Davao – New destination for BPO in the Philippines 35% annual growth expected 200922 Mar
Debbie Uy wrote an interested post on the state of outsourcing in Davao City which you can view here. In it she goes on to explain that many outsourcing companies are benefiting from the cost-cutting that is happening with the global financial crisis. BPO in the Philippines grew 45% in 2007, 30%-35% in 2008, and they’re estimating a cautious growth of 35% again in 2009. Rather than cutting back on workforce, most offices are currently hiring to support the needs of their corporate partners.
What’s particularly interesting is the “talent scarcity” she refers to. One of the problems with Davao is that most of the outsourcing jobs pay 25% to 35% less than the same jobs in Manila or Cebu. Until now, most of the talent ends up in the capital looking for a job at one of the larger outsourcing companies. What we’ve found is that by offering a competitive salary and allowing those migrating employees to hang their hat closer to home, we’re still able to pick up the talent right out of university. As more and more outsourcers look at Davao as a viable alternative, the competition will grow, but less employees will feel the need to go to Manila to look for work.
As more and more BPO companies settle down in Davao, I believe we’ll see an increase in call center finishing courses available. These classes will better prepare the employees for the call center environment in terms of language, business etiquette, etc. I look forward to the expecting BPO growth in Davao and am interested to see how it plays out.
10 Responses to “Davao – New destination for BPO in the Philippines 35% annual growth expected 2009”
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[...] in the BPO industry. Aside from the capital Metro Manila, many other cities in the country such as Davao City, Baguio, and Cebu offer a vast pool of talent, and affordable office [...]
[...] the reason you might lose your job overseas. This is good news for investors, foreign firms looking for BPO firms, and local policymakers who [...]
good post
i am so excited as a dabawenyos
they given an a change to work
with them.
good luck
@Ailyn
As are we, Davao is quickly becoming our second home. Are you a BPO worker in Davao?
I came across your website for my school homework on outsourcing. This is very informative and I am glad the Philippines is getting a slice on this. I lived overseas a few years now and I do not really know how bad it is back in the US.
It is good for companies to cut cost. What about for people who are losing their jobs? (I guess they just have back to school and learn a new trade)
I might just go back home (Philippines) after I retire from the Military.
Maybe work for your company. 
Semper Fi.
@TJ
We’re thrilled to see you found our blog while researching outsourcing! The growth of the outsource industry in the Philippines has been quite amazing and we’re glad to be a part of it. It is concerning that people do sometimes lose their jobs, but we give hints that they could be outsourced and believe, ultimately, that outsourcing is good for the economy and they’ll generally find a better job anyway.
We’re very supportive of the military…I was in the Navy and had no problem shipping marines where they needed to go.
Thank you for visiting our site and we hope to see you again soon.
thanks for sharing this with us.
Good news! Davao has many winning factors to become a new destination for BPO in the Philippines. Great article indeed!
Davao real state properties
@Tolits
Do you have any experience placing BPO owners/agents with properties in Davao?
@Joseph
Not yet, but I’ve received many inquiries. Thanks for the response!