NEDA: BPOs outside ecozones not recorded in investment data

CEBU, Philippines - The economic planning agency is eyeing to include business process outsourcing firms operating outside the economic zones in its data collection of the sector's investment value. 

National Economic and Development Authority-7 director Efren Carreon said a number of information technology and BPO companies operate in areas not registered by the Philippine Economic Zone Authority.

"We have the small ones scattered all over and they also contribute a lot [to the economy]," Carreon told The FREEMAN in an interview. "Many of these are legally registered [only that] they are not included in our data gathering because they're not operating in IT parks."

The official noted NEDA had initial talks with Cebu Educational Development Foundation for Information Technology on having a detailed study on IT-BPO sector in Central Visayas.

In 2013, the industry's investment in the region amounted to P9 billion. That value only covered firms operating in IT centers.

The director said: "The data we have only covered those within PEZA areas. There are so many companies operating outside these areas and we have to factor them in also. Personally, I believe the data do not give us a complete picture."

He said NEDA and CEDF-IT are going to draft "a sort of an outline" on how to better profile the bigger contribution of the sector to the regional economy.

The official also said 90 percent of the region's IT-BPO firms are operating in Cebu's metro area.

Others are also located in Dumaguete City which has been identified as the next wave city for BPO operations. Bohol, he noted, would also follow suit as it has already been connected to an extensive fiber optic network.

In its top 100 BPO destinations list published last year, consulting firm Tholons noted Philippine cities are rising as becoming an important BPO destination worldwide. Seven Philippine cities made Tholons' top 100 list in 2014, with Cebu ranked eight.

While the Philippines continues to lead in voice services segment, Carreon stressed the industry should also target high-end services such as designing, animation, programming, game and software development, etc.

"These are more sophisticated and high-paying services," he said.

Growth in the BPO sector also needs to come from the non-voice segment. (FREEMAN)