DICT creation to boost BPO office demand in Phl

MANILA, Philippines – Office demand in the country is seen taking a major boost with the recent signing into law of the measure creating the Department of Information and Communications Technology (DICT), real estate services firm Colliers International Philippines said.

In its recent report, Colliers Philippines said the new law sends the right signals not only to existing business process outsourcing (BPO) locators but also to other global players that intend to participate in the local outsourcing industry.

“The signing of the DICT bill into law completes the triumvirate of measures that will further drive the growth of the Philippine BPO sector. The previous pro-outsourcing measures enacted are the Data Privacy Act which protects consumers’ personal data and promotes trust and user confidence in electronic commerce and Cybercrime Prevention Act which protects the integrity of computers, communications systems, networks, and databases, and the confidentiality of information from all forms of misuse, abuse, and illegal access,” Colliers Philippines said.

“Colliers International Philippines is optimistic that the law will help attract more foreign investors into the local outsourcing sector,” the firm added.

According to the report, the local BPO industry has emerged as the main driver of office space demand in the country, growing around 10 percent to 15 percent annually.

With the continued growth of the industry, take-up for office spaces are likewise expected to pick up.

“The accommodating regulatory environment for outsourcing complemented by continuously improving global competitiveness should sustain the BPO firms’ growing appetite for office supply over the medium term,” Colliers Philippines said.

“The law’s provisions are developmental and supportive in nature, and not regulatory. This should dispel some sectors’ fears that a DICT law will only stifle the growth of the local outsourcing sector,” it added.

President Aquino on Monday signed Republic Act 10844 creating the DICT.

The new government agency is expected to address issues regarding information and communications technology, including Internet speed and online or electronic-related crimes.