CEBU is emerging as a key growth hub for global capability centers (GCCs) outside Metro Manila as multinational companies increasingly establish their own Philippine operations for higher-value functions, according to property consultancy Colliers Philippines.
Colliers said Cebu, along with Davao, Pampanga, Iloilo and Bacolod, is expected to play a bigger role in the next wave of GCC expansion as companies diversify operations, strengthen business continuity and tap talent beyond the capital.
Cebu already accounts for about 31 percent of the provincial information technology-business process management (IT-BPM) footprint, making it the leading provincial destination for the industry, the consultancy said.
The shift is significant because GCCs represent a move beyond the traditional outsourcing model that has long anchored the Philippines’ IT-BPM industry.
From BPO to capability-building
A GCC is an in-house offshore unit owned and operated by a multinational company to perform functions for its parent organization.
Unlike a traditional business process outsourcing or third-party provider, which is hired to deliver contracted services, a GCC works primarily for its parent company and becomes an extension of its global operations.
GCCs can handle finance and accounting, information technology, data analytics, cybersecurity, engineering, research and development, risk and compliance and other strategic functions.
“The Philippines is no longer simply a place where companies locate work. Increasingly, it is where they build capability,” said Celeste Ilagan, president and chief executive officer-designate of the IT and Business Process Association of the Philippines.
The shift means the country is moving from providing capacity for routine or standardized processes toward becoming a strategic base for more specialized and knowledge-intensive operations.
Cebu’s growing role
The country had about 200 GCCs employing around 270,000 professionals in 2025, making it the world’s second-largest GCC delivery location, according to Everest Group. The Philippine GCC workforce is projected to reach about 289,000 in 2026.
GCC office transactions jumped 67 percent in 2025 from the previous year, outpacing other tenant groups and underscoring growing demand from multinational companies for high-quality office space, Colliers said.
Cebu is positioned to capture more of this demand because of its established IT-BPM ecosystem, skilled workforce, international connectivity and supply of Grade A office space.
Higher-value jobs
The rise of GCCs is also changing the type of talent companies need.
Instead of focusing mainly on high-volume, standardized processes, GCCs increasingly require professionals in artificial intelligence, data analytics, cybersecurity, engineering and finance transformation.
Nearly half of Philippine GCCs were already testing or deploying generative artificial intelligence in production by 2025, according to Colliers. Companies are largely adopting a “human-plus-AI” model, using technology to augment rather than simply replace workers.
This creates both an opportunity and a challenge for Cebu — attracting more GCCs will depend not only on available office space but also on whether its workforce can meet increasingly specialized requirements.
A bigger role for provincial hubs
Metro Manila remains the country’s main GCC entry point because of its deep talent pool, established business districts and large supply of Peza-compliant offices.
But Colliers expects provincial hubs such as Cebu to become increasingly important as companies seek geographic diversification and operational resilience.
For Cebu, this could mean evolving from primarily an outsourcing destination into a broader regional center for multinational companies’ technology, finance, analytics and other strategic operations.
The opportunity comes as the global GCC market is projected to expand from about $100 billion in 2024 to $155 billion by 2027, giving the Philippines room to capture a larger share of higher-value global operations.
Colliers, however, said sustaining this growth will require continued investment in specialized talent, digital infrastructure, technology adoption and the overall business environment as the Philippines competes with other emerging markets for GCC investments. / KOC