Davao City makes it to the Philippines’ 2008 Top 10 IT-BPO Outsourcing Destinations

Davao City has added another distinction to its cap by ranking 4th in the Philippine 2008 Top 10 Next Wave Cities for ITO-BPO Destinations. Conferred by the Commission on Information & Communications Technology (CICT) and the Business Processing Association of the Philippines (BPAP) last 3 December 2008 at the BPO Summit of the Philippines at Crowne Plaza Galleria in Ortigas Center, Pasig, this Award should put to rest the speculation that the city is not ready to host multiple IT-BPO locators/investors.

The CICT and BPAP scored no less than thirty-one (31) ICT-ready locations in the Philippine Cyber-Corridor and their performance in four (4) major areas to include talent, infrastructure, cost and business environment.

Davao City bested 4 other Mindanao ICT locations by scoring well in the areas of talent and infrastructure. The depth of Davao City’s manpower pool is on account of the presence of 42 colleges and universities, which yield about 15,000+ tertiary graduates annually. Complementing the city’s performance in the talent area is the presence of major telecommunication providers, increasing number of upcoming BPO real estate, accessibility by air & land, among others.

The local IT-BPO stakeholders led by ICT Davao Inc and its private and public sector partners welcome the challenge of increasing the city’s competitiveness for attracting ICT locators and investments by working on improving performance in the area of business environment and risk management. “We need to act together in improving the overall imagery of Davao City as a safe IT-BPO destination by providing substantive evidence to counter the negative perception on the Mindanao region. By so doing, we can continue to attract more ICT investments, create more jobs and improve Davao City’s economy,” says Wit Holganza, current president of ICT Davao Inc.

The ten locations that made it to the top next-wave cities for IT-BPO are:

1. Metro Laguna
2. Metro Cavite
3. Iloilo City
4. Davao City
5. Bacolod City
6. Angeles – Clark – Mabalacat
7. Baliuag – Marilao – Meycauayan
8. Cagayan de Oro City
9. Malolos / Calumpit
10. Lipa City

Abreeza will be a multi-use commercial center that will house a mall, entertainment areas (including natural open spaces, comprising about 20% of the total project area), and locations reserved specifically for business-process outsourcing (BPO) operations. In fact, there are two buildings planned solely for BPO companies, according to the representatives of Ayala Land.

The first building is scheduled to be completed by the fourth quarter of 2009 and will have a total gross leasable area of 10,000 sqm. While ALI has not yet signed any particular BPO firm for Abreeza, they do have existing locators in their IT parks and buildings in Metro Manila and Cebu.

At the press conference following the groundbreaking rites Tuesday last week, ALI President Jaime I. Ayala explained that they do maintain a loyal group of BPO locators who may very well be expected to follow them to Davao once the facilities are in place. He further expounded that this was the case in the Ayala IT Park in Cebu City.

The groundbreaking of this much-awaited development, which is a joint venture between ALI and Anflocor, is a very clear and resounding signal of strong investor confidence in Davao City. The ALI executives expressed their approval of the region’s peace-and-order situation, as well as of the overall favorable business climate in the Philippine South. Hence their preparedness to sink in up to Php5 billion in the Abreeza project.

During the press conference, which was held at the Pearl Farm Marina in Lanang, ALI and Anflocor decision-makers made themselves available for interview by local media, as well as by a couple of bloggers – Ria Jose and yours truly. Sidebar: I am glad that more and more business entities are now recognizing the usefulness of blogs as an effective communications medium.

Being an active member of the city’s IT industry as well, I was particularly interested in the ICT component of Abreeza. Upon introducing the existence of organized ICT groups in Davao, both presidents of ALI and Anflocor immediately expressed an interest in interfacing with the Association of Solution Integrators in Davao (ASID) and ICT Davao Inc.

ASID is the organization of software development houses and companies offering software-based solutions. ICT Davao is the umbrella group of all ICT-related non-profit organizations in the city (of which ASID is a founding member). I act as the executive director of ASID.

It is indeed beneficial for Davao to be the investment destination of more foreign BPO companies that will locate in Abreeza. On the other hand, it is my hope that this Ayala development will also spell success for the local ICT industry of Davao.

Judging by the keen interest and enthusiasm of the ALI executives when they inquired into ASID and ICT Davao, I’m convinced that Abreeza will be able to contribute directly to the progress of Davao’s IT sector.

Already, Ayala Businesscapes representatives, as well as Anflocor President Alexander Valoria, have communicated their intent to participate in Davao’s IT associations. Their contributions are certainly very welcome!