Outside of Metro Manila, which has secured a number of major outsourcing contracts, the country has fostered second-tier cities for its outsourcing business, according to a recent survey conducted by neoIT, and at least eight other Filipino cities have the potential to emerge as destinations for business process outsourcing service providers. The eight cities, which include Cebu, Davao, Clark, Cagayan de Oro, Iloilo, Bacalod, Baguio and Dumaguete have been made 'outsource-ready' due to government support, and the fast-improving technical infrastructure with a competitive labour pool and lower costs. Clark, a former US military base with excellent technology parks and strong western heritage is likely to become an outsourcing destination by an economic development plan, which includes the construction of several special economic zones, airports, commercial complexes and roads. The increasing demand for outsourcing services has contributed to an increase of around 40% in real estate rental in Metro Manila in the last year and the wage rate stands 15-20 percent higher in comparison to cities like Cebu, Davao and Clark.
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