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Davao property owners brace for entry of outsourcing firms

Vol. XXII, No. 11 [ BusinessWorld Online ]
Monday, August 11, 2008 | MANILA, PHILIPPINES

DAVAO CITY — Property owners in this city have started sprucing up their buildings, while others have started erecting new structures in anticipation of the entry of big business process outsourcing (BPO) companies within the year.

Erriberto P. Barriga, Jr. of consulting firm Gibbex Outsourcing Solutions, Inc. said his company has started promoting properties here where BPO companies can set up offices.

In an interview, he noted that when he went to Manila three weeks ago, big companies, including foreign ones, had asked him whether these could immediately set up shop in Davao.

He said local investors have started to realize the need to prepare their buildings for inspection by BPO locators.

"It helps that this is also my advocacy," said Mr. Barriga, who is also a ranking official of the Davao City Chamber of Commerce and Industry and the Information and Communications Technology Association of Davao.

He said the new projects were in response to the clamor of industry leaders for local business establishments to be ready for business process outsourcing companies wanting to come here.

Two of the properties, both located on the north side of the city, are being developed into a mall with an information and communications technology park and with adequate parking spaces.

One of the properties is being envisioned as the city’s first environment-friendly establishment, while the other is being considered for customers from the north side of the city and nearby areas, including the Island Garden City of Samal.

Another property is along Torres Street, which is known for its upscale restaurants and workout facilities.

"This property is suited for call center operations," Mr. Barriga said, noting that his company had started negotiating with Manila-based call centers that have signified interest in coming here.

Another property is located beside a big mall, while the other is located across another mall, making these attractive to BPO firms that want to operate in busy centers.

Still another prospective site is in front of a big university and is known for its food stalls, although it will need drastic renovation to make it suitable for business process outsourcing operations.

The advantage of this property, Mr. Barriga said, is that it is at the heart of the city. He declined to provide further details.

Local industry leaders earlier complained about the inadequate interest of building owners here to upgrade their facilities so that locators will find it easier to set up shop.

Business establishments need to get accredited by authorities so that these and their locators can get incentives.

In the city, only Damosa Land, Inc. and NCCC Mall Davao have been accredited by the local government, while several others have filed their applications. — Carmelito Q. Francisco

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