manila bpo 2018 forecast

There is much optimism in the country’s BPO sector despite the challenges from within and the changing times due to technological advances with automation. Despite seeing direct investments slump by as much 34% in the first half of 2017, the BPO industry is seen to recover in 2018 from the “rebalancing” of tax revisions.

According to property veteran David Leechiu, president of the Leechiu Property Consultants that deals directly with BPO investments in the country, many of his clients chose not to invest in their operational expansion this year and will probe the waters next year.

“That’s primarily because many of their clients perceive that country risk profile of the Philippines is climbing. So it’s important to make sure that they know that these country risk issues are not new. There have always been relevant, meaningful country risk issues in the Philippines since maybe the 1960s and companies have learned to adapt,” said Leechiu as quoted by the Philippine Daily Inquirer.

Aside from the local uncertainties with the administration, the direct BPO investment was also affected by decisions of businesses that chose to invest in other countries as part of their diversification strategy in order for the business to be in a better position to withstand international challenges.

One of the strong signs for the optimism surrounding the BPO rebound for 2018 is the still strong demand for “ready for occupancy” offices by BPO companies of various sizes and scale.

Of the 650,000 office space leased, 80-85% of the occupants were BPO companies according to Mr Leechiu.

Despite the recorded decline of the direct IT-BPM investments, Mr Leechiu stated that in proper context, the industry is still regarded as healthy.

“We’re pretty much almost exactly online with how we performed in 2016. So the worst case is we end up with the same number in 2016, which is not a bad thing.”

Another source of optimism that the BPO industry could benefit from are the upcoming big name companies that will enter the country for the first time, making such entry historic and their flagship sailing into the country’s operations.

Real estate for BPO such as expansion of online gaming, retail, shared serviced and co-working spaces are also making up for the slight decline of the BPO industry for the first half of 2017 according to Mr Leechiu.

The IT-BPM investments to the country is a sign that the Philippines’ BPO industry is robust despite the internal and global challenges as businesses still see the strategic business value of investing by way of outsourcing in the country. Ezy Outsourcing Hub is a trusted outsourcing solutions provider and can help businesses plan for their outsourcing venture to the country. Contact Ezy Outsourcing Hub today +63 917 5680402 and +63 917 5166897 or

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