Saturday, November 29, 2014
Business Process Outsourcing (BPO) is a fast-growing industry in the country; Metro Manila, to date, ranks as the world’s second most popular destination for BPO companies, according to a recently published rankings system.
In this year’s list of Top 100 Outsourcing Destinations, research and consultancy firm Tholons named Manila second only to Bangladesh as a BPO destination. Cebu City, meanwhile, earned 8th place; Davao City ranked 69th; Sta. Rosa, Laguna was placed at 82nd; Bacolod City at 93rd; Iloilo City at 95th; and Baguio City at 99th. In total, the list named seven cities in the Philippines.
Metro Manila’s second-top spot owes its thanks to the number of new and upcoming office developments. Availability of BPO office units has grown; within 2014, the Ortigas Business District alone provided seven new office towers with a total leasable area of 150,200 square meters. According to Sheila Lobien, head of project leasing and director of global real estate services of JLL Philippines, the numbers indicate continuing demand for office developments.
Ortigas, in particular, attracts a large share of the metro’s workforce with its proximity to Quezon City and other densely populated districts in the north and east. Ortigas, additionally, has lower leasing rates than the Makati Business District and Bonifacio Global City, with the average estimated at P625 per square meter per month.
“In the stiff competition for labor among expanding BPOs, established business districts like Ortigas Center continue to have an edge,” Lobien stated. “This CBD has an excellent selection of malls, 24/7 restaurants and other after-work options attractive to industry workers. It is also accessible through many modes of transport, whether Ortigas Avenue, Shaw Boulevard or EDSA.”
“Ortigas Center is likely to be a lessors’ market in the next few years,” said Lobien.