Phl beats India, China as top global shoring location

MANILA, Philippines - The Philippines has again edged out India and China as the top global shoring location for corporations, based on a new report from multinational real estate advisor Jones Lang LaSalle.

The ranking was based on the number of jobs created resulting from investment by corporations in shared service centers, customer contact centers and technical support centers from 2008 to 2011.

The Philippines attracted 115 projects over the reference period, creating over 72,000 jobs; India drew in 105 projects creating 64,000 jobs; while China had 56 projects which resulted in 25,000 jobs.

According to the report titled “Onshore, Nearshore, Offshore: Still Unsure?,” the changing global economic landscape is impacting corporate strategy and location decision-making.

“The threat of recession, political uncertainty and rise of global emerging nations are causing international corporations to re-assess their location strategy. Companies are increasingly selecting from three ‘shoring’ options: onshore, offshore and near-shore,” it said.

Commenting on the decision companies face, Ian Mackenzie, head of solutions development for Jones Lang LaSalle in Asia Pacific said: “A longer term focus on improving business productivity, operational efficiency and future scalability is now driving corporate real estate decision-making, rather than straight cost-saves in the short term. Corporations are undertaking comprehensive and early initial business case and option analysis in designing their location strategies.”

“For Asia Pacific based corporations, a growing number are seeking the cost and productivity benefits associated with shoring, often sticking to offshoring or near-shoring options within the region. At the same time, in order for emerging nations such as India, Philippines, China, Malaysia to attract greater foreign direct investments greater transparency is needed, as well as access to quality labor and better location options,” he pointed out.

Lylah Fronda, associate director for Markets of Jones Lang LaSalle Philippines, added that they see first-hand that the Philippines continues to be the preferred choice for offshoring.

“A highly-skilled English speaking population, coupled with a responsive real estate market with the right infrastructure creates a perfect mix for companies that understand the efficiency of going abroad for many business processes and call center operations,” she said.

The Philippines recently ranked 87th among 141 countries in the Best countries for Business List by Forbes, beating China and India at 96th and 97th, respectively.