8 of 18 IT-BPO cities at high to very high risk of disaster — think tank

Eight of the 18 cities serving as the Philippines' business process outsourcing (BPO) sites are disaster-prone areas, an economic research and industry analysis firm said Tuesday. According to its report, “Innovative Industry Insights on Disaster Recovery,” the Institute of Development and Econometric Analysis (IDEA) said that Metro Manila, Dagupan, Naga, Angeles, Cavite, Sta. Rosa, Lipa, and Legazpi are all at "high to very high risk" of climate-related disasters such as tropical cyclones and heavy rainfall. Seven other IT-BPO sites—Baguio, Subic, Malolos, Bacolod, Dumaguete, Cebu, and Davao—are at moderate risk of climate-related disasters. Only three of the IT-BPO cities were rated as being at low to very low risk of climate-related disaster: Iloilo City, Cagayan de Oro City and General Santos City. “The Philippines is no stranger to a wide range of disaster events. Apart from the loss of lives and property, disruptive events can result in significant direct and indirect financial losses for business organizations,” said IDEA chair Dr. Raul Fabella, stressing the need for companies to assess the risks and be prepared for disasters. According to IDEA, Cebu, Manila, and Clark are established IT-BPO areas; Davao, Sta. Rosa, Bacolod, Iloilo, Cavite, Lipa, Cagayan de Oro, Malolos, Baguio, and Dumaguete are the "next wave" cities in IT-BPO; and Dagupan, General Santos, Legazpi, Subic, and Naga are "next wave aspirants" to become IT-BPO centers. “We want to encourage business organizations to adopt a proactive stance and invest in data recovery infrastructure now, as investing after a disaster already struck would be more costly for them,” said Chito Franco, vice president for Corporate and Business Markets at Bayan Telecommunications Inc. (Bayantel), which commissioned the study. — BM, GMA News