Davao is touted as next major BPO hub

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By Anna Valmero

DAVAO CITY, DAVAO DEL SUR— Outside Metro Manila, Davao City is the country’s next bet as top outsourcing destination along with other “next-wave” cities so talent development here is crucial.

The business process outsourcing (BPO) sector wants to decongest Metro Manila and relocate to other cities like Cebu, Cagayan de Oro and Davao City, said Technical Education Skills and Development Authority (TESDA) secretary Joel Villanueva.

Metro Manila currently hosts around 85 to 90 percent of BPO companies operating in the Philippines. Relocating them to will open more job opprotunities for a larger talent pool and help in ensuring the companies’ 24/7 reliability.

TESDA received a P1.1 billion stimulus fund in addition to its budget to develop qualified skilled sectors. About P500 million of this fund will be used to develop manpower in next-wave cities for the BPO sector, said Villanueva.

Davao City was chosen in 2010 as the top next wave city among ten other cities, according to the Business Processing Association of the Philippines (BPA/P) so it comes highly recommended as a prime outsourcing investment destination.

Aside from contact center and backoffice operations, manpower training would focus on knowledge process outsourcing and other emerging sectors such as animation, health information management, and software and gaming development.

By 2016, the local BPO industry expects to earn $20 billion in revenues and give jobs to an additional half a million Filipinos.

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