Cebu takes bulk of BPO expansions in 2022

CEBU, PHILIPPINES — Around 60% of Business Process Outsourcing (BPO) expansions in 2022 were made in Cebu, said property investment firm Colliers Philippines. 

During its Q42022 market briefing, Colliers revealed that 221,100 square meters (sq.m.) of office deals last year were made outside Metro Manila. 

Aside from Cebu, Davao also sealed 17% of BPO office transactions last year, followed by Pampanga (12%), Bacolod (3%), and Dumaguete (3%).

‘In our view, some of these firms have been expanding outside Metro Manila due to attractive rents as well as the availability of high-quality office spaces and skilled manpower,” experts at Collier’s said.

Among the notable deals made in Cebu last 2022 were Wipro, Concentrix, and Avant Offices. Meanwhile, Alorica had expanded to Davao, Ubiquity in Bacolod and Laguna, and Pampanga gained deals with Asurion and Infosys.

As for this year, Colliers expects the completion of about 380,000 sq.m. of new office space in Cebu, Pampanga, and Iloilo from 2023 to 2024.

Colliers Philippines also believes that cities such as Cebu will remain popular among outsourcing firms planning to expand operations outside Metro Manila.