Davao – One of the Top IT BPO Destinations in the World

While the Philippines is proud of nearly topping and overtaking India in the whole BPO industry, there are some spots in the country where BPO is even more flourishing. The country is competing with the other leading nations in this field not because it wants to steal the spotlight but because of the sheer demand for outsourcing, and because it can provide that demand.

It has been noted by a consulting firm KPMG that there are 31 cities around the world which are fast surfacing as top destinations for business process outsourcing. Originally cities like Bangalore or Shanghai were the top players, but as more cities are entering the scene with their nothing less than advanced facilities and talented, skilled workforce, more clients are looking at other destinations. For instance, India fears that it’s going to reach the saturation point soon. Nonetheless, this isn’t necessarily a catastrophe. It’s far from getting to that point. Philippines has shown resilience over the years despite the presence of a tough crisis in the Western hemisphere. One has to note, however, that there are certain regions in the country that gets more of the BPO share.

Now let’s get to the exciting thing. While one mostly finds a lot of call centers and technical support companies in Manila and Cebu, Davao is rapidly becoming a player with more call centers and BPO companies being put up in the city. This is something to notice and something that generates curiosity to anyone following the IT-BPO industry – but there really is no question about it. Davao has been living to its promise. In fact it is considered the financial centre of southern Philippines. Add to that, the city has also, over the years, gained a very good reputation as a hot tourist destination. As early as 2002, this city has been regarded as an IT hub and that was because early on, it has already been able to lure ICT companies to invest in the area. With a literacy rate of 95% and a population of approximately 1.15M, it has become one of the biggest cities in Philippines. Next to the local dialect and Filipino, the most used language is English. The populace reports higher than the country’s average in English proficiency and literacy – something that attracts companies like call centers and online tutorial centers, which have experienced rapid growth in the metropolis. Furthermore, the city’s industry is fast rivaling those of other top industrial or commercial regions in the country.

More BPO companies are being established in Davao – a proof of the proliferation of the IT sector in this spot of the globe. While the efficiency is the same as with the companies in groups in Manila or Cebu, the lower cost of living in this southern city prompts lower rates.

Along with Davao as top BPO players are Brisbane, Australia; Hangzhou, China; Nagpur, India; and Ho Chi Minh City, Vietnam.