MANILA, Philippines - The Business Processing Association of the Philippines (BPAP), Commission on Information and Communications Technology (CICT) and Department of Trade and Industry (DTI) have identified 10 “next wave cities” nationwide in terms of their potential as information technology-business process outsourcing (IT-BPO) hubs.
Davao topped the list, followed by Sta. Rosa in Laguna, Bacolod in Negros Occidental, Iloilo, Metro Cavite, Lipa in Batangas, Cagayan de Oro, Malolos in Bulacan, Baguio and Dumaguete in Negros Oriental.
Meanwhile, Angeles-Clark improved its status from a next wave city to an established IT-BPO similar to Metro Manila and Metro Cebu.
The identification and development of next wave cities is aimed at spreading the growth and benefits of the IT-BPO industry in terms of more employment, higher incomes and increased economic activity, as well as ease salary and rental pressures to support its continued expansion.
BPAP information and research director Gigi Virata said in determining the list, they follow a scorecard ranking that weighs the availability of talent, infrastructure, cost and business environment. The largest criterion is talent with 40 percent in the overall ranking, as the amount and quality of available and appropriately skilled workforce remains the biggest consideration.
Another major factor is infrastructure, which has a 30 percent weight in the rating system. BPAP explained that IT-BPOs look at road accessibility, available international and domestic flights, reliable power supply and suitable office spaces, among others.
Another major requirement is the presence of fiber optic network providers in these new growth areas. BPAP pointed out that these companies need reliable international connectivity and a strong domestic backbone network, as well as relevant managed solutions that would fit their specific requirements in the sites they set up in. These, together with quality talent pool are key requirements in raising the level of next wave cities as prime locations for IT-BPOs.
For its part, a unit of Globe Telecom said it is helping the IT-BPO industry continuously post strong growth and is supporting the next wave cities as they capture the opportunities these businesses offer.
“IT-BPO firms are increasingly expanding to other key cities nationwide and Globe Business is ready for the next wave of growth set to happen across the country,” Globe Business enterprise segments head Jesus Romero said.
Conscious of the needs of IT-BPOs as they expand to the next wave cities, Globe Telecom announced that it provides them with a strong nationwide domestic network (data, voice and Internet) that seamlessly connects to its international network, enabling IT-BPOs to run their operations smoothly anywhere they choose to move and locate in the Philippines.
Backed by the network infrastructure of Globe, IT-BPOs are assured of reliable fiber optic connections outside of Metro Manila, Metro Cebu and Metro Angeles, the company explained.
Globe has put into commission its second fiber optic backbone network (FOBN2) that spans over 1,900 kilometers of inland and submarine cable, covering most of the country. This is expected to further boost the quality and resiliency of Globe network services required by enterprises as FOBN2 serves as protection route for network traffic that is currently carried on FOBN1, the company explained.
FOBN1 is a parallel Dense Wavelength Division Multiplex (DWDM) transmission system built in early 2000. With such infrastructure in place, Globe extends domestic and international services to the next wave cities.
Through Globe Business, company officials said they also bring various product offerings that enable enterprises to establish and grow their business.