The expansion of the Business Process Outsourcing (BPO) doesn’t stop within Metro Manila or even Bacolod and Davao. Now, the industry is looking at Iloilo City.
The Mandurriao district in Iloilo City is an area seen as a preferred expansion site for the industry, according to the assessment of Colliers International, which is an international real estate services and investment management company.
Through a press release, Colliers suggested that availability of office-spaces that are Philippine Economic Zone Authority (PEZA) accredited will maintain the demand for the area as well as targeting non-outsourcing tenants, specifically those who are waiting for their buildings to become PEZA-approved.
The firm also recommended taking a look at both mixed-use townships outside Iloilo City and if proposed Iloilo City reclamation project allows the building of offices.
“Over the next three years, we see outsourcing firms such as call centres occupying much of new office space, especially in the Mandurriao Area. We already see some companies offering a mix of call centre and higher value outsourcing services such as legal transcription and health information management,” Kevin Jara, Colliers International Philippines’ senior manager for tenant representation, said.
Jara added that another factor that attracts the BPO industry and knowledge process outsourcing (KPO) firms from Metro Manila is the skilled labour pool in the city.
“Colliers sees more knowledge process outsourcing (KPO) firms from Manila expanding in Iloilo City in the next two to three years. Among the factors that these firms consider is the city’s skilled labour pool. This makes Iloilo City a viable expansion site outside Manila,” Jara said.
The Mandurriao district is where Megaworld’s 72-hectare Iloilo Business Park is found. This business park is being seen as the ideal expansion site in Iloilo City.
According to Colliers, the completed offices from National developers, such as Megaworld, SM Prime, Ayala Land, and Robinsons Land has made the district to take up 80% of Iloilo City’s office stock or 87,800 sq metres from the city’s total space 109,400 sq.
“All of the upcoming supply is likely to be in Mandurriao as developers cash in on the area’s viability as a key outsourcing destination in Western Visayas,” Colliers said.
On the other hand, the property management firm said that large BPO companies could jumpstart the increase of occupancy on vacant spaces in the city as these companies “continue to occupy substantial space in the city’s business district.”
The Philippines offers many business districts within and outside the country’s capital, and each location is considered as strategic and prime locations for businesses.
As the continuous growth of supply and demand for office spaces continues, the industry is also looking at other areas within the country that offer the same benefits as Manila. So far, developers are creating office spaces for the BPO and KPO industry outside Metro Manila, such as Pampanga, Iloilo City, Davao City, and more, as offshore solutions in the Philippines is a cost-effective solution for international businesses.
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