Growing KPO market to spur homebuilding outside Metro Manila
Philippine Daily Inquirer, 01-12-2013
Knowledge Process Outsourcing (KPO) is now an emerging sector
that promises to provide long-term jobs for intellectual,
analytical and knowledgeable people with pay scales much higher
than that offered in the business process outsourcing sector.
Regarded as a one-step extension of BPO, a KPO will be dependent
on the skills, domain knowledge and experience of the people
carrying out the activity-experts providing, for example,
information technology or information technology-enabled services,
legal processes or research, intellectual property and
patent-related services, Web development application, CAD/CAM
applications, engineering services, business research and
analytics, including clinical, publishing, or market research.
"In today's competitive environment, focus is concentrated on
core specialization and outsource the rest of the activities. Not
only costs are minimized and efficiencies improved but the total
business improves because the focus shifts to the key growth areas
of the company's business activity," said Melo Porciuncula, Capital
Markets and Business Operations head of KMC MAG Group.
KMC MAG Group is a commercial and residential real estate
services provider that furnishes knowledge process outsourcers
their own offshore corporate services here; represents tenants
wanting to locate not only in Metro Manila but in other major urban
centers of the country; provides capital market support as well as
extends residential real estate services.
"In a few years KPOS will give our doctors, engineers, MBAs,
lawyers, biotechnologist, economist, statistician and architects
reasons not to go out of the country while foreign representatives
of these multinational firms to set up residence here. This will
further spur housing boom," said Porciuncula whose firm is
providing residential needs to its foreign clients with outsourcing
"The Philippine government realizes the importance of the KPO
industry in its ability to retain the country's many skilled
graduates, as well as cultivate creative abilities of an
artistically gifted population and has dedicated its full support.
The government's efforts seem to be working as the country may
likely attain investment grade status this year as its strong
economic growth and better finances make it more attractive and
less risky for those who would place their bets on the country," he
Currently, the world's top three credit rating agencies, namely
Fitch Ratings, Moody's Investors Service and Standard and Poor's
Ratings Services rated the Philippines as just a notch below
Such current rating, as well as a possible upgrade, would mean
that the cost of borrowing-especially from foreigners-would fall
while at the same time, would be beneficial to big companies that
"This is also good news for those locations far from Metro
Manila as a strong peso would mean outsourcers are now moving out
of city centers and into the provinces, where there are lower
electricity, lower labor costs (which offsets the stronger peso).
As result those highly skilled people living in the outskirts will
no longer have to move far from their homes," Porciuncula said.
He sees Cavite and Laguna areas to benefit from the development
happening at Filinvest Corporate City in Alabang as well as in Sta.
Regarded as the "Makati of the South," Sta. Rosa City is now
home to several high-quality infrastructure and world-class IT BPO
office campuses, high-end residential communities, industrial
estates and lifestyle amenities.
Another fast developing area is Davao City, which was ranked
first in a list of 10 "Next Wave Cities" for the BPO industry
released by the Business Processing Association of the
The report noted Davao City as No. 1 in terms of talent
availability, infrastructure and cost as it has a workforce of
400,000 (about 13,000 new graduates are added every year), and the
fact that nonagriculture minimum wage is P5,390 a month, 8 percent
lower than Metro Cebu and 36 percent lower than Metro Manila.
Aside from Davao City, Porciuncula added Clark Freeport Zone as
another attractive destination as it now enjoys three-way global
connectivity, a link from fiber-optic cable network to satellite
transmission system and microwave uplink services needed to set up
an international call center.
Additionally, the freeport zone has a 116-MW power plant
supplying the national grid and is currently working to have a
switch for this plant that will ensure continuous and steady power
supply (for the freeport zone) should the grid go down.
"Indeed, the Philippines is fast establishing itself as a
leading destination in the global KPO market. Expect the property
market to hit new highs in the coming years," he noted.