Davao graduates better than Subic?

Davao City has various educational institutions annually yielding a higher number of IT and BPO qualified graduates than Subic

Davao City gets upgraded status as outsourcing site
by Prix D Banzon - PIA

Davao City (6 June) -- Davao City has been upgraded to a level C2 rating from its previous level D standing as the city emerges as a viable site for captive and outsourcing services.

In the leadership study of XMG Global Offshoring it said that the untapped manpower base in Davao City will give its allure and staying power as a viable site in the years to come.

The report continued that potential locators in Davao City must have heightened awareness and should conduct their own formal and internal risks analysis rather than reacting to headlines about specific regions under consideration such as the problems happening in other parts of Mindanao.

XMG researcher Camille Lumbang said compared to other cities in the south, Davao Cty is very promising and it is seen to be next generation city that would benefit large captives provided that risk issues are addressed properly.

The study Lumbang said that Davao City has various educational institutions annually yielding a higher number of IT and BPO qualified graduates than Subic, Clark and Baguio by 689%, 278% and 40% respectively.

The XMG indicated however that there is a need to further improve and modernize telecom facilities, transportation networks and public transport system otherwise business continuity and disaster recovery plans will go unfulfilled.

The study on the other hand revealed that Davao City will be a viable alternative site three years from now. The study likewise predicts that organizations that are formulating the technology and procedural solutions to integrate a large manpower base into their global delivery centers will be at the forefront of the offshoring and outsourcing industry as the labor arbitrage model continues. The other emerging alternative offshoring cities cited in the study were Montevideo, Uruguay, Jakarta, Indonesia and Casablanca, Morocco.

Outsourcing vendors and captives who participated in the study are bullish about Davao City because of the larger population of untapped qualified resources.

Among others, the study highlighted the population of Davao City as considerably higher than other Tier-2 offshoring cities globally. In the Philippine context, Davao City's population is 71 percent higher than Cebu City, 499 percent larger than Olangapo-Subic City 333 percent higher than Angeles-Clark City and 340 percent larger than Baguio City. The city's estimated workforce is twice of Cebu, 9 times of Subic and 7 times of Clark and 6 times of Baguio. (PIA)