Outsourcing Destination: Better talents to help Cebu City up in survey

By Aileen Garcia-Yap April 30,2014

Daimler Group Services Group is among the firms setting up its Global IT support services in Cebu City last year. (CDN file)

Cebu needs to do more to produce better talents.

CCCI past president gave this advice to the local outsourcing industry stakeholders after the Cebu City remained in its number eight ranking in the 2014 Tholons Top 100 emerged outsourcing destinations in the world while Manila moved up to No. 2 displacing Mumbai, India in the survey. Bangalore, India topped the survey.

“There should be a closer working relationship and a stronger linkage between the industry and academe. Local government units and national agencies related to ICT should also be part of the overall effort. CEDFIT (Cebu Educational Development Foundation for Information Technology) should take the lead,” said Maderazo.
CCCI president Tess Chan agreed.

“The BPO industry can have more collaboration with academic institutions in the training of new agents,” Chan said.

In a report posted online, the 2014 Tholons Top 100 Outsourcing Destinations revealed a lot of movements in the past 12 months among the top 100 destinations in the world.
Aside from Manila’s move to 2nd place, other areas in the country like Sta. Rosa in Laguna earned the highest jump at two notches higher to rank 82 from 84 in the previous year while Davao City and Bacolod City both advanced a notch higher – Davao City ranked 69 from 70 last year and Bacolod City at 93 from 94.

Wroclaw in Poland registered the highest jump of ten notches from rank 75 to 65 this year while on the negative side, Cairo in Egypt fell 18 notches lower this year to 75 in the survey from 58 last year.

Cebu City has consistently figured in the top 10 of emerging outsourcing destinations of the Tholons survey. It topped the survey in 2009 and moved up to the next level of emerged outsourcing destinations landing in 9th place in 2010, 2011, 2012. It moved a notch higher to 8th place in 2013 and has stayed in 8th place in the emerged outsourcing destination category.

Chan however remained optimistic of Cebu City’s chances in the rankings despite retaining its position this year.

“Because of the faster economic growth of Cebu, there are more variety of jobs available to the workforce. So it’s not, necessarily a bad thing that we only retained our position,” Chan said.

Chan said she believed that the industry will move up in next year’s survey.

“With the upcoming commercial developments in Mactan, Cebu, Mandaue, and other areas in Cebu, I think we can go up in ranking next year,” Chan said.

She also cited more IT parks in other neighboring provinces in the Visayas and Mindanao as a trend to help the Philippines to strengthen its hold in the survey as an outsourcing destination in the world.

Mandaue Chamber of Commerce and Industry president Philip N. Tan said that we must look at what happened to Mumbai why they got overtaken by Manila in ranking as well as look at what Cebu lacks why we have not moved up in the rankings.

“Maybe we should look at what the investors require and cross check that with what we offer. That can be a cost issue, infrastructure or overall business climate,” said Tan.
CCCI past president Prudencio Gesta also said that availability of more spaces that outsourcing companies can lease is also important.
He agreed with Maderazo saying the curricula needs to also be upgraded in accordance with the industry’s needs.

“I’m hopeful that the newly-awarded PPP project which is our airport can signal and encourage more investors to come and invest in Cebu,” said Gesta.

In an interview Monday,  Trade Undersecretary Ponciano C. Manalo, Jr. said that the services sector of the export industry which is actually the outsourcing industry needs to grow 15 percent in the next three years to help fuel growth in the country’s economy and achieve a GDP growth at 7 percent level.

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