Sign up | Log in



Home>>Daily News>>philippines>>Economy>>BPO to drive PHL office space demand in 2018

NEWS UPDATES Asean Affairs   December 7,  2017  

BPO to drive PHL office space demand in 2018

 Despite a slowdown in leasing arrangements with business processing outsourcing (BPO) firms early this year, the sector will continue to drive office space demand in 2018, real estate consultancy firm Santos Knight Frank said Wednesday.

"It's still the BPO that will take lead in terms of the office space take up," Kash Salvador, associate director for Investment and Capital Markets at Santos Knight Frank, said in a briefing in Para?aque City.

A lot of BPO companies are interested in setting up shop in the Philippines next year, particularly in customer service and health care, Santos Knight Frank chairman and CEO Rick Santos noted.

"We're seeing a lot of new captives, new BPOs coming in the Philippines," Santos said.

The decline in office space take up by the BPO sector earlier this year has turned around with the release of Philippine Economic Zone Authority (PEZA) certificates for office buildings.

"All of these BPO companies still need the space they need to grow. It's just that the amount for viable space they can go into has been limited because of the little slowdown in the release of PEZA certificates for the upcoming developments," Salvador noted.

"Once the PEZA certificates become available then the building are completely filled. BPOs require PEZA spaces in order for them to fully enjoy the benefits," he said.

Locators in economic zones are given a zero value-added tax privilege.

A total of 946,782 square meters of leasable office space are expected to boost the current supply of around 4.5 million sqm.

"About 60 to 70 percent of take up is still by BPO," Salvador said.

Santos said the country's young labor force remains a key consideration by BPO companies to set up in the Philippines.

Even the potential impact artificial intelligence in replacing jobs will not be enough to disrupt the demand for office space.

"I don't think it will affect the office market for the BPO," Santos noted.

The Contact Center Association of the Philippines said it is studying how artificial intelligence may affect the employment of millions of call center agents in the Philippines.

The Department of Trade and Industry said the Philippines must prepare in case the demand for manpower declines with the arrival of artificial intelligence and other technologies.

"There will be some new technology that will need back office support," Santos said.

"With new technologies, new jobs will be created such as processors and IT (information technology) professionals. AI will be an opportunity to enhance the type of BPO here," he said.

The demand for office space by the BPO sector will continue to expand as technological innovations will increase the demand for jobs.

"With new technology developed, it would need more people," Santos noted. "As long as we continue to move up, we need to outsource jobs," he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

  Today's  Stories                         December November  7,  2017
• BSP monitoring economy for risk of overheating Subcribe: Asean Affairs Global Magazine
• PGN says acquisition of Pertagas initial step toward holding firm Subsribe Now !
BPO to drive PHL office space demand in 2018
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

China firms promise to invest $7B in Kingdom
Nissan, Honda recall cars to fix problems
Asean Analysis                  October 27,  2017
• Asean Analysis October 27, 2017
Southeast Asia from Scott Circle: Indonesian Presidential Politics Begins to Heat Up 18 Months before Elections
Advertise Your Brand

Asean Stock Watch   December 6 ,  2017

• Asean Stock Watch-December 6, 2017
The Biweekly Update
• The Biweekly Update  October 27, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand