Davao City is Top ‘Next Wave’ BPO Location

Davao City continues to lead the country in terms of attracting business process outsourcing (BPO) operators in 2011.

According to the Business Processing Association of the Philippines (BPAP) and Department of Science and Technology (DoST)’s Next Wave Cities Report, Davao City is cited as top outsourcing site after Metro Manila, Metro Cebu and Metro Clark. It is followed by Sta. Rosa, Bacolod, Iloilo, Metro Cavite, Lipa, Cagayan de Oro, Malolos, Baguio and Dumaguete, which retained their positions in the 2010 list.

Davao currently hosts 20 outsourcing companies with 6,500 workers.

BPAP President and CEO Benedict C. Fernandez said in a briefing yesterday that the score card and criteria were the same and need more time to result in changes, thus the status quo.

“It would take time to see the changes such as talent penetration,” he said.

Criteria are talent penetration with 40%, infrastructure 30%, cost, such as wages and power rates, and local business environment 20%.

BPAP chief executive Oscar R. Sanez said Davao ranked the highest for availability of graduates and talented workers and also had good scores in terms infrastructure and cost.

Davao — along with other cities in Mindanao — suffered in terms of their business environment scores due to advisories issued by other countries against travelling to the island.

The Philippine BPO industry and employed around 442,000 employees and garnered revenues of $7.2 billion last year, the latter a 19% gain from 2008’s $6.06 billion.

The BPAP expects revenues to hit $9.5 billion this year as more markets become confident in the country.

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