Business process outsourcing companies in the Philippines will sustain their expansion as they take advantage of the country’s vast talent pool, Colliers Philippines said in its latest market report.
Colliers said the BPO sector is a powerful driving economic force, first as a job generator and then as engine of growth in transportation, telecommunications, hospitality, and retail sectors.
The report underscored the contribution of the five largest business process management companies operating from the Philippines to revenue and employment generation.
It said with the Philippines continuing its path in supporting the demand of outsourcing companies, it would also sustain its stature as an ideal investment hub.
The report said among the biggest BPM companies in the country, Concentrix Philippines leads in terms of employment with 90,000 full-time employees. It is followed by Accenture Philippines with 72,000 FTEs; Teleperformance Philippines, 55,266; Alorica Philippines Inc., 55,000; and Sitel Philippines, 37,000.
Colliers said in terms of revenue, Concentrix generated $5.58 billion in 2021, including $1.34 billion that came from its Philippine operations. The top BPM firm expects a tightened global revenue rate of between $6.36 billion and $6.41 billion this year.
Accenture is also one of the biggest BPO companies in the Philippines specializing in providing IT services. The Dublin-based consulting company reported an annual revenue of $50.533 billion in fiscal year 2021 and $16.6 billion in the third quarter of fiscal year 2022, which ended on May 31, 2022.
Teleperformance is another BPM giant in the Philippines delivering digital integrated business service and experience management to clients. In 2021, Teleperformance reported a consolidated revenue of $8.4 billion in 2021.
Meanwhile, Alorica’s peak revenue was $2.4 billion in 2021, while the Sitel Group reported global revenue of over $4 billion in 2021.
Colliers said that based on the first-half of 2022 data, Concentrix had the biggest office footprint of 241,403 sq. m. in Metro Manila and 98,729 sq. m. in the provinces, with a total area occupied of 340,132 sq. m.
The company has significant investment in the provinces, particularly in Angeles, Metro Cebu, Davao City and Naga, taking advantage of the huge talent pool these locations provide.
Accenture ranks second in terms of office space occupied. The company has a total office footprint of 196,290 sq. m. based on Colliers’data. Of these, 167,868 sq. m. are located in Metro Manila and 28,422 sq. m. in Metro Cebu.
Teleperformance recorded an office footprint of 164,650 sq. m. in the Philippines, including 113,250 sq. m. in Metro Manila and 51,400 sq. m. in the provinces (Cavite, Baguio, Metro Cebu, Bacolod, Davao City and Cagayan de Oro).
Alorica has total office space occupied of 162,641 sq. m. including 127,293 sq. m. in Metro Manila and 35,348 sq. m. in Angeles, Metro Cebu, Davao City, and Ilocos Norte.
JPMorgan Chase & Co.’s BPO operations in the Philippines ranks 5th in terms of office space occupied. It occupies 102,650 sq. m. of leased space in Metro Manila and 22, sq. m. in Cebu City.