[ Malaya.com.ph ] March 15, 2010
Makati remains the top global outsourcing destination in the Philippines and ranks sixth among the Top 8 Global Outsourcing Cities in the world, based on a report by industry analyst Tholons.
"Makati City, as part of the Philippines NCR, holds its ground, while Indian cities with the entrance of Chennai, Hyderabad and Pune continue to dominate the top chart," the report said.
Tholons lists Bangalore, Chennai, Delhi NCR, Hyderabad, Mumbai and Pune (India) and Dublin (Ireland) as the other top outsourcing destinations. Tholons said it has expanded its list from five cities to eight cities because of "a rapidly maturing, expanding global outsourcing industry."
Makati, considered an established global outsourcing destination, has consistently been included by Tholons in its 2007 list of top five cities and the 2008 list of top eight cities.
Tholons defines established global outsourcing cities as prime locations for investors looking for specific outsourced processes.
The list of the top eight cities is included in the October 2008 Tholons study on the Top 50 Emerging Global Outsourcing Cities cited by Makati Vice Mayor Ernesto Mercado to support his claim that Makati has lost its top position to Cebu City.
"Makati is already an established destination according to Tholons, and not an emerging destination. So it’s like comparing apples to oranges," Makati Councilor Armand Padilla said.
Tholons, in fact, paid compliment to Makati’s dominant position by saying that the 50 emerging destinations "are not Bangalores or Makatis yet; but they could get there sooner."
"Had the vice mayor read through the report, he would have seen the chart on page 20 which lists the top 8 global outsourcing cities. Makati is listed as number 6 and is the only Philippine city in the list dominated by India," he added.
From 424 Business Process Outsourcing (BPO) companies in 2006 with capital investment of P6.9 million, Makati now hosts 884 BPOs with total investments of P1.4 billion.
According to the Business Process Outsourcing Association of the Philippines (BPOAP), Makati has the highest number of Offshoring and Outsourcing companies in the National Capital Region (NCR), with 219 companies specializing in information technology and engineering services outsourcing. These firms provide jobs for 90,411 employees.
On the other hand, the Philippine Export Zone Authority (PEZA) said Makati has 33 PEZA-accredited IT Parks/Buildings, the highest in the region.
According to the Tholons report, Cebu city ranks number 1 in 2008 in its Top 50 Emerging Global Outsourcing Cities. It ranked number 4 in 2007. Tholons also lists Pasig City (15) Quezon City (21) and Mandaluyong (45) as fast emerging outsourcing destinations in the Philippines.