6 BPO firms to expand operations in Baguio

MANILA, Philippines - Six business process outsourcing (BPO) firms located in the Baguio City Economic Zone have expressed interest in expanding their local operations while an Indian company named Hinduja is considering opening a center in Baguio.

At the same time, exports in the Baguio City Economic Zone jumped 73 percent in the first quarter as foreign orders started pouring in after the financial crisis that hit most countries worldwide.

In an interview, zone administrator Dante Quindoza said operators of the BPOs have said they would like to expand their operations.

Meanwhile, Hinduja is mulling the possibility of opening a 1,500-seat BPO center in Baguio, Quindoza said, adding that the company is also considering Batangas and Iloilo as possible locations. “They are still looking at other cities,” Quindoza said.

He said there is no more available space in the 63 hectare economic zone in Baguio. Ecozone authorities were able to obtain an additional 6.5 hectares but the usable portion which is 4.8 hectares has been leased to Moog Controls Corp.

Camp John Hay has more than 280 hectares available for BPO centers. Quindoza explained that these areas cannot be utilized for manufacturing which brings in more employment.

Last year, employment in the zone reached 8,060. This year, he said it will breach the 9,000 mark as new jobs are expected to come in as companies recover from the worldwide slump in business.

The Ayala-owned Hillsford Property Corp. has broken ground last Thursday for its IT buildings and facilities. The Ayala building is expected to be ready for use in December.

Likewise, the Bases Conversion Development Authority (BCDA) has 280 hectares of land available for investment but these areas are mainly for tourism and not manufacturing.

Meanwhile, exports originating from the zone jumped 73.11 percent in the first quarter to $895 million from $517 million. Quindoza said 95 percent of the exports came from Texas Instruments. Last year, in spite of the global economic slowdown exports still grew to $2.86 billion from $2.74 billion a year ago.

He said they are optimistic that the positive trend will continue until the end of the year.