Businessmen unfazed by Mindanao security woes

Security problem has not dampen the spirit of several business groups to continue developing a peaceful business environment, especially the highly attractive Information Technology (IT) in Mindanao. In fact, seven medical transcription companies and two business processing office (BPO) and accounting companies are already operating in General Santos City and in Koronadal. In Tacurong City, 25 agents are employed by IQ Scribe, a private healthcare solutions-transcription company.

From his remote desktop in GenSan, Del­mer Paraluman handles all finances and reconciles receipts and books for Arrival Telecom, a phone service firm in Utah, in the U.S.  

“BPO accounting is a lucrative business,” said Paraluman. “Foreign companies have said they prefer their accounts to be handled by Filipinos since we have a reputation for trustworthiness.”

 ”We have clients in Manila who order from us outdoor tarpaulins,” said Ronald Velas­quez, vice president of Ideas Inc., a GenSan graphic design firm specializing in large formats. “Even with the added freight and shipping, we’re still cheaper than firms in Cebu and Manila.”

”We’re now talking with a furniture company in Europe which is outsourcing their website design to us,” Velasquez also said.

Business Processing Association of the Philippines executive director for talent development Maria Jamea Garcia, said by 2010 the country is expected to corner a 10-percent share of the global outsourcing and offshoring market that Minandao stands to benefit. “The country is well positioned to corner a 10-percent share of the global outsourcing and offshoring market by 2010, with potential revenues of about $13 billion and additional direct employment of close to one million workers,” Garcia said.

Peaceful cities like GenSan, Iligan and Zamboanga have strong potential as competitive offshore sites – particularly when the labor and infrastructure resources of their neighboring municipalities and provinces are factored in, according to USAID’s Growth with Equity in Mindanao Program, which is helping to facilitate BPO investment in the region.

”Developing these additional cities would help the Philippines achieve a more balanced distribution of growth (in the BPO sector). This will ease some of the pressures on costs and help seed development in other parts of the country,” Jamea said.

Ring of fiber

GenSan, is the trading and agro-industrial center of Region 12, which encompasses the provinces of South Cotabato, Cotabato, Sultan Kudarat and Sarangani. The regional capital is Koronadal City, less than an hour away from GenSan.

Despite the conflict, these provinces continue to enjoy good business prospects for its agriculture and industrial produce aside from the highly IT skills by its work force.

”General Santos is known as a highly competitive city and the region’s entrepreneurs continually think in terms of a global market,” said Ellorence Cruz of the Board of Investments in Gensan.

Bing Garcia, vice president and COO of Marbel Telephone System, Inc., said his company has begun laying down a fiber optic network, which he calls the “Ring of Fiber,” connecting GenSan and South Cotabato and Sarangani provinces.

Tacurong City and 11 municipalities in Sultan Kudarat province will also be connected to the fiber optic network, under the Sultan Kudarat Telephone System, Inc.

The “Ring” is being established in preparation for GenSan’s planned WiMax system, a wireless digital communications system whose broad coverage can be extended to its outlying districts and rural areas, much like a cellphone network.