Monday, March 05, 2007

According to a study conducted by IDC, the Philippines IT and telecom spending is expected to grow by 10 percent during 2007. About 67 percent of the IT spending is expected to be contributed by hardware, while about 68 percent of the total telecom spending will be contributed by wireless services. The Philippines IT industry is expected to witness a shortage of human resources in 2007 due to the widespread outsourcing of the Philippine IT professionals to ASEAN countries. The study also predicted that the Philippine BPO industry will try to reposition itself as a quality-of-service destination rather than a cost-reducing destination in order to compete with various emerging countries such as China, Vietnam and Eastern European countries in the BPO space.

According to the recently released Indian budget, all the services carried out in the contract research and clinical trials industry was proposed to be exempted from the services tax of 12.24 percent. The proposal has been approved by the Indian Parliament and the exemption will be enforced from April 1, 2007, in India. The move will help to boost the growth of contract research organizations (CROs) as well as encourage international pharmaceutical firms to establish their CROs and outsource clinical trials to India.

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