Metro Manila is the capital of the Philippines; the political, financial, educational, and social-cultural center that comprises nearly 30% of the entire country’s GDP.

It receives a large portion of the government budget, and Philippine events tend to focus more on Manila’s happenings. Of course, having a large population means more business opportunities, more workforce allocation, and consequently, more profit. Imports and exports are largely centered here, and grounding a business in Manila means having every resource at an arm’s reach away.

So why are outsourcing companies moving or relocating to Cebu? Or moving out to other major cities like Davao, Iloilo, or Bacolod for that matter? If Manila is so rife with economic opportunities, why do BPO companies prefer the remoteness of these outlying cities?

1) To escape the excesses of Metro Manila. Well, the list of negatives is long. The country’s capital is the most densely populated city in the world, with a population density of around 43,000 people per square kilometer. The density congests every area in the city and, with migrants from provinces coming in droves, crime goes up and safety for ordinary civilians plummets.

The city’s air pollution is also one of the worst in the world, with the pollutant particles making up nearly 60 micrograms of particles per cubic meter, almost 300% above acceptable levels.

Intense traffic problems is also a turn-off for most foreign investors wanting to establish businesses in the country. One hour or more traffic delay times are common in its congested streets.

The political turmoil in Manila is real and tangible, and even the rest of the country is easily swept by its chaos. Red tape and corruption among the government agencies are widespread.

With this list of harmful factors, no wonder BPO industries are trying their hand on other urban areas.

2) Cebu has established its integrity as a true BPO hub in Asia. A few years ago, Cebu emerged as one of the Top 50 Emerging Global Outsourcing Cities in a Thornton study, besting all other Asian cities in India and China. The achievement has convinced potential BPO investors to come to the city and set-up their businesses here.

Additionally, the quality of benefits offered by Cebu does not differ so much as with Manila’s. Literacy rate is high among the workforce. In fact, BPO companies actually work with the local schools and universities, producing graduates that are highly employable and competent. The cultural adaptability of Cebuanos with foreigners is the same, if not, better than their counterparts. Furthermore, Cebu already has the IT infrastructure capable of supporting a robust BPO industry.

Outsourcing has been the talk of the town these days.  It has become a rising trend among companies where workers from all over the world collaborate to work on particular projects.  From accounting and payroll to production and sales, businesses outsource their jobs to offshore parties that offer less expensive but equally, or even more efficient, manpower compared to when they have to hire employees on their own.

The most obvious inducement of outsourcing is its cost-saving attribute.  By outsourcing certain jobs to offshore destinations, companies can cut their costs relating to expenditures for salaries and benefits in accordance with the law of the state where the company is situated.  Instead, companies will be paying less by having the jobs performed in places where salary rates are lower.  This cost-cutting option allows even small-sized businesses and companies to operate and survive despite the difficulties in today’s global economy.

With outsourcing, companies are also given the opportunity to select highly-skilled employees from certain agencies that offer human resources that are groomed for a particular job.  Thus, the company is relieved from that tedious process of selecting, hiring, training and grooming prospective employees.  In addition, outsourcing affords these companies with professionals and specialists who are trained and equipped for certain jobs.

Production is also likely to speed up if the job is outsourced.  Companies with limited manpower can still increase the production rate by outsourcing the additional projects while retaining the core tasks internally. 

Outsourcing is the new trend adopted by most businesses today.  Almost any job can be outsourced now; hence, it has become a useful tool for companies. 

Visit Outsourcing Truths for more information.

The concept of outsourcing presents a simple premise: services of freelance agencies or individuals are contracted by certain companies in exchange for a pre-determined amount.  Accordingly, these freelancers are tasked to perform work within the company structure without necessarily becoming an employee of the company.

During these financially-troubled times, more and more companies have resorted to ways that tend to lessen operating costs and expenses.  One of these alternatives is resorting to outsourcing.  It is the perfect choice for those who want the job done fast.  Moreover, outsourcing the job can be less expensive since you do not have to pay for other operating costs related to training the company workforce.

There are a lot of freelancers that provide a full range of professional services.  In view of their expertise and mastery over the job, these individuals know how to beat the clock.  In addition, hiring a freelancer to do the job would cost less compared to hiring an individual as an employee.

When the company hires an individual, it has to pay for costs relating to training and schooling for the job.  In addition, the company has to comply with the legal requirements relating to the individual’s employment.  But with outsourcing, it is much cheaper, and the output is much better since the job is performed by professionals that specialize in certain fields.

No wonder outsourcing has become a more popular alternative for many businesses that seek to lower their operating expenses.  It has played a significant role in improving revenue ratings and provided a meaningful solution to the work required by these businesses.

For more on this, visit Outsourcing Truths to learn more about it.

India and the Philippines are widely considered to be the top outsourcing destinations in the world. Just so we could know what really makes them tick, we’ve set their strongest qualities side by side. Hopefully we can determine why they really succeed in the outsourcing world and others do not.

India

Educated and Talented Workforce. With over a billion inhabitants, India never seems to lack good talent. The technical expertise that we see in young Indians is the result of a rigorous education system that emphasizes science and mathematics at early levels of school. Consequently, Indian workers have a good grasp of qualitative and quantitative concepts, enabling them to comprehend the latest technologies and trends available. Indians are great English speakers too, producing 2.3 million English-speaking graduates.

High-end Technology. While data entry is still strong among outsourcing jobs in India, numerous offshore jobs going to India are consistently increasing in complexity and scope. The networking infrastructure in the country — telecom, ISP, and networking sectors — are intertwined to assist the growth of BPO-related jobs.

Pro-Outsourcing Government Stance. India’s government so far has favored the enormous growth of the I.T. sector. Landmark laws have been passed in order to facilitate the entry of foreign investment, international job offerings and outsourcing opportunities. A few of these measures include:

• Creating a separate governmental department — The Ministry of Information Technology — to handle all national I.T. projects and to simplify regulation.

• Passing the Information Technology Act of 2000, a body of law that seeks to regulate all e-Commerce and I.T.-related activities in the country. The issuance of cyberlaws makes India one of the select nations to consider on I.T. security.

Philippines

Cultural Affinity/Better Adaptability. It is no secret that Filipinos are better equipped in dealing with Westerners. Their English skills are comparatively better than other Asian neighbors, being influenced by several decades of American rule. Filipinos boast about their countrymen having a 95% literacy rate, and almost 80% of these are fluent in English.

As a result, Philippine English is more accent-muted; meaning there is a small of amount of discernable intonation and unfamiliar diction in their speech. Western culture is also ubiquitous in the country and widely-accepted. This makes it easier for Westerners to understand communication with the Filipinos, and lessens culture shock for them.

Service-oriented Workforce. In addition, both locals and foreigners admit that Filipinos are quite adept at dealing with people relationally. Decades of Malay, Chinese, and Spanish influences have developed the Filipino with a commendable gift of better relational skills. Consequently, they are more proficient in areas of customer service. No wonder many international firms choose to outsource their customer service departments to the Philippines, and that BPO industries are booming in this nation.

Active Government Support. Although the Philippines is relatively a newcomer in the outsourcing industry, it also has responded quickly to the emerging IT trend, setting up an atmosphere for job growth and foreign investment during the dot com boom.

• Creation of the Information Technology and E-Commerce Council (ITECC) and the E-Commerce Act of 2000 in order to handle and encourage the growth of the IT industry in the country. The cyber law also mandates the businesses to extend their services online, making local Philippine businesses available on the Web.

• Creation of the nation’s first Cyber Corridor, a network of cities having the most vigorous and productive IT and BPO hubs in the country. This national project aims to generate at least $13 billion in revenue this 2010, and employ more than a million Filipinos.

With the national elections just around the corner, candidates vying for the national posts are picking up the pace with their “campaigns.”  However, it would be wrong to say they are campaigning because if they did, technically, they could be disqualified by the Commission on Elections for prematurely doing so.  Suffice it to say, they are making themselves visible to the public as much as possible.

And what better way to make themselves visible in the Province of Cebu than to join the annual Suroy Suroy Sugbo tour.

Among the presidential candidates spotted during the tourism tour were Gilbert “Gibo” Teodoro and vice-presidential candidate Loren Legarda.

It’s no secret these aspirants hope to get the endorsement of Cebu’s lady governor, Gwen Garcia.  In fact, Loren dropped hints during the tour’s stop in the town of Malabuyoc.  Loren believes that she and the lady governor share similar views and advocacies, not to mention both of them are women leaders.

Loren is grateful for the chance to visit and tour Cebu like this, and spoke well of the provincial government’s efforts to showcase the different towns of Cebu.  She adds that she plans to replicate the tour in Antique where her aunt is Gov. Sally Perez.

Joining Gibo and Loren are senatorial candidates Gilbert Remulla and Gwen Pimentel, who are similarly seeking the lady governor’s blessings and endorsement.  Specifically, Ms. Pimentel hopes to have the governor’s endorsement, saying it is very important to her.  Gwen Pimentel is the daughter of Sen. Nene Pimentel.

The three-day Suroy Suroy Sugbo tour attended by these candidates passed through the towns of Oslob, Santander, Ginatilan, Malabuyoc, Samboan, Moalboal, Badian and Alegria where they were served with delicacies.

Truly, the Suroy Suroy Sugbu tour is one of the best avenues of showcasing the beauty and culture of Cebu.