Business Process Outsourcing, IT Outsourcing, and the Expansion of Office Space inside the Philippines
By: percy jackson
Submitted: 2010-05-31 21:32:53 | Word Count: 666
utsourcing trends clearly show that the Philippines has started to close the lead that India has in terms of viability for BPO firms. The first wave emerged in the form of contact centers – now, call centers account for a huge fraction of all BPO operations within the country. Nevertheless, IT outsourcing companies are definitely considering the Philippines as a possible choice for their “back office” requirements.
Experts believe that the adjustment in outsourcing trends can be pinned down to several factors existing within the Filipino populace that is tougher to come across in places similar to Hyderabad or Chennai. The first is an affinity for the language and customs of the U.S. – the nation that makes up 70% of all off-shoring and outsourcing markets. As a former American colony, the regional population has a more solid comprehension of American English. A second key factor considered to be the reason for the change is the talent pool. While talent poaching is present, the rate is nowhere near that which happens in India, and the price for such experienced staff is also much more affordable.
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The primary issue that many businesses find restrictive in outsourcing to the Philippines, however, lies in facilities. Office space leases have increased since the original contact center boom. There is a clear probability of an increase in office space rental rates in primary business areas which include Makati City going up more caused by a shortage of supply to fulfill the demand. There are developers desperately trying to take advantage of the boom, and the government has strategies set up to develop current commercial infrastructure. Meanwhile, office space is slowly attaining an expensive premium.
It is not just in Makati – the economic capital of the nation – where BPO is becoming a prevalent occupant of office space, though. Makati also does not hold a monopoly on office space for BPO and IT outsourcing businesses. Low-rise buildings just outside of the city limits are also known to be attractive to outsourcing companies thanks to the option to occupy the entire building all by themselves. Business centers such as Ortigas, Eastwood, and Alabang have managed to keep the rental rate of competing places from becoming too costly. Developers have also been building in other major metropolitan areas in the land to match the request for more office space.
BPO and outsourcing in the Philippines account for between 7 to 15% of the world market, second only to India. Knowledge process outsourcing is also on the upsurge, especially in the legal transcription career fields. The Philippine legal process is very comparable to that of the U.S., so native legal talent has a better grasp of crucial scenarios and legal precedents than their counterparts elsewhere. The Philippines is also starting to use its local innovative talent pool, furthering the expansion of offered services from simple contact centers to areas such as web design and website content creation.
This heightens the demand for additional office space, and developers are beginning to take notice. Low-rise structures in suburban BPO parks are getting more populated, with other organizations such as fast food restaurants developing close by to cater to what is almost a pre-built client base. High-rise buildings are also becoming increasingly populated by BPO and IT outsourcing companies, even outside the economic and industry center which is Makati.
A lot more traditional office space occupiers will probably continue to be the majority, but outsourcing companies are preparing to bridge the gap. These companies are rapidly becoming a significant commercial factor in the land, and the financial commitment of both private and public establishments in enhancing and boosting the availability of office space in Makati is seen as being highly beneficial.
Author Resource:-
Percy Jackson is a realty specialist focused on BPO office space. He presently assists people who desire to rent an office space in Makati.
