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Cebu is a more cost-effective place to set up a business process-outsourcing company compared to Metro Manila, said Cebu representative Eduardo Gullas.
Urging government to develop the province into a global business process outsourcing hub, Gullas said national economic development planners should help further build the province into an ideal location for information technology-enabled services.
"Cebu can take in more BPO providers. The province has all the attributes needed by BPO providers. [It has] a business-friendly local policy environment, extensive infrastructure, efficient connectivity, and adequate human resources," he said.
A former provincial governor, Gullas noted that Cebu offers highly competitive office rent and wages compared to Metro Manila.
"Cebu is the center of higher learning in Visayas and Mindanao. We produce thousands of English speaking, high work ethic, computer literate, and Internet savvy college graduates each year," he added.
The Philippine outsourcing industry remains optimistic about prospects in 2006, despite challenges of finding more quality skills to man the booming industry.
Notwithstanding competition from other countries like India, the local outsourcing industry still expects to grow this year. In a joint forecast by the Business Process Association of the Philippines (BPAP), Board of Investments (BOI) and the Commission on Information and Communications Technology, the Philippine outsourcing industry is expected to generate 103,000 new jobs in 2006 -- a 44-percent increase from 2005.
The same forecast showed that about 81,000 new jobs were created in 2005, a 53 percent growth from 2004 figures. Based on these growth rates, a slowdown is foreseen in the generation of new jobs year-on-year.
The forecast also said that the outsourcing industry is expected to generate 3.7 billion dollars in revenues in 2006, a 52 percent growth over 2005.
Meanwhile Congressman Gullas note that over 80 percent of BPO providers operating in the country are in Metro Manila.
Twelve call centers are now located in Cebu, including those operated by US-based global BPO providers Convergys Corp., Sykes Enterprises Inc., eTelecare Global Solutions Inc., and PeopleSupport Inc.
Convergys Cebu call center is located in Banawa, Cebu City, while Sykes is in Subangdaku, Mandaue City.
The Cebu call centers of eTelecare and PeopleSupport are both at the 24-hectare Ayala-owned Asiatown IT Park in Lahug, Cebu City.
Besides their four call centers in Cebu, the four global BPO providers combined also operate 14 call centers in Metro Manila.
Gullas urged the Central Visayas Regional Development Council (RDC) and the Commission on Higher Education to draw up a plan to further hone Cebus competitive edge as an outsourcing hub.
"Going forward, we have to reinforce the skill sets of our college graduates, for them to readily qualify for more IT-enabled service jobs. For instance, we may have to identify and invigorate two or three local universities as potential centers for English mastery and engineering proficiency," Gullas said.
He also urged RDC to help identify more buildings in Cebu that may qualify for IT zone status.
The Philippine Economic Zone Authority recently lowered the minimum floor size requirement of a building outside Metro Manila and Metro Cebu that may seek IT zone status from 5,000 to 2,000 square meters.
IT zone locators enjoy income tax holidays, tax-free capital equipment importation, exemption from local government imposts, simplified customs procedure, and permanent residency for foreign investors.
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