The Thriving Call Center Industry in Cebu

As the local BPO market continue to grow drastically, Philippines as the premier outsourcing destination. Right next to Metro Manila is the Cebu City. Cebu is regarded as second hottest BPO destination in the country.  As more multinational companies flock to the city, Cebu has become the largest call center hub in Visayas area.

In Cebu City, BPO is regarded as one of the fast growing industry. Low manpower cost is one reason why there are numerous local and foreign investors who are setting up an operation in the city.  Currently, there are 31 well known call center company in the city and more are still on the way. Some of the big call centers names in Metro Manila are already make an extension or provincial center in Cebu. There are also some small and medium sized BPO companies who bypassed Metro Manila and totally go straight to Cebu. Adept and professional workforces coupled with a cheaper cost of living are just few of the countless reasons why BPO industry in the Philippines is alive and flourishing in Cebu City.
       
 The ability of most Cebuano to comprehend and converse in English fluently is one of the most important assets in the city’s outsourcing market. English is regarded as the main language of call center industry. Having a basic understanding of the language is vital in the field of telemarketing and customer service. In Cebu City, the average wage of call center agent range from 12,000-15,000 while in Manila the agents wage range from 15,000 to 20,0000. This is because Manila is the commercial and geographic heart of the country and there a lot of competitive workforce as compared in Cebu.  Call center Cebu attrition rate are lower as compared in Metro Manila, it signifies higher level of job contentment among call center agents in the city.

When we compared Cebu to Manila regarding operational expenditures setting up a call center in Cebu is quite cheaper as compared in Manila. According to a feasibility study the rental rate are thirty percent (30%) lower in Cebu, commercial building office range from Php 250-300 per square meter, while in Manila is Php 900-1000 per square meter. In addition also, operational and utility expenses are fifty percent (50 %) lower in Cebu. “An increasing number of multinational investor is a good sign that Cebu City is fast becoming an important BPO destination in the country, stated by an outsourcing consultant of a Makati based call center” A lot of international companies are getting local workforce and investing big amount of money to set-up its own offshore company in Cebu, this is why the outsourcing industry in the city becomes flourishing.   

An increasing number of BPO companies’ helps to create more job opportunity to Cebuano’s, providing a solid and long terms employment. In turn it helps to enhance the local economy of the city, according to recent study conducted by the Department of Trade and Industry (DTI), the gross domestic product of the city increase into 5-6% in 2012. 

Though the call center industries in Metro Manila is moving in a rapid pace and are considered as more professional, Cebu is still  the top one provincial spot of multinational BPO investors, and as the local BPO industry persist to thrive Cebu City will keep on creating a name as the one of the prime outsourcing hub in the Philippines.