Gov’t to Ramp Up Promotion of Outsourcing Philippines Next Wave Cities

The government is ramping up promotion of Outsourcing Philippines “next wave” cities or cities outside Metro Manila, Philippines that are considered attractive outsourcing destinations. Department of Science and Technology-Information Communications Technology Office (DOST-ICTO) ICT development program manager Emmy Lou Delfin said the agency is considering other locations for inclusion into the annual Top 100 Outsourcing Destinations list by global consultancy firm Tholons. 

Delfin explained that established and mature hubs for outsourcing in the Philippines like Manila, Bacolod, Clark in Pampanga and Cebu City are excluded from the list as they are already “centers of excellence.” DOST-ICTO and the Information Technology and Business Process Association of the Philippines (IBPAP) will select the next wave cities based on factors like infrastructure, talent pool, accessibility, connectivity, cost of doing business, and business environment (including security issues and vulnerability to natural disasters).

Last year, the cities labeled “next wave” included Baguio, Davao, Dumaguete, Metro Bulacan, Metro Cavite, Metro Laguna, Metro Naga, Metro Rizal, Lipa and Iloilo. Six of these cities made it to the Tholons’ top 100, while three cities moved up the ranking in 2015: Bacolod rose to 86 from 93, Baguio climbed to 95 from 99, and Iloilo rose to 91 from 95. 

By the end of 2015, IBPAP and DOST-ICTO hope to announce the new list of 10 next wave cities. Delfin said that the government will promote these cities abroad. DOST-ICTO will also leverage rural impact sourcing to generate job opportunities for locals, with the focus on tapping online platforms like oDesk and Upwork. The agency has already requested a P40 million budget for rural impact sourcing, but it is still pending at the Department of Budget and Management.