Cebu outsourcing facility opened by India’s Wipro

GLOBAL IT SERVICE provider Wipro Technologies has set up shop in the Philippines, opening a business process outsourcing (BPO) center in Cebu.

The Bangalore-based company, which is listed on the New York Stock Exchange, plans to hire some 900 employees for the 45,000 square-foot facility. Officials said it was also looking at establishing additional centers in other fast-growing Philippine cities.

"The Philippines is one of the largest English-speaking nations and with a talent pool of 29 million. This is one location that we definitely want to expand our presence in," Wipro BPO President T.K. Kurien said in a statement.

The firm did not detail its Cebu investment, nor its Philippine plans. Company officials were not available for comment as of presstime.

Wipro BPO Vice-President Sanjeev Bhatia, in the statement, said the Cebu facility would address the requirements of a global market.

"Our business objective is to enable delivery of multilingual services to our global customer base. With a strong and robust game plan for the year, we are very clear in announcing Wipro’s arrival towards global serviceability, and Philippines is a major milestone in this journey" he added.

In a telephone interview, CB Richard Ellis Philippines director Ryan Isip said the property management firm had been tapped as lease manager.

"Wipro will locate at Cebu IT Plaza. The province was their preference. They are also interested in looking at other provincial sites," he told BusinessWorld.

Cebu, said Mr. Isip, has gone beyond being a premier tourist destination as it is now the second most popular Philippine destination for BPO companies next to Metro Manila.

Wipro’s move to locate in Cebu, said Business Processing Association Philippines executive director Mitchell Locsin, "It shows the Philippines continues to grow and attract global outsourcing companies.

"This is good for the country; they are employing thousands of people. We welcome them." — BW

Cebu, Manila eyed as major hubs for BPO in the future

An official of the Cebu Investment Promotion Center (CIPC) suggested that the next major hubs for the business process outsourcing will only be Manila and Cebu.

Joel Mari Yu, managing director of CIPC said that Cebu produces an average of 23,000 graduates every year but it also banks of other college graduates from reputable schools in the Visayas and Mindanao areas which also make up another set of good talent pool, Yu added.

Cebu according to Yu is truly ready for the BPO. It has no problem with the infrastructure that BPO companies can lease. There are already a number of buildings that have been put up to address this need. The Asia-town IT park has been developed to cater to the BPO sector.

To date, Cebu has 25 call centers and more than 70 BPO companies that offer software and animation services; medical transcription and legal services among others. Yu said that the BPO industry here directly employs 40,000 to 50,000 workers.

These do not include the employment from coffee shops, restaurants, bakeshops, novelty and convenience stores that are earning because of the BPO industry, Yu said.

"The BPO in Cebu is definitely not a fad. It will continue to grow and flourish because it has already the infrastructure, talented manpower and an effective public-private partnership that creates conducive business environment," Yu said.

According to Yu, the CIPC receives inquiries from international companies as to where they can put up their centers in Cebu. "Just lately, an Indian company asked us to help them coordinate their plans of putting up a BPO center in Cebu with 1,000 to 1,500 seat capacity," Yu concluded. (PIA-Cebu)

Tourists increase; airport terminals need expansion

MACTAN-Cebu International Airport Authority (MCIAA) will expand its passenger terminal because of the rapidly increasing number of foreign and domestic tourists.

MCIAA General Manager Danilo Augusto Francia said domestic and foreign tourists of different nationalities arriving and departing Mactan airport are increasing every year.

Records showed that international passenger arrivals went up from 279,624 from January to September 2006 to 356,762 in the same period this year, or 29 percent above the 266,401 target.

MCIAA recorded total departures of 369,856 from January to September this year, which is higher than the 289,965 in the same period last year.

Domestic

Arrivals of domestic passengers increased from 812,762 in January to September 2006 to 1,009,195 in the same period this year. The departures of local passengers also increased from 864,144 to 1,032,823.

The international arrival flights were recorded at 2,009 from January to September 2006 and went up to 2,733 in the same period this year. There were 2,723 international departure flights this year, from 2,018 in the same period last year.

A total of 778,210 international passenger arrivals were recorded for 2006 from the 57,998 when Mactan was opened to international flights in 1991. Within this period, the domestic passengers also increased from 1.4 million in 1991 to 3.3 million last year.

Approval

Aside from aircraft plying in regular routes and chartered flights, general aviation companies made an average of 8,000 flights annually, while the military has an average 6,000 flights.

There are foreign airline companies operating on regular chartered flights from Mactan to different countries while waiting for the approval of their regular routes.

International and domestic cargo arrivals (imports) and departures (exports) also increased every year, said Francia. (SS)

Negros Oriental Is Among World's Best Islands To Live On In 2007

Negros Oriental, and its capital Dumaguete, lives up to its moniker "the city of gentle people" as US-based Islands magazine listed it as one of the 20 best islands to live on. The province joins the list of other exotic addresses such as the Grand Cayman, Gozo in Malta, Carriacou in Grenada and Vieques in Puerto Rico, which all offer a mix of indigenous culture, friendly neighbors, uncomplicated living and adventure attractions.

Islands magazine is one of the widest circulated and most trusted travel publications in the United States. Its readership of 500,000 comprises mostly of frequent tourists who take more than one annual holiday and stay for an average of seven days at any given vacation.

Tourism Secretary Joseph Ace Durano said this recognition for Negros Oriental speaks of an exceptionally hospitable experience that makes people want to stay for the long haul.

"More than the attractions in a particular province or city, it is the people who play a big role in creating a welcoming and positive impression to travelers," he said.

Durano called on local government units to continue their efforts in building up the tourism potentials of their jurisdictions. While infrastructure is essential, programs should also include creating a community mindset that is tourist-friendly and puts forth the world-famous Filipino brand of hospitality.


IDEAL COUNTRY LIVING

Published in the August 2007 issue, editors of Islands magazine chose 20 islands around the globe that have the best living conditions for foreigners who would like to relocate. Deciding factors included weather, languages spoken, ease of immigration and accessibility to hospitals. Expats were also interviewed for an insider’s opinion.

Negros Oriental earned three out of five flip-flops, or rating, from the magazine. Of note was Dumaguete City’s youthful vibe courtesy of the prominence of academic centers. Also mentioned was the city’s picturesque Rizal Boulevard, the seaside promenade lined with cafes and art galleries. German expat Georg Bender, who moved to the island in 2001, spoke of the great diving experiences awaiting scuba and snorkeling enthusiasts.

Located in Central Visayas, Negros Oriental offers divers colorful and teeming marine life around Apo Island, located in the Negros Oriental Marine Conservation Park. Tourists can also chance upon playful dolphins and pygmy sperm whales in Tañon Strait at Bais Bay. Meanwhile, the 400hectare Bird Sanctuary and Mangrove Park provides sightings of rare birds and wildlife. The province also boasts of spelunking, trekking and beach attractions.

Dumaguete City, the provincial capital, prides itself as the City of Gentle People after the winsome and hospitable residents who help create a tranquil and genteel way of life. Dumaguete is also known as a university town, with several institutions of higher learning located in close proximity to each other and students comprising a fourth of the population. Most notable is Silliman University, the first Protestant college in the Philippines and the oldest American-established tertiary education center in Asia. (MB)

Cebu Ranks Highly In Travel Magazine 2007 Survey

Conde Nast Traveler Readers’ Choice Awards

Asia / Indian Ocean Islands Category

1.Maldives 84.3 and Bali 84.3

3. Phuket 80.6

4. Seychelles 77.7

5. Mauritius 75.0

6. Koh Samui 73.7

7. Cebu 72.3

8. Langkawi 69.5

9. Lombok 63.8
10. Zanzibar 62.8

For the fourth straight year, Cebu has been ranked among the top 10 island destinations in Asia / Indian Ocean in the Conde Nast Traveler Magazine Readers’ Choice Awards for 2007.

Cebu reached a seventh place finish and scored higher this year with 72.3 points compared to last year's 71 points.

Cebu ranked seventh when it first emerged in the top 10 list of the best island destinations in the region in 2004.

Maldives and Bali tied for first place in this year's number one island-destination. These two islands received received 84. 3 points, knocking off Phuket in Thailand, which slid to number three spot at 80.6 points.

Seychelles, Mauritius and Koh Samui were fourth, fifth and sixth placers with scores of 77.7, 75 and 73.7, respectively.

The rest of the top 10 were Cebu (seventh, 72.3), Langkawi (eight, 69.5), Lombok (ninth, 63.8), Zanzibar (tenth, 62.8)

The Readers Choice Awards have been conducted by Conde Nast Traveler Magazine since 1998.

Some 350,000 questionnaires were sent out to Conde Nast Traveler Magazine subscribers where they were asked to rate their choices for the different categories. The final tabulation was conducted by Media-mark Research, Inc., of New York City.

Conde Nast Traveler Magazine, a leading travel magazine, has a worldwide circulation of around 750,000 a month and 1.8 million hits on its website monthly. Its readers have been described as some of the most affluent, stylish and experienced travelers in the world.

Traveler Magazine is published by Conde Nast along with Allure, Brides, GQ, Vogue, Vanity fair, Tattler and Wired.

METHODOLOGY
Every year since 1988, a select sample of Condé Nast Traveler readers have taken the Readers' Choice Survey. In 2007, the questionnaires were made available to all readers, either as a 16-page partial edition of the survey (enclosed with their April or May issue) or through a secure Web site that contained the complete questionnaire. The final tabulations of 28,104 responses were done by Mediamark Research, Inc., of New York City. Organization Poll categories (Cities, Hotels, etc.) appear below, followed by the criteria by which each was evaluated. Questionnaires contained lists of candidates (individual cities, hotels, etc.), and space was allowed for write-ins. Only candidates that received a required minimum number of responses were deemed eligible for an award.

Evaluation: Each candidate was rated, criterion by criterion, as excellent, very good, good, fair, or poor. Criterion scores, which represent the percentage of respondents rating a candidate excellent or very good, were averaged to determine the final score; e.g., in the Islands category, Bali's 84.3 is the average of its scores for Activities, Atmosphere/Ambience, Beaches, Friendliness, Lodging, Restaurants, and Scenery.

Cebu joins list of top 10 emerging outsourcing centers in the world

First take a look at the list. Don't expect Bangalore, Mumbai, Delhi, Gurgaon, Noida in the list because they are already established centers and the list is all about top and best 10 emerging outsourcing centers in the world. The study is done by services globalisation & investment advisory firm Tholons and media group Global Services.

Rank

1. Chennai (India)

2. Hyderabad (India)

3. Pune (India)

4. Cebu City (Philippines)

5. Kolkata (India)

6. Ho Chi Minh City (Vietnam)

7. Colombo (Sri Lanka)

8. Shanghai (China)

9. Chandigarh (India)

10. Beijing (China)

In an interview with Sun.Star Cebu, Cebu Investment Promotions Center (CIPC) executive director Joel Mari Yu said he expects Cebu to reach number one, as the business process outsourcing (BPO) industry here is rising compared to that in India.

Costs are surging in the prime cities in India, which has earned a reputation as the world’s back office, as property values and rentals rise and wages increase at an annual pace of more than 15 percent amid a shortage of skilled employees.

Indian outsourcing firms are also feeling the pinch from an appreciating rupee, which dents dollar-billed earnings, forcing them to cut costs by expanding to less expensive locations.

“With the demand-supply gap widening, newer tier II cities will play a critical role in reengineered globalization models,” said Tholons chairman Avinash Vashistha.

“Destinations will need to provide a greater level of cost effectiveness and operational efficiency.”

Kolkata at number five and Chandigarh at number nine were the other two Indian locations on the list, which contained three Chinese and two Vietnamese cities as well.

The three hot cities for outsourcing from China were Shanghai at number eight, Beijing at 10 and Shenzhen at 13. Ho Chi Minh City and Hanoi were put at number six and number 12.

The Sri Lankan capital of Colombo placed seventh, Cairo at 11, Buenos Aires at 14 and Sao Paulo at 15, the study’s sponsors said in a statement released in Bangalore yesterday.

The list is based on criteria such as scale and quality of workforce, financial infrastructure, risk environment and quality of life.

India’s outsourcing companies have thrived by winning work from companies in the United States and Europe that sought to tap the country’s low costs and large employee pool by handing over jobs ranging from answering customers’ calls to risk management and financial analysis.

Pure-play outsourcing firms account for about 10 percent of the $50 billion in revenue logged in the year ended March by the entire information technology industry, which also includes software giants such as Tata Consultancy and Infosys.

Yu said that among Third World countries, the Philippines has an edge in that Filipinos speak better English, or that which is closest to the American twang, compared to Indians, who have an accent.

But, he said, the government should start giving the industry more attention in policy direction to keep that advantage.

“It would be better that the industry would not be concentrated in Cebu alone but in other provinces as well so that qualified workers do not congregate in Cebu. And this entails better government planning involving other local government units,” Yu said.

In particular, he said, other places should offer English, computer technology and other information technology-related courses for a better-qualified pool of workers.

RP's First SME Industrial Park Opens in Cebu

Plantersbank sets the pace once more in SME promotion with the establishment of the first SME Industrial Park in the Philippines.

Situated in Cebu, the country's fastest growing and most economically active province, the Plantersbank SME Industrial Park brings forth opportunities for SMEs to utilize property investment to further boost productivity, ensure efficient transactions and meet the growing demands of both local and foreign markets while enjoying special economic zone incentives like tax and duty-free privileges.

"The SME Industrial Park in Naga, Cebu is another pioneering initiative by Plantersbank to provide Filipino SMEs with a platform to consolidate operations, widen exporting potentials, and most importantly, benefit from the fiscal benefits extended to locators in an export processing zone area," states Plantersbank chairman Ambassador Jesus P. Tambunting.

Unlike other industrial parks that only lease the land to locators, the Plantersbank SME Industrial Park offers ownership of industrial lots ranging from 1,000 square meters to 2 hectares, making it easier for SMEs to better plan construction and expansion of their manufacturing plant.

As a Special Economic Zone, this project offers incentives to SMEs including exemption on taxes and duties on importation of capital equipment, tax credits for locally sourced capital equipment, exemption on export tax and import fees, a four to eight year holiday on income taxes, and 5% income tax on gross income following the tax holiday.

Beyond SME banking, it is part of the Plantersbank mission to provide Filipino SMEs with novel ways and means to grow and expand their businesses and enable them to profit from unfolding opportunities in the global economy. Prior to this, Plantersbank made internet-based business solutions available to Filipino SMEs, helping them enter new markets through SME.com.ph, a joint venture with the World Bank's International Finance Corporation.

"With the rise of the first ever SME Industrial Park in Cebu, we hope to spur economic, industrial and social development in the area," adds Ambassador Tambunting. "In helping SMEs succeed, we are able to spark economic activities leading to more jobs, higher incomes and a better quality of life, especially in the countryside."

The Plantersbank SME Industrial Park aims to become Cebu's melting pot of the finest and innovative ideas for businesses that will propel the country's overall SME excellence for global recognition. (sme.com.ph)