Cebu outsourcing: An overview of the Philippine BPO sector outside Manila

What is Cebu outsourcing and why does it matter?

Cebu outsourcing means hiring BPO and offshore teams in Cebu, the top outsourcing hub in the Philippines outside Metro Manila.

• Cebu gives you a large, skilled talent pool at a lower cost than Manila.
• The city has strong infrastructure, economic zones, and steady government support.
• It suits firms that want quality service plus a good work-life balance for staff.

Cebu City is one of the best-known spots in the Philippines. First, it draws visitors for its culture and natural beauty. Also, it is a leading outsourcing base outside Metro Manila.

Despite plunging in the Tholons ranking, the local government keeps rolling out new projects. After all, it wants BPOs to serve global clients well. As a result, more firms now look at Cebu for offshore work.

So this is a great time to invest in Philippine outsourcing hubs beyond the capital. For a wider view, many firms first study outsourcing to Metro Manila and then compare it with Cebu. Meanwhile, The 348th episode of the Outsource Accelerator Podcast introduces Daryl Christensen of MySource Solutions, a Cebu-based outsourcing company.

A quick overview of Cebu

Cebu sits in the Central Visayas region. In fact, it is the second-largest metro area in the country. It is home to Cebu City, a main center of trade, commerce, education, and industry in the Visayas.

People also call it the “Queen City of the South”. Cebu City is the oldest city in the Philippines, followed by Manila. Daryl calls Cebu “the best of both worlds”. Indeed, the city sits close to both mountains and beaches. As a result, staff can unwind easily away from the busy city.

Tholons first ranked the city as the 8th most popular outsourcing destination in the world in 2013. Since then, it has grown into one of the top outsourcing bases in the country. Moreover, it has held a strong Tholons ranking for years.

Cebu City is also seen as a more resilient city. Even through hard times, its BPO sector still employed around 23,000 people. Because of this track record, it continues to draw new investors. To see the bigger picture, read more about BPO and the Philippine economy.

Why companies should outsource to Cebu

As an outsourcing destination, Cebu offers benefits as generous as Manila. So here are the main reasons firms choose Cebu outsourcing.

Access to workforce

Daryl points to one big draw: the ready supply of workers. According to him, companies outsourcing to Cebu do not just tap the local labor market. Instead, they reach people who move to the city for study and work. As a result, the talent pool stays wide and deep.

Strong infrastructures

Like Manila, Cebu offers strong infrastructure through its economic zones. The city has solid network links and easy access across the region. Besides that, its property market keeps growing. So teams enjoy a good work-life balance, and investors find room to expand.

Massive government and private support

Public and private groups keep building up the city. As a result, they attract investors and grow the local economy. Through the Philippine Economic Zone Authority (PEZA), the government backs outsourcing firms with tax holidays and incentives.

Large enterprises such as AboitizLand also help. For example, they build real estate within the economic zones. In turn, this supports steady growth across the city.

The enhanced growth rate of BPOs

Outsourcing in Cebu started around 2012. Soon after, the sector gained fast traction and steady revenue growth. Large BPOs such as Accenture first ventured into the city. As a result, they helped shape the outsourcing scene we see today. For more context, see how outsourcing to Clark compares as the next Philippine hotspot.

About MySource Solutions

MySource Solutions started in Cebu City in 2017. Three US executives founded it, including Daryl Christensen. The firm serves small and medium businesses in the US.

MySource offers more than basic outsourcing. In fact, it builds strong, top-tier teams for clients. According to Daryl, SMEs slowly learn two things that change their view:

• Teams can work virtually and still deliver quality results.
• Outsourcing beats freelancing when you want a team under one roof.

To go deeper, you can compare full offshore staffing in the Philippines and the wider Philippine BPO industry. Then check out their website and listen to the latest episode here.

Frequently asked questions about Cebu outsourcing

Is Cebu a good place for outsourcing?

Yes. Cebu offers skilled workers, strong infrastructure, and lower costs than Manila. As a result, it fits firms that want quality service at a fair price.

How does Cebu outsourcing compare to Manila?

Both cities have strong talent and infrastructure. However, Cebu often costs less and has a calmer pace. So many firms use it as a second hub or a Manila alternative.

What services can you outsource to Cebu?

Cebu firms handle customer support, IT, finance, and back-office work. In addition, many run sales, admin, and creative teams for global clients.

Does the government support Cebu outsourcing?

Yes. Through PEZA, the government gives tax holidays and incentives to investors. Meanwhile, local groups keep building infrastructure to attract more firms.

Key takeaways

• Cebu is the top Philippine outsourcing hub outside Metro Manila.
• The city gives you skilled workers, low costs, and strong infrastructure.
• PEZA incentives and private investment keep the sector growing.
• Firms like MySource Solutions show how Cebu teams deliver quality work.