Cebu remains a competitive BPO hub

CEBU, Philippines —  Despite the dismal performance of office leasing amid the work-from-home (WFH) setup and the fleeing of Chinese offshore gaming companies, Cebu remains a competitive BPO hub.

As a result, landlords are encouraged to offer vacant office spaces, especially those that have been emptied by the POGO (Philippine Offshore Gaming Operators), with immediate plug-and-play office space requirements.

An adjustment in tenant contract is also highly recommended supporting the short-term (6 to 12 months) requirements of BPOs implementing and experimenting alternative leasing schemes such as hub-and-spoke.

Colliers also recommend developers or landlords to be on the lookout for BPO firms that continue to hire and occupy space such as those providing healthcare, logistics, and e-commerce services.

Colliers also urged landlords to be more flexible in assisting traditional occupants that have smaller office space requirements.

Based on the results of the Tholons Services Globalization Index 2020, Cebu is the 15th most competitive outsourcing destination in the world. Cebu is one of only two Philippine cities, along with Metro Manila, that made it to Top 100.

According to Colliers, this should sustain Metro Cebu’s competitiveness and viability as outsourcing firms continue to scout for locations outside Metro Manila.

Likewise, this should help the region attract more outsourcing locators once the market sentiment improves and contribute to a stronger pace of office leasing beyond 2021.