CICT reports outsourcing investments in 17 areas

Posted August 04, 2008

MANILA, Philippines--Seventeen areas in the country now have investors from the business process outsourcing (BPO) industry, according to the Commission on Information and Communications Technology (CICT).

CICT has identified a total of 22 areas in its drive to establish so-called ICT hubs ideal for BPO investors, according to Commissioner Monchito Ibrahim.

The commission is now working on adding Tagbilaran and Tuguegarao the list, he told INQUIRER.net in a phone interview.

"Out of these, 17 already have locators and most of them have created their respective ICT councils to take care of HR [human resource] issues," said Ibrahim, who is heading CICT's efforts to establish ICT hubs in partnership with the private sector.

Quezon City, which already has BPO locators in areas like Eastwood City, is the latest to form an ICT council. Metro Manila, which comprises Quezon City and other cities like Makati and Mandaluyong, is considered as just one area or ICT hub.

Ibrahim also cited the growing awareness about BPO in cities outside of the Metro Manila. He also noted increased enrollment in ICT-related courses in these areas.

The local BPO industry today generates estimated revenues of $5 billion and the industry is targeting to more than double that in less than three years.

Call centers continue to be the biggest revenue contributor although there are non-call center investments as well, even in areas outside Metro Manila.

In Bacolod, for example, major US operator Convergys is opening a call center, the fourth operator to locate. The latest investments in Bacolod also include a software company, and BPO companies that handle services for medical billing and investment banking customers.

"Total employment in Bacolod is expected to reach 6,000 by the end of the year. That should result to about P60 million to P90 million in new investments getting in Bacolod's local economy," Ibrahim said.

The 17 areas are as follows: Bacolod, Bacoor, Baguio, Batangas City, Cagayan de Oro, Cainta, Naga City, Cebu, Angeles, Davao, Dumaguete, Iloilo, Legazpi, Lipa, Manila, Sta. Rosa and Dagupan.

Source: INQUIRER.net,  June 02, 2008
by Lawrence Casiraya