Cheap office space keeps BPO firms in the Philippines
Consultancy firm Prime Philippines said it would be hard for US President-elect Donald Trump to bring American business process outsourcing (BPO) companies back to the United States, even with tax incentives. The reason, according to Prime Philippines Managing Director Jettson Yu, is that the US cannot best the salary and the office space rental rates in the Philippines. Yu said cheap office rents will prevent US-based BPO firms from leaving the country. Prime Philippines data also showed that office space demand remains robust, with firms in the BPO and information-technology (IT) sectors accounting for 31.17% of occupancy. Yu said that even if the US government will give tax incentives and other benefits to returning US firms, it will be hard for Trump to bring back US BPOs to the United States.
