Bohol map. | File photo
CEBU CITY, Philippines – Bohol province continues to position itself as a promising destination for investors in the information technology and business process management (IT-BPM) sector.
Jie Espinosa, country head of the global real estate services and investment firm CBRE, said that major IT-BPM companies are now considering the possibility of setting up shop in Bohol, particularly in Tagbilaran City.
“Our goal is to be able to create value for our clients and be able to generate as much growth for the Province [of Bohol] as well,” said Espinosa said during a Stakeholders Engagement Meeting held at the Bohol Capitol Session Hall on Monday, July 7.
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“This is the first time that we are really engaging a local government unit so that we can better promote the province and the city to our clients,” he added.
The meeting was organized by CBRE and the provincial government through the Bohol Economic Development and Investment Promotion Office (BEDIPO), the provincial government said in an advisory.
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Also in attendance were officials of the Bohol Chamber of Commerce and Industry (BCCI), Bohol ICT Council, existing IT-BPM locators, telecommunications companies, local developers and realtors, and national government agencies like TESDA and DICT.
Potential destinations
In his message, Governor Erico Aris Aumentado said CBRE’s visit was a valuable opportunity to introduce the province to key players in the IT-BPM sector that has been a key driver of Bohol’s economic development.
“Your expertise in helping companies find the right spaces in the right locations is crucial, and we are eager to work with you in exploring how Bohol can meet the growing demand for business solutions and office space in the ICT industry, as well as in other potential sectors,” Aumentado.
Espinosa said that while major city centers like Metro Manila and Cebu continue to take a lion’s share of IT-BPM office spaces in the country, other cities are also beginning to emerge as potential destinations for investments in the sector.
Quoting data from the IT and Business Process Association of the Philippines (IBPAP), CBRE reported that Metro Manila remains the top IT-BPM destination in the country. The five “Tier 1” provincial locations are Cebu, Iloilo, Bacolod, Davao, and Pampanga.
Next Wave Cities
Aside from these provincial locations, there are also areas dubbed as “Next Wave Cities” or areas that are ‘not yet there’ in terms of maturity, but are emerging as next destinations for IT-BPM.
Tagbilaran City is listed as one. Other Next Wave Cities include Metro Rizal, CALABA (Cavite, Laguna, Batangas), Legazpi, Naga, Roxas, Tacloban, Zamboanga, and General Santos.
“A lot of the BPO companies that we represent have been asking about Bohol, because much like Iloilo and Bacolod, there is a very promising amount of labor pool that they can tap here outside of Cebu,” Espinosa said.
BEDIPO reported that there are currently four locators in Bohol — Ibex, TaskUs, Sagility, and Genpact — employing about 5,000 Boholanos.
“We are looking to push whatever info we get here to our other BPO clients looking for provincial locations. And we’re looking for more traction for Bohol and Tagbilaran in particular,” Espinosa said during Monday’s meeting.
Challenges
While prospects for more investments are high in Bohol, Espinosa said there are also challenges that the local government and property developers have to address in order to attract more locators.
For one, Espinosa said that real estate should be readily available for locators to establish themselves in the province.
A way to address this, he said, is to produce more flexible office spaces that will allow IT-BPM companies to come in on a test-run basis before they decide to eventually build their centers in the province.
Jam Macalino, CBRE Head for Property Management, said IT-BPM companies typically need at least 2,000 square meters of office space that may later on be expanded to several floors. Other minimum building requirements include 100 percent backup power and multiple telco points.