Assignment 7(MIS) SONA ICT related

On the assumption that you heard/read the SONA of the President last month, (July 2000), identify at least 3 areas related to ICT and identify how these areas can improve our quality of life.

GMA, in SONA, bats for dept. of ICT
By MELVIN G. CALIMAG
July 28, 2009, 12:11am
Pres. Gloria Arroyo on Monday made a final push for the creation of DICT (Department of Information and Communications Technology) in her last State of the Nation Address (Sona).
Speaking before members of both chambers of Congress, the chief executive urged the country to “have a Department of ICT” as she highlighted the huge role that the BPO sector has played in the local economy.
A proposed law calling for the creation of DICT has been pending in Congress for the last five years. This even if Malacanang has certified the bill as urgent.
Arroyo made the endorsement as she noted in her Sona that the Philippines is now starting to create wealth with the development of the BPO industry as an engine of growth.
“Electronics and other manufactured exports rise and fall in accordance with the state of the world economy. But BPO remains resilient. With earnings of $6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity,” she said.
The president’s call for the creation of DICT, however, was less urgent compared to the appeal she made to revise consumer laws as she underscored her directive to the National Telecommunications Commission to act on complaints against dropped calls and lost cellphone load.
“We need to amend the Commonwealth-era Public Service Law. And we need to do it now,” Arroyo declared.
In an earlier interview, CICT (Commission of Information and Communications Technology) chair Ray Anthony Roxas-Chua said there’s time left and that the government is still hoping that Congress would pass the DICT bill.
“Unlike a full-fledged department, the problem with CICT just being a commission is that it can be easily demolished by the next administration. All that is needed by the next president is to sign another EO. That would be the end of the programs we’ve put up over the years,” he said.

Reference: http://www.mb.com.ph/articles/213088/gma-sona-bats-dept-ict



ICT players await PGMA’s SONA speech
DAVAO CITY — ICT (information and communications technology) industry players and stakeholders will be tuning in to President Gloria Macapagal Arroyo’s State-of-the-Nation Address (Sona) for her pronouncements on the economy particularly on the IT sector.
Andre Fournier, chair of the ICT committee of the Davao City Chamber of Commerce and Industry Inc. (DCCCII) said that any pronouncement by the President would be an add-on to the IT roadmap which the group will be preparing.
“The President has been very supportive of the ICT industry.” Fournier said, citing Arroyo’s IT policy which allowed the industry to grow and flourish recording a 4.8 billion dollar market share in outsourcing operations and employing a total of 650,000 workers.
A week after the President’s Sona on July 27, IT stakeholders from Davao, including the Commission of ICT (CICT) will have a summit to create a roadmap of a short to medium term plan for Davao’s IT industry.
A study by the CICT lists Davao as the 4th most preferred investment destination for business process outsourcing (BPO) companies in the country . BPO operations in the city are on the rise despite the ongoing global recession. The industry currently employs 6,000 workers locally, with job demand steadily growing as several big-ticket BPO players are expanding operations while others are moving in to the city, with the opening of the Ayala and Robinson IT parks.
Fournier said that government’s policy towards IT has contributed to the growth of the sector.
Arroyo was recently cited by the Contact Center Association of the Philippines for her support to the industry. Among the concrete government initiatives cited by the group are the PEZA (Philippine Economic Zone Authority) incentives, CICT (Commission on Information and Communications Technology) formation and the 50-million peso scholarship fund for call center training.
Reference: http://davaotoday.com/2009/07/20/ict-players-await-pgmas-sona-speech/


President Gloria Macapagal Arroyo’s speech during the 9th e-Services Global Sourcing and Exhibition

Function Room 1, SMX Convention Center
SM Mall of Asia, Pasay City
February 9, 2009

Chairperson Rey Chua of CICT, members of the Diplomatic Corps, our leaders of the E-service industry both here in the Philippines and around the world, ladies and gentlemen, Welcome to the Philippines!

As the world heads deeper into recession, we meet today in interesting times, so
to speak. But to the fiscally strong, this is a time of opportunity. The Philippines has been compared to an island of stability amidst the raging world economic storm. That’s not just coming from me. Standard & Poor’s said it.“Reasonably healthy.” -- Fitch said it. “Macroeconomic risk the lowest.” -- Credit Suisse. “Inherently strong, a potential beneficiary of the world’s financial woes.” -- JP Morgan, speaking of the Philippines.

We now have 36 quarters of uninterrupted growth since I took office as President in 2001. We have created almost 8 million jobs in eight years. We remain cautiously optimistic that our resources and plans will allow us to manage our way through this time. This is because we “rebooted” our economy several years ago with dramatic reforms in revenue collection and generation, fiscal controls and banking reform. All of these actions were taken before there was a hint of a global crisis. They have held us in good stead. Our GNP grew 8.0 percent in 2007 and in 2008, when two-thirds of the world went into recession; we managed to still have a respectable GNP growth of 6.0 percent. And we have a cushion in place to help the poor.

Aside from revenue, we have focused on reducing our debt-to-GDP ratio, and building up new industries such as the BPO sector. We have created the BPO’s industry from almost nothing in 2001. In 2001 there were 4,000 BPO workers when our Administration started; today there are 400,000 BPO workers. Thank you so much for so much job creation. (applause)

I’ve been asking your industry leaders, how was the industry? And the response is that our BPO industry continues to boom as global cost cutting is sent to outsourcing. As you know the Philippines is ranked among the most attractive off-shoring destinations in the world because of cost competitiveness and more importantly the country’s highly trainable, English-proficient, IT-enabled quality manpower.

Early in our Administration, we understood that we must act rationally and strategically, to foster a digital culture that maximizes the benefits of ICT. We initially concentrated our efforts on three areas.

The first area was the building of physical infrastructure. We worked to speed up the telecommunications network infrastructure by bringing down the cost of connectivity. We supported wider public access to communications and information services through the provision… encouraging the provision of broadband services in cities and identified growth areas, and a redundancy of telecommunications gateways. This infrastructure improvements have been among the most important reasons why BPOs have been coming, flocking to the Philippines.

The second area was ensuring an appropriate policy and legal environment. It is not the role of government to determine technological outcomes -- that is the role of the market. Our role is to provide the environment to grow ICT. To that extent, I created a Cabinet level Commission on ICT headed by Rey Chua to lead our ICT policy formulation and implementation. Its function includes harmonizing and coordinating all public ICT initiatives. Our ICT sector is successful because it is driven by the private sector with minimal government intervention.

Finally, the third area of development is the development of human capital to close the digital divide and to provide the world-class workers that you need for your industry. The Philippines is one of the highest among the different countries in the number of training facilities for computer programming and other computer-related courses. And to make BPO world competitive, the world competitive industry that is today, the Technical Education and Skills Development Authority is working closely with the Business Process Association of the Philippines or BPAP on training courses on BPO to further enhance English proficiency to help near-hires develop the skills needed to qualify for employment.

To date, the Commission on Information and Communications Technology and the Department of Trade and Industry, in cooperation with the Business Process Association of the Philippines, have identified what they called the Next Wave Cities that are best capable of hosting IT-BPO and E-services operations. The original Cyber Corridor spanned Metro Manila, going down south to Iloilo, Bacolod, Cebu up to Davao. Now it has been lengthened -- and I hope I get the facts right, they came to Peter Favila -- to include Baguio, Dagupan, Tarlac, Pampanga especially Clark, Metro Manila especially Marilao, Meycauayan and

Malolos, Metro Rizal namely Cainta and Antipolo, Metro Cavite were we have

Dasmariñas and Imus, Metro Laguna where we have Santa Rosa and Calamba,

Metro Batangas where we have Lipa and Batangas City, Dumaguete, and

Cagayan de Oro. In any case if there are refinements to this list that comprises the cyber corridor that will be discussed during this conference.

What we can say is that, BPO and E-services are key drivers of our economy.

They generate investment, they generate jobs, they alleviate poverty, they improve the lives of our people. And we are proud to be among the world’s leaders in this field. So we are proud to have you all today in this conference and exhibition.

To our first-time visitors who have come here to check out the opportunities we offer, I’m sure you will find that the Philippine BPO and E-services sector is among the best in the world. And to our existing investors, thank you for being a big part of the country’s sustainable and resilient growth.
Reference: http://www.op.gov.ph/index.php?option=com_content&task=view&id=20098&Itemid=38


… As the President Gloria Macapagal Arroyo speeches on her State of the Nation Address, she also mentioned things that her administration did related to Information and Communication Technology. First thing I heard on her speech which I think relates to Information and Communication Technology such as the following:

1. BPO (Business Process Outsourcing)

This industry is regarded as one of the fastest growing industries in the world. International investment consultancy firm McKinsey & Company predicts that the demand for outsourcing services will reach $180 billion in 2010, with the customer contact services, finance and accounting, and human resource sub-sectors taking up the biggest shares. When it comes to the trend in primary business requirements, experts are seeing a shift from cost-effectiveness to skills quality and competence. This development all the more strengthens the Philippines' position as an emerging global leader in the BPO industry (BPAP 2006).
The BPO boom in the Philippines is currently led by demand for offshore call centers. The Philippines raked in offshore service generating revenues of $2.1 billion in 2006, placing third behind India and China and slightly ahead of Malaysia. That's up 62% over the $1.3 billion it gained in 2004, and a huge increase from the start of the decade when the outsourcing industry in Manila employed just 2,400 people and the industry had revenues of merely $24 million. It is estimated that 200,000 people are working in 120 BPO (mostly Contact Centers) in the Philippines in 2006. Overall, Philippine BPO is forecast to earn US$11 billion and employing 900,000 people by the year 2010 (Shameen 2006).
The recent growth spurt in the outsourcing industry in the Philippines has been fueled not by traditional low-value-added call centers but more higher-end outsourcing such as legal services, Web design, medical transcription, software development, animation, and shared services. Though call centers still form the largest part of the sector, the Philippines has begun leveraging its creative design talent pool, its large pool of lawyers, and its professionals in accounting and finance (Shameen 2006).
To achieve and sustain this rapid growth, the Philippine government is offering significant fiscal and non-fiscal incentives to attract foreign direct investment in these industries as part of the 2006 Investment Priorities Plan. The IPP was prepared by the Board of Investments (BOI), as the lead agency in promoting investments, focused on the sectors identified in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010 (PBOI 2006).
Majority of the BPO facilities are located in Metro Manila, Cebu City and Bacolod City, although other regional areas such as Baguio City, Cagayan de Oro, Clark (Angeles City), Dagupan City, Davao City, Dumaguete City, Lipa City, Iloilo City and [[Legazpi City], Iligan CIty are now being promoted and developed for offshore operations.
The Philippines' Center for International Trade Expositions and Missions (CITEM) report for 2004 cited the Philippines as among the top 10 choices for offshore operations. Consultancy firm McKinsey & Co has been tapped to draft a five-year roadmap for the country's BPO industry.

2. Telecommunication Industry

The deregulation of the country's telecommunications industry has created a large amount of investment in this sector, estimated to total PhP130 billion (US$3.25 billion) over the next three years.1 The total number of main telephone lines in the country increased from only 785,000 in 1993 to 3.353 million at the end of 1996 to 6.64 million in 1998. The National Telecommunications Commission (NTC) reported a 1998 9.08 teledensity ratio (the number of installed telephones per 100 people). Expansion is projected to slacken this next year as the telephone companies will (hopefully) have fulfilled their commitments in terms of telephone lines they have to put up. The implementation of the Service Area Scheme to make sure that all regions of the nation have access to the telecommunications network, carried out through the National Telephone Program, accelerated local exchange growth. However, it is important to note that telephone distribution still remains somewhat unevenly distributed throughout the Philippines. Satellite communications in the country has been developed in case of disasters or emergencies. Satellite technology now links Metro Manila government stations to all regions of the country.

3. Information Technology Financing

The Philippines government, recognizing the importance of Information Technology, is helping to fund IT investments within the country. The government's budget for IT spending is increasing: as of 1997, the national government had an average annual operating budget on Information Technology of P643 million (US$17.9 million). At that time, about P7 billion (US$192 million) worth of IT assets had already been put in place by the national government in the last five years. As of April 1998, the Philippines government's IT budget was expected to increase to P21 billion (US$582 million) over the next five years.1

Most support to Research and Development institutions is being provided by the government (60%) with very minimal contribution from the private sector. However, R&D expenditures have still remained very low. In 1992, R&D expenditures were estimated at P1.5 billion (US$4 million) representing only 0.22 percent of GNP; newly industrializing countries spend 1.5 percent of their GNP on R&D.2

Though local governments are also expected to spend and provide a budget for IT investment, the national government has projected a substantial increase in the annual budget for IT. The government is also encouraging and looking towards the participation of private companies and investments in IT as the developing country cannot take all the weight of the costly upgrades in technology. Despite the Asian economic crisis and currency fluctuation within the Philippines, investor confidence in the country is still high.

The IT sector is still a healthy one in the country, regardless of economic troubles. Major IT projects and investment continue. Within the last year, there has been a definite increase in the number of computerization projects in the government and elsewhere . Much of the government has now moved online, especially with the strong encouragement from the President and the National Information Technology Council (see the IT Action Agenda for the 21st Century (IT21) under Government Policies). In 1998, 73 government agencies were already connected to the Internet, with many of them having an Internet presence through their own web sites.

IT companies are continuing to invest in the country to meet their outsourcing needs located in the Philippines. Seagate Technology Inc. opened its US$70 million manufacturing plant in Cebu in the first half of 1999. Another IT vendor, Fujitsu Ltd., will build a US$200 million hard disk media plant in the First Philippine Industrial Park Ecozone in Batangas. James Martin & Co. also plan to invest US$6 million to expand its Global Development Center in the next two years.3

Oracle signed the Philippines on as the first international participant to the US$50 million Oracle Academic Initiative (OAI) where Oracle will extend a US$1.5 million grant to the APEC Foundation to finance the training of young Filipinos in computer software applications.4

Soon after the approval of IT21 Microsoft signed four Memorandum of Understandings with the Philippines President, agreeing to:5
• explore the possibility of cooperation in the area of IT core competency and information infrastructure development;
• jointly undertake specific projects and activities such as the establishment of interconnected learning centers, as well as to explore such other cooperation possibilities as in the development of advanced software;
• provide technical assistance in translating electronic commerce initiatives into technology applications;
• provide technical assistance, training and administrative support for the implementation of a software management and review program to sustain the software legalization process in government.

Investments continue to pour in elsewhere as well. Intel has been investing between $300 and $400 million in local manufacturing facilities over the last 2-3 years. Apple Computers opened a full subsidiary in the Philippines. NEC will build a board wiring plant in Laguna, Acer is building additional facilities in Subic, and Cypress Semiconductor is investing $110 million in a new assembly and test plant in the country.

The National Telecommunications Commission (NTC) estimates that total investments in the IT sector over the next three years will reach an amazing P130 billion (US$3.25 billion).

...those 3 ICT related are things can improve our quality life by Technological enhancement, as we all know technology can help our life become easier.