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The Global Outsourcing Cities List: Manila, Cebu, Davao, Iloilo

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Looking at the development here in Iloilo City, it is clear where the investment is pouring in. Based on Megaworld’s latest master plan for Iloilo Business Park, the Commercial Business District in Iloilo and in the region, It is boasting of 15 lots allocated for Business Process outsourcing. And how sound can it be? Where should money come pouring in to Festive Malls new line of shops but payments teleported from greasy cash from the first world centers: London, New York, Australia and Canada. They will set up shop and fund a new breed of yuppies into kingdom come.

IloIlo Business Park -Master Plan Development

Iloilo Business Park -Master Plan Development

Even the news of Trumps rant at American jobs being exported to third world nations did not stop the big developers as news of SM, yes, the Retailing Giant is getting in on the cash with its 19 storey BPO along Diversion road.

Davao IT Park - Matina

Davao IT Park – Matina

The Global Outsourcing Cities

Let us look at how outsourcing grew around the world. Taipei, Perth and Davao City were the biggest movers in Asia Pacific region. Taipei moved 3 places up from 73th to 70th while Perth and Davao now ranked 75th and 66th in the list, respectively. Being one of the Philippines next wave cities, Davao City, is growing to be one of the destinations outside Metro Manila. Davao City, the largest City by land area, does not concern with saturation issues of Metro Manila, having enough space to expand around the city. Other advantages that highlight Davao are its geographic advantages (i.e. almost devoid of flooding, earthquakes, and other natural calamities). Davao City is boosted by the development of IT infrastructure such as the recently completed Matina IT Park. Large BPO providers such as Convergys and Teleperformance are already in Davao City.

CBD - IT Park in Cebu, Philippines

CBD – IT Park in Cebu, Philippines

One significant shifts in the Asia Pacific region is the rise of Cebu City, moving upwards from 8th to 7th spot. The PEZA counts a combined 27 IT Centers and IT Parks to be operating in Cebu. The province of Cebu is also considered as Central and Southern Philippines’ educational hub. The Central Visayas Region as over 138 higher education institutions, reaching 260,000 undergraduate enrollees for the academic year 2014-2015. The city has grown expertise in diverse sectors of outsourcing such as software development, FAO, medical transcription, and contact support services. Large multinationals such as JPMorgan Chase, Aegis, Accenture, Teletech, IBM and Convergys, among many others, have all established delivery centers across Cebu City’s numerous IT Parks and Centers.

South America and Europe

Economic turmoil in several of Latin America’s key economic markets for example, has temporarily dulled the region’s luster, pushing large service buyers/providers to re-focus activities on proven locations which can provide both scale and better long-term sustainability.

Conversely, the biggest drops in this year’s List were found in locations where socio-political and economic turmoil were most evident. Istanbul in Turkey had the biggest drop of 10 places. Istanbul’s IT- BPM sector had experienced recent gains as its strategic geographical position and growing economy had made Turkey the ideal headquarters for hundreds of multinationals doing business in the region.

Outsourcing to Moscow, Russia

Outsourcing to Moscow, Russia

Russia’s key service delivery locations, Moscow and St. Petersburg, also experienced significant drops on the List, with declines of 8 and 3 positions, respectively. As previously mentioned, collapsing oil prices and Western sanctions have contributed to debilitating Russia’s domestic economy. Coupled with security and risk exposure, due to the country’s curious role in regional conflict in the Middle East Russia has become a high risk destination for prospecting service providers and buyers, who may have previously considered utilizing the Federation’s deep and technically skilled talent pool. Finally, economic gridlock characterizes the other locations in the List that experienced significant declines in São Paulo, Brazil falls from 24th to 27th spot.

The Top 100 List also welcomes two new Asian cities in 2016 Dumaguete City (93rd ) from Philippines and Dubai (96th ) from United Arab Emirates (UAE).

TeleTech - Call Centers in Dumaguete

TeleTech – Call Centers in Dumaguete

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Modern Office Building - Archian Designs

Modern Office Building – Archian Designs

Dumaguete has established its identity as a viable (and alternative) IT-BPM destination in the Philippines. The city’s access to the rich talent pool of the southern Philippines archipelago, add to its favorable draw. A skilled local talent pool is also available, with the talent pipeline being sustained by several universities situated in Dumaguete, most important of which is Silliman University. Beyond the traditional Contact Support Services typical of other country locations, there are also established providers delivering a slew of outsourced processes such as graphic design, software programming, and medical transcription among others. Currently, the largest providers in Dumaguete are Teletech, Qualfon and SPI Global.

SPI Global in Dumaguete City

SPI Global in Dumaguete City

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Author: Archian

An Architect, Blogger and Strategic Thinker

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