1. Cebu’s ICT/BPM Success Story: Challenges & Opportunities By Jun Sa-a Managing Director of CEDFIT June 18, 2015

2. Cebu City The No. 8 th Global Outsourcing City in the Tholons Top 100 List in 2013, & 2015 2014

3. From 5 companies in 2001 to 200 companies in 2014

4. From about 1,200 direct employment in 2001 To more than 100,000 by end of 2014

5. ₱19.5 Billion per year

6. 250,000 heads

7. ₱15.0 Billion per year

8. More than 70% of all MEDIUM and HIGH RISE buildings

9. Factors of Growth and Success 1. EARLY presence of the export processing zone 2. Availability of good INFRASTRUCTURE 3. STRATEGIC location of Cebu 4. Good QUALITY of talent – skilled and trainable 5. VISION AND ACTIONS of local leadership driven by private sector 6.The EFFORTS of Cebu Investment Promotion Center

10. Sustaining Cebu’s Success 1. Our service industry has the PROVEN TALENT to handle more complex responsibilities 2. SUPPORT ECOSYSTEM has developed and adopted to the peculiarities of this industry

11. 3. IT PARKS AND BUILDINGS exist all over the city and even in beach area 4. STRONGER Academe & Industry linkage resulted more collaboration and faster results Sustaining Cebu’s Success

12. 5.Continued search for high value niches and PREPARING for it 6. Critical INFRASTRUCTURE is in place and upgraded Sustaining Cebu’s Success

13. I.High growth at 15 to 20% in the next 5 years Challenges and Opportunities in the ICT/BPM Industry a)Need for more TVI/ training centers b)Develop teachers through industry training c)Service management program  Traditional course  Online version

14. II.Rapid Urbanization a)Need for more affordable medium to high rise apartment buildings closer to workplace b)Need for more reliable water & power supply c)Efficient public transport system – subway system d)More places for dining and leisure/entertainment Challenges and Opportunities in the ICT/BPM Industry

15. III.Highly competitive and rapidly changing industry Challenges and Opportunities in the ICT/BPM Industry a)Level up to higher value services b)Opportunity to continuously upgrade our talents through collaborative efforts with international partners c)Benchmark on global practices and trends

16. d)Develop homegrown startups leveraging on the use of technology for innovative products/services and wider customer reach through more startup challenges and VC funding III.Highly competitive and rapidly changing industry Challenges and Opportunities in the ICT/BPM Industry

17. IV.Competitive Infrastructure a)Have a globally competitive broadband and wifi services cost-wise and speed-wise b)Wifi penetration even in rural areas c)World-class international airport Challenges and Opportunities in the ICT/BPM Industry

18. V.Combined effect of Big Data and Artificial Intelligence in about 5 years time a)Go for higher value services b)Conversion of call center spaces for other office types or living quarters/ condo/ apartments. Challenges and Opportunities in the ICT/BPM Industry

19. The Future of the ICT/BPM Industry remains BRIGHT