BPOs consider Davao for backup
Subscribe Now November 15, 2013 at 02:40pm
"In this business, redundancy is recommended," said Mr. Barriga, pointing out that businesses operating in areas hit by disasters need operations continuity.
"The backup system can also function as an expansion whenever the operation of the main system needs to be augmented," he told BusinessWorld. This would, however, depend on the efficiency of the communications systems under Manila-based firms.
The idea of Davao as a backup location, Mr. Barriga said, came about after two companies inquired if they could set up their expansion in the city after the earthquake that hit Cebu and Bohol last month.
The Institute of Development and Econometric Analysis, a private group housed at the University of the Philippines -- Diliman campus, showed in a study that only 35% of companies it surveyed have disaster recovery plans. What was worse, the study showed, was that only 10% of these companies have business recovery and continuity process.
The same study identified Davao City as among those facing moderate disaster-related risk.
Despite the recent entry here of big BPO companies such as Convergys and Teleperformance, the city still has vast spaces to accommodate other locators.
Mr. Barriga noted that a new information technology park is being set up in the southern part of this metropolis. Based on the project plan, the new park could accommodate about 1,500 seats.
But, Mr. Barriga said it may eventually run out of space as two more companies, which he did not identify, have indicated they plan to locate in it.
The city was earlier identified by the Business Process Association of the Philippines as among the best locations for BPO operation. What made Davao ideal, BPAP said last year, was its low cost in doing business, with better conditions for employees due to low standard of living and availability of numerous outdoor recreation facilities.
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