Top 5 reasons why multinationals are locating in the PH
Western businesses with Philippine offices may have a huge competitive advantage over their non-remote office peers. The available tax cuts, rewards, and numerous other benefits offered by the Philippine government make establishing an overseas office easier than ever.
It’s little wonder that more and more international companies are locating in the Philippines including Google, Viber, Thomson Reuters, Palo Alto Networks and many more. Said Google of its move, “The Philippines is a key country in Southeast Asia in terms of its digital economy and tech-savvy population. This new office will allow us better engage with our local users, partners and advertisers.”
Of course, companies evaluate overseas opportunities differently. Century Spire Offices, a major new office project in Metro Manila, rounds up what it considers to be the top 5 reasons in the Philippines is one of the best places to establish a remote office outside the US and Europe:
- FAST GROWING BPO INDUSTRY
The Philippines has come a long way since the first contact center was established in the Philippines in 1992. A look at a timeline of its revenue milestones will reveal that it is the fastest growing sector in the country. It generated a whopping $8.9 Billion 2010, $11 Billion in 2011, $15 Billion in 2013, and is projected to reach $21.2 this 2015. In terms of projections, it is seen to reach $25 Billion in 2016 and as much as $28.1 Billion by 2017. By then, the sector could potentially surpass the remittances that OFWs have traditionally raked into the country and comprise another 10% of the country’s GDP. Clearly, conditions that allow such growth and at such pace are the most ideal for any BPO company to take advantage of.
- HIGH WORKFORCE COMPETENCY
The Philippines has one of the largest English-speaking workforces in Asia. In terms of doing business, there’s nothing better than fluid communication between local employees and their western counterparts. Filipinos are also among the most highly-educated, skilled, and accomplished people in the world. This brain trust and talent pool is a globally prized resource.
- BOOMING ECONOMY
According to the National Economic Development Authority (NEDA), the latest Philippine GDP growth figure is 5.6% – a remarkable growth rate by one of South East Asia’s most resilient and promising economies. This is evidenced by the many credit rating upgrades, a raft of new infrastructure, and an expanding middle class. The Philippine economy is alive and well, even performing better than its Asian neighbors.
- GENEROUS TAX BENEFITS
The Philippine government is very friendly to foreign businesses. The Philippine Economic Zone Authority (PEZA) is a government agency that helps investors and businesses facilitate and establish their operations in the Philippines. Through a location’s PEZA accreditation, businesses can benefit from operational savings, tax benefits, and a range of other fiscal and non-fiscal incentives.
- LARGE MULTINATIONALS ARE ALREADY HERE
Check out the big names of those who have already located:
- Palo Alto Networks
- Crown Worldwide
- Procter and Gamble
- Thomson Reuters
- IBM Daksh
- JP Morgan Chase Bank
- Deutsche Bank
- Hewlett Packard
- Coca Cola Far East
BONUS: LESISURE & VACATION SPOTS ARE WITHIN DRIVING DISTANCE
With 7,101 islands the Philippines is a magnificent and diverse archipelago, known worldwide for its stunning beaches, festivals, and sumptuous food. Many of these attractions are just a few hours’ drive from the capital’s central business districts. It’s a good place to be able to step back occasionally and enjoy the warm sunshine and gorgeous countryside.
Clearly, setting up a remote office in the Philippines is a worthy endeavor. Palo Alto Networks says their move to the Philippines “underscores our decision to strengthen (our) presence in the Philippines to address growing demand for Palo Alto Networks enterprise security offerings in the market.”
NASDAQ OMX, in a bid to better serve its Investor Relations customers (which span over 60 countries), opened its Manila branch in 2014. “This new opening boosts our presence in the region, while giving us a prime opportunity to leverage local talent and technological service expertise that is so highly-regarded in Southeast Asia,” said Robert Fröjd, Managing Director, NASDAQ OMX South Asia, Southeast Asia & Pacific.
Ready office space is available but the demand is strong. One of the most recent and appealing office buildings currently under construction is Century Spire Offices in Makati (the Philippines’ financial capital).
Designed by the acclaimed Daniel Libeskind, and interior designed by Armani/Casa, it’s one of the more dynamic and exciting spaces to rise in the Philippine capital. Units range between 60sqm to 150sqm.
Also, as a PEZA-accredited development, the building is highly favorable to IT-enabled services such as business process outsourcing, call centers, data encoding, software development, media (E-commerce, education, entertainment, etc.) and others.
Learn more about Century Spire Offices and how you can prepare to locate in one of the best pro-business countries in the world. ADVT.
“Google opens Philippine office,” Rappler, http://www.rappler.com/life-and-style/technology/20259-google-opens-philippine-office, (January 24, 2013)
Jose Bimbo F. Santos, “Security corp Palo Alto Networks opens Philippine office,” http://www.interaksyon.com/infotech/security-corp-palo-alto-networks-opens-philippine-office, (April 28, 2015)
“NASDAQ OMX Opens New Office in Manila, Philippines,” Nasdaq, http://ir.nasdaq.com/releasedetail.cfm?releaseid=826457, (February 18, 2014)
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