MANILA, Philippines -- Laguna and Cavite topped the list of the best outsourcing locations outside of Metro Manila and Cebu, government and industry executives said.

Rounding up the list of top 10 "next-wave" cities are -- in order of ranking: Iloilo, Davao, Bacolod, Angeles-Clark-Mabalacat, Baliuag-Marilao-Meycauayan, Cagayan De Oro, Malolos-Calumpit and Lipa.

The ranking was released by the Business Process Association of the Philippines (BPAP), Commission on Information and Communications Technology (CICT) and the Department of Trade and Industry (DTI).

The ranking was based on availability of talent (or workers), real estate, infrastructure and business environment and regulatory metrics, which covers the presence of a local government-business ICT council and government-certified economic zones.

Some cities were lumped together based on proximity to each other as in the case of Bulacan, Pampanga, Laguna and Cavite.

Metro Laguna covers Sta.Rosa, Calamba, Los Banos, Cabuyao and San Pablo. Metro Cavite, meanwhile, includes Dasmarinas, Bacoor, Imus and Cavite City.

Talent carried the most weight (50 percent), an advantage for cities that have good presence or are near universities and colleges.

Davao and Cagayan De Oro are included in the top 10 although both cities scored low in the business metrics due to the prevailing travel advisory to foreigners owing to the Mindanao.

Davao, in particular, has attracted call center investments including US-based Sutherland, which employ more than 1,000 workers. Ayala Corp. is also building an IT park in Davao, according to the CICT.

"Despite this challenge, it doesn't stop local government executives from Davao, Cagayan de Oro even GenSan (General Santos City) from promoting," said CICT commissioner Monchito Ibrahim.

Ibrahim, who oversees the promotion of the country's so-called cyberservices sector, believes there will be more BPO investments in Mindanao within the next two years.

Meanwhile, BPAP chief executive officer Oscar Sañez reiterated the ongoing economic slowdown in US would have little effect on the country's outsourcing industry.

"Our strategy is more aggressive marketing and tell basically tell investors that there are more choices here outside of Manila and Cebu," Sañez said.

He also believes there is little effect on outsourcing, in general, regardless of who becomes the next US president.

"We believe outsourcing, as a concept, is already sold whether it's Obama or McCain who wins. At the end of the day, businesses will continue to outsource to cut on costs," Sañez said. - INQUIRER.net