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BPOs Planning to Move to Next-Wave Cities

by: Sarah Joson

Thursday, March 29, 2012 | Outsourcing News |

Next Wave cities, or areas with ideal business environments for outsourcing operations, are now being considered by business process outsourcing (BPO) companies. Most (85-90%) BPO firms in the Philippines operate in Metro Manila, and relocation will help reduce congestion and provide more employment opportunities to talent pools in other cities and provinces.

Next-wave BPO cities in the Philippines

The 10 “Next-Wave BPO cities” report stated that Davao City, Sta. Rosa City in Laguna, Bacolod, Iloilo, Cavite, Lipa in Batangas, Cagayan de Oro, Malolos in Bulacan, Baguio City, and Dumaguete, Negros Oriental have talent supply, infrastructure, and telecom setup that BPO companies need.

The Department of Science and Technology (DoST) and the Business Processing Association of the Philippines (BPAP) released a study indicating that Davao City, Sta. Rosa City in Laguna, and Bacolod City are the three leading BPO destinations out of the 34 locations in the country. Last year, the outsourcing industry posted more than $9 billion in revenues with more than half a million in the workforce.

The BPO sector anticipates an increase in revenues and employment opportunities in 2016 if the plan to relocate or expand to urban areas outside Metro Manila pushes through. Also, BPAP sees cities outside the capital will be employing one third of the predicted 1.3 million BPO candidates by 2016.


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