Philippine Call Centers: Why It Makes Sense To Set Up In Cebu

Owing to its highly skilled labor force, World-class English language aptitude, consultative and customer service mind-set, strong work ethic, government support & incentives, affinity for U.S. culture, attractive location for U.S. expatriates, and its robust infrastructure, the Philippines is the prime choice for overseas outsourcing companies compared to other Asian countries.

The Philippines have a highly Metro Manila-centric economy, receiving the bulk of the budget by government, not surprising since Manila is the political and economical centre of Philippines. One-third of the countrys total incomes (measured by GDP) are earned in the capital city, which also accounts for nearly half of the growth in incomes. It also has a dense population, 18,648 persons per square kilometer is thus about 72 times the national density of 260, which means that companies have more to choose from.

So why are overseas companies setting up call centers in Cebu?

Since Manila is the political and economic hub of the Philippines it turns into a weakness of the city. Investors aren't exactly attracted to Manila's media image either. Businesses put up their call centers in Cebu to keep away from the economic and political chaos that is Manila. The government is aware of this and has set up a presence in Cebu with the Malacaang Palace of Cebu, transferring some of its political power outside of Manila. Though Cebu has lesser population density in comparison to other major cities, Cebu province, with its 6 cities, has a population of 3.1 million, which makes it the largest among the country's 79 provinces.

Metro Manila also has one of the most polluted air in the country at 66 micrograms of particles per cubic meter compared to Cebu City's 45. Traffic jams is also another thing that the city is notorious for. A 20 minute ride in Cebu will easily go an hour or more in Manila, predominantly at rush hour.

But why are the call centers in Cebu?

That question will be addressed by the Thorton study. Cebu emerged with top honors for the Top 50 Emerging Global Outsourcing Cities list. The record is an evaluation of Global Outsourcing settings according to their competence as service delivery centers. Cebu City got the highest over-all rating on scale & quality of workforce (including Education), business catalyst, costs, infrastructure, risk profile, and quality of Life.

There were 17 BPO companies or call centers in Cebu as of early 2008.The citys strong points are in key processes such as customer service, finance and accounting and HR services. It got top scores because with its high literacy rate of 97%, its strong infrastructure, and excellent quality of living, which translates to better workers and lower staff turnover. All of which makes for a thriving environment for call centers in Cebu.

If the Thorton study wasnt enough, Cebu City has been ranked number eight in the list of Top 10 Asian Cities of the Future by Finance Direct Investment (FDI) magazine of the Financial Times Group. Furthermore, the same magazine also ranked Cebu City second in development and promotion, next only to Singapore, fourth in the list of 10 most cost-effective cities, and seventh in the best quality of life category