Tholons International 2016 Report

9 Philippine cities in top 100 outsourcing destinations

9 Philippine cities are now included in the list of top 100 outsourcing destinations by Tholons International. Manila retained the 2nd place spot while the rest of the Philippine cities included last year improved their rankings.

President of the National ICT Confederation of the Philippine (NICP), Wilfredo “Jun” Sa-a Jr., said, “There are now nine Philippine Cities on the list. Welcome Dumaguete City to the Top 100 List! Almost all of the cities went up in their rankings.”

Davao City moved up by three notches from 69th place in 2015 to the 66th this year. Other cities, moreover, moved up by one spot – Cebu City from 8th to 7th; Sta. Rosa from 82nd to 81st; Bacolod from 86th to 85th; Iloilo from 91st to 90th; Baguio from 95th to 94th; and Metro Clark from 98th to 97th place. Dumaguete City, which was just included this year, made the biggest by being in the 93rd place.

With the creation the Negros Province’s Negros Island Region or NIR, the separate cities of Dumaguete and Bacolod had the chance to prove their BPO capacities. Dumaguete City being included in the list is

 “Majority of the ICT Councils under NICP are hoping that the DICT (Department of ICT) bill will soon be a law. This is one of the major differentiators of Philippines and India which holds the number one spot for many years, India has a very active Ministry for ICT,”

~ Batapa-Sigue, Bacolod City Councilor

According to Manuel Ravago, Tholons research manager, said in an email message to NICP’s president that one of the important shifts in the Asia pacific region in this year’s list was Cebu City’s rise from 8th to 7th place.

 “A continuously improving infrastructure – as of Q1 of 2015, the PEZA counts a combined 27 IT Centers and IT Parks to be operating in Cebu — and an enlarging talent pool that draws diverse talent from the Southern archipelago, has allowed the city’s IT-BPM sector to sustain recent developmental gains,”

~Report by Tholons International

Cebu is considered the educational hub of the Central and Southern Philippines. Central Visayas region has 138 higher education institutions from both private and public sectors and has reached almost 260,000 undergraduate enrollees during the academic year 2013-2014.

Cebu City’s IT-BPM industry includes a fair share of each BPO sector from ITO, KPO and BPO. This reflects the diverse talent pool the city has. Tholons said that the city remains in a strong trajectory and has long-term potential as a global services outsourcing destination.

“[T]here is opportunity for Cebu City to capitalize on the prevailing weakness of global competition. 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,” the analyst firm said.

Tholons believes that cities in the Philippines like Manila and Cebu City offers an edge to customers because it is considered as “safer service delivery havens” compared to other locations. Cebu City, in particular, is expected to rise even more in the coming years because it has not been “marketed enough” in the global services outsourcing marketplace.

(Report by Read more here.)

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