BPOs eye further expansion of operations in the regions

Several business-process outsourcing (BPOs) are planning to expand their operations outside Metro Manila and accelerate the establishment of their operations in the provinces.

Several business-process outsourcing (BPOs) are planning to expand their operations outside Metro Manila and accelerate the establishment of their operations in the provinces.

Tricia Pacete, market analyst, offices-landlord, Colliers Philippines, said this is a “win-win” situation for BPO employees and employers. “This development has encouraged many BPOs to expand their office footprint outside Metro Manila, and fast track the setup of operations in the provinces, long been seen as an untapped resource for BPO players talent wise. Now with the mandate to implement WFH [work-from-home] setups, BPOs are chasing after talents who prefer to settle back in their hometowns,” Pacete said.

In its recently concluded Q3 2022 Philippine Property Market Briefing, Colliers Philippines noted a significant increase in provincial office transactions quarter-on-quarter. Pacete added Colliers data indicated that an additional 63,000 square meters of office spaces were transacted in the third quarter of 2022, with total space transacted reaching 145,000 square meters for the first nine months of the year. The figure is 23 percent of total office transactions recorded. More than half (56 percent) of these transactions were for BPO companies.

She said Cebu remains the top provincial destination favored by BPOs, recording approximately 34,000 square meters of office transactions, followed by Davao (21,000 square meters), and Pampanga (9,000 square meters).

When asked of their motivations for choosing provincial locations, most of these BPO companies cited expansions and/or relocation.

Currently, the top 5 IT-BPM employers in the country include Concentrix, Accenture, Teleperformance, Alorica, and the Sitel Group. Out of the 19 BPO players listed, Concentrix showed the biggest employer headcount hiring an additional 10,000 employees in the third quarter of the year.

It was followed by Teleperformance (2,534 employees), TaskUs Philippines (8,000 employees), Telus International (7,000 employees), and afni Philippines (2,000 employees).

In terms of increase in total office space occupied, WNS Global Services embarked on a significant expansion both in Metro Manila and provincial office footprint at 12 percent and 47 percent, respectively.

On the other hand, several BPO companies are diversifying their site portfolio through expansions in the provinces.

Telus International sustained its Metro Manila office footprint, but expanded in the provinces by 23 percent. TTEC’s provincial office footprint also increased by 19 percent, while retaining its footprint in Metro Manila. Concentrix, the Philippines’s largest BPO company in terms of employee headcount and office space occupied, has also been expanding outside Metro Manila. Its provincial office footprint increased by 12 percent in the third quarter of 2022 compared to the previous quarter.

Read more here.

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