The Best Locations to expand for BPO Companies in Luzon

Expanding your business process outsourcing (BPO) operations is crucial in today's competitive landscape. With the BPO industry growing rapidly, it plays a pivotal role in the Philippine economy. In fact, the sector is projected to contribute approximately $39 billion to the GDP in 2024, and is currently employing 1.8 million FTEs (full-time equivalents), making it one of the top contributors to the nation’s economic growth. This underscores the importance of strategic expansion in this thriving industry.

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However, the pressing question is: where should you expand? Location is paramount for several reasons. First, your chosen site must have an attractive labor pool to support recruitment and manpower needs. Second, it should offer competitive pricing on minimum wages, utility costs, and rental prices. Lastly, a location must have the complete IT infrastructure essential for seamless BPO operations.

With that in mind, here are our forecasts for June 2024 regarding the best locations for BPO expansion in Luzon.

Quezon City

Quezon City, the largest city in Metro Manila, boasts the most significant demographics in the region. With a population of over 3 million, it provides a vast labor pool. There is a huge untapped potential for the city, as a huge chunk of its workforce travel and work in major business districts like Ortigas, Makati, and Taguig. By expanding in Quezon City, BPO companies are ensured of a healthy supply of workforce and recruitment. The city has a strong supply of office spaces, with over 1.7 million square meters available as of 2024. Major BPO companies like Accenture, Concentrix, and Teleperformance have established operations here. The Quezon City government actively supports BPO businesses through initiatives such as streamlined business permit processes and incentives for technology investments. The LGU emphasizes its support for further development of the BPO industry in the city.?

Cavite

Cavite is Metro Manila’s gateway towards the South. It offers an attractive labor pool with numerous universities such as De La Salle University-Dasmari?as, Emilio Aguinaldo College, and Cavite State University. The province has a substantial supply of cost-friendly office spaces, with rental prices ranging from PHP 300 to 600 per square meter, significantly lower than Metro Manila's PHP 500 to 1,800 per square meter. PEZA-accredited buildings like CBC Asia Technozone, and Cavite Economic Zone provide additional incentives for BPO operations. Government projects like Cavitex and expressways improve connectivity to Manila, enhancing Cavite's appeal as a BPO hub.

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Clark, Pampanga

Clark is aptly referred to as the “The Northern Gateway” providing an attractive labor pool, particularly from nearby Bulacan and Pampanga. According to Clark Development Corporation (CDC), Clark is to be developed as a premier business and tourism destination. The working labor force in these areas supports robust BPO operations. Clark has a substantial supply of Grade A and B office buildings, with over 700,000 square meters available in 2024. Upcoming developments, including Rockwell Land's and Robinsons Land's projects, are set to further boost the area’s appeal. Unique to Clark is the Clark Development Corporation (CDC), which serves as a one-stop shop for business registrations and support services, simplifying the process for new businesses. Infrastructure projects, such as the Malolos-Clark Railway Project, PNR Clark Phase 2, and the Clark International Airport to New Clark City Access Road (ANAR), are also in development, enhancing accessibility to and from Manila.

Conclusion

Choosing the right location for your BPO operations is critical. It will dictate how your business will prosper in the coming years, affecting recruitment, operational costs, and overall success. With promising options like Quezon City, Cavite, and Clark, businesses can strategically position themselves for sustainable growth in the dynamic BPO landscape of the Philippines.