar industry by 2016,” Joey adds.

This is not something only the software association is aiming for. Likewise, Philippine incubator Kickstart Ventures and Australian venture builder Pollenizer earlier talked about their vision for the Philippines to help create a billion-dollar company.

(Editing by Terence Lee)