MANILA: The economic slowdown in the United States is likely to boost the Philippines' outsourcing industry. The country is aiming for a 10 percent share of the US$130 billion global market.
Round-the-clock construction work of new office buildings is sweeping across the Philippines.
At McKinley Hill, 15 hectares has been set aside for an information technology park, which will house business process outsourcing (BPO) offices costing almost US$260 million.
Investments like these have led international real estate services firms to dub the Philippines as the hottest real estate market in Southeast Asia.
Vice-chairman of CB Richard Ellis Philippines, Joey Radovan, said: "Our neighbours in Asia right now, the property value is actually very high compared to the Philippines. We are probably three to five times cheaper in terms of space."
Outsourcing firms now account for more than 60 percent of the office spaces in the central business district of Makati.
With the current economic slowdown in the United States, more and more companies are now turning to outsourcing to save on costs. That is why the Philippines' outsourcing industry is confident it will earn at least US$7 billion in 2008, a 40 percent increase from last year.
The Philippines is seeking to corner a 10 per cent share of the US$130 billion business process outsourcing global market by 2010.
First vice-president of Megaworld Corporation, Jericho Go, said: "Despite what has been happening globally, they continue to have customers so if they won't be able to service that from the US because costs are prohibitive, then they have to look for a cheaper or a more affordable area to outsource, and certainly the Philippines is on top of the list."
The government has established the Philippine Cyber Corridor initiative to encourage more offshoring and outsourcing firms to set up shop in other regions.
CEO of Processing Association of the Philippines, Oscar Sanez, said: "The Philippines is global number two now in BPO and I think not many are aware of that. We would like to think that we are part of the solution in this whole issue of slowdown. We are in fact offering the Philippine solution.
"Consider the Philippines in your strategy, and the strategy of the company will be how to survive in this whole environment where costs are being challenged and the revenue targets continue to be very stringent."
One of the industries that the country is targeting now is the engineering services outsourcing global market, which is worth US$100 billion.
The Philippines also wants to take advantage of the growth of the real estate industries in the Middle East and Europe.
CEO of Environments Global, Antony Zubiri, said: "We're doing a township in the Middle East. We're doing a mall in Europe. We're doing housing projects and building complexes in Australia. It is our vision to be able to establish the Philippines as the destination for design process delivery worldwide."
The government is hoping to generate 1.5 million jobs by 2010 with the growing demand for business process outsourcing in the country.
- CNA/yt
Round-the-clock construction work of new office buildings is sweeping across the Philippines.
At McKinley Hill, 15 hectares has been set aside for an information technology park, which will house business process outsourcing (BPO) offices costing almost US$260 million.
Investments like these have led international real estate services firms to dub the Philippines as the hottest real estate market in Southeast Asia.
Vice-chairman of CB Richard Ellis Philippines, Joey Radovan, said: "Our neighbours in Asia right now, the property value is actually very high compared to the Philippines. We are probably three to five times cheaper in terms of space."
Outsourcing firms now account for more than 60 percent of the office spaces in the central business district of Makati.
With the current economic slowdown in the United States, more and more companies are now turning to outsourcing to save on costs. That is why the Philippines' outsourcing industry is confident it will earn at least US$7 billion in 2008, a 40 percent increase from last year.
The Philippines is seeking to corner a 10 per cent share of the US$130 billion business process outsourcing global market by 2010.
First vice-president of Megaworld Corporation, Jericho Go, said: "Despite what has been happening globally, they continue to have customers so if they won't be able to service that from the US because costs are prohibitive, then they have to look for a cheaper or a more affordable area to outsource, and certainly the Philippines is on top of the list."
The government has established the Philippine Cyber Corridor initiative to encourage more offshoring and outsourcing firms to set up shop in other regions.
CEO of Processing Association of the Philippines, Oscar Sanez, said: "The Philippines is global number two now in BPO and I think not many are aware of that. We would like to think that we are part of the solution in this whole issue of slowdown. We are in fact offering the Philippine solution.
"Consider the Philippines in your strategy, and the strategy of the company will be how to survive in this whole environment where costs are being challenged and the revenue targets continue to be very stringent."
One of the industries that the country is targeting now is the engineering services outsourcing global market, which is worth US$100 billion.
The Philippines also wants to take advantage of the growth of the real estate industries in the Middle East and Europe.
CEO of Environments Global, Antony Zubiri, said: "We're doing a township in the Middle East. We're doing a mall in Europe. We're doing housing projects and building complexes in Australia. It is our vision to be able to establish the Philippines as the destination for design process delivery worldwide."
The government is hoping to generate 1.5 million jobs by 2010 with the growing demand for business process outsourcing in the country.
- CNA/yt
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