Cebu to establish foothold in sotfware development

11.04.2005
Von Grace S.

Cebu, the Philippines" Queen City of the South, is bent on transforming this resort-capital into a strong contender in the software development market as the city?s industry players prepare to host Cebu?s biggest trade show ever -- the first international ICT conference and exhibit.

Slated on June 28 through 30, this event will highlight information and communications technology as another premier economic driver -- just like resorts are -- in the southern capital. The event is the culmination of the month-long business activity Cebu Business Month (CBM) organized by the Cebu Chamber of Commerce and Industry (CCCI).

In an interview with Computerworld Philippines, Bonifacio Belen, Executive director of the Cebu Educational Development Foundation for Information Technology (CEDF-IT), said the ICT conference is CCCI?s biggest event in collaboration with various government agencies and ICT companies, particularly Innove Communications Inc. and Globe Telecom, the event?s major sponsors. He added the three-day event will bring together all the stakeholders in the global ICT sector to share the latest in ICT and establish links among industry players.

?In fact, we just came in from a successful ten-man marketing road show and benchmarking study tour in the leading IT cities of Bangalore, Hyderabad, and Singapore to promote the event,? Belen disclosed.

Substantial opportunities

Although it remains difficult for Belen to quantify the amount of investments the southern capital hopes to generate out of this event, he said the entire CBM team hopes to corner substantial opportunities in the area of software development. Likewise, they hope the event will bolster Cebu?s budding IT-enabled services industry.

Francis Monera, SVP of Cebu Holdings Inc. and CBM Chairman for his part, pointed out that Cebu ICT.com 2005 is not just a local event benefiting the provincial community of Cebu but an international event that will ultimately redound to the good of the entire Philippine ICT industry.

?Cebu just happens to be the venue,? he said.

?The global ICT industry competition is not an internal rivalry among the provinces or cities that are contending to become an ICT hub,? he said. ?In the final analysis, the global competition calls for the Philippines ICT industry stakeholders -- majority of whom are based in Manila -- to unite in view of the challenges posed by its external and real competitors such China, India, etc.?

Monera added that since Cebu is an integral part of the proposed "Philippine Cyberservices Corridor,? any support given to Cebu is also support given to the Philippine ICT industry as a whole. At present, the Philippines is projected as the next ICT hub and best breeding ground of ICT professionals in Asia due to its strategic location, flexible workforce, expanding infrastructure as well as the boom of e-services.

According to the Technical Education and Skills Development Authority (TESDA), even with the sudden U.S. backlash against offshore outsourcing prospects, the Philippines remained steadfast in its e-services industry. With the country"s comparative advantage against other Asian countries, projected growth for the e-services priority sectors will continually increase in the next few years making it soar high against its current competitor India which is experiencing a downfall in its ICT employment supply, TESDA said.

Nevertheless, Monera said that the Cebu local government and private sector groups have been working hard to gradually transform the city into a premier ICT investment, software and e-services hub.

For instance, Cebu now stands to benefit from the boom of e-services such as contact centers, medical transcription and computer animation which are currently the best bet that the country can offer in global market.

There are now a total of 14 to 20 IT-enabled service providers in Cebu.

?Other companies engaged in business process outsourcing, software development, animation, and medical transcription have also contributed to the growth of the ICT industry in Cebu. The strong driver of growth in the local economy in Cebu came from ICT-related investments," Monera said.

Increased broadband demand

As a result of the boom in e-services, there is also now an increased demand for broadband Internet, virtual private networks, and international leased lines in Cebu. In fact, GlobeQUEST, the corporate business group of Innove, has already launched Cebu City as an international data gateway to lessen its dependency on Manila infrastructure for its international private leased line (IPL) and Internet requirements. An IPL connects a local company to any foreign location via fiber optic lines.

Cebu, the second largest city in the Philippines with a population of 3.5 million, is currently being positioned to become the country?s ICT hub outside Metro Manila -- having the only IT Park outside Luzon (Asia Town) and being a favorite location for call center expansion.

Meanwhile, aside from the ICT conference, CBM also aims to provide a venue for government, entrepreneurs, local and foreign investors, and tourists to discuss issues and concerns, find opportunities to network, market and promote one?s products and services and other business concerns by promoting Tourism and Small and Medium Enterprises (SME?s).

CBM, likewise, intends to launch ?Cebu? as a competitive global brand and to institutionalize the brand in the global market and to promote ?Cebu? as a destination for tourism, not only in the Philippines but in the international arena as well.

It is also designed to strengthen the role of SME?s in enhancing Cebu?s global competitiveness. Another intention is to encourage stronger linkages among all major stakeholders in making Cebu a competitive global player and to learn from global players on how to improve Cebu?s competitiveness.