BPO’s operations expand footprint beyond Metro Manila

Colliers Global Real Estate Management sees many registered business organizations (RBEs), especially business process outsourcing (BPO) companies, expanding their offices outside of Metro Manila and taking advantage of work-from-home (WFH) setups as these will not have any impact. negative on their tax incentives.

According to Colliers market analyst Tricia Pasetti, the data from the Philippine Real Estate Market Brief for the third quarter of this year showed that there was a significant increase in regional office transactions quarter by quarter.

“Colliers data shows that an additional 63,000 square meters of office space was transacted in the third quarter of 2022, and total dealing space was 145,000 square meters for the first nine months of the year. This figure represented 23 per cent of total office transactions on record,” Bassett said. More than half of these transactions (56 per cent) were to BPO companies.”

She added that Cebu remains the top regional destination preferred by business firms, recording nearly 34,000 square meters of office transactions, followed by Davao (21,000 square meters) and Pampanga (9,000 square meters).

“When asked about their motivations for choosing provincial sites, most BPOs mentioned these expansions and relocations,” she noted.

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The strategy of outsourcing companies is also changing with BPO employees choosing to set up a WFH and stay in their province. Colliers said companies are taking advantage of this scenario and diversifying their business locations by opening offices in various locations outside of Metro Manila.

“This allows them not only to pursue their talents, but also to discover areas that will give them an edge over their competitors, such as access to a better talent pool, lower operating costs and a first-mover advantage,” Bassett explained.

She added that Colliers is excited to see more growth and expansion coming from the IT-BPM industry for the remainder of 2022.

“With the positive developments coming from outsourcing companies, we recommend that Local Government Units (LGUS) implement measures to facilitate the process of doing business in their jurisdictions, while developers, both nationally and regionally, should capitalize on this incoming demand and build new office projects,” Bassett said. Business-to-Business (BPO) mining ready.

This is because the continued demand for office space coming from the IT-BPM sector and their increasing investments being poured into the provincial areas will greatly contribute to transforming the ICT infrastructure in the countryside, expanding development beyond Metro Manila, and creating more job opportunities for the locals, According to Colliers.


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