[ Manila Bulletin Online ] October 24, 2008
By MALOU M. MOZO
CEBU CITY – Business groups here anticipate the entry of big players in the outsourcing and offshoring (O and O) industry following the report last week by industry publication Global Services and investment advisory firm Tholons ranking this city as the first in the list of 50 emerging outsourcing destinations for global companies this year.
Francis Monera, Philippine Chamber of Commerce and Industry (PCCI) regional governor, lauded the research report that elevated this city to the category of developed global outsourcing cities, besting top three cities in the list last year—Chennai, Hyderabad, and Pune, all in India.
"This is a welcome development for Cebuanos. Foreign companies will eventually need to cut down cost through outsourcing. Cebu is now more than ready to capture the big BPO (business process outsourcing) companies," Monera said.
Based on the list, the other hot cities for outsourcing are Shanghai in China at number two (eighth last year); Beijing, also in China, at number three (10th last year); Ho Chi Minh City in Vietnam at number four (sixth last year); and Krakow in Poland at number five (16th last year).
The report showed Asian cities dominated the top cities list, at 38 percent. In the Philippines, Baguio City, which was number 36 last year, dropped out of the list while new entrants entered, like Quezon City (number 21) and Mandaluyong City (number 45). Pasig City was number 15.
Global Services and Tholons highlight in their research the increasing importance of choosing "the right city instead of the right country."
"It is rather the city that represents a more accurate package of attributes the service providers seek. Thus, Cebu City and Monterrey matter more than the Philippines and Mexico from a decision-making standpoint," the study said.
The list is based on the criteria that include scale and quality of workforce, business catalyst, cost, infrastructure, risk profile, and quality of life, but does not include developed or established outsourcing locations.
Cebu Investment Promotions Center records show that this city currently has 22 call centers with around 20,000 agents, as well as 36 foreign direct investments in information technology or BPO.
Now that this city has catapulted to being the leading outsourcing capital in the world, private and public sector partnership should further be enhanced not only in providing more infrastructures, maintaining a sizeable workforce, but also in capitalizing the animation, transcription services under the BPO sector, said Philippine Retailers Association-Cebu Chairman Jay Aldeguer.
"We need to exploit this advantage or else we get overtaken if we sit down," he said.
Aldeguer is optimistic major development in the City’s O and O industry will trickle down to a robust retail sector, given the high purchasing power of call center employees.
Monera, also president of Ayala Land Inc. subsidiary Cebu Property Ventures Development Corp., revealed the company will now fast track the horizontal development of the additional five hectare adjacent property in the Asiatown IT Park that will house more BPO buildings in the area.
