Outsourcing has been the bone of contentment of many large scale and small scale investors, especially from foreign countries. The sudden growth of the outsourcing market paved way to a huge number or increase in employment and is still growing. Number of employed people have grown exponentially that within a decade of operation, in the Philippines, the increase in employment have multiplied by approximately 40% and still growing. Back in 2006 this number have grown and became stable, meeting and sustaining its growth. Recently, the end of 2010 marked the outsourcing business’ “Goal Met” status, employing more than a million people, which was originally set to be just under a million.

Key Cities and Business Hubs

These are the major factors where any type of business will grow. In the outsourcing world, major or key cities generally attract investors largely due to location and accessibility that comes with it. First tier cities like Metro Manila and
Metro Cebu, in the Visayas region are generally considered the most promising to establish a site. Their dense population and nearness to commercial market gives it a huge consideration. Business hubs and economic zones are the next in line and are generally considered to be a place that can meet the goals similar to what the first tier cities can provide. Because of higher cost on, say for example, leasing a site or building, investors tend to look for a greener pasture, not so overcrowded but can sustain and meet the same needs their company is asking. That is where these second or third tier cities and economic zones comes into play.

Clark Economic Zone: The Future is Here

There are many reasons why we can safely say that the future of outsourcing is in Clark. With the aforementioned major factor about the number of headcounts for workforce and the accessibility, this economic zone greatly outnumbers or can be ranked to be somewhat similar to first tier cities. With its latest development, along with the recently passed government mandate, to basically allow foreign investors, Clark started to gain the momentum to attract and allow investors to come.

Factors for Growth

As always, and always will be, there were things to consider for an investor to think before setting foot to his watering hole. First and foremost, will my business grow in this place?, how much will I be investing here?, will the business expand in this place?. Basic inquiries that are crucial, especially for starters who has a lot to risk and less to afford. Accessibility is one of the essential factor for a business to grow and expand. Clark recently has developed and modernized the Diosdado Macapagal International Airport and the modernization put it in the A-class and as one of the best airports in the world, according to the recent international review. Another thing to consider is the on-going Northrail project, a part of the state-owned railway system, which will basically carry and transport goods from Southern Luzon going North and vice versa cutting the time frame for travel and less traffic. Another essential factor is the workforce. Number and skills or knowledge of people that can be employed must meet the requirements the companies need. Places like Angeles City and the towns around Pampanga are places teeming with fresh graduates. That all being said, the place also offers the most affordable overhead cost for employees as well, approximately $250 to $350 per.

Outsourcing in Clark

The growth of different types business and as well as business process outsourcing is a major breakthrough and assistance to Philippine economy. The development and restructuring of Clark Economic Zone along with the increasing number of investors are providing the National economy a huge favor. As Clark opened its doors for investors particularly huge outsourcing companies like Sutherland Global Services Inc., NCO, Teletech, Stream Global Services and many other, it also opened a door of opportunity for employment.

Future Expansion

The location of Clark favored by the number of people living around the area is a ground for business expansion. The staggering rate of 40% increase in employment and still growing, directly gives the market a steady and sustainable number to achieve. The fiscal and non-fiscal government mandate regulating BPO companies to operate in the country, the on-going development of the larger 27,600 hectare sub zone, against the 4,400 main zone is being set to stage to be converted and to accommodate high-end IT enabled industries like BPO or BPO-related industry , logistics related enterprises like UPS, LBC Express and Air 21 which are likely already operational. Clark Development Corporation which was created, in 1993, to revive the former, then abandoned, Clark Air Force Base, is still carrying out developmental projects like this up to date. Some $500 million was already reported, currently, as net worth generated by investments as foreign investors pour in.