The Philippines has always been one of the top overseas outsourcing companies choices compared to other Asian countries because of its world-class English proficiency, affinity for U.S. culture, highly skilled workforce, strong work ethic, consultative and customer service mind-set, government support & incentives, attractive location for U.S. expatriates, and its robust infrastructure.
Metro Mania is the political and fiscal hub of the Philippines, and predictably, the country has a Manila-centric economy, receiving a large portion of the government budget.More than 30% of country’s GDP is made here, making up for almost 50% of the growth in earnings.It’s also a crowded city, at almost 19,000 persons per square kilometre, around 72 times the country’s average of 260, this gives companies more labour force choices.
So why are overseas companies setting up call centers in Cebu?
The fact that Manila is the economic and political capital of the Philippines actually serves as a disadvantage to the city. Manila’s media image is not appealing to shareholders. Investors seeking to avoid the economic and political turmoil that is Manila, set-up their call centers in Cebu. The government is aware of this and has set up a presence in Cebu with the Malacañang Palace of Cebu, transferring some of its political power outside of Manila.Though Cebu has lesser population density in comparison to other major cities, Cebu province, with its 6 cities, has a population of 3.1 million, which makes it the largest among the country’s 79 provinces.
Additionally, Metro Manila suffers the most polluted air in the country at 66 micrograms of particles per cubic meter compared to Cebu City’s 45.The city is also notorious for its traffic jams. A 20 minute ride in Cebu will easily go an hour or more in Manila, predominantly at rush hour.
But why are the call centers in Cebu?
The Thorton study answers that question. Cebu surfaced with top results for the Top 50 Emerging Global Outsourcing Cities list.The listing is an appraisal of Global Outsourcing locations based on their capabilities as service delivery centres. Cebu City got the highest over-all total marks on infrastructure, degree & superiority of workers (including academics), risk profile, business mechanisms, expenditures, and quality of life.
There were 17 BPO companies or call centers in Cebu as of early 2008.The city’s strong points are in key processes such as customer service, finance and accounting and HR services. It received top ranking for its high literacy rate (97%), strong infrastructure and excellent quality of living which means better workers and lower staff turnover. All of factors creates for a prosperous location for call centers in Cebu.
If the Thorton study wasn’t enough, Cebu City has been ranked number eight in the list of Top 10 Asian Cities of the Future by Finance Direct Investment (FDI) magazine of the Financial Times Group. Furthermore, the same magazine also ranked Cebu City second in development and promotion, next only to Singapore, fourth in the list of 10 most cost-effective cities, and seventh in the best quality of life category
Article Source: http://www.articlesbase.com/outsourcing-articles/why-western-companies-are-outsourcing-their-call-centers-in-cebu-city-philippines-905694.html
About the Author:
Author: Eli Loper is the CEO of TrafficSupport Inc. Traffic Support is an offshore outsourcing provider with offices located in both the United States and Cebu City, Philippines. To find out more about TrafficSupport, please visit http://trafficsupport.net/about-traffic-support[ad#small-leaderboard]
