CAGAYAN de Oro City (CDO) in Misamis Oriental and Dagupan City in Pangasinan are the latest additions to the list of Top 10 Next Wave Cities of 2015-2016 considered most ready to house outsourcing companies planning to invest in the Philippines.
The Department of Science and Technology-Information and Communications Technology Office (DOST-ICTO), the IT and Business Process Association of the Philippines (IBPAP), and Leechiu Property Consultants (LPC) have updated their list for this year and it includes newcomers CDO and Dagupan City.
The rest of the 2015-2016 Next Wave Cities are: Baguio City, Dasmariñas City, Dumaguete City, Lipa City, Malolos City, Naga City, Sta. Rosa City in Laguna, and Taytay City in Rizal.
The list was first compiled in 2009.
Monchito Ibrahim, deputy executive director of DOST-ICTO, said CDO was included in the 2009 list, but was not included in the succeeding lists as “more cities are growing faster” than CDO at the time.
For Dagupan, Ibrahim said that the city has an abundant talent pool given the various universities and colleges that produces talents every year.
Davao and Iloilo City, which were included in 2014’s Next Wave Cities, are now upgraded to “New Centers of Excellence,” which means these locations are more than able to support incoming investors as they have been prime sites for outsourcing and with robust economic growth in the past three years.
Meanwhile, 10 other cities were identified as “Emerging Locations” which have “the potential and foundation to attract BPO [business process outsourcing]firms and become the future Next Wave Cities,” said Jose Mari Mercado, president and chief executive officer of IBPAP.
These 10 Emerging Locations are Balanga City, Batangas City, Iriga City, Laoag City, Legazpi City, Puerto Princesa City, Roxas City, Tarlac City, Tuguegarao City, and Zamboanga City.
Mercado said 42 cities were considered for the Next Wave Cities list using four main criteria which include talent availability, cost, infrastructure, and business environment.
Dasmariñas City was deemed Best in Talent Availability, Laoag City Best in Infrastructure, Dumaguete City Best in Business Environment; and Legazpi City as Most Active ICT Council and Local Government Unit (LGU).
For future assessments, DOST-ICTO’s Ibrahim said they are looking at including “risk management” among the criteria but will still need more preparation to ensure every LGU has data related to risk management.
In terms of employment, Ibrahim said job generation in the IT-BPM sector outside Metro Manila is expected to hit 525,000 this year, or 45 percent of the overall target of 1.3 million jobs in the sector for 2016.
He added that of the P25 billion revenue goal in the sector this year, about 70 percent will be sourced from Metro Manila, while the balance will be in the provinces and cities outside the metro.