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IT-BPM Sector Worries Over Rent and Utility Costs

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MANILA, Philippines – The anti-US alliance of President Duterte is not a bother for the Information Technology and Business Process Management (IT-BPM) sector, but the rent and utility costs.

Colliers International, a property consultancy firm, stated in a report that internet costs, rental fees, and electricity prices are more likely to serve as threats to the sector.

The BPO industry is affected slightly by anti-US tirade of President Duterte during the recent months. Apparently, this is because of the fact US is one of the top BPO sector investors in the country.

The Philippine Star interviewed executives of Philippine property and found out that the latter dismissed their concerns on anti-US remarks of the President.

Leechiu Property Consultants Chief Executive Officer, David Leechiu, stated that they are not concerned to PH-US ties issue as long as the demand side of the equation for the segment is not affected. Demand remains to be most important for the IT-BPM sector.

Robinsons Land Corp. Official Buildings Division General Manager, Faraday Go, stated that growth of BPO industry is preserved and clients are supportive of this.

Filinvest Group Head for Offices, Maricel Brion-Lirio, added that there is no big concern on latest political issues. Even DICT Secretary, Rodolfo Salalima, assured this to BPO companies. Until now, the segment is growing continually. Forecasts also include growth as the segment retains its collaboration with private and public sectors.

Colliers released a statement in a report titled “Nots and Bots”, which is written by Senior Market Analyst, Dino Macaranas. According to Colliers, the growth of the industry and office space demand is interlaced.

Office space demand also grows if the IT-BPM sector continues to expand, added by Colliers. Operational and product development efficiencies influence the business expansions in the country. Office space demand is expected to increase as corresponding full-time employees (FTE) grow in line with prominence of manpower in business processes. This is anticipated in up to a decade.

Colliers clarified that real estate developers and occupants should not disregard rental, electricity, and internet prices. These charges are more expensive in the Philippines than any country in the world.

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