Young, tech-savvy population drives Philippine digital growth: Indra Group

Global firms are tapping into opportunities like back-office operations.

Strong demand for digital services and a young, tech-savvy population are positioning the Philippines as an attractive destination for investment, particularly in areas such as back-office operations, contact centres, and digital platforms.

“It is not only local companies that are innovating—global firms are also investing to tap into these opportunities,” said Dhruv Soni, APAC Head, Telco & Media Consulting, Indra Group.

Speaking at the 2026 GovMedia Summit in the Philippines, Soni said the country’s high mobile adoption and widespread use of digital applications are driving growth. “We are on a very stable and faster-growing trajectory.”

“Young people use TikTok and various applications to get things done—from ride-hailing to food delivery,” he said. “Across daily life, education, and healthcare, people are relying on digital applications.”

However, Soni said further progress will depend on strengthening underlying systems that support digital services.

Whilst governments are investing heavily in artificial intelligence (AI), many programmes still face challenges due to fragmented infrastructure, uneven connectivity, and limited interoperability.

Soni outlined a three-layer framework for digital transformation, comprising citizen services, digital platforms, and connectivity infrastructure.

He noted that most investments remain concentrated on customer-facing applications.

“Much of the investment today is focused on the top layer—making life easier for citizens—whilst the infrastructure and platform layers are often overlooked,” he said.

He also pointed to structural challenges linked to geography, noting that connectivity gaps are more pronounced in countries made up of islands.

Soni said government commitment remains strong, but improving coordination across systems will be key to delivering more efficient and integrated digital services.