Cebu ‘still favored’ as outsourcing site

Despite drop in Tholons ranking

CEBU, Philippines — Despite Cebu’s downgrade in the Tholons 2019 Super Cities rankings, the province remained to be a favorite expansion site among outsourcing firms that year.

A survey conducted by Canada-based global commercial real estate services organization and consultancy firm revealed that regardless of the weaker ranking, Cebu fared well in 2019 in terms of talent, infrastructure, and innovation.

“We see this being sustained by a steady pool of competent college graduates capable of handling voice support and higher-value outsourcing services such as medical and legal transcription and software engineering,” read the report of Colliers Philippines.

Colliers believes that companies planning to locate outside Manila should include Cebu among their options.

Meanwhile, Cebu IT-BPM Organization (CIB.O) has asked Tholons Inc. to create a separate ranking system for outsourcing capabilities in order to improve Cebu’s overall position in the list of the world’s top investment destinations.

Wilfredro Sa-a Jr., managing director for CIB.O, said he has already communicated informally with Tholons Inc. chairman and chief executive officer (CEO) Avinash Vashistha on this matter.

Sa-a reasoned that if the ranking methodology were to focus on outsourcing capabilities, Cebu could have pulled its position up from 12th place.

At present, the Tholons ranking methodology in the “Super Cities” study is making digital development as a strong focus, that is why Singapore jumped from No. 12 in 2018 to number nine last year.

Singapore has different capabilities as the island country is strong in financial technology (fintech) and start-up ecosystem.

Cebu, on the other hand, created a strong credibility in providing outsourcing services. These competencies are way different from each other, Sa-a said.

“In the outsourcing perspective, we are ahead,” he added.

The executive said that Cebu is its crossing its fingers in the hope that Tholons would consider the recommendation, as ranking has become an important gauge for investors to consider investing in a destination.

According to Vashistha, digital is now a critical element in disrupting and transforming industries globally.

“Technology, business process management companies and multinational corporations need to align with the stark reality of digital innovation and transformation,” he said.

Cebu was ranked 12th in the Super Cities ranking of Tholons for 2019 from 11th place in 2018.