Cebu Presentation v16dec2010

8/7/2019 Cebu Presentation v16dec2010

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Cebu Investment Promotions Center

CebuDefining the Countrys Potential


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South East Asia

SINGAPORE

CHINA

JAPAN

Hong Kong

SOUTH KOREA

AUSTRALIA

INDIA

MANILA

CEBUPHILIPPINES



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PHILIPPINE ARCHIPELAGO

CEBU

Metro Cebu



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C E B Us DEMOGRAPHICS

LOCATION : Center of the Visayan Islands

569 kms. south of Manila

AREA : 5,000 sq. km.

CAPITAL : Cebu City

POPULATION

Cebu Island : 3.85 M

Metro-Cebu : 2.05 M (53% of total)



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1 hour from Manila, 28x daily

4 hours from Tokyo, daily

3 hours from Singapore,1

0x weekly 2 hours from Hongkong, 21x weekly

4 hours from Incheon, 22x weekly

2 hours from Taipei, 2x weekly

Getting to Cebu



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3 hours from Shanghai, 2x weekly

3 hours from KL, 2x weekly

13 hours from Qatar, 3x weekly

4 hours from Pusan, 2x weekly

3.5 hours from Kansai, 2x weekly

Getting to Cebu


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CebuAs anInvestment&IT Hub



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WHY INVEST IN CEBU. . .

It is not just a promise or potential, Cebu is demonstrated

capability with an excellent economic track record. Today,there are over 500 foreign direct investors in

manufacturing, service industries and tourism located in

Cebu.

It is the biggest city outside Metro Manila and is the

fastest growing economy in the Philippines.

For over a decade now, Cebus export growth rate has

consistently been higher than that of the whole country or

any other province in the Philippines

Cebu is the most accessible place in the Philippines, with

more domestic air and sea linkages than even Manila.

Cebu is base to over 80% of inter-island shipping capacity

in the Philippines.



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WHY INVEST IN CEBU. . .

Cebu is the Tourism Gateway for Central and

Southern Philippines.

It is not in an earthquake zone or typhoon belt, nor are

there volcanoes in the island.

Cebu has one of the best records for peace & order in

the country.

Its labor force is oriented towards non-agricultural

lines and is one of the most productive in the country.

The development of its infrastructure is balanced; it

has all the ingredients necessary to be competitiveand sustain investments.

It is a cosmopolitan area with all the support facilities

and amenities needed for an ideal lifestyle.



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RECENT

INTERNATIONAL AWARDS and

RECOGNITION



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Launched in 2001

, fDi is firmly established as the world'spremier publication for the business of globalisation. Produced

by the renowned Financial Times (FT) group and published on a

bi-monthly basis with an ABC-certified circulation of over15,000,

fDi provides corporate decision-makers with an up-to-date

image of the ever-changing global investment map.

Tholons is a leading full-service Strategic Advisory firm for

Global Outsourcing and Investments. Its advisors pioneered the

Offshore advisory space more than a decade ago and continueto lead and evolve it. It offers a full range of service from

developing globalization strategies, execution of outsourcing

strategies and monitoring and tracking of outsourcing outcomes

in order to meet clients business objectives.



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No. 4

Most Cost Effective

in

FDI Magazines

Asian Cities of the

Future

2007/08


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No. 7

Best Quality of Life

in

FDI Magazines

Asian Cities of the

Future

2007/08


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No. 2

BestDevelopment

and Promotion

in

FDI Magazines

Asian Cities of the

Future

2007/08


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1 of the Top 10 in THOLONS 2010 Emerged Outsourcing Cities



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Information Technology (I.T.) in Cebu

Cebu is working to become a leading IT

location in the Philippines. Towards this

end, it is rapidly putting in necessaryinvestments in Infrastructure and is

developing organizations, human

resources and policies necessary toattain this objective.


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World-class service providers for

English-speaking call centers and IT

enabled services such as BPO,

Computer Graphics and software

development at globally competitive

wages, in an IT-enabled cosmopolitan

setting, all embedded in a resort

environment.

CEBUs Product


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Average Number of College

Graduates in Cebu (last 3 yrs.)

Number % of Total

Accounting 547 2.4%

Business Courses 4,408 19.4% Medical Courses 2,937 12.9%

IT Courses 3,858 16.9%

Engineering 2,674 11.7%

Other Courses 8,333 36.6%

Total 22,757 100.0%



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Region 6 Region 7 Region 8

Number / % Number / % Number / %

Business Courses 8,628 26.3% 6,995 21.6% 2,510 17.8%(including Accounting)

Medical Courses 4,259 13.0% 2,940 9.1% 624 4.4%

IT Courses 1,671 5.1% 3,938 12.1% 2,757 19.6%

Engineering / 4,974 15.2% 5,080 15.7% 1,893 13.5%

Industrial Tech

Other Courses 13,245 40.4% 13,460 41.5% 6,282 44.7%

Total 32,777 100% 32,413 100.0% 14,066 100%

Total for Visayas 79,256


Average Number of College Graduates

in the Visayas (last 3 yrs.)


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The Call CenterIndustry in Cebu

CALL CENTERS CURRENTLY IN CEBU

1. Sykes Asia

2. Western Wats

3. PeopleSupport

4. CallTek5. 88 FloorGift, Inc.

6. Convergys

7. Alliance Global

8. eTelecare

9. Bigfoot Global Solutions10. Qualfon

11. UKLink Promotion

12. Teletech



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The Call CenterIndustry in Cebu

CALL CENTERS CURRENTLY IN CEBU

13. Cebu Global Teleservices

14. Access Direct Teksolutions

15. Live Services

16. Touch Asia Contact Solutions17. iCall Solutions

18. E-performax

19. Wipro

20. ACS

21. ICT Group

22. SupportSave

23. Vector BPO

24. Focus Philippines

About 30,000 CALL CENTER AGENTS

EMPLOYED: Cebu Investment Promotions Center


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5 Biggest Call Centers in Cebu(ranked according to employment size)

1. Convergys 5,000 employees

2. Qualfon 4,500 employees

3. Aegis People Support 3,500 employees

4. Stream Global Services (formerly eTelecare) 2,500 employees

5. Sykes Asia 2,200 employees

Total Number of Employees of the Top 5 Call Centers =17,700 employees


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BPO in Cebu

FDIs in Non-Voice IT operations already in Cebu

Activity Country

1. Lexmark Research & Development R&D USA2. Dash Engineering Engg. Design(CAD) Japan3. Tsuneishi Technical Services, Phil., Inc. Engg. Design(CAD) Japan4. United Publishing Content Devt. Japan5. BOOOM!! Interactive(formerly JAMMPS) Graphics/Animation Japan6. Xlibris Data Conversion USA7. INNODATA Data Conversion USA8. Big Foot Software Devt. USA9. NCR Software Devt. USA10. N-Pax Software Devt. Japan11. Alliance Software Devt. Japan12. Farcite Software Devt. USA13. Epson Software Development Software Devt. Japan14. NEC Software Phil., Inc. Software Devt. Japan15. AWS (fomerlyADTEX Systems) Software Devt. Japan16. Northern Transcriptionworks Medical Transcription Fil-Am17. SPI Technologies Medical Transcription USA18. ICatchIT Accounting/Legal USA



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BPO in Cebu

FDIs in Non-Voice IT operations already in CebuActivity Country

19. Versagrafx Designs Computer-aided Design USA20. Targe Corporation Software Development USA21. Cebu Credit Bureau Services Credit Check USA

22. Bettaauctions Internet Shopping Australia23. Cantron, Inc. Software Development Australia24. Intouch Cebu Hardware Support Singapore25. Lexysoft Corporation Software Devt USA26. MT Link Asia Medical Transcription USA27. Xsolus Cebu Software Devt Canada28. Oracy Concepts Medical Transcription USA29. Giedo LLC Software Devt. USA

30. Quantsys Software Software Devt. Canada31. Kinse Systems Technology Software Devt. Britain/Japan32. LoggedOnGroup (Cebu), Inc. Web Development Australia33. Softshore Global Software Devt. Austria34. Accenture Back-office Support USA35. Wipro Back-office Support India36. JP Morgan Back-office Support USA37. IBM Global Services Back-office Support USA



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Direct Employment in Cebu ICT


Call Centers 30,000

BPOs 30,000

Total 60,000*

*estimates


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PEZA-Registered IT Enterprises


ActivityNo. of

Firms

No. of

Employees

Est.Investments

(PhP M)

Call Center 25 22,692 5,714.56

BPO 9 1,746 609.67

Software Dev 14 4,367 1,860.43

CAD 5 775 168.74

Data Conversion 5 5,302 636.05

Medical

Transcription 2 231

.00R&D 2 1,663 142.61

Web Design 2 46 6.80

Total 65 36,614 9,139.86


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CebuAs a Tourism and Second HomeDestination



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TRAVEL

+LEISURE

WORLDS BEST

AWARDS (2010)

Top Islands inAsia

Source: http://www.travelandleisure.com/worldsbest/2010/islands/asia-

islands/23


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WHY CEBU IS THE BEST SECONDHOME DESTINATION . . .

Location, Geography & Climate Tropical island that has over

700 kms of coastline, with average temperature of 22 to 33

degrees celcius, a storm-free island paradise assuring year-

round swimming & golfing weather and endless potentials for

other leisure activities while access is made convenient by an

international airport and seaport.

Peace & Order Cebu is considered as among the safest Citiesin Asia as attested by low crime rates and high crime resolution

statistics.

Language & Culture English is widely spoken and also used

by TV & print media. 400 years under the Spanish and 45 years

under Americans while all the time intermingling with Chinese,

Indian and Arab traders assure a most interesting culture.

Cost ofLiving is 30% cheaper than Manila.

Cosmopolitan Living & World class amenities



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Educational hub with 11 universities & over 30 colleges

spread all over Cebu.

Medical Care - world class medical professionals andfacilities that are at par with the best in Manila. At least 3

hospitals capable of complicated procedures including

bypass operations & kidney transplants.

Business Track Record Cebu is the fastest growing andmost business-friendly local economy in the country.

International Recognition: No. 8 (overall rank) in the latest

survey on the Asian Cities of the Future 2007-2008 by

FDI Magazine ofLondon. No. 2 in the Best Development

& Promotion, No. 4 in the Most Cost Effective and No. 7in the Best Quality ofLife categories.

No. 3 in Travel+Leisures Top Islands in Asia for 2010 and

No. 7 Top Asian Island in the Conde Nast Traveller Readers

Choice Awards for 2008 and 2009.. Cebu Investment Promotions Center

WHY CEBU IS THE BEST SECONDHOME DESTINATION . . .


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COST ADVANTAGES IN CEBU

The minimum wage in Manila is P404/day ($9.29)while in Cebu, it is P285/day ($6.56) for about 42%

cost advantage. This cost advantage is even morepronounced for middle and top managementpositions.

The cost of food in supermarkets and restaurants is20-50% cheaper in Cebu compared to Manila

Note: 1US$=PhP43.45 (BSP average for Nov 2010)


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COST ADVANTAGES IN CEBU

The rental cost of condominiums and executive

houses is also 20-50% cheaper in Cebu comparedto Manila.

The cost of real estate is up to 4 times cheaper thanManila.

The cost of power in Cebu is cheaper by 30% thanManila (Cebu Indl Rate=P7.79; Manila IndlRate=P10.18).

The cost of broadband and other telecom expenses

is the same as in Manila.


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AMENITIES IN COSMOPOLITAN CEBU

Education/Health

There are 11 Universities and 39 Colleges inCebu with a college population exceeding220,000. Over 23,000 graduate fromcollege yearly.

There is an accredited International School(up to the secondary level) in Cebu.

There are 4 Medical Colleges and 3 world-class

Hospitals in Cebu that are at par with thebest medical institutions anywherein the country.


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AMENITIES IN COSMOPOLITAN CEBU

Leisure/Shopping

The best beach resorts and some of the best dive spotsin the Philippines are in Cebu.

There are 7 golf courses in the island of Cebu.

Cebus shopping malls are comparable to the bestanywhere in the country.


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QUALITY OF LIFE

There is no air pollution in Cebu.

There is very much less traffic in Cebu. It doesnot take more than 40 minutes to get from 1 pointin Metro Cebu to another (example, from youroffice to the golf course or from your house to

the beach).

Cebu is one of the safest and most secure places inthe Philippines. There is almost zero incidence ofpolitical, religious &

ethnic violence.


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THANK YOU VERY MUCH

JOEL MARI S. YU

Managing DirectorCebu Investment Promotions Center (CIPC)

Cebu Presentation v16dec2010

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