By Maya M. Padillo
Davao City remains on the top three overall offsourcing and outsourcing destination for Business Process Outsourcing (BPO) considered as major driver for property growth in the city, an official of the Jones Lang Lasalle (JLL), one of the leading firm offering financial and professional services, said.
Interviewed after his presentation at the recent Asia CEO forum at The Marco Polo Davao, JLL Associate Director and Head for Research, Consulting, and Valuation, Claro Cordero Jr. said he uses BPO as barometer of growth.
Cordero said Davao City is fast emerging as the leading ICT Hub in Mindanao that attracts more BPOs such as call centers, medical transcription, and Back Office Outsourcing (BOO). BPO companies that expanded include Sutherland, Concentrix, Sitel, VXI, Teleperformance, Con-vergys and IBEX Global that expanded in SM Lanang Premier.
The coming in of the BPO companies brings more job opportunities especially to fresh graduates. Cordero said the presence of BPO companies here have attracted investors to invest and bring developments in the city.
He said Metro Manila the property sector has recovered because of the BPO occupancy. He said in 1997 to 2003 financial crisis the property sector was zero growth. In 2004 the BPO companies started going to the Philippines and started filling up the spaces in Makati.
Cordero said existing players in Davao like include Filinvest currently doing a number of projects in Davao like One Oasis; Ayala Land is doing big as well like the Abreeza developments; Robinsons for the Cybergate Davao and residences and a lot more in Tagum area; DMCI and Megaworld are also doing their shares.
IBEX Global site director Resi Cayabyab said they have chosen Davao City as their main hub in Mindanao.
“In the BPO world it’s very critical for us to have that great talent pool and local government support. The talent pool is very important in the BPO and we are hiring a lot,” Cayabyab said.
In residential developments there’s the Vista Land and Lifescapes that plan to launch P500 million boutique hotel in 2016. Megaworld will expand its One Lakeshore Drive and Davao Park District, and Alsons will develop an investment corporation to be build in Ayala Land which is a joint venture for mixed use development.
Cordero said right now Davao ranks second in the first half of the year in retail shopping mall supply that is more than about 700,000. This was however overtaken by Cebu City with the opening of SM Seaside Cebu last week.
He said the spot will be reclaimed only if there’s a big retail development coming up in Davao.
“But Cebu has a lot of ‘bala’. Megaworld would be here anyway and Vista Land is also investing in Davao definitely it would be for the good of Davao City,” Cordero said.
He said other BPOs that are coming in Davao will definitely boost the city’s retail economy.
“The reason why there are lots of expansions coming from international retail and the main reason why retail development or retail consumption is quite strong in the Philippines is because now as a growing factor of confidence because of the presence of BPO companies in the area,” he said.
JLL is a financial and professional services firm that specializes in commercial real estate services and investment management. Their business is to create and deliver real value through commercial real estate for clients, shareholders and their own people.
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