The business process outsourcing industry in the Philippines has continued to thrive amid the challenges the COVID-19 pandemic has brought. A large chunk of the economy’s growth is attributed to the sector, which contributes over 11% to the country’s gross domestic product, thanks to the approximately 1.4 million workers under its belt.
The pandemic has driven the remote or hybrid work structure as part of the new normal, and it looks like the work model is here to stay. Coworking spaces are an excellent solution for many employers and employees looking for a suitable working space to allow their creativity to flourish without spending too much on office space rent. In this blog, we’ll discuss how shared offices or coworking spaces could help BPO startups sustain their business.
BPO Industry in the Philippines during the Pandemic: A Snapshot
When the Philippines, along with the rest of the world, imposed strict lockdown measures in March 2020 in a bid to combat the deadly COVID virus, the BPO industry was among the first ones to implement fully remote work options for its employees.
Over two years later, the country’s BPO sector is operating at an average ratio of 64% remote work and 36% working on-site. According to data from the IT and Business Process Association of the Philippines, some BPO firms operate on 90% to 100% remote working arrangements.
The Philippines closely comes second to India as the top player for outsourcing services. Among the BPO players in the country focus on:
- Call centers or customer service centers
- Software development
- Game development
- Engineering design
- Animation and voice talents
- Medical transcription
- Back-office tasks
- Virtual assistants
BPO in the Philippines: Post-pandemic Plans
Data from IBPAP shows that the country’s BPO sector logged $29.49 billion in revenues in 2021, that’s 10% higher than the revenue it logged in 2020 and amid continued headwinds brought by the pandemic. Headcount in 2021 also saw a hike by 9.1% as around 120,000 jobs were added as the need for artificial intelligence, business automation, and cloud services increased. Talents were also in demand for other areas, such as social media management, omnichannel communication, and data-driven analytics.
IBPAP expects 2022 revenue to grow between 8% to 10% and headcount to go up 7% to 8% from 2021’s recorded workforce of 1.44 million. The recently-elected administration targets to create 1.1 million new jobs by 2028 amid calls for a permanent work-from-home setup within the BPO sector.
The future of the BPO companies in the Philippines is very bright. Also, this is one of the services that aspiring technology entrepreneurs could easily start. With companies embracing the remote work culture more, BPO industry in the Philippines is only bound to scale up.
Benefits of Coworking Spaces for BPO
Now that lockdown restrictions continue to be minimal, the Philippines is slowly rebounding from gaining investors left and right. Startups that might have lost momentum during the pandemic are starting to get back on their feet.
Coworking spaces provide small businesses, freelance workers, and other independent contractors a conducive area to get work done. These shared offices allow them to network with other potential partners and clients and participate in their local business communities without spending a hefty amount on office leases.
Here are some benefits of coworking spaces for your BPO startup:
Cost-effectiveness
Cost efficiency is crucial to a growing business. You want to focus the financial aspects of your startup on bolstering the operations, and a traditional office setup can hinder that.
Startups have fewer employees than corporations, and utilizing coworking spaces reduces their worry about down payments, administrative tasks, utilities, and other expenses.
From an employee standpoint, working in a shared office space rids you of energy bills, especially during the summer months when the sun is ready to scorch.
Fosters collaboration and networking
One significant benefit of shared office spaces is the potential to be surrounded by like-minded people, cultivating a community that can lean on each other’s expertise.
For instance, one side of the office space is occupying a fintech startup, and the other is running a graphic design firm. The former could tap the latter to collaborate on marketing materials, a great example of networking.
Flexibility
The shortest lease will usually be a year if you rent a traditional office space. A startup business locked in a lease is an expense you can get rid of by renting a coworking space.
Coworking spaces have low overhead fees and come with many free perks, like business use of business addresses, security, and more. A BPO shared office space also fosters networking, where you can land a new client or a new talent.
Coworking spaces usually run on monthly lease options, with many property owners giving discounts and packages to long-term renters. Serviced offices cater to short-term renters, with some working daily or weekly.
Shared Office Space Recommendations for your Start-up BPO
If you are on the hunt for shared office space in Metro Manila, then check out M Spaces. Situated in the heart of Ortigas, M Spaces is your go-to shared office option for your remote work setup.
You can choose between renting private offices and meeting rooms, which offer flexible spaces, modern interiors, and fully furnished amenities to help you fuel productivity and creativity. You can even help yourself to unlimited coffee in the pantry!
At M Spaces, you don’t have to worry about year-long leases because of its flexible lease options. You can redirect your focus to growing your start-up business without worrying about mounting property costs. It’s the perfect office space for rent in Ortigas.
Want to learn more about M Spaces? Shoot us an email at mspacesph@gmail.com or visit our website. You can also reach us by calling 5328-5300 or 09175439349. Check out M Spaces on Facebook and Instagram to get a glimpse of their office spaces and meeting room offerings.
