PH to invest P38.7B in ICT, digitalization

THE country’s IT-Business Process Management (IT-BPM) sector continues to expand as it hit $35 billion in revenues last year, an 8 percent growth from last year’s figures, resulting in 1.7 million jobs in 2023. This year, the industry reportedly aims to target $39 billion in revenue and 1.8 million job opportunities.

Jack Madrid, president and chief executive of the IT and Business Process Association Philippines (Ibpap), has emphasized these milestones while acknowledging the need for tech upgrades and maximizing the future of AI technology in the industry.

In conversation with The Manila Times, Arun Kumar, regional director at ManageEngine, shared insights on risks in integrating new technologies, overcoming resistance to technological changes and cybersecurity challenges in the IT-BPM sector.

The Manila Times (TMT): What priority programs, activities and projects does ManageEngine recommend the government focus on?

Arun Kumar (Kumar): The 2024 Information and Communications (ICT) and Digitalization budget lays the groundwork for the country’s digital transformation, with a focus on improving and expanding access to the local internet infrastructure. However, there are already organizations and sectors that are interested in digital transformation or have implemented efforts in that vein.

ManageEngine recommends the inclusion of fiscal measures to incentivize local firms to invest in employee upskilling programs to assist these efforts. These programs are essential for equipping employees with the necessary tools and skills to navigate the potential disruptions raised by the adoption of AI.

Furthermore, it is crucial to introduce government programs that encourage more businesses to take the first step in digital transformation, whether it is migrating to the cloud, leveling up their cybersecurity efforts, or unifying their enterprise IT under one platform. This move, regardless of how these businesses go about it, is vital to staying competitive in the evolving technology and business landscape.

TMT: Will much of the investments go into enabling AI in the economy? With that, what opportunities will AI create given the pouring of new investments in digital transformation?

Kumar: While the government’s digitalization investments are focused on improving the country’s internet infrastructure, the Department of Science and Technology (DoST) already has initiatives that are exploring AI’s applicability in use cases, such as weather forecasting and agribusiness. There are also efforts to improve the operational efficiency and service delivery of frontline services through AI. Combined with the push to improve the country’s internet services, these form a potentially critical boost to public trust regarding AI and the business sector’s willingness to invest in it.

In addition to the government’s initiatives, there is significant potential for AI adoption and utilization across various sectors such as real estate, banking and finance, retail and e-commerce, education, manufacturing, health care, logistics, and transportation which are poised to benefit from the integration of AI technologies.

TMT: At the very least, will it offset the seeming disadvantages of AI in terms of dwindling job prospects in industry or are the investments more to do with empowering BPOs and large enterprises to be major players in the digital sphere? Like, are new opportunities for small businesses even in the equation?

Kumar: While concerns regarding dwindling job prospects in traditional industries due to AI are valid, it is important to note that AI can actually enable local industries and enterprises to innovate, become globally competitive, and attract more investments into the country. This, in turn, can lead to the creation of more quality, higher-paying jobs. In fact, it is estimated that AI could contribute $92 billion to the country’s GDP by 2030. Although the focus of the 2024 budget aims to improve local internet services, the long-term goal is to enable the local labor force to become competitive in an AI-dominated landscape.

For instance, the Department of Trade and Industry (DTI) is actively working on developing data literacy programs, not only within the formal education system but also through lifelong learning avenues. To support this, the DTI is exploring the possibility of implementing a subsidy program for course fees for online learning. Additionally, the DTI is considering the feasibility of providing tax breaks for businesses that invest in training programs for their employees in key areas such as cybersecurity and AI.

TMT: Naturally, by boosting the digital economy, cybersecurity risks become a major challenge. Where do the strengths of ManageEngine come into play in helping accelerate investments in the digital economy as well as in responding to the challenges and risks that come with them?

Kumar: It is equally important to minimize potential downtime, as well as detecting and mitigating the threats themselves. Indeed, Gartner finds that organizations that decrease downtime by 80 percent also improve customer satisfaction. Critical to achieving both of these objectives is the implementation of a comprehensive set of cybersecurity practices and technologies throughout the software engineering process to ensure cyber resilience and improved UX. These practices include constantly monitoring security and app infrastructure, regular risk assessments and vulnerability testing, compliance with the latest security standards, and incident recovery plans.

ManageEngine’s comprehensive IT management tools equip organizations with the capability to mitigate risks associated with digital transformation and fortify the security and resilience of digital infrastructures. Through ManageEngine’s solutions, organizations can enforce endpoint security, defend against ransomware attacks, combat insider threats, reinforce data security, achieve regulatory compliance, and uphold user privacy.

Furthermore, ManageEngine’s IT tools facilitate the creation of incident recovery plans, which are crucial for quick recovery in the event of cyberattacks. By implementing practices such as periodic full and incremental data backups, organizations can expedite the data restoration process and reduce the interruption to operations during an attack like ransomware, leading to minimal downtime.