Loren wants flourishing of "next wave cities"for BPOs

The Philippines saw a big surge in business opportunity in outsourcing and offshoring (O&O) in the last two years, accounting for a whopping $3.3 billion in government revenues in 2006 and $4.9 billion in 2007.

The surge triggered an increased demand for the industry players to identify and prepare areas that can host more outsourcing and offshoring activities to meet the growing requirements of the Business Process Outsourcing (BPO) services.

As this developed, Senator Loren Legarda , Chairman of the Senate Economic Affairs Committee, shall soon conduct a hearing to look into policies that will create a conducive environment for the flourishing of these so-called "next wave cities," areas that are identified by the Commission on Information and Communications Technology (CICT) and Department of Trade and industry (DTI) as friendly to outsourcing companies.

"Because this is part of the government's strategy to jumpstart the country's IT technology in line with its Roadmap 2010 plan, it is but necessary that we improve those next wave cities to attract more business process outsourcing companies," she said.

"Our country may be the number 2 in outsourcing destination in Asia and number 4 worldwide but that should not lead us to relax. Instead, we should not stop improving our competitiveness in the global arena of information and communications technology as it will mean more investments for us," Legarda said in filing Senate Resolution No. 496.

Reports coming from the industry players revealed that there are around 300,000 jobs generated in 2007, some 27 % higher than the previous year which registered and employed 198,000 people.

Legarda is also batting for the thorough study of measures that will address the concerns of the industry's employees such as labor and social welfare benefits. The Philippines ranks next to India in information technology for a number of reasons, among them are the cheap labor cost and proficiency of Filipinos in English.

"With improved areas of concern, more and more BPO companies would be attracted to do their business in the country."