Competitiveness of the Philippine IT Industry: What Lies Ahead

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This paper examines the competitiveness of the Philippine information technology (IT) industry vis-à-vis its emerging competitors and neighboring countries in the region. While the industry boasts of being the largest foreign exchange earner for the country, it suffers from structural weaknesses that, unless addressed, render its long-term competitiveness at risk, especially as the competitors are increasing their stake in the world IT market faster than the Philippines. This paper discusses what constraints the industry’s long-term growth and identifies some crosscutting strategies to lessen or overcome such difficulties and keep the industry’s present edge.