Cebu remains the largest and most preferred knowledge process outsourcing (KPO) destination outside Metro Manila, said Colliers International Philippines.
The commercial real estate services firm said a number of KPO companies that provide higher value services such as health information management and software engineering had opened shops in Cebu, citing various factors of the metro’s development, including the ample supply of skilled college graduates and adequate infrastructure.
“Colliers believes that Cebu is still the most practical choice for KPO firms looking for viable locations outside of the country’s capital due to its diverse and skilled labor pool. We see more Metro Manila-based KPO firms establishing operations in Cebu given the need to have a redundant site that would back up their Metro Manila operations,” the statement read.
Among the companies cited for their interest in Cebu was Accenture Philippines, which Colliers said had four facilities in the metro with 5,000 people. According to Colliers, the company would have at least a thousand more employees this year.
Colliers said the completion of key infrastructure projects there, including the multibillion peso Metro Cebu Expressway headed by the Department of Public Works and Highways, should “boost Cebu’s competitiveness amid increasing competition from Asean neighbors Hanoi, Ho Chi Minh City, Kuala Lumpur, Penang and Bangkok.”
There is an anticipated spike in office space demand from 2017 to 2019, noting that at least 300,000 square meters of office space are expected go online, the company noted.
“The expansion of the Cebu KPO sector primarily hinges on the quality of graduates that its universities will produce over the next few years,” Colliers said. —ROY STEPHEN C. CANIVEL