http://outsourcingopinions.com/2010/01/outsourcing-cebu-bpo-updates-2/

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.