Next Wave Cities to Drive Philippine BPO Growth

“Next wave cities” will drive the growth of the Philippines’ Information Technology-Business Processing Management (IT-BPM) and offshoring sector, according to Department of Science and Technology (DOST) secretary Mario Montejo. The so-called Next Wave Cities are expected to boost the industry’s revenue to $18 billion by the end of 2014.

Currently, the IT-BPM industry employs about one million Filipinos. Montejo calls the 1.3 million job projection by 2016 “very achievable,” saying that the $18 billion revenue target at the end of this year makes the 2016’s $25 billion target more realistic.

The “Next Wave Cities” program was developed by the agency’s Information and Communications Technology Office and aims to establish IT-BPM centers in areas outside Metro Manila and Cebu. Under the program, cities like Sta. Rosa, Baguio, Bacolod and Iloilo are being groomed to be one of the top IT-BPM hubs in the world.

The program will implement activities that increase awareness of IT-BPM and outsourced services beyond call centers, including new services like game development, animation, software development, and healthcare.

DOST’s Rural Impact Sourcing program also aims to teach individuals in rural areas to acquire ICT skills and build start-ups. DOST Deputy Executive Director Monchito Ibrahim said that there are currently 300,000 entrepreneurs in the IT-BPM segment.