The Philippines, compared to other Asian countries, has always been the top choice for overseas outsourcing companies. And Cebu, being the IT hub of the country, has become the primary destination for these companies.
One might wonder why, despite the number of other viable options in the country such as Metro Manila, overseas outsourcing companies are setting up call centers in Cebu.
Manila is known to be the economic and political capital of the Philippines. Shareholders, however, do not find Manila’s image appealing precisely because of that very reason. Investors have always sought to avoid economic and political turmoil, thus, they have opted to establish their businesses in another emerging city — Cebu. The government, having become aware of this trend, has transferred some of its political power outside Manila, setting up a presence in Cebu and subsequently making the city the center of political power in the Visayas and Mindanao regions.
Another possible reason why investors are opting to set up call centers in Cebu is the current state of Manila itself. Metro Manila is known to have a very high degree of air pollution, with 66 micrograms of particles per cubic meter. This value, compared with Cebu City’s 45 micrograms, makes Cebu a better place to live in. Manila is also known for its heavy traffic jams — a 20-minute trip may stretch out to an hour, maybe even more, especially during rush hour. Traffic as heavy as that experienced in Manila is very rare in Cebu.
Based on a study conducted by Grant Thornton, Cebu is one of the top cities noted in the Top 50 Emerging Global Outsourcing Cities list. This list is an assessment of global outsourcing destinations in relation to their capacities as service delivery centers. Cebu City has one of the highest over-all ratings on scale and quality of workforce, business catalyst, costs, infrastructure, risk profile, and quality of life.
According to the same study, Cebu City is ranked eighth in the list of Top 10 Asian Cities of the Future by the Foreign Direct Investment (FDI), a magazine of the Financial Times Group. Additionally, the same magazine ranked Cebu fourth in the list of 10 Most Cost-Effective Cities, seventh in the Best Quality of Life Category, and second in Development and Promotion, next only to Singapore.
The city’s strengths lie in key processes in the BPO industry such as customer service, finance and accounting, and HR services. In addition to this, Cebu ranks high because of its strong infrastructure, stellar literacy rate (which is at 97%), and excellent quality of living — all of which translate into better workers and lower staff turn over rates.
The city is very accommodating to businesses and can provide a thriving environment for BPO offices. And with this, 17 BPO companies or call centers have established their offices in Cebu as of early 2008.