Inbound Call Center: 7 Reasons to Choose Cebu Over Manila for Outsourcing - Taking You Forward, Inc. - ContactCenterWorld.com Blog
Are you looking to move your inbound call center and BPO operations? If yes, then consider the Philippines, which has eight cities or metropolitan areas in the rankings of Tholons’ Top 100 Outsourcing Destinations for 2015. Two cities, Manila and Cebu, are in the top 10, ranking 2nd and 8th, respectively.
You may be tempted to invest in Manila since it’s the capital of the Philippines, but don’t you know that many call centers and BPO companies are moving to Cebu? You’d wonder why. Should you be following their lead? Here are seven reasons why you should:
- Low unemployment rate by region – Quick stats from the Philippine Statistics Authority place the unemployment rate of the National Capital Region or NCR (where Metro Manila is located) at 9.8 percent (as of Oct. 2014). That’s higher compared to the 5.4 percent unemployment rate of Central Visayas (where Metro Cebu, the biggest economy, is located).
- Affordable cost of living – Bigger is not always better (or cheaper). Metro Manila may be more urban than Metro Cebu in terms of entertainment, infrastructure, and transportation, but guess which metropolitan area has a higher cost of living? You guessed it right! Expats and even locals will attest that the cost of living in Cebu is lower than in Manila. With Cebu’s less expensive cost of living comes…
- Lower operating and overhead costs – Many inbound call centers are seeing Cebu as an alternative business destination due to its lower business operating costs. BPO companies believe they can expand in Cebu on a tight budget. Labor costs and utility (water and electricity) rates are significantly lower in Cebu compared to Manila, and so are office rental rates (up to 20-50 percent lower than in Makati and Quezon City). In Cebu, you have a better chance at business expansion despite your limited budget.
- Protection from natural calamities – Cebu’s unique geographical location helps to minimize damages caused by natural disasters. Unlike Manila, Cebu is well outside the typhoon belt and is surrounded by different islands that act as a buffer against tropical storms. There aren’t even any volcanoes in Cebu. The floods are not that bad compared to Manila, where floods are a common sight every monsoon season.
- Haven from political troubles – Cebu is not a political hotbed like Manila, where huge political demonstrations often disrupt business operations. International businesses may be wary of the political instability of the capital at times, but they would have no trouble relocating their inbound call center and BPO operations to a more peaceful and stable Cebu to get away from the political drama.
- Education resources – Cebu’s colleges and universities are as good as, if not better, than the top schools in Manila, which are said to be the most preferred schools by employers. Cebu schools produce thousands of high-quality, competitive, English-proficient professionals in the fields of IT, Engineering, Medicine, Nursing, Education, and Law. Who says only Manila can have it all?
- Strong IT/ICT infrastructure – Local government units within Cebu continue to entice businesses and investors to put their money in the emerging telecommunications and BPO industries. As if that’s not enough, they even allow real-estate developers to develop large tracts of land into IT-BPO hubs and encourage private businesses to contribute to the growing IT-BPO industry.
Aren’t these reasons enough to convince you to outsource to Cebu? If not, what other reasons are there? If not Cebu, then where?
Publish Date: October 26, 2015 5:00 AM
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