Cebu – The Next IT and BPO destination. Focusing on its nearsource partners

Cebu City, Philippines – Cebu is being considered as the Next IT outsourcing destination. Cebu should be considered as an alternative to Metro Manila since this area has become saturated. And from my own personal experience, Cebu City is much more livable compared to Metro Manila, and even people from Manila agree themselves.

kmcmaggroup.com ( Philippine Real Estate Company ) has these articles to back it up. Please see some of its pages below about Cebu.

– Why Cebu is the New BPO Frontier
http://kmcmaggroup.com/blog/2015/1/23/why-cebu-is-the-new-bpo-frontier/

– Investment Destinations, Cebu City
http://kmcmaggroup.com/blog/2014/2/10/investment-destinations-series-cebu-part-1-of-3/

– TOP 3 Office space options ( and there’s even more under construction )
http://kmcmaggroup.com/blog/2014/2/14/top-3-office-space-options-to-consider-in-cebu/

To summarize, here is why Cebu is considered.
1.) Abundance of local talent from universities
2.) Excellent English skills
3.) Cheaper labor costs
4.) Cheaper office rentals
5.) Cheaper and better place to live
6.) IT industry here is expanding
7.) Multinational Companies IT companies are already considering Cebu

As for salary comparisons, I made some research and gathered the average salary per month in Peso. I only selected from countries that have relevant impact in IT and the Philippines. ( take note it is on the average, so usually the range may sometimes be lower, and some higher ). But still a lot of factors are to be considered, such as costs of living and talent pool.

*( All rates are in PHP and Per Month, so we can easily compare to Philippine Salaries. Rates are applicable for Software Engineers. Data is gathered from payscale.com and personal knowledge)

OUTSOURCE COUNTRIES

Philippines – 28,928.83 – engineer / 46,453.16 – sr. engineer
India – 38,825.41 – sr. engineer
Malaysia – 48,027.91
Vietnam – 55,760
Poland – 67,934.25
China – 74,774.91

————————————

TOP TIER COUNTRIES

Singapore – 120,715
Japan – 130,787.75
England – 164,372.5
New Zealand – 179,023.66
Germany – 178,692.0833
Finland – 189,045.5
Ireland – 220,294.666
Australia – 242,0509
USA – 282,796.0833

———————————–

It is quite clear that the Philippines still maintains the cost advantage. The next target would be the “Nearsource” Advantage. USA may be an exception since it maintains a strong cultural and government affiliation. Therefore, USA is already counted as one, even if it is geographically not considered as “Nearsource”. Then which countries are the potentials? These would be Japan, Australia, New Zealand, Taiwan and Singapore. Europe is also considered, but competition is tough as we have India and other European nations.

We will then analyze the IT economy of Japan, Australia, and New Zealand on the next posts.

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