Philippines’ BPO sector in Cebu at risk from power shortfall
CEBU, PHILIPPINES — As Cebu in the Philippines solidifies its status as the leading hub for business process outsourcing (BPO) in the Visayas, industry leaders are raising concerns about a critical vulnerability: the province’s power supply.
According to a special report from Cebu Daily News Digital, with demand outpacing local generation, BPO firms warn that without reliable energy, Cebu’s growing outsourcing industry could face operational disruptions and economic setbacks.
Power shortages threaten Cebu’s 24/7 IT-BPM services
Cebu’s IT-BPM sector runs around the clock, employing over 160,000 workers in 2024 and supporting thousands more in surrounding areas like Mandaue, Lapu-Lapu, and South Road Properties (SRP).
Yet, the province currently faces a 100-megawatt shortfall, with demand at 1,223 MW and local generation at 1,123 MW, according to the Philippine Department of Energy.
“This structure leaves energy-intensive sectors like IT-BPM particularly sensitive to outages and price fluctuations,” said Jack Madrid, president and CEO of the IT & Business Process Association of the Philippines (IBPAP).
Even brief outages can cripple operations.
“The impact is immediate, agents drop off, KPIs are all red, calls get cut. Even if it’s just a short outage, it breaks momentum and affects performance,” said Michael Cubos, founder of Performance360 Global Services.
Qualfon Cebu site director Dyan Gallardo-Yap added that power interruptions also pose compliance and financial risks, leading to missed service-level agreements, lost data, and higher operating costs.
Cebu BPOs invest in backups, hybrid work and ESG
Despite these challenges, Cebu’s BPO sector is actively strengthening continuity systems. Companies are investing in UPS setups, backup generators, alternate network routes, and remote or hybrid operations.
“We’ve put in place backup power at key sites, but more importantly, we’ve shifted around 70% of our operations to a remote or hybrid setup. That gives us more flexibility and reduces reliance on one site’s power supply,” Cubos explained.
The push for cleaner, more reliable energy is also gaining momentum. IBPAP reports that about 40% of its member companies have begun their ESG journey, and 65% of large firms already have formal sustainability policies.
“This move not only strengthens operational resilience but also ensures alignment with global ESG standards,” Madrid said.
Industry leaders emphasize that government support and public-private collaboration are crucial to modernizing power infrastructure, reducing outages, and fostering renewable energy adoption.
“Support for alternative energy solutions at the community level. Remove corruption and red tape,” Cubos said.
As Cebu’s BPO sector continues to expand, stable and sustainable energy is no longer a technical concern, it is central to the province’s economic competitiveness.
Ensuring reliable power safeguards thousands of jobs, maintains global client confidence, and secures Cebu’s position as a world-class outsourcing hub.
With the broader Philippine IT-BPM sector generating $38 billion and employing 1.82 million full-time workers in 2024, Cebu’s energy infrastructure will be a decisive factor in sustaining both regional growth and global competitiveness.
