iCatchIT had the luxury of choosing any location in the world. After considering common outsourcing sites including India, China and several European sites, we selected Cebu because of its excellent workforce demographics, low turnover, stable competitive pricing, English proficiency, quality of life, and reliable infrastructure.
Cebu, a unique island strategically located in the central region of the Philippines, is a cross between a major tourist destination and a booming metropolis. With a population of 3.5 million, more than half of which is located in its capital city, Cebu provides a dynamic commercial environment that is fueled by good transportation infrastructure, eight major IT universities, major international hotels and world-class beach resorts.
When compared to other common outsourcing locations, the quality of life in Cebu really shines. With cost of living around 75% lower than the US, a wide selection of restaurants, and five star resorts nearby, many foreigners have chosen Cebu as their home for early retirement. The excellent quality of life offered by Cebu translates into better quality of workers and low employee turnover. With turnover related costs amounting to approximately $17,500 per year (source: US Small Business Association), it makes sense to choose a location that will minimize this important dimension of operating cost.
Employee turnover for iCatchIT remains stable at around five percent and labor price escalation is under control. In contrast to locations in India which currently experience turnover in the range from 30 - 40% per annum with prices escalating at an annual rate of 15% (source: Offshore Outsourcing World).
With literacy and school enrollment statistics similar to the United States, the Philippines has one of the most favorable workforce profiles in the world. The country has about 100 million people with nearly 75% under the age of 25 (source: US Census Bureau). Currently, tertiary school enrollment is 28% and there is a 99% literacy rate in the ages 15-24 (retrieved last November 20, 2004 from http://www.earthtrends.wri.org) These statistics help ensure organizations of a stable skilled workforce for the foreseeable future.
English is the official language of the Philippine government. This translates into a number of benefits including the highest English literacy in Asia, road signs that are written in English, and taxi drivers that can understand where you want to go. Major universities teach primarily in English resulting in graduates who are familiar with all of the technical terminology covered during the course of their studies
A full listing of all the other factors that contribute favorably to Cebu is beyond the scope of this site. Here are some of the highlights. The Cebu International Airport provides good accessibility. Cebu has an excellent peace and order record. According to the United Nations Crime and Justice Information Network crime rates in Cebu are about 30% lower than San Francisco with Cebu having a much lower proportion of violent crime. Excellent civic and governmental support for local businesses. Through TESDA (Technical Education and Skills Development Authority) there are many technical programs in place to build skills in the workforce.
