Cebu will benefit from weak global economy

Cebu is considered as one of the few "recession proof" economies in the world that will benefit from the global economic meltdown, according to the world's largest commercial and real estate services firm CB Richard Ellis Group, Inc.

Based on its extensive survey, CB Richard Ellis Group, Inc. projected that Cebu's economy will be saved by its booming Business Process Outsourcing (BPO) and tourism sectors.

Officials of the CB Richard Ellis Group, Inc, headed by chairman Rick Santos, were in Cebu the other day to give a briefing on the economic outlook for 2009. The company's chairman presented a rosy picture of Cebu economic development starting next year, backed up by realistic figures and extensive market study.

According to CB Richard Ellis Philippines chairman Rick Santos Cebu is seeing "life" amid the gloomy global economic prospects, and Cebuanos will expect abounding opportunities for employment and other money-making activities next year.

Tourism and BPOs have increasingly made Cebu a hub of foreign direct investment, a trend the company has noticed.

“For the past couple of years, Cebu City has become an emerging hub for the outsourcing industry,” said Santos. He said the BPO industry was Cebu's “biggest opportunity.”

The terror attacks in Mumbai, India where terrorists occupied the Taj Mahal and Oberoi Hotels and the political turmoil in Thailand where protestors took over Bangkok's two international airports present rare opportunities for more investments in the IT and tourism industries in the Philippines, particularly Cebu.

CB Richard Ellis officials also dismissed speculations that the United States (US), under the leadership of President-elect Barrack Obama, will impose restrictions on companies outsourcing or off-shoring certain services to keep jobs within the US.

Santos said the economic factors that make a company decide to outsource or off-shore certain functions or services are “very compelling.” He pointed out that the high salaries and health care costs, as well as labor union issues, are just some of the factors that make a company in the US

Victor Asuncion, director for research and consultancy of CBRE Philippines, said it is “politically correct” for Obama to declare that jobs in US-based companies should be for Americans, but the issue of whether to outsource or not is a matter of economic viability on the part of companies.

“Unless Obama provides margins (for these companies), which he cannot do (at this time), he cannot stop them from (establishing) global operations,” he said in the same press conference.

He pointed out that the US Government has to deal with multi-billion dollar bailouts of its financial sector.

CB Richard Ellis is a Fortune 500 company with headquarters in Los Angeles and is considered the world's largest commercial real estate services firm with more than 300 offices worldwide.
resort to off-shoring or outsourcing.