Companies around the world—including a rapidly growing number in the Philippines—are becoming increasingly cost-conscious and are now open to the idea of outsourcing their facilities and premises, according to an official of international office space provider Regus.
This is especially true for companies that want to send temporary staffers to certain countries to test out new markets or work “in country” on project bases without having to absorb the full cost of long-term leases for office space, said Regus regional vice president William Willems.
“[The cost of] premises account for up to 34 percent of a company’s fixed costs,” he said, explaining the rationale for firms engaging his firm’s services for outsourced office space. “Of this amount, about 60 percent is attributable to rent or leases.”
Because of this, Willems told the Inquirer that many companies nowadays are looking for increased levels of flexibility, wanting to avoid being tied up in office space lease contracts that run for several years.
At the same time, some firms need top-tier office space for only a minimal number of staffers, but don’t want to rent large locations from buildings within Metro Manila’s central business districts.
“If you want to go to a grade A building in Makati or The Fort, you will not be able to find locations of 30 to 50 square meters,” he said. “Maybe you can get 150 square meters, minimum. In Bonifacio Global City, they don’t sell space for less than 250 square meters or one-fourth of a floor.”
“It doesn’t make sense to rent all that space if you only need an office in a good location for five people,” Willems added. “So for small setups, people will come to us.”
He noted, however, that large multinational corporations like petroleum giants also engage Regus’ office services whenever they send over technical personnel to the country to work on oil and gas exploration projects.
A similar requirement is filled by the firm for business process outsourcing companies that, on occasion, require “overflow space” when engaging additional contact center clients on short notice.
Willems said that, given the high overhead costs associated with setting up office facilities, Regus’ prepackaged office solutions are a cost-effective alternative for many international and local companies.
At present, Regus has four office locations around Metro Manila—their flagship branch at The Enterprise Center in Makati City, the Philam Tower also in Makati, the Net Cube 3 building in Bonifacio Global City and the Oakwood serviced apartments building in the Ortigas Center.
Two other locations—the Net Lima building in Taguig and the Zuellig building in Makati—will open before yearend.
In all, Regus in the Philippines has over 8,000 square meters of office space available for its long- and short-term clients with over 1,400 seats. Seven video conference facilities are available at these locations and a total of 20 meeting rooms.
Willems envisions Regus to have as many as 15 office locations in the Philippines by the end of 2013, possibly including one in Cebu City.