Metro Manila 3rd top global BPO hub, survey says


Metro Manila climbed up a notch on a list of the world’s top outsourcing hubs in 2012, ranking just behind India’s Bangalore and Mumbai.

A new study released this week by research firm Tholons showed that in 2012, Metro Manila edged out New Delhi to occupy the world’s 3rd top spot.

Also, Cebu City improved its position, climbing to 8th place in 2012 from the previous year’s 9th.

Apart from the top two, four other cities on the top 10 list were from India: New Delhi (4th), Chennai (5th), Hyderabad (6th) and Pune (7th).

At 9th and 10th places were the only European cities on the list: Dublin in Ireland and Krakow in Poland, respectively.

Other top Philippines cities cited by Tholons were: Davao (70th), Sta. Rosa (84th), Iloilo (93rd), Bacolod (94th), and Baguio (99th).

According to Tholons, the Philippines enjoys a more vibrant IT-BPO industry than those of Indonesia or Malaysia.

These three countries are considered the most promising Southeast Asian destinations in 2012.

The region’s “maturing outsourcing brand, improving macroeconomic environment, and expanding domestic markets” were cited in the survey as the reasons why large service providers prefer Southeast Asian markets.

“The Philippines’ IT-BPO industry was fueled by increased new investments from large and mid-sized foreign providers, as well as greater expansions of established locators and captives across many of the country’s established delivery locations,” Tholons said.

The Business Processing Association of the Philippines (BPAP) said the improvement in Metro Manila and Cebu’s rankings reaffirmed the Philippines’ position as a destination of choice for outsourcing services.

“The year 2013 promises to be even greater as we expect revenues to increase to $16 billion to provide employment to 926,000 Filipinos,” BPAP president Benedict Hernandez said. “We are steadfast in ensuring that the industry will achieve its targets of $25 billion in revenues and 1.3 million full-time employees by 2016.”

Several large BPO firms either set up shop or expanded operations in the Philippines last year, Hernandez said, explaining the improvement in the country’s position.

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  • Your_King

    Now let’s be honest and give credit where credit is due…this achievement and a contributing factor to the growth of the PH economy can and is attributed to the work that GMA did. She saw that BPO/IT could be good for the PH economy that is why she invested a lot of time and energy on this sector. And as it is seen now, it is paying dividends that the current Administration is benefiting from.

    • Iggy Ramirez

      Ok. If it was her doing then fine but do not say that we owe her that because it was her job to do everything and anything to improve the lives of the Filipinos. We could not say that, in a career spanning 10 years, all she did was steal. Of course, there were still good things that she had done. But sadly, 90% percent of what she made to the country was to corrupt it.

      • Your_King

        I’m not saying we should owe her anything necessarily but at least you blaming 90% of what she did is corrupt, is not right. No government is without corruption even now during Aquino’s time and even back then during Diosdado Macapagal’s time. But she did a lot for the country like providing homes for the urban poor and providing access to running water to many poverty stricken Filipinos. So again i must say your percentages are way off.

      • Iggy Ramirez

        I’m sorry. My bad. She did 60% good for the country but the cost of those 60% is just 1% of the total amount of what was originally planned. The other 9% was from the economic activity that was spurred from it. She corrupted 10% of the total cost and 80% was the loss to economic activity.

    • RJ Legaspi

      If we are to give the credit it should be to Mar Roxas and not GMA. 

      • Your_King

        If we are to be FAIR and give credit we should give credit to both. However without Mar, GMA would still have initiated this since this was part of her vision even in her Inaugural Address. But without GMA Mar would have never had the opportunity to get this done much more approved.

      • RJ Legaspi

        I could not remember she said that in her two inaugural addresses. 

    • Diablo_III

      We have to give credit to the Filipino people not from the President. If we don’t have enough English speaker Filipinos then we can’t get this BPO industry. We are favored because we have the skills..

  • Guest

    Who said stronger PESO is bad for the BPO industry? Despite a stronger PESO, the BPO industry continues to growth at a robust pace. This only proves that naysayers and Pnoy’s critics are using whatever issue they can raise against the administration. Even that BPO union president Hernandez has previously joined in to throw the kitchen sink at Pnoy. He is no different from the little boy who cried wolf. If the PESO continues to strengthen, it only means people like the BPO union president Hernandez will get smaller bonuses because of smaller savings. But BPO investments will continue to flow in no matter what.

    Pnoy has done so much to make our peso stronger and our BPO industry grow so fast.  Time for BPOs to do their share if they want to cut down cost:

    – Peg employee base pay to US dollar. DOLE should allow this.
    – Scrap night differential.
    – Scrap transportation allowance.
    – Scrap meal allowance.
    – Scrap medical allowance.
    – Scrap other premium allowance.
    – Scrap employee retention program.
    – Scrap annual leave allotments.
    – Scrap annual merit increase. Keep labor cost down.
    – Scrap annual team outings.
    – Scrap rewards and recognition programs.
    – Scrap townhalls. If necessary, no more foods / drinks served.
    – Scrap medical insurance coverage.
    – Scrap employee referral programs.

    BPOs can do many things to make it work. Kung gusto, kaya. Kung ayaw, maraming ngawa.

    Let’s do this for our country. Let’s not let Pnoy down.

    • oh_noh

      *haha* sa dami mong ini-scrap, yung konklusyon ng mga sinabi mo ang nakalimutan mo… Scrap BPO!!!

      cheers to a strong economy – in paper!

    • Onin Mendoza

      You’re working in a BPO?

      The portions you want scrapped are those reason Filipinos go into this kinda Job. Rather suggest scrap, suggest these be the baseline of companies in the country.

      Every hard worker deserves these benefits… :)   

    • Iggy Ramirez

      You don’t really want to hire professionals. You want to hire slaves.

    • Heartrob ng Pugad Baboy

      Why stop there?  

      You can even go further by reducing their starting salary.  Heck, reduce the average salaries overall.  Everyone starts at minimum salary.  

      How about this?  Hire them as temporary employees for 4.5 months.  Retain only a few supervisors to train them during those months.  “End” their contract at the end of 4.5 months.  This way you don’t even have to pay them benefits.

      Shoemart and Jollibee has been doing it for years.

      Yes, let’s do this for our country!!!



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