It’s more fun to outsource business operations in the Philippines, according to Savills, a local affiliate of London-listed real estate services firm.
Setting up a company in the Philippines would cost $45,464 a year, including $12,500 for a software developer, $10,800 for a graphic designer and $9,984 for office space.
The most expensive places for relocating business operation are London, San Francisco, Mumbai, Paris, New York, Moscow, Shanghai, Tokyo, Singapore, Hong Kong and Sydney. Manila remains the best value city to do business in largely because of the relatively low real estate costs with a prime office rate in Metro Manila stood at $28 per square meter. Given this, we can see a lot of business process outsourcing (BPO) and knowledge process outsourcing (KPOs) firms setting up shop in the Philippines.
There are also great possibilities of financial and insurance companies coming to the country and eventually grow rapidly. A growing economy coupled with an affordable and highly-skilled labor pool and a stable political environment would attract more international firms to set up BPO or KPO operations in the Philippines.
It has been a year of opportunities for the real estate sector due to the consistently strong economic growth in the first half of the year.
The factors behind such growth are the active construction industry and the business process outsourcing sector, as well as the high rate of overseas Filipino workers’ remittances. Credit rating achievements have increased investment interests in the Philippines and a stable political climate under the present administration has also contributed to growth.
The Philippine market is now prime for investment across all segments from development to acquisition.
The office market offers institutional investors the opportunity to increase cash flow. The residential and commercial spaces, meanwhile, offer retail investors alternatives for medium- to longer-term investment. Indeed, outsourcing in the Philippines has become and will continue to become fun in the coming years. BPO workers are not just provided reasonable income by giving their best efforts to serve the industry but also provide them investments.
Setting up a company in the Philippines would cost $45,464 a year, including $12,500 for a software developer, $10,800 for a graphic designer and $9,984 for office space.
The most expensive places for relocating business operation are London, San Francisco, Mumbai, Paris, New York, Moscow, Shanghai, Tokyo, Singapore, Hong Kong and Sydney. Manila remains the best value city to do business in largely because of the relatively low real estate costs with a prime office rate in Metro Manila stood at $28 per square meter. Given this, we can see a lot of business process outsourcing (BPO) and knowledge process outsourcing (KPOs) firms setting up shop in the Philippines.
There are also great possibilities of financial and insurance companies coming to the country and eventually grow rapidly. A growing economy coupled with an affordable and highly-skilled labor pool and a stable political environment would attract more international firms to set up BPO or KPO operations in the Philippines.
It has been a year of opportunities for the real estate sector due to the consistently strong economic growth in the first half of the year.
The factors behind such growth are the active construction industry and the business process outsourcing sector, as well as the high rate of overseas Filipino workers’ remittances. Credit rating achievements have increased investment interests in the Philippines and a stable political climate under the present administration has also contributed to growth.
The Philippine market is now prime for investment across all segments from development to acquisition.
The office market offers institutional investors the opportunity to increase cash flow. The residential and commercial spaces, meanwhile, offer retail investors alternatives for medium- to longer-term investment. Indeed, outsourcing in the Philippines has become and will continue to become fun in the coming years. BPO workers are not just provided reasonable income by giving their best efforts to serve the industry but also provide them investments.
Business process outsourcing in the Philippines
The business process outsourcing industry in the Philippines has grown 46% annually since 2006. In its 2013 top 100 ranking of global outsourcing destinations, Tholons, a US-based strategic advisory firm for global outsourcing and investments, has ranked the Philippine capital Manila number 3, lifting it 1 notch to knock off India’s New Delhi from number 3 spot in 2012 to number 4 in 2013. The top spots remained unchanged, ranking Bangalore 1 and Mumbai 2. This boom is led by demand for lower labor costs, a highly skilled and educated work force, and high proficiency in spoken English. Industry estimates from the Board of Investments, Business Process Association of the Philippines (BPA/P) and BPO Services Association (BSA/U) put the number of people employed by the BPO sector by end of 2008 at 435,000 (vs 372,000 in 2007)- excluding the non-BOI/ non-PEZA entities.
In 2012, ITO-BPO in the Philippines generated more than $13 billion in revenues, an increase of $2 billion from the $11 billion in 2011. The Business Processing Association of the Philippines (BPAP) now projects that revenues of the ITO-BPO industry will hit $16 billion in 2013 and have 926,000 full-time employees. To achieve and sustain this growth, the Philippine government offered fiscal and non-fiscal incentives to attract foreign direct investment in these industries as part of its 2007 Investment Priorities Plan (IPP). The IPP was prepared by the Board of Investments (BOI), as the lead agency in promoting investments, focused on the sectors identified in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010 (PBOI 2006).
The majority of the BPO facilities are located in "first-tier" cities in Metro Manila and Metro Cebu. Second- and third-tier sites are located in regional economic zones such as Bacolod City, Baguio City, Cagayan de Oro, Clark (Angeles City), Dagupan City, Davao City, Tacloban City, Dumaguete City, Lipa City, Iloilo City, Naga City, Iriga City, Iligan City, Olongapo City and Urdaneta City.
The low cost BPO industry has come under threat due to steadily-appreciating local currency.Philippines is now 30 per cent more expensive than India due to a 30-per cent difference in peso and Indian rupee exchange rates with the US dollar.
The business process outsourcing industry in the Philippines has grown 46% annually since 2006. In its 2013 top 100 ranking of global outsourcing destinations, Tholons, a US-based strategic advisory firm for global outsourcing and investments, has ranked the Philippine capital Manila number 3, lifting it 1 notch to knock off India’s New Delhi from number 3 spot in 2012 to number 4 in 2013. The top spots remained unchanged, ranking Bangalore 1 and Mumbai 2. This boom is led by demand for lower labor costs, a highly skilled and educated work force, and high proficiency in spoken English. Industry estimates from the Board of Investments, Business Process Association of the Philippines (BPA/P) and BPO Services Association (BSA/U) put the number of people employed by the BPO sector by end of 2008 at 435,000 (vs 372,000 in 2007)- excluding the non-BOI/ non-PEZA entities.
In 2012, ITO-BPO in the Philippines generated more than $13 billion in revenues, an increase of $2 billion from the $11 billion in 2011. The Business Processing Association of the Philippines (BPAP) now projects that revenues of the ITO-BPO industry will hit $16 billion in 2013 and have 926,000 full-time employees. To achieve and sustain this growth, the Philippine government offered fiscal and non-fiscal incentives to attract foreign direct investment in these industries as part of its 2007 Investment Priorities Plan (IPP). The IPP was prepared by the Board of Investments (BOI), as the lead agency in promoting investments, focused on the sectors identified in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010 (PBOI 2006).
The majority of the BPO facilities are located in "first-tier" cities in Metro Manila and Metro Cebu. Second- and third-tier sites are located in regional economic zones such as Bacolod City, Baguio City, Cagayan de Oro, Clark (Angeles City), Dagupan City, Davao City, Tacloban City, Dumaguete City, Lipa City, Iloilo City, Naga City, Iriga City, Iligan City, Olongapo City and Urdaneta City.
The low cost BPO industry has come under threat due to steadily-appreciating local currency.Philippines is now 30 per cent more expensive than India due to a 30-per cent difference in peso and Indian rupee exchange rates with the US dollar.