Davao cited as most viable city for BPOs

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Wednesday, February 5, 2014

CUSHMAN & Wakefield Philippines, a branch of the New York-based commercial real estate services firm Cushman & Wakefield, cited Davao City as the most viable city in the Philippines for business process outsourcing companies, considering its low environmental risk.

This is based on the 2012 Business Process Association of the Philippines' Next Wave Cities (NWC) and the geohazard maps produced by the Ateneo de Manila University's Mapping Philippine Vulnerability to Environmental Disasters project, according to the firm's research publication published in January 2014.

It states that among the next wave cities, only Davao City has relatively low climate and geophysical risk and relatively high results in the NWC scorecards for presence of relevant infrastructure and business environment and risk management, solidifying itself as a good alternative to Metro Manila and Metro Cebu for occupiers and tenants.


Davao City Investments and Promotions Center officer-in-charge Ivan C. Cortez told Sun.Star Davao that it is expected for the city to be the most feasible city to establish a business process and outsourcing venture "because the city is not yet saturated."

"Since it is not yet saturated, the turn-over rate will not be very high compared to Manila and Cebu and given the low environmental risk, as compare to other cities, it is expected for Davao to top the list," he said.

Some of the major BPO companies in Davao City are Concentrix, Convergys, Ibex Global, Sutherland Global Services, Teleperformance, and VXI Global Solutions.

According to the study, several companies from other countries are "shifting to the Philippines as the location for outsourcing."

It said the country's vulnerability to environmental risks threatens and undermines the full potential economic and societal development of the country. It states further that this risks has direct impact to real estate from the perspectives of an occupier or tenant and investor or developer.

"Understanding these risks and how it impacts different locations is critical to determining the appropriate strategies for operations, site selection, development mix, or portfolio and asset management," the study said.

Published in the Sun.Star Davao newspaper on February 05, 2014.


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