Top 5 Emerging Locations to Set Up BPOs in the Philippines

by Nadine D. Ong  February 21, 2018

         As one of the top-tier drivers of the Philippine economy, the Business Process Outsourcing (BPO) sector has consistently been one of the nation’s most profitable sources of income. The amount of revenue this sector generates is currently second only to the country’s foreign remittances although the former is soon expected to surpass the latter by the end of 2018.

Tholons, the leading strategic advisory firm for global outsourcing, ranks the Philippines third in the Top 50 Digital Nations on their 2017 Globalization Index report. The success of the BPO industry in the Philippines can be primarily attributed to how Filipinos are naturally adept at the type of work it entails. With this, various international companies have already started recognizing the country’s innate potential  and have begun establishing themselves in the country.

There are currently over 36 large-scale BPO companies who have set up office in the Philippines, taking up a large amount of the country’s prime real estate. Companies, particularly big league ones, normally choose to stay in the more well-known major business hubs in the Philippines, for good reason. These areas are the very epitome of what a business center is supposed to look like, bustling streets, skyscrapers abound, and dining and retail establishments as far as the eye can see.

Although what is quickly becoming evident is that these areas are slowly becoming more and more saturated. As such, a new trend has been emerging among BPO players to move out of these locations in search for still highly commercialized yet more accessible areas. Having said this, where then are some of the new and booming locations where you can put up your firm without compromising the benefits that come with the previously mentioned business centers?

Important Factors to Consider

Before getting started, consider these key points when finding a good location. Look for the property’s proximity to the workforce, accessibility via public transport, closeness to dining, retail, and entertainment establishments, and lastly the average rental rates within the area.

If you’re interested in knowing the insider tips on how to find your ideal office space, check out our article here.

    The locations listed below are a mix of five budding BPO locations to look out for. These make for great alternatives for those who seek to provide their employees with breathable, accessible, and conveniently located office spaces.

 

 

Quezon City

Quezon City is fast becoming one of the country’s premier business regions. What makes it stand out is that unlike other central business districts (CBDs), Quezon City’s  Triangle Park remains uncongested and fairly spacious.

Education/Workforce:

The city boasts a high literacy rate of 99.4%. It also houses 16 colleges and even some of the top-ranking universities in the Philippines - the top two in the nation being the University of the Philippines Diliman and Ateneo de Manila University as prime examples. This ensures a substantial pool of strong candidates that companies can choose to employ.

Transportation:

One of the other main benefits of being located in Quezon City is that it is considered as one of the most transit-oriented CBDs in the country.  With jeepneys, buses, vans, MRTs, and LRTs all having routes within the city, it is easy for employees to commute to and from work, whether they be north- or south-bound. Aside from this, new developments like the MRT-7 which is set to be operational in 2020, are also in the works to further improve the city’s transportation scheme. This particular route will run from San Jose del Monte Bulacan all the way to North Avenue, Quezon City, thereby creating an even larger link from the city to other neighboring provinces.

Retail Amenities:

Being a mixed-use area, the city is filled with various dining, shopping and retail establishments, with at least one on every block. There are also over 40 malls and retail stores in the area, giving easy access to employees who want to relax between breaks or after hours. SM North EDSA, Trinoma, UP Town Center, Gateway, and Fisher Mall are but a few of these malls.

Rental Cost:

In terms of the rental cost, Quezon City’s average rates are also far less than that of the standard CBD. The average cost per square meter is at Php600-Php900, making Quezon City one of the most affordable places to rent a space in for the whole of Metro Manila. The reasonable price coupled with its ideal location and labor pool make it one of the top locations to set up BPOs in the country.

BPOs in the Area:

    Some of the BPOs currently situated in Quezon City include Accenture Inc., Convergys, Sitel Philippines Manila Recruitment Center, Alorica Philippines, Telus International Philippines, Acquire BPO, and MicroSourcing.

 

Ortigas Center

    If being connected to the pulse of a CBD is a firm’s top priority, then look no further than Ortigas Center. It is strategically located in the midst of three cities, Quezon City, Pasig, and Mandaluyong. It is even only a mere thirty minutes away from dominant business districts such as Makati and Taguig,

Education/Workforce:

    With regards to the workforce, Ortigas attracts many of the students coming from the country’s top universities as well. As Quezon City is one of the three cities that Ortigas is located in, plenty of the same pool of individuals also take jobs in the center. Ortigas being one of the top CBDs in the nation, attracts many young graduates and urban professionals as many perceive it to be the top work location.

Transportation:

    Transportation in this area includes the MRT-3 stations Ortigas and Shaw, buses going through EDSA, jeepneys, vans, car rental services, and taxis. One thing to note is the slightly heavier traffic present in this area. This is the one drawback that prevents Ortigas from making it to the top of the list. Though if one leaves the house early and allocates ample leeway time, getting to work on time will not be a problem.

Retail Amenities:

     If dining and recreational locations are what you are looking for, then this location is bustling with it. Many of the restaurants and retail stores in this area are created to specifically cater to the office crowd working in this CBD. With a thriving night and day life, you will never be bored in this center. Malls in this area include SM Megamall, The 30th, Greenhills Shopping Center, The Podium, Robinsons Galleria, etc.

Rental Cost:

Rental rates in this area tend to be around Php600-Php900 pesos per square meter, which is still significantly lower than those of the standard CBD. It is a benefit considering that it is is already located so close to other major business districts areas yet with only about half the cost.

BPOs in the Area:

    Some of the BPOs currently situated here are Convergys, Telus International Philippines Inc., Alorica Philippines Inc., Acquire BPO, One Contact Center, and Aptus Global Solutions Inc.

 

Davao City

Davao is one of the latest emerging business centers in the country. Just recently, the property development group Cebu Landmasters Incorporated, penned an agreement to start the construction of a new CBD within the area (read: The Manila Times). Situating oneself in this budding location while it is still fairly new can be an advantageous move for BPO companies as it is still largely untapped. Though this sentiment is expected to quickly change as more and more firms are beginning to set their eyes on the area. This is why investing in this location early is really beneficial for any company.

Education/Workforce:

    In addition to this, Davao also has a high employment rate of 94.5%, exceeding the national standards (Read: Are Davao Graduates Qualified?). The same article goes on to say that these graduates tend to fill up many of the country’s job blanks, BPOs included. The number of employees working in BPOs is even expected to reach 30,000 come 2018.  There are also many schools in the area including high performing ones such as UP Mindanao and Ateneo de Davao. The growing number of young urban professionals in the area ensure many skilled talents.

Transportation:

    The common modes of transportation that can be seen around Davao are jeepneys, multicabs, tricycles, trisikads, taxis, and car rental services. The fees for these public utility vehicles are also very affordable with rates as low as Php5. Soon to be constructed is a monorail system that will go all the way to Davao International Airport. Once built, it will definitely open doors for Davao and make it a more internationally accessible location ,elevating its status as a central business district.

Retail Amenities:

    There are also many dining and entertainment hotspots in Davao that truly bring the city alive. With large scale malls such as SM City Davao and Gaisano Mall, employees can always find a place to hang out and relax in. Especially since they are surrounded by various forms of transportation, making them very easy to reach.

Rental Cost:

    The average commercial rental rates in Davao are about Php400-Php550 per square meter, still very much lower than that of the top CBDs.

BPOs in the Area:

    Convergys, Teleperformance, Sutherland Global Services, VXI Global Solutions, and Next BPO Solutions, are but a few of the companies in the area.

 

Clark, Pampanga

Following the same trends as Sta. Rosa and Davao, investors are now beginning to set up firms in Clark, Pampanga. This is so that they can avoid the crowdedness of Metro Manila.

Education/Workforce:

There has been an immense increase in Clark’s workforce, just this past year. Jobs in the BPO industry were actually one of the factors that contributed largely to this uptake. In this area, a majority of the labor pool are graduates of business administration and information technology related courses, very ideal for the BPO setting. To add to that, the multilinguality of these young and intelligent professionals also bode well for the search of good BPO employees.

Transportation:

    If commuting is a concern of yours, then that can be easily done in an affordable manner. Getting around Clark is very quick and convenient because jeepneys, busses, and tricycles can be found everywhere, with rates as low as Php10.  The opening of roads such as the Clark-Mabalacat-Angeles road is also expected to lessen the traffic within the area. The presence of Clark International also opens Clark up to a more global scale, perfect for entertaining international clients.

Retail Amenities:

Malls such as SM Clark, Marquee Mall, and Northwalk Clark offer your employees somewhere to unwind at after hours. There are also many duty free stores and malls in the area

that are perfect for one to shop in. Picnic groves and parks are also in abundance, providing you with a unique avenue of rest and relaxation.

Rental Cost:

    In addition to this, Clark is unbeatable when it comes to finding affordable offices spaces in prime locations. Commercial office spaces go for around Php450-Php650 per square meter. Setting up space here can definitely be considered to be very cost-effective considering the rates of other locations.

BPOs in the Area:

      BPOs in Clark include Convergys, Alorica, Sutherland Philippines, Arvato,LeadHustler Inc., and Clark Outsourcing, to name a few.

City of Sta. Rosa

      Dubbed as “The Investment Capital of South Luzon”, Sta. Rosa is a prime location for IT-BPO companies to set up shop in. A valuable aspect of Sta. Rosa is that it is still conveniently close enough to Metro Manila yet with so much less of the traffic. What’s also great is that though Sta. Rosa can be seen transitioning into a more commercialized area, they still manage to maintain the city’s openness and fresh feel. Unlike most conventional CBDs, Sta. Rosa gives you the room to breathe and relax, reviving your senses from a long day at the office.

Education/Workforce:

    There are also many good colleges that can be found in Laguna. A lot of these graduates end up supplying the workforce there. Schools such as UP Los Banos, De La Salle Canlubang, and Colegio de San Juan de Letran Calamba, are but a few of these examples. Aside from that, many professionals from outside of the city also choose to travel and work in this area.

Transportation:

    It is easy to travel around Sta. Rosa if you have a private vehicle. The roads are wide and traffic is generally minimal on the weekdays. On weekends, traffic can get heavier due to the tourists frequenting the area. If you prefer to commute however, you will have to do so mostly by way of jeepney or tricycle, two of the most abundant public utility vehicles in the area. For those who will be coming from outside of Manila, aside from taking your own car, one can commute by riding either the bus or jeepneys as well. A more specific guide to commuting to Sta. Rosa can be found here.

Retail Amenities:

    To create an equal work-life balance, one must also be able to have a place where they can relax. With Sta. Rosa, you wouldn’t even have to look far. The city is brimming with various entertainment and dining spots. Outdoor malls such as Nuvali, Solenad II & III, and Paseo de Santa Rosa are spread throughout the place. Larger malls such as SM City Sta. Rosa are also available. What’s ideal is that built right next to most of these recreational spots are office buildings for lease. This gives the employees of the firms who situate themselves in these locations a place where they can conveniently pass the time, all within walking distance.

Rental Cost:

    Average rental fees in the area go for about Php450-Php600, a steal considering the premium location.

BPOs in the Area:

        A few of the BPOs currently taking office in this area are Convergys, IBM, Teletech, Telexperience, KGB Sta. Rosa, and Conduit Global.

 

    With these locations, your company will certainly get that extra bit of edge, as you are sure to have a strategically positioned office space. No matter which one you end up selecting, these top picks are guaranteed to help you elevate your company to reach global standards. A perfect combination of convenience, functionality, accessibility, and affordability, these definitely are some of the best up-and-coming locations to set up BPOs in the Philippines. 

Make locating an office space a breeze with the help of PRIME Philippines, the leading real estate consultancy firm in the nation. For more information, visit our website https://www.primephilippines.com.

 

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