As the Business Processing Outsourcing industry continues to
hold a steady stance as one of the country's top economic drivers,
BPO companies have started locating and operationalizing outside
Metro Manila. While many of the country's BPO companies have chosen
the Philippine capital region as the location of their main
offices, some have started exploring provincial areas that have the
potential of being BPO hub spots and in turn, make them excellent
locations for real estate investment due to the lower entry point
and potentially higher opportunity for value appreciation.
Pegged to continuously grow bigger over the next few years, many
have expanded operations and located satellite offices in other key
cities in the Philippines, particularly inClark, Iloilo, and Cebu.
BPO companies are currently occupying a huge portion of the office
stock in these locations, taking advantage ofthe lower land
development cost, lower lease rates, and less competition for the
With the continuous increase of salaries and office rental
rates, Clark is touting to be the next emerging BPO hub in Luzon.
With its rapid urbanization and a strong market capturing the labor
pool of Central Luzon, many multinational and local companies such
as Global Gateway Development Corporation (GGDC) and Berthaphil
Inc., see this key city as an optimal location for a base in the
north of Metro Manila.
Central Luzon ranked as the third biggest
contributor to the country's GDP in 2018 with a share of 9.8
percent. An ideal location equipped with the proper infrastructure
and strong demographic profile, Clark is set as the next economic
center, especially for the BPO industry.
In the Visayan region, two cities are included in the Philippine
Economic Zone Authority's (PEZA) list of "Centers of Excellence",
namely Cebu and Iloilo.
Metro Cebu has already a strong foothold on the BPO industry
. As of 4Q of 2018, at least 329 IT-BPO firms are operating
within the city's jurisdiction, employing a total of 130,260 people
and occupying a total of 58,000 square meters in office
transactions. It also ranked at the
11th place in Tholons' 2018 Services Globalization index, which
ranks the top 100 'Super Cities' in the outsourcing industry.
Cebu City has an established
IT-BPO presence accounting for twenty-four PEZA-accredited
IT Centers and four IT Parks.
The BPO industry in Iloilo, on the other hand, is one of the
biggest economic drivers for the city and the whole province,
urging the local government to
promote it as a major investment hub in the south of Luzon.
Being a premier SMART (Service, Manufacturing, Agri-business, Arts
and culture, Research and technology and Tourism) city, many BPO
companies are looking to invest in Iloilo and house operations in