Economy


BPOs to drive Davao City property, retail




Posted on December 08, 2015


DAVAO CITY -- Property services firm Jones Lang LaSalle (JLL) expects the business process outsourcing (BPO) sector as the major driver for continued growth in the city’s real estate industry.

Claro dG. Cordero, Jr., JLL associate director and head for research, consulting, and valuation, said BPOs have become a barometer for growth, citing as an example the National Capital Region.

Mr. Cordero said the recovery of Metro Manila’s property sector from the 1997 financial crisis was partly boosted by the demand for office space from BPOs.

Davao City, meanwhile, is now in the top three preferred provincial locations for outsourcing, he said.

“This will give rise to a lot of expansions of BPOs in Davao in the next few years,” Mr. Cordero said in an interview after his presentation during last week’s Asia CEO Forum in the city.

Davao City is considered the leading information and communication technology hub in Mindanao, attracting BPOs that operate call centers, provide medical transcription services, and back office outsourcing, among others.

Among the major BPO companies that have set up shop in the city are Sutherland Global Services, Concentrix Corp., Sitel Corp., VXI Global Solutions, Teleperformance Philippines, Inc., Convergys Corp., IBEX Global Philippines, and Expert Global Solutions Co.

IBEX Global site director Resi G. Cayabyab said the company chose Davao given the available facilities and manpower as well as investor support from the local government.

“In the BPO world, it’s very critical for us to have that great talent pool and local government support. The talent pool is very important in the BPO and we are hiring a lot,” Mr. Cayabyab said.

Mr. Cordero said BPO growth will also translate to an expansion in the city’s retail segment, particularly the development of more commercial and shopping areas.

“The reason why there is a lot of expansion coming from international retail, retail development or retail consumption is quite strong in the Philippines because of the growing factor of confidence (with the) presence of BPO companies,” he said. -- Maya M. Padillo