PHILIPPINES: The business process outsourcing industry is projected to drive employment growth and bring back the demand for office space as the United States and other major economies open up.
“To sustain growth post-pandemic, companies in major economies are expected to continue outsourcing. We saw this after the global financial crisis. Firms are likely to continue outsourcing to sustain growth beyond 2021,” said Joey Bondoc, global realtor Colliers International associate director for research.
Colliers Philippines director for office services Dom Frederick Andaya added, “The industry is expected to expand by 8% in revenues and full-time employees. Drivers of growth will be in the financial services, banking, insurance, and high-level works such as software development and game development, among others.
The property experts further reported that BPOs are likely to take up a large chunk of the available office space in Metro Manila currently at 1.78 million square meters or equivalent to 60 vacant buildings with a leasable area of 30,000 sqm per building.
Andaya added that the absorption period for the 1.78 million sqm vacant office space will be around 3.5 years.
Aside from Metro Manila, BPO companies are also looking for office spaces in the provinces like Cebu, Pampanga, Iloilo, Bacolod, and Davao where there is a quality workforce, improving infrastructure and a relatively cheaper cost of living compared to Metro Manila.