Cebu is considered one of the best outsourcing destination in the Philippines due to the rising demand of BPO firms in the location. According to Colliers International Philippines, the latest in a series of analysts to highlight the positive prospects for real estate development in Cebu City.

Cebu may be deemed the best outsourcing destination outside Metro Manila considering that it is the largest in terms of demand and size as of 2016.

According to a report by Pinnacle Real Estate Consulting Services, the 120,000 employees in Cebu constitutes of 10 percent of the total population of BPO employees in the Philippines. It grew 20 percent annually in the past decade and continues to show vigor.

“Cebu remains a preferred outsourcing destination because of the presence of adequate infrastructure, redundant internet connection, ample number of skilled college graduates, and a high level of urbanization driven by the development of several township and public infrastructure projects,”  Colliers said.

Increasing by 14 percent from January to September of 2016 as a result of the anticipated growth in demand for office space from business process outsourcing (BPO) firms. Presently, vacancy rates rose to 9.9 percent from the 4.6 percent rate in the same period in 2015.

According Manila Times, Colliers reported an additional 300,000 sqm of office space is expected to go online from 2017-2019. Most probable locations are SM City Cebu Tower, Philam Life Center Cebu, Central Bloc BPO Towers 1 and 2, GT Time Square, and Cebu Exchange. Moreover, Colliers’ report stated that large Metro Manila-based BPOs are establishing operations in Cebu as back-up offices.

“Colliers sees Cebu comprising 15 percent to 20 percent of the country’s BPO market as its outsourcing workforce is projected to rise between 5 percent and 10 percent annually over the next five years,” the report said.

“Aside from the Mactan-Cebu international airport expansion, other crucial infrastructure projects due to be completed over the next three to five years are the Bus Rapid Transit system and Cebu-Cordova bridge,” the report said.

Cebu City has a talented pool of workers and has relatively cheaper business cost than Metro Manila. It also has good infrastructure on lease for medium to large-sized BPO firms.

For the past decade Cebu City strived to become progressive and has eventually been considered Manila’s ‘rival’ in terms of demand in business.

The growth of Cebu’s BPO sector is further supported by the improving quality of infrastructure in the province, according to Colliers.

“Aside from the Mactan-Cebu international airport expansion, other crucial infrastructure projects due to be completed over the next three to five years are the Bus Rapid Transit system and Cebu-Cordova bridge,” the report said.

The Philippine’s best outsourcing destination is expected to increase by 12-18 percent. Overall in the international scope, we are expected a growth rate of steady 6 percent.

Sources:

http://www.manilatimes.net/cebu-office-market-preferred-destination-bpo-firms-analysts/302919/

http://www.philstar.com/business/2016/12/07/1650924/mature-cebu-market