Is Davao Ready for the Growing Outsourcing Industry?

The industry of Business Process Outsourcing (BPO) in Asia is steadily growing here in the Philippines.

As a matter of fact, the Philippines covers 10% to 15% of the global outsourcing industry. Undeniably, major cities like Manila and Cebu are the hottest destination for BPO companies.

However, as the industry develops, investors are now considering other cities where they can establish their company. Expectedly, the largest city in the Philippines, Davao City, has caught their attention.

Many locals and foreigners have already established their own Davao based outsourcing company. But is Davao City truly ready to become a go-to destination for outsourcing?

Davao City: Coffeebot Employees

IT Hubs in Davao City

Davao is the home of the largest Information Technology center in Mindanao, long before Duterte became the 16th President of the Philippines.  Davao had already established hubs to accommodate BPO companies.  Matina IT Park was opened in 2015 and is housing big companies like EGS and Alorica.

Another much awaited commercial venue is Davao Park District. Property developer Megaworld allotted P15-B for the said project, and the building could cater 100,000 BPO jobs. Moreover, it will be the first business park to implement iTownship, a concept that “integrates digital technology, high innovations, and connectivity to the development.”

Currently, Davao city has a total of eight IT parks and buildings that house BPO companies. This includes Damosa IT Park, Matina IT Park, Robinsons Cybergate, SM City Annex, Ayala Technohub, Luisa Avenue IT Center, and Felcris Central.

Internet Availability

Outsourcing is made possible because of the internet. It is a known fact that the Philippines is notorious  for its slow internet speed, averaging only 8.24 Mbps compared to 16.2 Mbps  average enjoyed by the rest of the world.

Nonetheless, the government is now making serious moves to improve the connection  speed. This includes adding additional micro cell towers in Mindanao.

Of course, Davao City is a direct beneficiary of this. A Davao outsourcing company should have at least 80 Mbps speed in order to operate smoothly. And thanks to the expansion of Fibr plus other internet service provider like DCTech, Davao City can enjoy as much as 100 Mbps.

Workforce

All of the criteria mentioned above would be worthless if Davao does not have skilled workers. But that would be the least concern of foreign investors because base on a study done by research firm XMG, Inc., “Davao’s BPO workforce is estimated to be twice that of Cebu, seven times that of Pampanga and six times that of Baguio”.

Is Davao Ready?

Davao City was definitely prepared long before the sudden influx of economic opportunities and developmental infrastructure, perhaps the result of Duterte’s position as president.

And there’s no other way but to go up and improve more in order to welcome more investors and prove to them that life is indeed here in Davao.

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