BPO expansion outside NCR to contribute more wages

MANILA, Philippines — The business process outsourcing (BPO) industry is seen to raise its P300-billion wage contribution this year as investors plan to accelerate hiring in areas outside Metro Manila.

Property experts from Cushman & Wakefield and Leechiu Property Consultants (LPC) said BPO firms would push through with their plans to put up new projects, as well as expand their operations, once the government manages to contain the spread of the coronavirus.

LPC executive director for commercial leasing Phillip Anonuevo said BPOs contribute as much as P300 billion in wages annually, and they may just increase this total in 2021 with the hiring of new agents in the countryside.

“Let’s say an average salary of about P18,000 a month, the entire industry pays its employees roughly around P250 billion to P300 billion every year. That is the impact of outsourcing jobs to the Philippines, to our economy,” Anonuevo said in a webinar hosted by Alveo Land.

“BPOs are always looking to other parts of the country for employing people, and that’s just the nature of their industry. They need to keep hiring thousands and thousands of employees every month,” he said.

Last year the BPO industry had to temper its acquisition of new talents due to the pandemic, but still added some 20,000 workers and now employs 1.32 million from 1.3 million in 2019.

Claro Cordero Jr., head of research, consulting and advisory services at Cushman & Wakefield, said new BPO investors look to locate in the Philippines this year, but they are held back by the government’s failure to control the local outbreak.