Tuesday, September 02, 2008 [ manilatimes.net ]
By Katrina Mennen A. Valdez, Reporter
IN a bid to attract investors, the Business Processing Outsourcing Association of the Philippines (BPAP) advised local governments (LGUs) to come up with policies that will promote transparency and efficiency, which are the most critical issues facing the industry.
Oscar Sañez, BPAP chief executive officer and a lead convenor of the recently concluded investment forum of the Institute for Solidarity in Asia, said that even if a city possesses a talent pool, infrastructure and other support industries for the BPO sector, locators would not come in if there are transparency and efficiency issues.
ISA is assisting various LGUs tap market players for the multibillion-peso funding requirements by following a road map that sets higher standards of public governance.
ISA said investors would be forthcoming with improvements and the promotion of good governance.
Sañez said BPAP would release next month its assessment of the preparedness and competitiveness of major provinces, which includes the transparency and efficiency qualities of the respective cities outside Metro Manila.
Next wave cities are aiming to synchronize the country’s capability and competitiveness in handling outsourcing and off shoring companies.
These cities include, Angeles, Bacolod, Baguio, Batangas, Cabanatuan, Cabuyao, Cagayan de Oro, Calamba, Cebu, Dagupan, Davao, Dumaguete, General Santos, Iloilo, Lapu-lapu, Lipa, Mandaue, Naga, Puerto Prinsesa, San ernando, Santa Rosa, Tacloban, Tagbilaran, Tarlac, and Zamboanga.
“Definitely, [BPO] locators have no choice but to take a look at these cities, since Metro Manila is becoming more and more congested. But as to whether these cities are already ready to host such kind of investments is something that [the cities] have to show,” Sañez said.
The industry executive said that since smaller US-based players may close down, the Philippines can attract bigger companies through aggressive promotions abroad of its tested performance.
For last year, the local industry gained about $5 billion. Starting this year until 2010, it is eying to earn from $7 billion to $13 billion.
Sanez said that 10 percent of the global outsourcing pie has already been outsourced, with 35 percent to India, and only 6 percent to the Philippines.
“In this time of economic difficulties [US firms] have to come to the Philippines since [we] can help them improve their economic models. Thus the next wave cities are positioned to benefit from this opportunity,” he said.
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