CEBU CITY – An official of the Cebu Investments and Promotions Center (CIPC), which is the organization tasked to promote investment opportunities in Cebu, believes that while the province’s economy is resilient amid the global financial crunch, investments, particularly in the business process and outsourcing (BPO) industry, remain “slow.”

CIPC Managing Director Jose Mari S. Yu said investors, particularly in new BPO firms, are still very cautious in pursuing expansion plans, especially where it concerns setting up new sites and in locations. Yet he clarified that for existing players in the sector, expansion plans are still in the pipeline.

“BPO companies are still hiring,” he said, while pointing out that while there are no new significant investments, expansion moves of locators here keep the economy at its shape, amid the still weak global economic environment.

“Our investment performance especially for BPO industry is largely dependent on the US and not so much on the European market,” Yu said.

“In tourism however, I understand investments are coming in, and that’s also good for us. But for BPOs, nothing remarkable as yet,” he added.

In terms of tourism, Cebu has seen the mushrooming of more room accommodations in establishments ranging from condominium type of developments to budget hotels being put up by local investors mostly.

According to Yu, Cebu will have to depend on the recovery of the US and Japan as these two countries are the strongest sources of medium to big ticket investments. Yu is certain that once the economies of Japan and US fully rebound, Cebu will have to prepare for the influx of investments, not only in the BPO industry, from these countries,

Earlier, Tholons founder and Chief Executive Officer, Avinash Vashista urged the identification and highlighting of Cebu’s manpower supply so as to attract additional BPO investments overseas.
“Cebu is now a leader among emerging BPO destinations but Cebu has to move with more speed to maintain such status,” Vashista said.

He emphasized that in bidding to be truly one amongst the emerged BPO cities in the world, Cebu has to further protect its manpower supply by undertaking more programs aimed at enhancing the quality of its IT and IT-related graduates to increase the probability of their employment.

Vashista likewise urged for the intensification of linkages amongst the academe, industry and government sectors as well as infrastructure investments supportive of the local ICT industry. At the same time, he also zeroed in on the need for Government to provide tax incentives for foreign ICT investors.

“Cebu needs adequate economic zones to attract investors for the province to become a truly emerged BPO destination,” he further stressed.

For his part, Yu said local stakeholders are now beginning to position Cebu’s niche in BPO and tourism investments, and these two industries will fuel growth of Cebu and sustain the province’s economic vibrancy.