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Study Shows PHs Tier-3 Cities Keep it Competitive

by: Sarah Joson

Friday, January 15, 2016 | Outsourcing News |

Tier-3 Cities in the Philippines Attracts BPO investors

According to a report “2016 A.T. Kearney Global Services Location Index (GSLI)” done by consulting firm A.T. Kearney, the labor supply in the Philippines’ tier-3 cities keeps it at the seventh spot as the most attractive country in the world for outsourced services.

The report read that the Philippines and India are still the go-to countries for offshoring, but business process outsourcing companies are now considering companies outside of the major cities to tier 3 locations. For instance, in the Philippines, they are now looking at Bacolod and Iloilo City for new talent.

The Philippines also has the leverage of its talent’s soft skills that cannot be replaced by machines. This can then be combined with the traditional business process outsourcing (BPO) skills.

Fifty-five countries were surveyed in the report and the Philippines maintained its 7th place with a total score of 5.88 out of 10. The study had three major categories, with Manila posting a score of 3.17 on financial attractiveness, 1.43 on people skills and availability, and 1.29 on business environment.

The first six are India (6.96), China (6.49), Malaysia (6.05), Brazil (6), Indonesia (5.99), and Thailand (5.92).

The report also stated that in the global outsourcing space, the Philippines is second to India, which is known for contact center operations and moved to complex processes in BPO and information technology.

It was also noted in the report that the Philippines has improved infrastructure, environment, and tax regulatory costs since 2014.


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