Cagayan de Oro PHI

What’s wrong with the Business Process Outsourcing (BPO) industry in Cagayan de Oro City?

Despite being named as among the next-wave cities, Synnex-Concentrix is the only big-named BPO firm currently operating in the city and is located at Pueblo de Oro IT Park, the first PEZA-registered IT Park in Mindanao. But, since Link2Support (now Synnex-Concentrix) started operations in 2005, the big players in the country’s BPO industry seem to shun the city as a location for their call center operations despite being rich in talent, and cost-effective.

Below are the 36 biggest BPO firms, in the country based on 2012 revenues….and Concentrix is not even in the list. (SOURCE)

  1. Accenture Inc. (P28.104 billion in revenues);
  2. Convergys Philippines Services Corp. (P17.281 billion);
  3. JPMorgan Chase Bank N.A-Philippine Global Service Center (P10.805 billion);
  4. 24/7 Customer Philippines Inc. (P7.711 billion);
  5. Telephilippines Inc. (P7.241 billion);
  6. TeleTech Offshore Investments B.V. (P6.978 billion);
  7. Sutherland Global Services Philippines Inc. (P6.805 billion);
  8. Stream International Global Services Philippines Inc. (P6.738 billion);
  9. Sitel Philippines Corp. (P6.364 billion);
  10. Deutsche Knowledge Services Pte. Ltd. (P5.754 billion);
  11. Sykes Asia Inc. (P5.617 billion);
  12. IBM Daksh Business Process Services Philippines Inc. (P5.516 billion);
  13. Aegis PeopleSupport Inc. (P5.445 billion);
  14. TeleTech Customer Care Management Philippines Inc. (P5.402 billion);
  15. IBM Business Services Inc. (P5.211 billion);
  16. Telus International Philippines Inc. (P4.962 billion);
  17. Shell Shared Services (Asia) B.V. (P4.821 billion);
  18. HSBC Electronic Data Processing (Philippines) Inc. (P4.700 billion);
  19. ePLDT Inc. (P4.147 billion);
  20. SPi CRM Inc. (P3.501 billion);
  21. ACS of the Philippines Inc. (P3.492 billion);
  22. VXI Global Holdings B.V. (P3.266 billion);
  23. Emerson Electric (Asia) Ltd. (P3.230 billion);
  24. StarTek International Ltd. (P3.094 billion);
  25. IBM Solutions Delivery Inc. (P3.019 billion);
  26. Sykes Marketing Services Inc. (P2.760 billion);
  27. SPi Technologies Inc. (P2.626 billion);
  28. Genpact Services LLC (P2.552 billion);
  29. Macquarie Offshore Services Pty. Ltd. (P2.522 billion);
  30. Thomson Reuters Corp. Pte. Ltd. (P2.265 billion);
  31. AIG Shared Services Corp. Philippines (P2.357 billion);
  32. Hinduja Global Solutions Ltd. (P2.194 billion);
  33. Lexmark Research and Development Corp. (P1.956 billion);
  34. ANZ Global Services and Operations (Manila) Inc. (P1.869 billion);
  35. Maersk Global Service Centers (Philippines) Ltd. (P1.859 billion); and
  36. Manulife Data Services Inc. (P1.745 billion).

After Pueblo de Oro IT Park, there were others which registered with PEZA as IT Park/Building namely: SMCO IT Center, Robinsons IT Bldg., Limketkai IT Center, Georgetown Cybermall and even the former Ororama Megacenter. When Centrio Mall opened, there were news articles which state that the upper floors will house BPO offices. But now, only the 10-hectare Pueblo IT Park remains in the list by PEZA.

Rumors circulated that the there were some “secret deals” not to allow other call centers to locate in the city as it will diminish the pool of IT talents in the city. Other rumors state some local operators oppose the entry of these BPO firms as it will definitely get the bulk of job seekers due to its higher pay. Read old news article about this in 2008 HERE. But we all know poaching is relatively rampant in the country. You will see “job fairs” with “relocation package” by BPO firms from other cities in the country. Well, that’s competition. Of course, one will likely choose the job with a higher pay. Many however, are “painfully” leaving to work in other places because there aren’t much opportunities in the city.

There is a Cagayan de Oro ICT Business Council (LINK) and you could clearly see from its list of members only Concentrix is really the only BPO firm which we can categorically state as BIG while the rest are simply small players.

Many of the region’s talent are now working in Cebu. In fact Cebu’s BPO industry ushered some big ticket investments (LINK). The growth of Cebu’s BPO industry complemented the development of high-rise condominiums and shopping malls and BPO building rentals.

If there were many BPOs here in the city, those who are working in Cebu or even Manila will likely make their return to their native city and maybe improve their lives. Everyone wants to settle down in their city.

In Tholon’s latest 2014 ranking of investment, seven (7) Philippine sites with Manila as No. 2 in the top 100 outsourcing destination in the whole world. Cebu City, placed 8th while other cities like Davao (#69), Sta. Rosa, Laguna (#82), Bacolod (#93), Iloilo (#95) and Baguio (#99) are also among the top 100. See complete list HERE.

The Department of Science and Technology (DOST) is aiming to add three more Philippine cities in the Top
100 by 2016. Other next-wave cities are Metro Cavite, Lipa City, Cagayan de Oro, Malolos City, and Dumaguete City. SOURCE. Without these big players in the BPO industry, I don’t even think the city deserves to be in the top 100.

This is a big challenge to the new city administration or perhaps to the CDOICT Business Council to attract more of these big BPO firms and help the city sustain its growth.

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