FLEXIBLE workspace provider KMC Solutions is ramping up its operations in Cebu as it continues to solidify its presence in key Philippine markets.
In a recent visit to Cebu to celebrate its 10th year operation in the city, company executives said they want to increase talent headcount by at least 20 percent or about 1,500 to 2,000 people.
At least 20 to 25 percent of this hiring should come from Cebu or some 200 to 500 full-time employees.
Employees directly hired by KMC now stands at 7,000 of which 500 are from Cebu. Combined with those directly hired by their clients, Cebu now accounts for 17 percent of KMC’s nationwide portfolio of over 20,000 seats, making it the firm’s third-largest hub after Makati and Bonifacio Global City.
At present, the company is adding two floors in one of the Skyrise Buildings in Cebu IT Park to meet surging demand for flexible offices and co-managed talent solutions.
KMC Solutions has been in the Philippines for 15 years.
KMC Solutions chief operating officer Tracy Ignacio attributed Cebu’s strategic importance to its skilled English-speaking talent pool, ease of doing business and rising demand for high-quality workspaces.
“Cebu is no longer a secondary location. It’s a strategic centerpiece in our national expansion,” said Parry Nagpal, chief executive officer (CEO) at KMC Teams.
KMC sees significant demand from clients, particularly in niche areas like cybersecurity, fintech and healthcare.
“There’s a lot of demand for healthcare because of the US market. It’s an aging population. Healthcare systems are complex. The other one that we are seeing a tremendous growth all of a sudden is cyber security because of artificial intelligence… with all the tools that come in and automation, companies require more security features and more vigilance. Fintech is also growing,” said Nagpal.
Employer of Record
Moreover, he also highlighted KMC’s growing traction of its Employer of Record (EOR) services — a business model enabling global clients to build highly specialized teams in the Philippines without setting up legal entities.
EOR handles the administrative and legal responsibilities of employment, while the client company manages the employee’s day-to-day work. This arrangement is often used for specialized or niche roles, where the client company wants to maintain control over the employee’s work but doesn’t want the complexity of setting up a foreign entity.
According to Nagpal, this vertical business unit now employs approximately 7,000 employees, supporting hundreds of clients, mostly from the US, Australia, Asia and the Paciific and the Middle East.
“What we pay our people in our EOR business is way higher, sometimes two or three times of what commoditized BPO pays, because our positions are niche,” he said.
Salaries in high-demand sectors like cybersecurity are averaging $2,000 to $3,000 per month, underlining the quality and specialization of the roles being filled.
Besides the English-speaking workforce that gives Cebu an edge, Cebu’s infrastructure is also catching up to client expectations, with over 60 percent of new builds being green certified.
“That’s what’s great about Cebu developers, they’ve learned to build higher quality buildings… high quality of materials, and that’s going to be the next phase for our clientele. They are coming here not just to save cost but they are coming here for quality, high quality talent and they want to be in high quality buildings,” said Nagpal.
Global economic uncertainties
Despite global economic uncertainties, tariff shifts and the rapid advancement of artificial intelligence, the Philippine business process management industry continues to show strong resilience and optimism, according Michael McCullough, co-founder and CEO of Workspaces.
“Despite all the noise — AI, tariffs, regulatory changes — everyone raised their hand when asked if they’re hiring more people. Nobody said they’re cutting headcount,” said McCullough. “That shows the strength of the sector.”
While everyone is still on a “wait-and-watch” approach toward geopolitical developments, particularly in the US, McCullough said uncertainty in the US economy often spells opportunity for the Philippines.
“When costs go up in the US, companies look to outsource to cut expenses — and that’s where the Philippines steps in,” he said. “In terms of services, we’re in a very strong position. The entire ecosystem is mature — talent, infrastructure, government support and industry bodies are all in place.”
Nagpal added that the Philippines is uniquely positioned to still benefit from global economic challenges.
“If the US economy grows, that lifts global demand. But if it slows, US firms seek to cut costs, often through outsourcing — again benefiting us,” he said. “We’re in a sweet spot either way.”
Still, Nagpal said the industry is mindful of emerging trends, particularly the growing interest in nearshore outsourcing locations like Latin America. “It’s definitely on our radar. But for now, Cebu continues to be a strategic hub for growth,” he added. / KOC