The Philippines Aims to Become a Hub for Business Process Outsourcing Through Smart Cities

Machine to machine (M2M) communication may still be relatively young, but the growing use of M2M technology in industries such as consumer electronics and automotive has spurred it on to grow rapidly. However, M2M use has become key in producing smart metering solutions and even building smart cities, which will likely spur growth in the years to come, according to a recent report from Strategy Analytics.

Indeed, emerging market countries such as the Philippines have found that the development of smart cities and smart countrysides may be key in order to become a global hub for business process outsourcing (BPO). However, according to members of the business process outsourcing industry, implementing the infrastructure is just one part of this process.

“We must also align talent development to the needs of the industry, provide incentives to the local government, create awareness among real estate developers in the area so they can develop their commercial sub-sectors,” said Tony Del Carmen, chairman of the Laguna Industry Network for Knowledge, Innovation and Technology Foundation (LINK-IT), in a statement. “The concept of the smarter city is to develop a whole ecosystem that will promote the use of Information and Communications Technology (ICT) in the development of BPO companies.”

Since M2M has grown to a point that it is easily accessible as well as flexible, Del Carmen claims that “the biggest hurdle of the ICT industry right now is talent development.”

Santa Rosa, Laguna, often considered the Silicon Valley of the Philippines, has begun its transformation into a smart city. Indeed, semiconductor and car manufacturing companies have begun setting up in the area, along with major academic institutions to add to those that already exist there, such as La Salle, Xavieer, Systems Technology Institute and more.

In recognition of this change, the National ICT Confederation of the Philippines (NICP) will launch its "Smarter City/Countryside" campaign during the fifth NICP National ICT Summit on November 22 and 23 in Santa Rosa. The NICP formed in November of 2008 and has been holding yearly conventions since 2009.