More IT firms expand in Davao

Posted on: 13th March, 2016

MORE information and communication technology (ICT)-centered companies, mostly multinational corporations, are expanding their operations in Davao City, which they are have considered as their new ICT hub, an official said.

Next BPO Solutions chief executive officer and president of Business Process Outsourcing (BPO) Association of Davao Inc. (ADI), Xavier Eric Manalastas, said Friday that two more multinational companies have ventured in the city this year as part of their expansion.

“Two of the key developments we have for the industry lately are the signing of the largest web development company in New Zealand, the Zealed Pty. Ltd and Hewlett Packard (HP) Enterprise, an American multinational information technology enterprise company,” he said.

He said these companies have signed an agreement of Build Operate-Transfer (BOT) with Next BPO Solutions. The Davao-based Next BPO Solutions will build and house the talent pool top work on the multinational companies.

For the Zealed, the digital creative company decided to shift a major portion of their workforce to the Philippines, initial choice are the cities of Davao and Baguio.

Davao is now their hub outside of New Zealand.

At present, Next BPO Solutions and its partner have employed 25 people working as are developers, online marketers, providing the services for Zealed’s clients in New Zealand and Australia.

For HP Enterprise agreement, Next BPO Solutions is working on building a team of some 200 people by the end of the year.

“They (HP-Enterprise) are coming in Davao. They have signed up with us last month, we are starting to train them right now. We are looking to hire at least 200 people by the end of the year that will provide different level of supports for SAP, the leading enterprise resource planning software used by big companies,” Manalastas said.

“Davao is attracting more BPO locators because of the city’s good business climate, typhoon-safe area, peace and order situation, cooperation of the local industry partners, and the availability of pool of talent that only need to be further developed,” he added.

Manalastas also said that if the initial expansion will turn out to be successful, HP Enterprise will eventually set up its own office in Davao City.

HP-Enterprise also evaluated the cities of Cebu and Bacolod but it prioritized Davao City.

“Most of the global support requirement of HP for their SAP clients will be provided by the team here in Davao, which we are building as of the moment,” he said, adding that they are currently providing training and hiring fresh graduates for entry level to grow team.

But Samuel Matunog, president of the Information and Communications Technology (ICT) Davao Inc., said that with the ever-evolving BPO industry, the present trend now is investors are now looking for talents that are qualified for Knowledge Process Outsourcing (KPO) and language specialization.

“There are a lot of inquiries from BPO locators here in Davao City but the major problem is we cannot satisfy the demand that they are requiring, BPO firms now are no longer looking just for English speaking agents but also basing now for technical knowledge and language specification such as Japanese, Spanish and German,” Matunog said.

He saidthere is indeed a huge talent pool that can be tapped in the city but the challenge is how to turn those into qualified human resources responding to the present market demand.


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