Should I Outsource to Manila, Cebu or Davao City?04 Sep
Once you decide to take advantage of the benefits of outsourcing a portion of your day-to-day operations, there will be another choice to be made. While the Philippines is an obviously attractive option due to the high quality work performed, English fluency, and low cost, you must still decide between Manila, Cebu, and Davao City.
Manila: The Traditional Choice
Historically, a choice to outsource a portion of your business to the Philippines meant that work would be performed in the capital city of Manila. Efforts by the country’s government have seen the emergence of other cities as viable outsource options as well.
Manila is still a very good selection for outsourcing. The biggest advantage Manila has working for it is an established infrastructure. The reliability of vitals such as power and telecommunications are still the best in Manila.
However, the city’s weakness is found in its rapidly depleting labor pool. Because the outsource market has been long established, the costs can be greater, and it can be a challenge to find the highest quality labor possible in Manila.
Cebu: Growing in Competitiveness
Cebu is one of the cities that is also making a great case for itself in the outsource market. The available workforce and rapidly improving infrastructure are quite attractive. Where the competitiveness in Manila provides challenges in the way of finding the highest quality labor at affordable prices, this is less of a problem in Cebu. The English language proficiency in Cebu is very impressive and provides a nice capability to handle voice based interactions with customers from the United States.
Davao City: The Most Cost-Effective Choice
When you outsource to Davao City, you enjoy a highly skilled and available work force and forgo only a little in established infrastructure. Additionally, the low cost of living and availability of cheap real estate make this city hard to resist. Since employees do not have to pay as much for labor and overhead, Davao City offers an incredible savings on cost of operations and a big return on any investment.
While Manila may be a traditional choice, you stand to profit a great deal more by considering other options. Cebu and Davao City are wonderful places to start your search. While there certainly is nothing wrong with a choice to outsource in Cebu, Davao City offers the best value in terms of quality of staff and low overhead costs.
Related articles
- How Outsourcing to the Philippines Actually Stimulates the American Economy (trybpo.com)
- Infra readiness, talent pool vital for BPO competitiveness (mindanao.com)
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11 Responses to “Should I Outsource to Manila, Cebu or Davao City?”
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I agree Davao is now the best choice for establishing BPO. This is because competition of employees in Cebu are not too high couple with high cost in office and transportation. Cebu has now Metro town since the city is already occupied with establishment.
@lance – We absolutely agree and are excited to be a part of the outsourcing/BPO growth in Davao City. Thank you for the comment and feel free to check in anytime!
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” the authority of the government emanates from the cebuano people and by the cebuano people. – Cebu Capitol, Capitol Hills Cebu City Built 1937 Under the Commonwealth Government of the United States of America.”
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Cebu is rich because we are proud and loved cebu so much and we are one united Cebu.
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9 major cities that composes the metropolitan CEBU:
Cebu City
Mandaue City
Lapulapu City
Danao City
Bogo City
Carcar City
Naga City
Talisay City
Toledo City
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Economy:
Cebu has the highest economic growth rate anywhere in the country and higher than that of the national capital region. Foreign investment Group make cebu Ranked number eight as a great Potential Investment Hub.
by the Finance Direct Investment (fDi) magazine of the Financial Times Group. Investment advisory firms tholons and the global services publication ranked cebu as the number one city for Business Process Outsourcing companies overtaking the three cities in india.
Cebu is also ranked as the Top ten Best asian Cities.
With over Five billion US dollars in annual revenue in our
export industry alone. Cebu’s Major Industries are Electronics / electrical equipment manufacturing, car manufacturing, gun manufacturing, shoe manufacturing, computers, metals and precision instruments, chemicals, industrial parts assembly, food processing, furniture, fashion accessories, gifts, toys and housewares (GTH), garments, stonecraft, shipbuilding, and mining. More than eighty percent (80%) of the Countries Inter Island Shipping are Cebuano owned Companies.
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GDP:
Cebu Region
Population : 2,400,000
GDP: $15 billion
GDP: $9 billion (In Cebu City Alone)
GDP/Capita: $6,250.00 (Highest Standard of living in the country, GDP Comparable to Malaysia and Higher than Manila the National Capital Region)
National Capital Region (NCR Manila)
Population: 12,000,000
GDP: $50 billion
GDP/Capita: $4,166.00 ( means majority of the people has a low standard of living)
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Crime Rate:
Cebu Crime Rate
0.96 per 10,000 people. (Comparable to NAGOYA JAPAN) 1 or 2 offenders / 10,000)
National Capital Region (Manila) Crime Rate
22.9 per 10,000 people.
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Some prominent Cebuano Companies are:
JG Holdings, Digitel, Robinsons Land, Universal Robina, UIC, Gaisano Group of Companies, Aboitiz Group of Companies, WG&A, Cokaliong shipping lines, Gothong Shipping lines, Sulpicio lines, Norkis Group of Companies, Lhuillier Jewellers, Penshoppe, Oxygen, Loalde, Island Souvenirs, BO’s Coffee Club, Julie’s Bakeshop, Orange Brutus, Mother’s Fried Chicken,
Cebu Pacific Airlines, Sun Cellular, Wellmade Corporations, Uniherbs, SilkAir, Popcola, Sunsports, Island Paint Corporations.
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Credits:
Nicom47
Bigfoot Entertainment
CIPC
Cebu Provincial Government
Cebu City Hall
Useful information, thanks for stopping by!
I was one of the first Americans to open a PH corp devoted solely to outsourcing work from Cebu– 1995– ClickStream Marketing, Inc. Looking to go back there and hire people on contract basis. The good is that a lot more people have skills that were non exhistent, and the bad is that I do think there may be a bit too much competition specifically for people doing webwork.
Davao seems like a cool city to visit. Any insites as to how up to speed designers, web marketers, and devo people are? Maybe it’s like Cebu was 4 years ago (and same super cheap prices).
Cebu is not that booming a few years back (1995). I started investing in Cebu in 2009 and I have no regrets. My company is expanding. Cebu is the next boom town in Asia.
Looking for a BPO Investment site.. DAVAO CITY is the best option. just recently the city was recognized by the fORIEGN direct Investment Magazine, as the Philippines Next Wave City for BPO and ICT Hubs. The Economic Developments is growing fast. by the way, Don’t judge a city by its tall skyscrapers. think of your investments that can grow and profitable. You want the best? its DC.. INVEST IN DAVAO 2011.
Cebu is the best to outsource. CEBU is already an emerged BPO destination according to THOLONS compared to DAVAO as emerging. LOL!
Cebu talents also has a high English literacy rate compared to Davao pipz.. Most people from Davao go to CEBU CITY to find a JOB. An indication that CEBU is the preferred working environment for most people in Central and Southern Philippnes.