Review of PSIA (Philippine Software Industry Association)

What is the PSIA and why does it matter?

The Philippine Software Industry Association (PSIA) is a non-profit group that drives the growth of the Philippine software industry and promotes the country as a top software development hub.

• It backs local startups and builds homegrown tech talent.
• It works with the government on IT policies and school programs.
• It has helped the Philippines win global outsourcing recognition.

What is PSIA?

Few inventions changed the world like the computer. It sparked a wave of new discoveries. In fact, it helped us reach outer space and build the internet we know today. It also started a fresh race among nations in one new field: software development.

In this arena, the Philippines stakes a strong claim. The country is known for its islands and its skilled, flexible workforce. This effort is led by the Philippine Software Industry Association (PSIA). Eleven of the country’s top software leaders founded it in the 1980s.

The PSIA aims to support software startups and grow local talent. As a result, it has become a major force behind the country’s rise in the global software market. It also drives growth in the wider information technology and business process management (IT-BPM) industry. Today the group helps position the Philippines as a top outsourcing destination.

About PSIA and its history

The PSIA is a non-stock, non-profit group. Its goal is to grow the local IT industry. In turn, it promotes the Philippines as a preferred choice for software development outsourcing. The group has about 150 seasoned IT firms. These range from small and medium businesses to large multinationals. It also enjoys steady support from the Department of Science and Technology. The PSIA values diversity too. So it features prominent players and Filipino-owned firms from abroad.

The PSIA was set up in 1988. Since then, it has worked with the government on many policies. These initiatives aim to speed up the growth of the local software industry. As a result, the Philippines built a strong name as an attractive offshore location. This progress also boosted the wider BPO economy across the country.

The group also builds local talent in many ways. For example, it created SPRING.PH. This platform supports Filipino software startups. It also helps them build and sell world-class software products in many categories. In the same vein, the PSIA helps shape IT school programs. It works closely with TESDA and the Commission on Higher Education (CHED).

Finally, the PSIA sharpens the skills of local software firms. It also helps firms recruit and keep IT staff. To do this, it runs regular seminars, training workshops, and scholarships. These events bridge the gap between students and working professionals. As a result, more qualified graduates join the workforce each year.

The PSIA’s highlights and achievements

The PSIA has pushed the Philippines to the front of the global software market. As a result, its work has brought real gains for the industry and the nation. Some of these achievements include the following:

• The country won 2007 Best Off-Shoring Destination of the Year from the UK’s National Outsourcing Association (NOA). This came from strong policies and a competitive local industry.
• The industry earned USD 1.6 billion in revenue in 2012. This growth came from bold promotion of the Philippines in new service lines and regions.
• The sector hired 57,000 full-time staff that same year. Each worker added about USD 20,000 a year to industry earnings.
• Manila and Cebu ranked third and eighth in the Top 8 Global Outsourcing Destinations in 2012.

The PSIA also pursues global clients and investors directly. For example, in 2016 it led a delegation to Japan for the Software Development Expo (SODEC). The trip aimed to promote Philippine IT-BPM services. As a result, it brought partnership deals and leads worth about USD 2.5 million for members and partners.

PSIA programs and activities

The PSIA runs many programs to reach its main goal. Each one sits under a group with its own mandate.

First, the Software Products Incubation Group, or SPRING.PH, nurtures local startups. It offers support, education, and encouragement. By 2016, close to 50 companies and 24 product teams had joined. Its activities are as follows:

• Monthly meet-ups called “Techtalks” to build community and healthy competition.
• Quarterly LaunchPad events with funding and coaching to help teams build products.
• Monthly coaching sessions on real challenges that startups face.
• Startup competitions for schools to spark student interest in IT.

Next, the PSIA Technical Council gathers technical experts from the industry. It provides technical resources for the group’s projects. Meanwhile, it helps update school programs to match global standards. Since it formed in 2009, its members have done the following:

• Accredited trainers for programming courses under TESDA’s Training For Work Scholarship Program (TWSP)
• Joined CHED’s accreditation of IT and Information Systems degree programs
• Helped create short programming courses for TESDA
• Helped revise the Computer Science curriculum for CHED
• Trained university IT faculty across the country
• Ran talks and workshops on topics like Lean startup and Agile development
• Wrote tech articles for publications and blogs
• Mentored teams at startup accelerator events

Finally, the Capability Development Committee (CapDev) acts as the group’s education arm. So it supports the skills and assets of member firms. It does this through seminars, conventions, and training. Its main programs include:

• Annual Enablement Seminars (ES)
• Expanded Learning on IT Services (ELITES) Training
• Training for Work Scholarship Program (TWSP)
• Skills Standards for IT Professionals (ITSS)

On top of all this, the PSIA runs surveys and studies. As a result, it can track industry trends and guide growth.

Future goals of the PSIA

The PSIA plans to remain the driving force behind the Filipino software industry. So it keeps its current programs to grow local talent and interest in IT. At the same time, it promotes the country to offshore clients. These clients value a skilled workforce with strong English skills. The group also aims to lift the skills of local firms for years to come. Meanwhile, it keeps building ties among its members and other groups at home and abroad. For context, the IBPAP industry association plays a similar role for the broader IT-BPM sector.

Frequently asked questions about the PSIA

What does the PSIA stand for?

PSIA stands for the Philippine Software Industry Association. It is a non-profit group. It works to grow the local software and IT sector.

When was the PSIA founded?

Eleven top software leaders founded the PSIA in the 1980s. It was formally set up in 1988. Since then, it has shaped many national IT policies.

What is SPRING.PH?

SPRING.PH is the PSIA’s startup incubation group. It supports Filipino software startups. For example, it runs coaching, funding events, and monthly tech talks.

How does the PSIA support Filipino tech talent?

The PSIA works with TESDA and CHED on IT school programs. It also runs seminars, training, and scholarships. As a result, more qualified graduates join the industry each year.

Key takeaways

• The PSIA is the non-profit body that drives the Philippine software industry.
• It backs startups through SPRING.PH and builds talent with TESDA and CHED.
• Its work helped the Philippines win global outsourcing recognition.
• It keeps promoting the country as a top software development hub.