I am placing porcelain tile in my shower surround.
I need to place holes in the tile where the plumbing
Comes out of the wall. Can someone direct me to
The correct cutting tool/drill bit that I might want to use?
Thank you.

I'd say it depends somewhat on how big.

Glass bits are available at a hardware store. They are triangular shaped. They can be used for small holes and for starters.

Hole saws with carbide or diamond grit also work.

A Dremel tool with the router attachment also works with a carbide cutter.

A jig saw will also work for large holes, again with a carbide blade.

The key is to keep the bit cool by cutting wet if possible.
Carbide or diamond and variable speed.
The size and type of hole dictates method.

A 1/4" hole use a glass bit

From about 1/2" to 3-6" round use a hole saw with a usual 1/4" pilot hole

A routed hole is also possible for large holes.

As KeepitSimlpe says, It depends on the size of the cut, I am attaching the link below if you watch the videos will show all deferent cuts and tools, good Luck.

John

Drilling Porcelain Tile, Drill Holes In Tiles

Afaroo again supplied you with excellent visual. Good job, John !

Go to Home Depot, to tile aisle. They sell 1 3/8" carbide bit. That's all you will need. Put it in any drill and drill the hole. If you are using regular tile, than it should cut through w/o any problem. If you have granite, marble, or porcelain tile than get diamond cup drill. Sometimes HD and Lowe's carry those. If not, than any tile store will gladly sell it to you.