Recently, Malaya Business News cited Colliers, Inc. report in an article entitled “BPO’s moving back to MM” which claims that many business process outsourcing and offshoring companies still preferred sites within Metro Manila as compared to provincial sites. What drives this phenomenon and how can the provincial sites catch up with Metro Manila’s current record?

Two of the main reasons attributed for having large portion of BPO operations to Metro Manila are the adequacy of infrastructure and manpower. “About 70 to 80 percent of requirement go back to Metro Manila” as according to Jie Espinosa, Colliers Philippine director for office services. In addition, they cited that there is continuous supply of office buildings with some 400,000 sq.m. of new supply each in 2014 and 2015 which fuels these outsourcing companies. For the year, “Colliers expects at least 560,000 square meters of new office space to be delivered in Metro Manila.” 

Since Colliers Inc. has already identified the two key factors that BPO companies value in choosing the location for their business, what provincial sites can do to catch up with Metro Manila is to establish additional office buildings to meet demand of BPOs. Number of available infrastructure matters for these businesses and as much as possible they need locations which are strategic. To promote provincial sites as BPO sites, infrastructures must be improved, wherein BPOs would find it strategic as Metro Manila. Aside from this, the amount of labor force in the area would also matter for them. They only hire people/employees for their business operations so it means that they would also outsource people near the vicinity/area of their operation. However, provinces should develop competitive workers which would meet the demand of these businesses. The accessibility to employees, technology as well as commercial establishments is the additional factor these companies would consider before signing leasing contracts for their businesses. As much as they wanted to create profits, they would also want to find the best venue where they can have a more efficient transaction. Therefore focusing on the two considered “backbone” of the operation of these companies, infrastructure and human skills are the important matters of consideration for suppliers of office spaces in the country.


Group Members:

Barlam, Syrell
Manalili, Rafael
Miguel, Josh
Perdido, Rhenz

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