The Department of Information and Communications Technology (DICT) will support the creation of demand for office space in the country, according to a real estate services firm.
President Aquino earlier this week signed Republic Act 10844 creating the ICT department.
According to Colliers International, the department will benefit the office property market as it supports growing the business process outsourcing (BPO) sector, one of the main drivers for office space demand.
“The BPO industry has been growing by around 10 to 15 percent annually and is the main driver of office space demand in the country,” Colliers said.
“The sector remains dynamic as its revenues are expected to outpace OFW remittances by 2017.”
According to Colliers, the department will sustain the demand for office space by BPO companies.
“The accommodating regulatory environment for outsourcing, complemented by continuously improving global competitiveness, should sustain the BPO firms’ growing appetite for office supply over the medium-term,” Colliers said.
The DICT will ensure that the BPO industry will get the required labor pool to match what the industry needs by mandating the policies that seek to develop manpower with the skills aligned with the needs of BPO firms.
This is in coordination with the Department of Education, Commission on Higher Education, and Technical Education and Skills Development Authority.
Fostering competition within the industry is another impact of the DICT, according to Colliers.
“The law also calls for the promotion of strategic partnerships between local and international ICT, research and development, educational and training institutions, to speed up industry growth and enhance competitiveness of Philippine workers, firms, and small and medium enterprises (SMEs) in the global markets for BPO,” Colliers noted.
The department will help attract more foreign investors to locate in country.
“The signing of the law sends the right signals not only to existing BPO locators but also to the other global players that are planning to participate in the Philippine outsourcing industry,” Colliers said.