IT hub sets expansion

MANILA, Philippines - Major property developer Filinvest plans to piggyback on the strong growth of the “Next Wave Cities” (NWCs) – top destinations for business process outsourcing (BPO) in the country – by gearing up its Northgate Cyberzone in Alabang, Muntinlupa City for an expansion mode.

Currently, the 18.7-hectare property serves as home to five major BPO locators, namely HSBC, Genpact, Convergys, eTelecare, and APAC. The Business Processing Association of the Philippines (BPAP), the umbrella organization of BPOs, and the Department of Trade and Industry, recently listed Metro Laguna and Metro Cavite as the top two NWCs, citing the two locations’ workforce capabilities and untapped talent as main reasons.

To take advantage of this growth potential, Filinvest-owned Northgate Cyberzone unveiled its expansion plans that include two medium-rise buildings, which are now under construction. The buildings have a combined floor area of 40,000 square meters and can accommodate roughly 5,700 call center seats. In addition, Northgate Cyberzone has seven more buildings in the pipeline.

“Currently, we don’t see any decline in demand,” said Maricel Lirio, vice president and project group head of Northgate Cyberzone. “While there is a stable supply of spaces, there is definitely going to be need for more in the future.”

Despite growing concerns over diminishing BPO opportunities in the wake of the global recession and the US government’s plan to limit outsourcing offshore to keep jobs in the country, Philippine BPO executives are still bullish about a 23% revenue growth by the end of 2009.

Strategic location

Northgate Cyberzone, a PEZA-registered, master-planned IT and BPO hub located south of Manila, currently serves 20 major locators with a combined workforce of around 13,500. These locators consider Northgate Cyberzone’s strategic location as a “definite business advantage” because it’s outside the already congested Makati and Ortigas areas, said Lirio.

Strategically located at the gateway to the CALABARZON growth corridor, Northgate Cyberzone is accessible via five major converging roads: South Expressway, Alabang-Zapote Road, the old National Highway, and the upcoming Metro Skyway and Circumferential Road 6. This makes it within easy reach by people coming from various parts of Metro Manila and Southern Tagalog provinces.

“The area attracts more quality employees,” said Lirio. “Our locators noted that it’s easy to get manpower from these parts.”

Easy access

The Filinvest executive said Northgate Cyberzone is also well positioned to address BPOs’ growing concerns over the high attrition rate of employees as it provides proximity and easy access to major transport routes.

She cited the projected completion of the Metro Manila Skyway by late 2010, which is seen to boost the IT and BPO hub’s accessibility to other key business areas. The now operational South Station, Alabang’s terminal hub, already benefits BPO employees who commute to work. Northgate Cyberzone also boasts of a 24/7 shuttle service to and from the zone.

Another criteria on the BPAP report for NWCs include “relevant infrastructure,” PEZA registration, and “comparative costs,” all of which Northgate Cyberzone fulfills.