BPO operations spilling to Mactan and Mandaue

CEBU, Philippines — Outsourcing operations are going out of Cebu's main business parks, as Mandaue City and Mactan Island are potentially becoming attractive to outsourcing firms.

"Mactan and Mandaue are rising outsourcing destinations," said Joey Bondoc, research manager at property management company Colliers Philippines.

"And the leisure-oriented developments add to the attractiveness of these locations," he said.

Various mixed-use developments are currently ongoing in these locations.

In Mandaue City, Ayala and Aboitiz groups is developing a mixed-use project called the Gatewalk Central primed to be the newest city center in Cebu, following the success of Cebu Business Park and Cebu IT Park.

This joint project will have residential, retail and office components.

Developer Taft Properties and its foreign partner Hongkong Land is also developing the 20-hectare Mandani Bay which will also have office buildings.

In Mactan Island, listed developer Megaworld Corp has also developed office buildings catering to BPO (business process outsourcing) operations.

"We are still optimistic about the Cebu office segment. We are seeing major BPO and KPO transactions especially in the Cebu Business Park and Cebu IT Park areas," Bondoc said.

CBP and Cebu IT Park are established information technology zones. Hence, they have the benefit of faster PEZA accreditation of buildings, which should facilitate continuous BPO expansion.

"This is particularly important for Manila-based BPO players looking for alternative or expansion sites," he said.

 "We also see offshore gaming becoming a major driver of office space absorption in Cebu. Some 25,000 sq m of office space absorbed this year is attributable to offshore gaming. Offshore gaming firms drive the demand for office space in Metro Manila and it is interesting to see the demand spilling over to other urban areas outside of the country’s capital such as Cebu," the Colliers official said.

  Moving forward, the expansion of Cebu’s office sector will mainly depend on the quality of graduates that its universities will produce over the next few years.

"Cebu colleges and universities must work with local ICT councils in calibrating their academic programs to ensure that graduates are equipped with skills required by outsourcing companies. Meanwhile, the local government should grant additional incentives to companies that will provide free training to college students and graduates," he said.  (FREEMANNEWS)