Mindanao As I.T. Hub

Focus on Contact Center Services

Cyberservices is a new term that describes services delivered via cyberspace. These are information technology-driven services that include call centers, medical transcription, back office operations, and animation.

In the Philippines, call center services is the largest sector in the I.T industry, absorbing 63% of its total workforce. In just a few years, Philippines has strengthened its services from inbound customer support and outbound telemarketing to more technical support service such as computer hardware troubleshooting. We are currently at par with global standards, closely competing with India and China, while offering the best value. And as the sector grows to greater heights, large call center companies are expanding its reach across the nation, seeking for more competitive labor costs, and cheaper infrastructure and operational expenses in other cities aside from Manila, Angeles and Cebu - and southern Philippines is targeted as the next destination of growth.

But, is Mindanao ready?

In its recent report, Commission on Information and Communications Technology (CICT) projected that the call center sector will have to employ 388,000 agents to meet client needs in 2010. In order to deliver this, call centers should not limit their Mindanao activities on recruitment for relocation purposes alone. Setting base is inevitable considering the many perks in Mindanao cities, specifically the availability of cheaper and reliable power and communication infrastructure, less expensive cost of living, good incentives for I.T. companies, numerous vendor support, and transportation infrastructure.

Mindanao is also fast opening itself to advancement as it targets cyberservices to be the industry that will not only boost the economy, but will also secure its people from leaving home. In addition, redistribution of wealth, the return of talents, triggering of commercial activity, and attracting more investment from other sectors are significant, positive effects of call center presence in the provinces.

Local communities and its leaders recognizes Mindanao's potentials in providing call center needs in the near future. This sparked interests from various groups and business organizations to cooperate and unify in order to make Mindanao cities an attractive and suitable locations for the industry's growth.

Mindanao as the next I.T. Hub
Such widespread investment promotion campaign embarked by various Mindanao stakeholders, captured the interest of some of the well-known call centers causing them to visit major, Mindanao cities for expansion consideration. So far, Cagayan de Oro and Davao City pioneered by collectively attracting four call center operation set-ups in the city proper. My very own company, Joji Ilagan Foundation Inc., will be operating a state of the art training academy for call center agents and personnel in partnership with John F. Kennedy Foundation; and a Call Center projected to have 200 seats. This training academy will open start operating on April and the BPO contact center on June of this year. The training center will also ensure the continuous presence of skilled manpower to serve the needs of IT investors and BPO’s that intends to locate their businesses in Davao and the nearby cities like Gen. Santos.

Mindanao, with its skilled labor and quality of life, recognizes its capacity to deliver investor requirements in setting up call center operations. We produce competent professionals with excellent reasoning skills, English communication and computer skills, and workers flexible in various work environments. And of course, Mindanaoans are famous for being friendly, courteous and industrious individuals - a plus point in this line of work.

On the other hand, Mindanao has its own challenges and limitations. For one, not all cities have I.T. Parks and zones, and this discourages I.T. investors who seek additional incentives that an I.T. park/zone could offer, in addition to the flexible requirements it imposes. Most of the cities are yet to follow Cagayan de Oro's Pueblo de Oro IT Park, the first of its kind which houses an international call center.

There is no reason why Davao and Cagayan and the rest of Mindanao cannot become the IT hub for the Southern part of the country and of the East Asean region.
After all, everything else is in place - competent manpower and adequate communications and transportation infrastructures.