Are you thinking about expanding your business operations to Southeast Asia? The Philippines is quickly becoming one of the most ideal destinations for global capability centers (GCCs), thanks to its strong local talent, modern infrastructure, and cost-effective solutions. With our guide, we will help you discover the top 10 cities in the Philippines where your GCC can thrive in 2025 and beyond!
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The Top 10 Cities in the Philippines for GCC Investment
Here’s a closer look at the top 10 cities in the Philippines that are best positioned to attract investments and that can create the ideal environment for your next GCC venture:
1. Metro Manila (National Capital Region)
Metro Manila continues to lead as the premier destination for GCCs in the Philippines. As the country’s primary GCC hub, it presents the highest concentration of facilities that offer great access to local talent, strong infrastructure, and comprehensive business services.
Several key districts within Metro Manila are instrumental in this position:
- Makati – The country’s financial center, known for its premium office spaces and strong multinational presence.
- Bonifacio Global City – A modern business district featuring world-class amenities and a thriving corporate environment.
- Pasig – An established commercial zone offering a strategic location and competitive rental rates.
- Quezon City – The largest city in the metro, home to many professionals from different universities.
- Manila Proper – The historical capital, now undergoing infrastructure improvements that support business growth.
Due to its dynamic ecosystem, Metro Manila offers modern infrastructure and strong connectivity. This makes it one of the top choices for your advanced GCC operations.
2. Cebu City
Cebu City is the new prime business hub in the Philippines, making it an ideal location for GCC operations outside Metro Manila. Its strategic appeal lies in a unique fusion of cost-efficiency and lifestyle advantages, including:
- A rapidly growing tech ecosystem supported by innovation hubs
- An international airport with direct flights to major cities across Asia
- A quality of life, combining access to beaches, cultural sites, and modern urban conveniences
Additionally, taking advantage of its well-balanced offering of urban sophistication and affordable scalability can lead to successful services.
3. Davao City
Davao City is quickly gaining recognition as a prime destination for GCCs aiming to reduce operational costs without compromising on quality. Situated on the island of Mindanao, Davao offers a strategic mix of benefits that make it an attractive alternative to the places in the National Capital Region:
- Operational costs are significantly lower
- Continually improving infrastructure for business development
In fact, Davao City has consistently ranked in the top 5 of national competitiveness rankings since 2015, which is a testament to its strength in trade, commerce, investment, and tourism. So, if cost-efficiency is a key priority in your GCC strategy, Davao City deserves serious consideration.
4. Iloilo City
Iloilo City is quickly emerging as a leading hub for GCCs, offering a compelling combination of advantages that set it apart. As one of the top development thrusts in both the province of Iloilo and the broader Visayas region, the city has attracted growing attention from investors. Its strengths include:
- Rapidly developing infrastructure, including new business districts
- A strategic location in the heart of the Visayas
- A rich cultural heritage combined with high livability scores
When assessing the top 10 cities in the Philippines for establishing a GCC, Iloilo City stands out for its ideal balance of affordability and quality of life, making it a smart choice for long-term growth.
5. Clark/Angeles City (Pampanga)
The Clark/Angeles area in Pampanga presents a strategic and attractive location for GCCs, offering a range of unique advantages:
- The Clark Freeport Zone, with special economic incentives for businesses
- An international airport that ensures excellent regional and global connectivity
- Proximity to Metro Manila, approximately a 1.5-hour drive away
- Modern infrastructure and well-planned developments
Establishing a GCC in Clark allows your company to benefit from generous tax incentives. These incentives have been affirmed as constitutional by the Supreme Court. At the same time, you can stay closely connected to Manila’s workforce professionals, suppliers, and business ecosystem.
6. Bacolod City
Known as the “City of Smiles,” Bacolod offers a compelling value proposition:
- An ideal office space location for IT-BPM firms
- Lower attrition rates compared to larger metropolitan areas
- Competitive operational costs for budget-friendly business solutions
Lastly, many companies have chosen to offshore their Philippines operations to Bacolod, achieving significant cost savings while maintaining high-quality standards.
7. Cagayan de Oro
Cagayan de Oro (CDO) is quickly emerging as the Northern Mindanao hub for GCCs, offering a compelling mix of strategic advantages:
- A prime location serving as the gateway to Mindanao
- A steadily growing local workforce from multiple universities
- Ongoing development of IT parks and economic zones
With significant infrastructure investments fueling its transformation into a major metropolis in Mindanao, CDO also presents a timely opportunity to establish a presence in a promising and underserved market.
8. Baguio City
Baguio City stands out among the i for GCCs, offering these advantages that support sustainable and efficient operations:
- A cool climate that helps reduce air conditioning costs
- Strong academic institutions, including top-ranking universities
- Lower attrition rates driven by a good quality of life
- A rich cultural scene that makes it a prime tourist destination
In addition to these benefits, Baguio City’s economy grew by an impressive 9.0% in 2023, outpacing many urban centers in the country. This growth further demonstrates its readiness for business expansion and investment.
9. Dumaguete City
Dumaguete has earned recognition as an emerging tech hub with several key benefits:
- A thriving creative and cultural scene
- A strategic location with easy access to major ports and airports
- An emerging startup ecosystem fostering innovation and entrepreneurship
Moreover, according to the DTI, while Dumaguete is not yet part of the UNESCO Creative Cities Network, the city has formally submitted its application, and efforts are underway to boost its bid. This results in a vibrant culture and spirit of innovation that make it a strong contender, further enhancing its appeal as a promising business location.
10. Santa Rosa, Laguna
Santa Rosa rounds out our list of the top 10 cities in the Philippines with these advantages:
- Just an hour from Manila, offering excellent proximity to the capital with less congestion
- Home to major industrial parks and economic zones
- Rapidly growing residential and commercial developments
- A strong base of manufacturing and technical talent
As highlighted in an Inquirer article, Santa Rosa is not only experiencing fast economic growth but is also laying the groundwork for a sustainable future. This makes it a smart choice for lasting investments for your business.
Next Steps for Your GCC Journey
Are you ready to explore establishing your GCC in one of the Philippines’ top 10 emerging cities? Here’s how you can move forward with confidence:
- Define Your Business Objectives – Start by assessing your specific operational requirements, growth goals, and overall priorities.
- Conduct a Tailored Location Analysis -Evaluate potential cities based on your unique needs such as talent availability, infrastructure, cost efficiency, and business environment.
- Engage with Trusted External Partners – Collaborate with experienced third-party experts who understand the regulatory framework and can streamline your entry.
- Develop a Phased Rollout Plan – Create a clear, step-by-step implementation roadmap that minimizes risk and ensures scalability.
- Customize Your GCC Strategy – Align your approach with local strengths, ensuring your center reflects both global standards and regional advantages.
Building Global Success Starts with the Right City
Choosing the right city for your GCC is more than just a strategic move; it’s an investment in your company’s future. The Philippines, with its skilled workforce, competitive costs, and growing infrastructure, offers a range of progressive cities that each bring unique advantages to the table. From the tech-driven momentum of Metro Manila to the emerging innovation hubs in Visayas and Mindanao, these top 10 cities are proving they have what it takes to support global operations. Moreover, as you evaluate your next expansion, consider not just the logistical factors, but also the scalable potential for growth, collaboration, and talent development. With the right city as your foundation, your GCC can thrive, fueling innovation, improving agility, and delivering consistent value across borders.
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Frequently Asked Questions (FAQs)
Q1: Why are companies establishing GCCs in the Philippines?
Companies establish GCC operations in the Philippines to leverage cost advantages, access top local talent, ensure business continuity through time zone differences, and tap into the country’s high English proficiency and cultural compatibility with Western markets.
Q2: What incentives does the Philippine government offer for GCCs?
The Philippine government offers various incentives for GCC companies, including tax holidays, reduced income tax rates, duty-free importation of capital equipment, simplified customs procedures, and special visa categories for foreign employees and executives.
Q3: What types of roles are commonly filled in Philippine GCCs?
Common roles in Philippine global capability centers include software development, IT support, financial analysis, human resources, customer service, marketing, data analytics, and more.
Q4: How do I choose the right city in the Philippines for my GCC?
Choosing the right city depends on your business needs; consider factors like talent availability, industry specialization, cost of living, and proximity to airports or business hubs. Additionally, the best city in the Philippines for your GCC will align closely with your goals, whether it’s expansion, innovation, or cost savings.
Q5: What is the top 1 safest place in the Philippines?
Davao City is considered the safest place in the Philippines due to its low crime rate, strict local ordinances, and strong enforcement of laws, making it a model city for public safety and discipline.
Q6: What is the richest city in the Philippines?
As of the latest data from the Commission on Audit, Quezon City is the richest local government unit in the Philippines. This marks the fourth consecutive year that Quezon City has held this distinction, surpassing other major cities like Makati and Manila in terms of asset value. The city’s sustained wealth is attributed to effective governance, strong revenue generation, and strategic investments in infrastructure and public services under the leadership of Mayor Joy Belmonte.
Big goals need the right support. At One CoreDev IT®, we help companies create Global Capability Centers in the Philippines by providing access to exceptional Filipino professionals and cost-efficient solutions. Together, we can build something truly remarkable. Get in touch with us today!
