Business Process Outsourcing is probably one of the biggest industries in the Philippines nowadays. It is thriving and has become more attractive in many reasons that the foreign BPO investors are eager to invest more for company expansions. Most of the call center buildings can be found in Metro Manila but it seems congestion has taken the place appended with the rising labor cost.
Given the rising expenses and overcrowding in Manila, foreign BPO investors are now eyeing for next wave cities for their ventures. A joint study conducted by the Business Processing Association of the Philippines (BPAP) and Department of Science and Technology (DST) has revealed the 10 next wave cities for BPO industry. According to the researchers, the main factors in identifying these cities are workforce and the location’s suitability for hosting IT-BPO business.
- Davao City
- Sta. Rosa, Laguna
- Metro Cavite
- Lipa, Batangas
- Cagayan de Oro
- Malolos, Bulacan
- Baguio City
- Dumaguete, Negros Oriental
If you notice, Pampanga is not on the top list but there is no doubt that it is also one of the great venues for BPO business.
Why Pampanga is a Good Outsourcing Location?
Clark is located in Pampanga.
- Clark is a special economic zone. This just means that duly-registered businesses that are located in Clark can enjoy tax and duty incentives, saving foreign BPO investors more money.
- Ventures that choose to relocate in Clark are given “generous” tax breaks by the Philippine government.
- The corporate income tax of businesses is equal to only 5% of their gross profits.
- Clark has a territory of a total of 4,400 hectares main zone. (2,200 hectares for Diosdado Macapagal Airport) It has more than enough space to cater to additional businesses.
- 4-8 year income tax holiday for qualified ventures
- 100% foreign ownership and company control
- security and excellent road and rail network within the Clark Freeport Zone
- new building, state-of-the-art amenities, world-class infrastructure, prime location and E-Z global access
- Clark is a former military base which managed to keep adamant security facilities in and around boundaries of the zone.
- CFZ has 42 kilometers of concrete perimeter fencing
- The Philippine Air Force Base is located in Clark. It grants further support to CFZ’s capacity to assure peace, security and safety which are paramount to any healthy workplace.
Pampanga offers high numbers of competent workforce.
Advantage: It is given that most Filipinos can speak and write excellent English. If a company employs high skilled and efficient workers, success is definitely on their way.
Pampanga has enough infrastructures to support BPO businesses. Inside Clark are several call center companies who employs tens of hundreds of workers around Angeles City, San Fernando, Mabalacat, Porac Pampanga and other nearby locations.
Foreign BPO investors have the confidence that Pampanga can cater to any facilities or amenities needed by a call center company.
Pampanga, compared to Manila, has lower labor costs. BPO investors tend to save money without the need of sacrificing quality labor.
Cost-effectiveness is the main reason why BPO investors are attracted to invest in the Philippines. Building or relocating a call center company in Pampanga will maximize the potential of every investment made.
It’s far from Manila’s congested scene.
Suitable IT-BPO hubs are all over Pampanga especially in Clark Freeport Zone. The Department of Trade and Industry (DTI) and the Commission on Information and Communications Technology (CICT) have recognized Clark Freeport Zone because of its competence to host information and communication technology matters, particularly to call centers. CFZ was given a score of 9.23 out of 10 since it satisfied the majority of essential requisites required by information and communication technology locator.
Such requirements are:
- Incentives given
- Vendor support
- Telecommunication amenities (with dual, redundant pipeline internet)
- Power and transportation infrastructure
- Real estate
- Local government units and society’s support
- Availability of workforce vital for such industries to grow
These are the benefits foreign BPO investors can get in establishing their outsourcing business in Pampanga, specifically in Clark Freeport Zone.
World’s Best Country in Business English
The Philippines was recently named the world’s best country in business English proficiency. The report was released last April by GlobalEnglish Corporation’s Business English Index (BEI) which happens to be the only index that evaluates business English proficiency in a work environment. This merit just adds to the basis why it is more beneficial for investors to outsource in the Philippines.
The Philippines has definitely advanced into an international BPO leader where the most efficient and skilled workforce, cutting edge technology and infrastructure can be gained without the need for a huge investment cost. When it comes to business outsourcing, this country is, indeed, the ideal place to go.