Colliers bullish BPO biz to remain upbeat in Cebu

Despite the bleak projection for Cebu’s construction industry next year, property management firm Colliers International expressed optimism that Cebu will continue to attract demand for Business Process Outsourcing (BPO) buildings.

"We are still bullish of the property management business in Cebu. Big global firms are now making Cebu as their primary location, and have eyed the province as their next outsourcing playground," said Colliers International general manager for Cebu Rodulfo Lafradez.

He said that although there is truth to the projection that compared to the past few years, next year's activities in building construction will be lesser, he however said developers have to continue "land banking" in preparation for the global economic recovery.

Cebu, he said will not be much affected by the general "wait and see" attitude of the developers around the world, or even in the Philippines. The province's attractive environment for BPO operation has continued to lure big companies around the world.

Amid jitters that Barack Obama's winning as the 44th President of United States, is sending threats to the BPO industry as he has been pushing to curtail the outsourcing trend in the US to improve their own employment rate, Lafradez said still more international firms have started to scout locations to make Cebu as their "outsourcing" ground.

Aside from the US, there is also a growing number of multi-national firms that are now widely adapting offshore operations, such as European countries.

Colliers had been doing its industry outlook study per quarter on Cebu's property management including BPO demand sector. He said there is a good prospect for Cebu, despite the global economic depression.

In fact, the company, which is one of the late entrants in the property management services in Cebu, is looking at managing a total of 26,000 square meters by the end of this year.

"There are a lot of buildings that have been newly built in Cebu, not only for BPO sector, but also condominiums," he said.

He added that two international hotel chain is looking at purchasing a five-story building at Mactan Island, for another world-class boutique hotel investment.

Because of confidentiality agreement, Lafradez said he can not divulge the identity of the international capitalists, who have been expressing interest to invest and locate in Cebu in both BPO and tourism business purposes.

In fact, based on the recent survey conducted by the company, available space for offshoring and outsourcing (O and O) firms in Cebu are set to double by the end of 2008 mainly due to laid out expansion plans of many existing locators and the scheduled entry of new players.

An additional 160,000 square meters of space will be available soon, to add to the existing 180,000-square-meter space in Cebu.

Collier recently signed a memorandum of agreement (MOA) with Syntech Properties Inc., the developer of City Lights Gardens, for management of the Towers 3 and 4, now that the condo buildings are near completion and are ready for turnover to its owners.— Ehda M. Dagooc