Data from real estate company CBRE Philippines Metro Cebu Marketreview report indicated that business process outsourcing (BPO) companies are strongly considering Cebu as an alternative business hub, and are in fact expanding and establishing operations in the province.
In the report, Cebu is being considered because of its considerably lower wages, utilities, and rent, making it a sensible choice for outsourcing firms that are looking to reduce operating costs.
Apart from lower electricity and water rates, Cebuís minimum wage for non-agricultural workers is P282-P327, a far cry from the P419-P456 rate in Metro Manila.
CBRE cited the Cebu Business Park as the most competitive location because office rental rates in the hub are 20 percent lower compared to rates in Quezon City, and 78 percent lower than Makatiís rates.
The real estate company also found that during the first half of this year, the demand and supply for the office market in Cebu increased, and six new office buildings were recently opened. With the healthy demand from BPOs, the report stated that developers are confident in the market.