Software development is one of the more established sub-sectors of the Philippine IT and IT-Enabled Services industry. With more than three decades of experience, the reputation it has built for quality of work and efficiency of service will continue to make the Philippines an ideal destination for investments in software development.

The size of the industry may not be as big as India but the service that local software development companies (SDCs) offer approximates that of their bigger counterparts. From technology services to business consulting, local players have proven that they are capable of delivering services and products that meet stiffest global standards. The Philippines even ranked higher than India in terms of percentage of companies certified in ISO/CMMI according to the Philippine Software Industry Association (PSIA).

As of 2007, the country boasts about 400 companies and 21,000 software developers with skills ranging from the most current and widely-used technologies such as Java, C#, VB, .NET, Ruby, C/C++, SQL DBA, Embedded, Mobile and Wireless systems to legacy and mid-ware languages such as COBOL and RPG/ 400.

The thriving industry has already attracted some of the biggest names in the global software arena like Accenture, Headstrong, Oracle, IBM Business Services, RCG, Perot Systems, Wipro, HP, Logica, and Netsuite. On the other hand, homegrown players include SVI, Pointwest, ExistGlobal, and Gurango Software.

Not to be overlooked are Filipino software developers who have gained major inroads in the often cutthroat world of software development. Software giants have already taken noticed and acquired some of the companies founded by Filipino technopreneurs. Among the notable acquisitions are that of Gluecode Software and Logicblaze, both set-up by Winston Damarillo. Gluecode was the first open source developer acquired by IBM while Logicblaze was acquired by Iona Technologies. Morph Labs, Damarillo's latest venture, now focuses on enabling the first Software as a Service (SaaS) ecosystem in Asia.

Looking forward, the Philippines is now aiming to take advantage of the emerging demand for mobile applications or Mobile Wireless Application Development (MWAD). Capitalizing on the robust telecommunications infrastructure and the more than 40 Million mobile phone subscribers, the country is well positioned to develop programs for mobile communications and similar technologies where demand is projected to explode as the number of users and the primacy of this type of communication increase worldwide.

Because of the success of Filipino software developers and the tremendous potential for growth, investors and businessmen who are looking for more bang for their buck will find the Philippines as a necessary stop for their business operations. The labor cost is competitive and the quality of work is unassailable. On top of it all, the government is constantly working to create a stable business environment that allow prospective locators to maximize their investments while at the same time mitigate if not withstand volatile economic conditions.