Whilst economies around the world struggle with an ever-changing COVID-19 landscape, the Philippines BPO (Business Process Outsourcing) sector continues to rally, seeing a complete market recovery in Q2 2021; office-based staff members have once again risen to their highest levels since the outbreak of the pandemic.
Manila-based Real Estate Brokers, Leechiu, have conducted an independent study based on their office and commercial space demands, and released data showing that there has been a 68% increase in commercial space leasing, and with a high percentage of these spaces accommodating office workforces once more.
Leechiu CEO, David Leechiu, recently commented to PhilStar Global that;
“The Philippine office market appears ready to take off and resume its pre-pandemic growth trajectory. This brings the first half demand for office space numbers to 291,000 sqm, already the bulk of the entire 2020. This is already 75% of the demand for the entire 2020. There is no doubt that the Philippines is back on the radar of global occupiers,”
BPO Philippines shows unprecedented growth
In Q1 2021, the office market grew an unprecedented 160%, demonstrating the new intent of global businesses looking to develop remote global teams in the Philippines.
Despite a relatively quiet 2020 for the BPO industry in the Philippines, Leechiu, along with notable figures and CEOs in the BPO sector, is confident that the latest data shows that the BPO industry is back, with new BPOs such as Logix BPO filling the void left by organisations that fell into administration during the difficult pandemic months.
Leechiu stated, “The same fundamentals that attracted BPOs to the Philippines during the financial crisis of 2008 are once again working for us.”
Despite investor sentiment improving broadly across the BPO space, the Philippine Offshore Gaming Operators (POGO) was one of only a few BPO verticals that has experienced significant volatility; many POGOs left the Philippines through 2020 and 2021 due to heightened taxation complications which although disappointing has also pathed the way for new business to snap up market share.
With international borders predicted to loosen in Q1 2022, POGOs are expected to revive their office-based workforces and be stimulated by incoming foreign investments.
The resurgence of the Philippine BPO market and office-based workforces in Q2 2021 is a strong and clear indicator of recovery.
