BPOs eye provinces in hub & spoke strategy

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    PROPERTY consultant KMC Savills said global contact centers are looking at provincial sites for new office space as they adjust operations in a post-new coronavirus disease 2019 (COVID-19) environment.

    Michael McCullough, KMC Savills managing director, said contact centers are looking at spaces that can accommodate 100 to 500 seats  for their  “hub and spoke” operations.

    “They’re actively looking in provincial areas, a lot closer to where their employees live. They want their employees not to sit in transportation, not to take public transportation, to be able to get to the office very quickly,” said McCullough at a virtual briefing yesterday

    McCollough said KMC Savills data showed that for the first quarter of the year, Metro Manila only generated 36,000, square meters (sq.m.) of new supply, putting vacancy  at 5.5 percent.

    McCollough said an estimated 200,000 sq.m., of office space in Metro Manila will be freed up this year as renters give up office space.

    He said  Ortigas will have  a “ton of new supply coming up, particularly in 2021”  which will put a lot of pressure on rent and could put  vacancy rate to over 25 percent.

    At present though, almost all business districts such as Makati and Bonifacio Global City remain healthy, McCullough said, with vacancy rate currently at single digits.

    “(While) We talk about the BPO (business process outsourcing) market we really should talk about the KPO (knowledge process outsourcing) market, the shared services market (which) will most likely add headcount over the years,” he added