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VITO Report Authors: Elizabeth White, Liz McMillan, Roger Strukhoff, Timothy Fisher, Ernest de Leon

Related Topics: Philippines, VITO Report

Blog Post

Global Sourcing in the Philippines: Makati and Beyond

Makati City is Splendid, But Maraming Other Places are Emerging

(The following story originally appeared as a blog entry at

I posted my interview with Oscar Sanez, President and CEO of BPAP, the Business Processing Association of the Philippines ( Oscar runs marathons, and have I ever mentioned I think it's hot over there? I hope they start these races at around 3am.

He's taking the long-term view of business as well. A P&G exec for almost 30 years, located in all corners of the world, Oscar returned to the Philippines a few years back to apply the full force of his experience and personality to address the challenge of developing business in his native country.

The Metro Manila municipality of Makati City (left), where BPAP is located and where I met Oscar for our interview, is one of the showcase areas of the Philippines and of the global outsourcing industry. Its skyline, greenbelt area, hotels, restaurants, shopping, etc. put it on a par with great urban areas throughout the world, at prices that remain a tremendous bargain even to Americans arriving with their puny, infirm dollars.

Makati is routinely listed as one of the very top outsourcing (or global sourcing) locations in the world, alongside Indian giants such as Bangalore, Mumbai/Pune, and Hyderabad. I've been to all these places, and I can vouch that Makati's infrastructure is vastly superior to that of any Indian city. In fact, even standard-issue Manila infrastructure (a pic I took of jeeps in the Cubao area is below) is superior to anything I've seen in India.

The vibrant success of Makati over the past two decades or so has created a number of improvements in education and social services for its half a million residents--many of whom live the very difficult life common to so many millions in the Philippines and other countries throughout Southeast Asia.

These days, Oscar and many others in the Philippines are working to continue to attract new business to Makati, while also promoting numerous other locations, within and surrounding Manila, and out in the provinces as well.

Cebu City, the commercial hub of the country's central Visayan region, has already made the list of top sourcing destinations in the world--a number of people I've spoke to report a 30-percent discount across the board from prices in Manila.

Names such as Mandaluyong, Pasig City, and Quezon City (all in Metro Manila) will be heard more and more, as well regional names such as Bulacan, Pampanga, and Cavite, and provincial names such as Iloilo, Bocolod, and Davao.

More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.