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http://www.sunstar.com.ph/cebu/cebu-city-keeps-no-1-spot
FOR the second time, Cebu City is recognized as the top emerging global outsourcing city in a study made by Tholons an independent investment advisory firm.
Without discounting the effects of the global crisis, a special report by Tholons also noted that this year’s location assessment of outsourcing destinations was made more complex by increased competition among service providers that offer similar value propositions, distinction and categorization.
“Today, the need to understand the delivery capability of a potential investment site is determined and based on a plethora of ecosystem variables,” read the report published in the October issue of “Global Services.”
Like in the previous surveys, which was first conducted in 2006, Tholons took into account an outsourcing destination’s scale and quality of workforce, business costs, infrastructure, culture fit and quality of life.
Under these terms, Cebu City leads the list, which includes other cities from China, Poland, Vietnam, Argentina and Egypt in the top 10.
Cebu City is also the only Philippine city that made it to the list after Pasig City, Quezon City and Mandaluyong City were dropped from the list since they now compose the Manila National Capital Region cluster, which ranks fourth in the list of top eight global outsourcing cities.
In an interview with Sun.Star Cebu last night, Cebu Investments Promotion Center (CIPC) managing director Joel Mari Yu said this news should make Cebuanos proud.
But he said stakeholders should not get too overconfident since the target is for Cebu to make it to the emerged cities list.
“It is a numbers game to make it to the fully-developed list and we don’t have that number,” he said, referring to the low number of graduates in Cebu City compared to graduates from cities listed under the emerged locations.
Unlike Manila that graduates 150,000 students yearly, Cebu City can only produce 22,000. Cities in India that made it to the same list graduate at least 200,000 students annually.
75,000
“But we can’t fault (the academe) for the level of graduates we have. Based on statistics, the three regions in the Visayas contribute a total of 75,000 graduates a year,” he added.
“We will still try to make it to the (list of emerged cities), since we have the capability. The levels of infrastructure, government and the industry are all very good.”
Venture capitalist Jerry Rapes said stakeholders should look at the city’s scalability or the ability of businesses to accept increased volume.
“We’re sure we’re doing something right to make it to the list…We have put in a lot of ingredients in growing the business. But scalability is important. As a locator, you want to have the scale to grow the business,” he said.
To achieve this, Rapes suggested for stakeholders to rationalize costs of operations in Cebu City to make it competitive.
Speaking in behalf of the industry, Rapes also said there must be a closer coordination between the industry and the academe. “The industry can support the academe by funding professional chairs and for teachers to be allowed to join the industry (on a part-time) basis,” he said.
Entrepreneurs, he added, can be taught how to invest in technology.
“There is no other way but to be part of the ecosystem. When everything comes together, chances are Cebu becomes more scalable,” he added
This year, Tholons also introduced a new category that lists the emerging destinations according to functions.
Cebu City, based on the list, is leading in four functions that include contact center (in English), finance and accounting, human resource and legal services.
A new category also listed the top 10 aspirant cities that have the potential to make it to the emerging cities list.
This list includes Iloilo City in the third spot and Sta. Rosa, Laguna in the seventh place.