“What do these companies know about the city,
and why are they choosing to outsource their needs to Davao City?”
Big corporations and SMe’s are no longer questioning the wisdom in outsourcing to the Philippines. The country has invested largely on its infrastructure, talent pool, and continuously increasing its ranking as a world leader in the BPO Industry. And because of its proven success, other cities apart from Metro Manila are being groomed to take on the increasing demand. One of the cities that emerged as a key location is Davao City. According to the president of the Information and Communication Technology (ICT)-Davao president, Lawyer Samuel Matunog, “Davao, among all the cities in the Philippines, has absorbed the biggest number of the BPO demand in the country last year (2014).” According to the data collected from IT and Business Process Association of the Philippines (Ibpap), by 2014, there was a total volume of 33,000 BPO full time employees. JLL Regional director and Philippine chief David Leechiu was quoted on a different article, saying that “Davao was the largest recipient of BPO traffic after Metro Manila, even beating Cebu”. The metropolitan area is synonymous with Davao City itself, since the city is one of the largest cities in the world by land area and its land area encompasses more than six times the size of Metro Manila and three times the size of Metro Cebu. The size of the city itself is reason enough to expand to the city, but there are more reasons why Davao is building a name for itself in the industry.
- The benefits of an alternate destination. Going for the number 1 location may have its benefits, but you can also expect a saturation of talent. Over 70% of all IT-BPO operations are currently housed in Manila. Davao city has sufficient resources overall resources for growth in the BPO industry.
- Davao is on the Next Wave Cities List. In fact, since 2010, Davao has consistently been on the top spot. The Next Waves Cities are those that are able to accommodate big BPO and IT companies, as well as nurture start-ups.
- Davao city has been investing an infrastructure that’s suitable for the location, and sustainable for the coming years. The Philippine Economic Zone Authority (PEZA) accredited buildings in Davao are growing every few months, meeting global industry standards.
- Typhoon-Free Location. Compared to other metros in the Philippines, Davao is strategically located. It does not suffer from city-paralyzing typhoons that hamper on operations.
- Davao is overflowing with manpower. While there are the annual 10,000 IT-related university graduates that are expected to fill up the manpower needs, there are also other independent training companies that provide education for the non-voiced skills required.
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