KMC expansion to reinforce Cebu City’s BPO hub status

CEBU, Philippines —  KMC Solutions, the Philippines’ largest provider of flexible office space, is expanding its presence in Cebu, with two additional floors under construction at SkyRise 4A  building in Cebu IT Park, pushing its total capacity in the city to nearly 4,000 seats and strengthening Cebu’s status as one of the company’s top three strategic markets, alongside Makati and Bonifacio Global City.

Parry Nagpal, Chief Executive Officer for KMC Teams, and Tracy Ignacio, Chief Operating Officer of KMC Philippines, confirmed the aggressive expansion, attributing Cebu’s rise to a combination of talent availability, supportive local governance, and evolving demand for premium workspaces.

“Our total portfolio across the Philippines is over 20,000 seats, and Cebu accounts for 17 percent of that,” said Ignacio. “That places it third after Makati and BGC, but ahead of Quezon City and Ortigas, which is a testament to Cebu’s strategic value.”

This momentum reflects a bullish sentiment in the outsourcing and offshoring sector despite global economic uncertainties, including trade tariffs and geopolitical shifts.

With around 7000 employees under its Employer of Record (EOR) business model nationwide, KMC enables global firms—particularly from the US, Australia, APAC (Asia Pacific) and the Middle East—to build co-managed centers of excellence in the Philippines.

Approximately 500 of those employees are currently based in Cebu, though the number is set to grow significantly with the expansion of flexible office capacity.

Unlike traditional BPO (Business Process Outsourcing) models focused on high-volume, commoditized roles, the EOR vertical supports highly specialized, niche functions in marketing, finance, HR (Human Resource), cybersecurity, healthcare, and fintech—sectors that demand higher skills and command average salaries of $1,800 to $3,000 (P100,000 to P170,000) per month, according to Nagpal.

“This is why Cebu is so critical to our growth strategy. The region offers strong English proficiency, a highly technical talent base, and infrastructure that continues to improve,” Nagpal explained.

“We’re enabling job creation not just through direct hires, but by providing high-quality seats for our clients who want immediate scalability,” he added.

KMC’s commitment to high-standard workspaces has been a major differentiator, with ISO 27001 and 9001-certified spaces, biometric access control, and LEED and WELL-certified buildings accounting for over 60 percent of new developments in Cebu.

“Clients today are no longer just looking for cost savings; they want quality environments that mirror their headquarters in the US, Australia, or Singapore,” noted Ignacio.

However, executives pointed out areas where Cebu must improve to sustain its attractiveness. These include stalled infrastructure projects such as the long-delayed Bus Rapid Transit (BRT) system and the need for more advanced energy and building management systems.

More critically, both Nagpal and Ignacio emphasized the need for nationwide upskilling to support the growing demand for sophisticated roles, particularly in cybersecurity and AI-related services.

To help address this gap, KMC has initiated a partnership with LinkedIn Learning to offer AI-driven, personalized learning tracks to its workforce. “We see self-led development as essential,” said Ignacio.

“If we want to future-proof our talent pool, we need to make upskilling accessible and embedded in daily routines,” she added.

Looking ahead, KMC plans to grow its workforce by at least 20 percent this year, translating to an additional 1,500 to 2,000 employees across the country—300 to 500 of whom will be based in Cebu.

Despite global headwinds, the outlook remains positive. “Tariffs and rising costs abroad typically benefit the Philippine service sector,” Nagpal explained adding that when U.S. companies seek to optimize costs, “they often look to offshore services. In that equation, the Philippines—especially Cebu—is a net beneficiary.”

KMC’s expansion in Cebu marks a reaffirmation of confidence in the city as a global outsourcing hub and reinforces its role in the broader Philippine economic ecosystem, where talent, technology, and infrastructure converge to meet next-generation enterprise needs.

KMC recently celebrated its 10th year anniversary in Cebu dubbed “Sidlak 2025,” a celebration of Cebu’s rising prominence in the business landscape and KMC’s continued efforts to support regional growth and innovation