Outsourcing activities may have slowed in Metro Manila but the industry continues to expand in Iloilo City, Colliers International Philippines said.
“Demand for office space in Iloilo has been driven by the business process outsourcing (BPO) industry. While demand in Metro Manila has slowed, Iloilo remains an expansion hub for BPO investors,” the real estate services firm said in a report.
BPO tenants that started operations this year include US-based Nearsol, which occupies about 5,800 square meters of office space at Three Techno Place inside the Iloilo Business Park and Yakazi-Philippine EDS Technoservice, Inc, which occupies 2,300 sq m at the Ayala Land Technohub.
“Colliers believes that demand for BPO space will likely continue given the aggressive promotion being undertaken by the local government as it aims to become a premier SMART (service, manufacturing, agribusiness, arts & culture, research and technology, and tourism) city of excellence,” the firm added.
Iloilo was also noted as ranking second in terms of government efficiency and eighth among the country’s highly urbanized cities based on a National Competitiveness Council Index, “thus, the provincial city has remained in the radar of foreign BPO investors.”
“Clearly, the Iloilo office market has the foundations in place to cater to the growing BPO industry outside of Metro Manila,” Colliers said.
A reliable labor pool given the presence of major universities and colleges, the local government’s support of the industry with programs in place to promote investment, and the private sector’s willingness to invest in Iloilo signify that the city is “ripe for growth,” the firm claimed.