PHILIPPINES: The Next Dragon Cities in BPO Industry

No. 4 is Metro Manila

By Danny B. Dangcalan (The Philippine Star) 

BACOLOD CITY, Philippines  – The information technology – business process outsourcing (IT-BPO) industry in the Philippines is growing by about 25 percent a year, and investors see the country as the “next Asian dragon,” Commissioner Ivan John Enrile Uy of the Commission on ICT (information and communications technology) said last week.

No. 9 is Cebu City

Uy said many of the world’s largest companies operate the biggest services centers in the Philippines, which is why the IT-BPO industry here continues to grow. As of last year, the industry employed about 525,000 people and had generated more than $9.1 billion in export revenues, he added.

Uy, who was in Bacolod for the Negros Occidental First ICT Summit last Thursday, lauded Bacolod for being cited as the 3rd Next Wave City in the Philippines and Tholons International’s top 100th city in the world for outsourcing.

No. 69 is Davao City

“That is a very, very good accomplishment for Bacolod to be ranked among the top 100th out of thousands of cities around the world,” he said.

Uy foresees that with the support of local officials the growth of the IT-BPO industry in Negros Occidental and Bacolod City will progress very fast.

Uy said it is the goal of CICT to strengthen the readiness of cities and regions outside Metro Manila to become preferred destinations for IT-BPO investors.

No. 88 is Sta Rosa

 “With this strategy, we will decongest Metro Manila, spread economic growth opportunities to other parts of the country, and capitalize on the abundant and globally competitive workforce available in many parts of the country,” he said.

Approximately 20 percent of the IT-BPO industry is now located outside the main metropolitan areas of Manila and Cebu and this trend is expected to continue, he said.

The country is now witnessing the impact of the IT-BPO industry on rural communities, as other cities outside Metro Manila emerge as new IT-BPO hubs or the Next Wave Cities, he said.

No. 98 is Iloilo

Uy pointed out that Tholons, a renowned international research firm, in its 2010 Top 100 Cities in the World for Outsourcing ranked Manila as No. 4 and Cebu as No. 9.

The country’s Next Wave Cities that also made it on the list, are Davao - No. 69, Sta. Rosa (Laguna) - No. 88, Iloilo - No. 98 and Bacolod - No. 100.

Meanwhile, Gov. Alfredo Marañon said the construction of IT buildings on lot properties owned by the Negros Occidental provincial government is expected to create about 41,000 new BPO jobs here.

SM Prime Holdings has proposed to put up 10 buildings for BPO companies on a provincial government property along Gatuslao St. that will provide 40,000 jobs, he said, adding that the buildings will surround a convention center that SM plans to build in the area along with two hotels.

No. 100 is Bacolod

The provincial government is also establishing the Negros First CyberPark, a mixed-used complex consisting of more than 12,000 square meters of space for BPO services at a three-story building to be built at the Paglaum Sports Complex, which will provide more than 1,000 jobs, he added.

Rep. Alfredo Abelardo Benitez (Neg Occ., 3rd District), who was also at the summit, said he will help tap government resources for infrastructure and academic support for the IT-BPO industry.

Benitez also said he is supporting the efforts to create a Department of ICT, and the passage of bills to ensure data privacy and to curb cyber crime.

source:

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=693354#comments

New Outsourcing Hot Spot Cities

Top Outsourcing Hot Spots according to businessweek.com:

1. Buenos Aires, Argentina

Located in roughly the same time zone as the East Coast of the U.S. (it depends on the time of year), Argentina's huge capital offers a cheap alternative for companies looking to provide customer service for American consumers. IBM and Hewlett Packard already have IT operations in Buenos Aires, which also has a large talent pool of Spanish, English, and Portuguese speakers.
2. Campinas, Brazil

Campinas, in Brazil's northeast region, is an R&D center, tapping a large pool of engineering and technology graduates from the local University of Campina. Compared with congested São Paulo, the laid-back city with a population just over a million provides a high quality of life for both local and expat employees.

3. Curitiba, Brazil 

Already home to customer service centers for the likes of HSBC, Siemens, and ExxonMobil, Curitiba, located in Brazil's southeast, churns out almost 20,000 IT-trained graduates from local colleges. City authorities also have upgraded the telecom and energy infrastructure, creating a brand new outsourcing park for technology-focused companies.

4. Calgary, Canada

Calgary boasts the highest immigration rate of any Canadian city, ensuring it a fast-growing pool of talent. The city also offers tax breaks and research funding for companies that set up shop there, and a large percentage of the workforce is bilingual in English and French.

5. Winnipeg, Canada

The Canadian city outstrips domestic rivals when it comes to overall business competitiveness. High-quality infrastructure, such as state-of-the-art office space and IT parks, helps offset the higher labor costs compared to rivals in the developing world.

6. Santiago, Chile

The Chilean government has set up lucrative financial and technological support to entice high-tech companies to the country's capital. Citigroup and Yahoo! already operate in Santiago, which offers lower operating and living costs compared with cities in the developed world.



7. Guadalajara, Mexico
 

 Despite the recent spate of violence across Mexico, Guadalajara, inland from the country's Pacific coast, continues to attract foreign companies. Roughly 18,000 IT-trained graduates enter the local workforce each year, which has led to a growing hub of software and engineering design centers funded by the likes of Intel.


8. Queretaro, Mexico
Located in southern Mexico, Queretaro is quickly becoming an alternative to other domestic outsourcing hubs, such as Monterrey in the north. Local authorities are spending millions to upgrade transport and industrial infrastructure in the hopes of turning the city into an IT service center.

9. Boise, Idaho
Alongside a highly trained graduate pool from Boise State University, Idaho's capital also has a bustling startup scene, which has created a culture of entrepreneurship. The city's lower cost-of-living compared with other U.S. rivals doesn't mean it is a culture backwater. Boise routinely ranks near the top of best U.S. cities in which to live.

10. Indianapolis, Ind.

 
Not only is Indianapolis located near a number of large U.S. cities, such as Chicago, but Indiana's capital offers several local centers of excellence. The city is well known for its life-science industry and is home to a large IT-trained talent pool of graduates from local colleges. Consultants KPMG also ranked Indianapolis third in a nationwide survey of cities with the most cost-effective tax structure.

11. Sofia, Bulgaria
 
To make Sofia into an IT hub, city officials have offered tax breaks and other incentives to companies relocating to Bulgaria's capital. Within easy reach of Western Europe, Sofia's labor costs are roughly 10% less than those in Germany, but still twice the Bulgarian average.

12. Zagreb, Croatia

 
The Croatian capital has a multilingual workforce, a time zone suitable for servicing Western European customers, and labor costs significantly lower than those in countries like Italy and France. Colleges in Zagreb also turn out thousands of IT-qualified graduates each year, which has attracted firms such as Siemens to set up shop there.

13. Cairo, Egypt

 
With a population proficient in both English and Arabic, Cairo offers outsourcing possibilities for companies from both Western Europe and elsewhere in the Middle East. Local authorities have provided tax incentives for companies establishing bases in the Egyptian capital, which is home to a young, tech-trained population.

14. Belfast, United Kingdom

 
Putting aside its violent history, Belfast is quickly becoming an outsourcing hub for companies serving the British market. Firms like Microsoft and Citigroup are attracted by the city's youthful population (46% are under 30), large pool of IT graduates, and business costs are one-third lower than in the rest of Britain.

15. Port Louis, Mauritius

 
Located just off the coast of Madagascar, Port Louis, the Mauritian capital, is routinely ranked as one of the best places to live in Africa. The city's booming tourism industry means the local workforce is well versed in customer service, and the government is spending millions to upgrade domestic IT and transport infrastructure.

16. Gdansk, Poland
 
An upcoming European soccer tournament means the historic Polish seaside city's infrastructure is getting a major face-lift. That, combined with an IT-trained, local workforce strong in English, German, and Russia, makes Gdansk a cheap alternative to domestic rivals Warsaw and Krakow.

17. Cluj-Napoca, Romania

 
Already home to the largest percentage of students per capita in Romania, Cluj-Napoca benefits from major university-based tech R&D centers and a growing multilingual graduate pool. Local officials also have provided generous tax incentives to entice foreign tech and manufacturing companies to relocate to the country's third-largest city.

18. Rostov-on-Don, Russia

 
Despite Russia's recent economic problems, Rostov-on-Don, in the country's southwest, attracted the third-largest amount of foreign investment of any Russian city in 2008. Key to the interest is Rostov's significantly lower business costs than those of domestic alternatives such as Moscow and St. Petersburg.


19. Belgrade, Serbia

 
Local authorities are working hard to attract foreign companies. That includes a cash grant for every additional job created, and plans to upgrade the city's infrastructure. No wonder companies like Microsoft have set up IT service centers in the Serbian capital.


20. Tunis, Tunisia

With a multilingual population (Arabic, French, English) and close cultural ties to Europe, Tunis is a logical destination for companies looking to service the European market. To add extra incentives, the Tunisian government is planning to spend $3 billion on a financial services business cluster, dubbed the Tunis Financial Harbor, to attract outsourcing clients.

21. Lviv, Ukraine

 
Like Gdansk, Lviv's infrastructure is set for a major upgrade ahead of a European-wide soccer tournament in 2012. The city also is home to a large population of young IT and engineering graduates, and offers business costs far below those of the Ukrainian capital Kiev.


22. Brisbane, Australia

Brisbane, on Australia's eastern coast, is gaining a reputation as a technology R&D hub. The city has a higher number of tech graduates per capita than any other Australian city, and is surprisingly international—16% of households speak a non-English language. Business costs also are roughly 15% lower than in rivals Melbourne and Sydney.


23. Changsha, China

 Already identified by Chinese authorities as one of 13 cities in the nation expected to become outsourcing hubs, Changsha offers benefits well beyond its tech-savvy population and lucrative government incentives. The city, located in central China, is home to nearly 50% of the country's animation companies and is marketing itself as a center for animation outsourcing to the West.

24. Hangzhou, China

With 18,000 IT graduates entering the workforce each year, Hangzhou is fast becoming a center for financial services outsourcing. In the first three quarters of 2008, the sector represented 43% of the city's total outsourcing business in dollar terms—a figure that is expected to rise despite the global recession.

25. Ahmedabad, India

 
With a large population of finance and accounting professionals, Ahmedabad, on India's west coast, is set to become one of the country's major outsourcing centers. The population's English proficiency may not match more-established hubs, but Ahmedabad's business costs are roughly one-third less than cities like Mumbai and Bangalore.

26. Jaipur, India

 Jaipur is home to 64 engineering colleges, and soon will open a business-friendly Special Economic Zone complete with 2 million square meters of IT office space. Recently, the city was ranked third in a World Bank report comparing the ease of doing business in Indian cities.


27. Nagpur, India 

The Indian city, known for its engineering and medical expertise, already is gaining reputation among international companies. Boeing has established a $185 million maintenance center in Nagpur, and a new 1,220 acre Special Economic Zone being set up near the city's airport will add additional IT office space.

28. Penang, Malaysia


Boasting a large, English-speaking IT workforce, Penang is particularly suited for companies looking for higher-end IT outsourcing, such as in the pharmaceuticals or financial services industries. Penang also is developing into an outsourcing center for Islamic banking. 

29. Davao City, Philippines

 Located in the Philippines' southernmost island, Davao City is home to an English-speaking talent pool with many cultural ties to the U.S. That means the city is well-suited for U.S. consumer support, particularly in technological areas due to various IT colleges established in the city.
 

30. Iloilo City, Philippines 

Already identified by Philippine authorities as one of the next wave of IT outsourcing centers, Iloilo City has received large government grants to upgrade its IT and transport infrastructure. The well-trained, English-speaking population makes the city an ideal option for companies looking for a cheap alternative for U.S. consumer support.


31. Ho Chi Minh City, Vietnam

 Though Vietman is still a communist country, officials plan to turn Ho Chi Minh City into an IT hub by 2010. Big names like IBM and Oracle already have set up shop, taking advantage of lucrative tax breaks and government programs to upgrade the city's infrastructure.

 

source:

http://images.businessweek.com/ss/09/05/0504_outsourcing_hot_spots/1.htm

Asia's Most Overlooked Cities

Kagoshima, Japan  

If you’re so well traveled in Japan that you can tick off Tokyo, Osaka, Kyoto and Hokkaido, how about paying the quaint Kagoshima down south a visit?

The City of Kogoshima

With its balmy seaside breezes and mild sunshine, Kagoshima can pass for Naples on a summer day. No visit to Kagoshima is complete without a ferry ride to the massive stratovolcano Sakurajima, one of the most famous volcanoes in the country. And before you leave, be sure to sample Kagoshima’s famous tonkatsu, a pork dish that is not breaded and deep fried as you’d expect from other parts of the country, but delicately caramelized.

Chengdu, China 

Most foreign backpackers in China will be no stranger to Chengdu, a popular stopping point for travelers intending to journey up to Tibet. What many tourists fail to notice, however, is that Chengdu is worth much more than a one-night stopover.

Unlike other cities in this booming country, Chengdu possesses a laid-back vibe -- so much so that the Chinese have voted it the country's fourth most livable city. Locals are generally friendly and you're likely to bump into many like-minded tourists itchy for adventure and conversation.  Much of the local scene takes place at the sprawling People's Park, where the city's residents engage in their favorite pastimes throughout the day, be it tai chi, sipping tea by the lake, playing majong in the open or dancing. Entry to important archeological dig Jinsha Excavation Site may be steep at 80 RMB, but the huge number of artifacts there is well worth the ticket. At night, explore the bustling wine-and-dine area of Jinli Ancient Street for some after-dark action.

Kaohsiung, Taiwan

Taiwan is not just all about Taipei. Kaohsiung, the island’s second-biggest city, is quickly outgrowing its reputation as an industrial and commercial hub to become a fascinating tourist destination in its own right.

The Beautiful City of Kaohsiung

Despite the wealth of historical buildings and the untouched forests in this sprawling city, for years Kaohsiung has been something of an underdog on the tourist circuit due to the city’s reliance on industry, which polluted the city’s waterways and air. But not any more. Recent efforts to clean up the city are finally reaping results: the romantically named Love River used to reek of sewage but is now the city’s tourism focal point. A visit to Kaohsiung is incomplete without a sail on the river at night on a barge, with outdoor cafes and beautifully lit historical sights flanking the river on both sides.   Another great way to take in the city is to attend the annual Lantern Festival, a dizzying parade of fireworks, live concerts, lanterns and lip-smacking street food. The Lantern Festival is usually held in the middle of the Chinese New Year.

Daegu, South Korea

Neon-lit metropolises Seoul and Pusan may overshadow the quiet South Korean city of Daegu, but the latter deserves its own place in the spotlight.

For many Korean domestic travelers, Daegu’s reputation for its sweet juicy apples and beautiful women is enough to warrant a visit. The city is also drawing visitors for its thriving traditional Asian medicine market. Check out the Yangnyeongsi herbal medicine market if you fancy bringing home some herbal curios back home.   With its textiles and clothing manufacturing industries going strong, the city is also positioning itself as a fashion hub in the Asia region in recent years. To see for yourself just how successful this rebranding has been, check out Daegu’s central shopping district,  

source:

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http://www.cnngo.com/explorations/overlooked-cities-asia-810813