IT sector hoping for better Tholons ranking this year

CEBU, Philippines — The Cebu IT/BPM Organization (CIB.O) is hoping an improved ranking for Cebu in next year's Tholons' top global outsourcing sites list.

In a recent interview, CIB.O managing director Wilfredo Sa-a Jr. said the organization had updated the advisory firm for global outsourcing and investments through its managing director Avinash Vashista on Cebu’s current innovation and startup ecosystem.

He said the organization is trying to work with Tholons so Cebu is updated on new criteria of the ranking.

In the 2017 Services Globalization Index Top 100 Super Cities released last June 28, Tholons said it introduced digital innovation as its prime gauge which looks into cities and nations for the number of startups, startup diversity, startup ecosystem and government incentives to promote entrepreneurship and digital transformation.

The global advisory company introduced for the first time this year innovation, startup ecosystem and digital transformation as key components of its ranking of top outsourcing sites.

Sa-a hopes the industry hopes a better ranking for Cebu next year, saying the new criteria introduced this year may have affected its ranking.

Cebu's pressing challenge to innovate has been underscored following Cebu's ranking in the Tholons Services Globalization Index 2017 (Top 100 “Super Cities”) slipped to the 12th spot from its eighth spot last year.

Manila's ranking —which was second last year after Bangalore, India —was also downgraded to fourth place after Bangalore, Mumbai and Delhi.

Sa-a believes Cebu has an increasingly active startup ecosystem participated in by both the public and private sectors.

Cebu has to step up in digital transformation to be able to bounce back in its ranking in the Tholons' top outsourcing list.

In a previous report in September, property management company Colliers International Philippines said Cebu's business process outsourcing (BPO) market has remained resilient amid concerns of BPO slowdown, as Cebu maintains a reliable and sizeable labor pool, helping keep it as among the top outsourcing cities despite its noted recent dip in overall ranking.

Dinbo Macaranas, senior research manager at Colliers Philippines, had noted in that report Cebu will still bank on the quality of the labor force to keep the growth momentum in the office sector.

"Coupled with the upcoming supply of PEZA-proclaimed buildings in the business district, it is likely that demand will continue," the report said.

The number of upcoming infrastructure projects will likely unlock the province’s potential.

Some of the notable projects include the Cebu-Cordova Link Expressway, Cebu Bus Rapid Transit, expansion of the Mactan International Airport and the building of the new Cebu International Port.

"In view of these developments in the Cebu office market, Colliers recommends that tenants look to Cebu Business Park and IT Park for its immediate requirements as this district is preferred by most employees given its proximity to residences and commercial establishments," Macaranas said.

Cebu has remained as a viable location for BPO locators, particularly for those looking outside Metro Manila.

According to the latest global outsourcing cities report published by Tholons, Cebu was pushed out of the top 10 from 8th to 12th place as a bigger weight was given on innovation in the determination of rankings.

Nonetheless, it appears that the dip hardly had an impact on the demand in Cebu.

A total of 39,000 sq m (420,000 sq ft) of office space was closed by BPO firms in Cebu for the first half of the year.

The highly-skilled labor force that the province offers has kept Cebu in the radar of KPO and BPO firms.

Key tenants closed this year include Real Page, Weserv, and Ripe Concepts. (FREEMAN)