Outsource to Cebu: Top outsourcing city outside Manila

Why should you outsource to Cebu?

You should outsource to Cebu for its fluent English speakers, lower costs, and a young, growing workforce outside crowded Metro Manila.

• Cebu is the top outsourcing city in the Philippines outside Manila.
• Rent, utilities, and living costs run lower than in Manila.
• A young, English-speaking talent pool fuels the BPO sector.

Cebu is one of the oldest cities in the Philippines. Its soil was walked on by Spanish conquistadors, American generals, and Filipino heroes. In recent years, the Queen City of the South has seen strong economic growth. Much of it comes from global firms setting up here. So let us look at why more companies choose to outsource to Cebu.

Cebu’s booming outsourcing industry

The Cebu IT Park opened to businesses in 2002. As a result, it drew more firms to the city. Today, Cebu is one of the largest outsourcing hubs in the Philippines, second only to Metro Manila.

The business process outsourcing (BPO) industry in Cebu keeps climbing. Many firms now run hybrid and remote teams here too. So the push to outsource to Cebu stays strong. In fact, Cebu City ranked in the top 52 of the Tholons Global Innovation City Index 2021.

4 reasons you should outsource to Cebu

There are many reasons to outsource to Cebu. In fact, the benefits alone may erase any doubt you have.

High number of English speakers

English is an official language in the Philippines. So it is no surprise that most pros speak it well. In fact, English is taught in schools from pre-kindergarten. Cebuanos are known for strong English skills. This may come from daily contact with foreign visitors. The province is also full of English language schools.

Lower overhead costs

Prices in Cebu do not match those in Greater Manila. Rent is lower, and utility rates are cheaper. Overall, the cost of living stays below Metro Manila levels. So if you want the best value, your best bet may be outside Manila. Many firms compare it with a move to outsourcing in Metro Manila before they decide.

Young workforce

College students graduate in Cebu every year. As a result, Metro Cebu keeps growing its professional pool. Many young pros still head to Manila or abroad. Still, a large share of locals build careers in the city. You will find many of them in IT and outsourcing. To see the range of work available, browse the common roles outsourced to the Philippines.

Up-and-coming BPO industry

In 2000, the Cebu IT Park won approval from the Philippine Economic Zone Authority (PEZA) Board. It later gained Special Economic Zone status in 2003. That same year, Foundever (formerly known as Sykes) became the first multinational call center in Cebu. Since then, the BPO Cebu industry has opened new doors for local pros. For a wider view, see the top business process outsourcing companies in the Philippines.

Outsourcing in Cebu vs. Metro Manila

Both Manila and Cebu are key urban centers of the Philippines. They share many traits. Still, a few clear differences set one apart. So here is why Cebu City may be a better fit than Metro Manila.

Lower commercial rental rates

Both cities are busy business hubs. Yet Cebu offers cheaper private office rental rates. These run from PHP 13,000 to PHP 18,000 per seat. That is about PHP 1,000 to PHP 7,000 cheaper than Manila. Freelancers can also find low coworking space rates in Cebu’s growing market.

Unshakeable local economy

Local government units (LGUs) keep making room for more BPO firms. So these firms open jobs for working pros. They also help nearby local businesses. For example, small eateries and shops thrive on demand from office workers. As a result, the whole community gains.

Less traffic congestion

Traffic is a top worry in Metro Manila. Whether morning or night, road congestion is a constant. Cebu has rush-hour jams too. Still, congestion is lighter there. So the daily commute feels far less painful than in Manila.

Things to consider before you outsource to Cebu

Before you outsource to Cebu, weigh a few key points first.

Company virtues

BPOs have some of the best company cultures around. This is because some accounts run more demanding than others. So outsourcing firms often care well for their staff. They run employee-first programs and build modern facilities. In these firms, Employee engagement is a big deal. Does your target BPO fit your mission and values? These are good questions to ask before you outsource to Cebu.

Project scope and limitation

Sometimes companies hire for a season. This is common in retail and e-commerce. So if you partner with a BPO, ask about the contract length. Also ask which roles and duties will be the focus. This matters, since some firms only take long-term clients.

Outsourcing timeline

Where do you see your company in five years? Account managers may ask you this. So it helps to have a clear vision for the partnership. This is wise in a big field like outsourcing and offshoring. It also helps to plan around fair pay, so check the average salary in the Philippines for your roles.

Timezone differences

The whole Philippines runs on the GMT+8 time zone. So if your firm is in the Western hemisphere, expect a time gap. Still, most PH-based BPO agents on overseas accounts take graveyard shifts. As a result, they can match your working hours.

How outsourcing impacts local communities

Cebu is just one of the top outsourcing cities in the Philippines. There is also Makati, Bonifacio Global City (Taguig), Iloilo, and more. In fact, the country as a whole ranks as a top outsourcing destination.

BPO firms open doors for local pros in many ways. For example, they run job fairs and internship programs with schools. So the impact reaches well beyond their clients. This is one reason LGUs welcome new BPO agencies. In the end, global outsourcing firms lift the local economy. As a result, they draw more foreign companies to invest in the country.

Frequently asked questions about outsourcing to Cebu

Is it cheaper to outsource to Cebu than Manila?

Yes, in most cases. Rent, utilities, and living costs run lower in Cebu. So many firms save by choosing Cebu over Manila.

Do Cebu workers speak good English?

Yes, they do. English is an official language and is taught from an early age. So most Cebuano pros speak it fluently.

What services can you outsource to Cebu?

Cebu handles call center, IT, and back-office work. Finance, HR, and customer support are common too. So it fits many business needs.

How does the time zone affect outsourcing to Cebu?

The Philippines runs on GMT+8. So Western firms face a time gap. Still, many agents take night shifts to match your hours.

Is Cebu a good place to start outsourcing?

Yes, for many firms it is. It offers low costs, skilled staff, and a strong BPO base. So it is a solid first step outside Manila.

Key takeaways

• Cebu is the top outsourcing city in the Philippines outside Manila.
• It offers fluent English speakers and a young, growing workforce.
• Rent, utilities, and living costs stay lower than in Metro Manila.
• Traffic is lighter, which makes daily work easier.
• Check contract terms, timelines, and time zones before you commit.