PHILIPPINE OUTSOURCING PRIMER

Transcription

1 PHILIPPINE OUTSOURCING PRIMER Q1 2012

2 SNAPSHOT OF THE PHILIPPINES The Philippines is an archipelago of 7,100 islands south of China in Southeast Asia. It became the first republic in Asia when it was ceded by Spain to the US (1898), the first to be decolonized partially by a Western colonial country (1935), and the first in Southeast Asia to be granted full independence after the Second World War following the Japanese occupation (1946). Because of its strategic location it has been a bridge between the East and West, a rampart of Christianity, and a showcase of democracy in Asia. The 21-year rule of Ferdinand Marcos ended in 1986 when a widespread popular rebellion forced him into exile. In 1992, the US closed its last military base on the islands. The Philippines has had five electoral presidential transitions since the removal of Marcos. Benigno Aquino III was elected to a six-year term as president in The Philippine Government faces threats from three terrorist groups. Decades of Muslim insurgency in the southern Philippines have led to a peace accord with one group and on-again/off-again peace talks with another. GEOGRAPHY Location Southeastern Asia, archipelago between the Philippine Sea and the South China Sea, east of Vietnam. Total Land Area Slightly larger than the US state of Arizona, the Philippines is an archipelago of 7,100 islands covering approximately 300,000 square kilometers composed of land area of 298,170 square kilometers and 1,830 square kilometers of water. Main Islands Luzon, Visayas & Mindanao are the three main island groups. Climate Tropical temperatures ranging from C. Two distinct seasons: Wet (June to October) & Dry (November to May). Time Zone GMT +8 Hours Average Flying Hours to Selected Locations New York 17:30 San Francisco 11:50 Los Angeles 12:00 London 14:00 Paris 16:40 Sydney 7:40 Tokyo 3:35 Hong Kong 1:20 Seoul 4:00 Singapore 3:00 Bangkok 3:00 Jakarta 4:25 Kuala Lumpur 3:30 Shanghai 2:20 PEOPLE Population Million (2011) 88.6 Million (2007 Census) Population Growth Rate 1.4% (2011) Age Structure (2011 estimate) 0-14 years: 34.6% years: 61.1% 65 years and over: 4.3% Population Density 321 persons/sq. km (2011) Labor Force Participation 64.3% (January 2012) Unemployment Rate 7.2% (January 2012) GOVERNMENT Country Name Republic of the Philippines Capital Metro Manila Political System The 1987 Constitution provides for a presidential system of government with a bicameral parliament and three (3) equal branches: executive, legislative and judiciary. Administrative Divisions 81 provinces and 118 chartered cities 2

3 ECONOMY The International Monetary Fund (IMF) estimated the Philippines' GDP at US$216 billion in The Philippine economy is the fifth-largest in ASEAN (after Indonesia, Thailand, Malaysia, and Singapore). It rebounded from the global financial crisis in 2010 and grew by 7.6 per cent, before growth halved to 3.7 per cent in Government underspending and a contraction in exports, including because of weak demand for electronics in the EU, Japan and the US, contributed to the slowdown. The World Bank and IMF estimate the Philippine economy will grow by 4.2 per cent in 2012, on the back of an improvement in exports, acceleration in private investment, and a full recovery in government spending. The macro-economic fundamentals for the Philippine economy remain strong. Inflation and interest rates are low and the currency is stable. Overseas Filipinos' remittance income, which accounts for more than 10 per cent of the Philippine economy, remains remarkably resilient and continues to support domestic consumption. Business Process Outsourcing, an increasingly important driver of the economy, has grown tremendously in recent years. The Philippines now rates behind only India in a sector that has diversified beyond call centres. The Government has shown a commitment to economic reform which has the potential to open up areas for economic cooperation in both trade and investment. Currency Unit Philippine Peso (PHP) Currency Exchange Rate US$1=PhP42.69 (April 2012) Business Hours Typically from 8:30 AM to 5:30 PM (Private & Gov t Offices), 9:00 AM to 3:00 PM (Banks) GNP growth rate 5.8% (1Q 2012) GDP growth rate 6.4% (1Q 2012) Inflation 2.6% (March 2012) DOING BUSINESS IN THE PHILIPPINES PARTICIPATION IN PHILIPPINE BUSINESS CORPORATIONS There are 3 basic forms of business organizations in the Philippines: sole proprietorship, partnership and corporation. Of these, the corporation is generally the most appropriate vehicle for investments in the Philippines. Subject to nationality requirements pertaining to the intended activity, Philippine law allows foreign investors to establish and register a joint venture corporation, a subsidiary, a branch office, and/or a representative office. Corporation: Under Philippine law, 5 or more persons (but not exceeding 15) may incorporate a domestic corporation for any lawful purpose. A majority of these incorporators must be Philippine residents. The board of directors may be composed of not less than 5 but not more than 15 members. A majority of the members of the board of directors must be Philippine residents. Each director must own at least 1 share of the capital stock of the corporation in his own name. A corporation must have a president who is a director of the corporation. It must also have a treasurer and a secretary. The secretary must be a resident and a citizen of the Philippines. As a matter of policy, the Securities and Exchange Commission (SEC) requires the treasurer to be a resident of the Philippines. A foreign corporation may establish a Philippine subsidiary that has a legal personality separate and distinct from its parent company. The requirements to register a domestic corporation apply to a subsidiary. Branch: A branch is an extension of a foreign enterprise and has no separate and independent legal personality. It can carry out the business activities of the head office and may derive income from the Philippines. Representative Office: A representative office deals directly with the clients of its parent company within the Philippines. However, it 3

4 may not derive income from the Philippines. It is fully subsidized by its head office. It undertakes activities such as, but not limited to, information dissemination and promotion of the company s products as well as quality control. Enterprises Registered with the Philippine Economic Zone Authority (PEZA) The Philippine government has established several special economic zones (Ecozones) where call center/bpos may establish their businesses and register with the PEZA as an Ecozone IT Enterprise. An IT Enterprise is a company engaged in any of the following activities: software development and application, including programming and adaptation of system softwares and middlewares, for business, media, e-commerce, education, entertainment, etc.; IT-enabled services, encompassing call center/bpos, data encoding, transcribing and processing; directories; etc.; content development for multimedia or internet purposes; knowledge-based and computer-enabled support services, including engineering and architectural design services, consultancies, etc.; business process outsourcing using e- commerce; IT research and development; and Other IT related service activities. Tax and other Incentives As a general rule, the Ecozone Enterprise is still entitled to the income tax holiday which may be for a duration of: 4 years for Non-Pioneer IT Enterprises; or 6 years for Pioneer IT Enterprises. The PEZA guidelines do not define Pioneer or Non-Pioneer Enterprises. In practice, PEZA only considers activities involving new technology or technology untried in the Philippines as the standard for determining Pioneer Enterprise status. Thus, call center/bpos currently registered under PEZA are considered Non-Pioneer Enterprises. Upon the expiry of the income tax holiday, the Ecozone Enterprise is subject to a preferential rate of 5% of gross income. This is in lieu of all national and local taxes. Because an IT Enterprise is also considered an Export Enterprise, it is further entitled to the following incentives: zero-rate Value-Added Tax on export sales; exemption from duties and taxes on importation of merchandise, raw materials, supplies of equipment and machineries, including importation of capital equipment, construction materials, specialized office equipment and furniture, specialized vehicles and other transportation equipment, professional instruments and household effects; tax credit for import substitution; exemption from wharfage dues, export tax, import or fee; additional deduction for training expenses; tax credit on domestic capital equipment, breeding stocks and genetic materials; additional deduction for labor expense; unrestricted use of consigned equipment; and employment of foreign nationals in executive, supervisory, technical and advisory positions, provided, the total number of foreign nationals employed by an Ecozone Enterprise shall not at any time exceed 5% of its work force. Post Registration Requirements Briefly, after a company registers with the SEC, it must comply with the following postregistration requirements before it can commence operations: Securities and Exchange Commission (SEC) The company must register its stock and transfer book with the SEC. Bureau of Internal Revenue (BIR) The company must register with and obtain a Tax Identification Number from the BIR. Depending on the activity it is engaged in, it may have to register as a Value Added Taxpayer. The books of account of the company (a ledger and a journal and other subsidiary books as may be required, as well as its invoices and official receipts) must be registered with the BIR. Social Security System (SSS) An employer in the Philippines must register with the SSS. Employees and employers contributions, by way of premiums, should be remitted to the SSS to fund security and state insurance benefits. 4

5 Philippine Health Insurance Corporation (Philhealth) All private sector employees are required to register with Philhealth. Employers and employees contributions, by way of premiums, should be remitted to Philhealth to fund the National Health Insurance Program. Home Development Mutual Fund (HDMF) The HDMF is a housing fund established by the Philippine government. An employer in the Philippines must register with the HDMF. Employees with salaries of at least Php4,000 and their employers should remit their contributions to the HDMF. Bureau of Trade Regulation and Consumer Protection (BTRCP) The company should register its business name or style with the BTRCP to enable it to advertise or otherwise publicize its presence in the Philippines. Municipal Permit The company is required to obtain a permit from the municipality or city where its office is located. Philippine Board of Investments The Omnibus Investments Code provides a host of incentives, fiscal and non-fiscal, to preferred areas of investments. Systematic procedures are set in to help local or foreign companies or business projects to register easily. Registered projects are granted a host of incentives such as: income tax holidays; tax credits; tax and duty exemption for imported raw materials and equipment; hiring of foreign labor; exemption from contractors tax; simplified customs procedure; and other tax incentives depending on their category. MANPOWER RESOURCES The Labor Code of the Philippines contains the laws on employment relations and labor standards. Some of the important employment conditions and employee benefits are as follows: Basic Employment Conditions Hours of Work: Eight (8) hours per day or 40 hours per week. Rest periods of short duration during work hours shall be counted as hours worked Work Day: A day is the 24-hour period which commences from the time the employee regularly starts work. Daily Minimum Wage: Metro Manila PhP (US$9.98) Other areas: Baguio City: PhP (US$6.37) Pangasinan: PhP (US$5.81) Dumaguete and Cebu province: PhP to PhP (US$6.09 US$7.14) Laguna, Batangas, Cavite: PhP to PhP (US$5.97 US$8.20) Iloilo and Bacolod: PhP (US$6.21) Cagayan de Oro City: PhP to PhP (US$6.35 US$6.70) Davao City: PhP (US$6.70) *(US$1 = PHP42.69 as of April2012) Overtime Remuneration: Overtime premium is allotted for work exceeding the maximum prescribed period. The rates per hour for overtime work vary but the standard overtime rate for a regular day is 125% of the rate/hour. Night-Shift Differential Pay: Night-shift employees must be paid a differential of not less than 10% of the regular wage for each hour of work performed between 10:00 PM and 6:00 AM Service Incentive Leave: Every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five (5) days with pay Meal and Rest periods: One-hour for regular meals Mandatory Employment Contribution time-off 13th Month Pay: By law, companies are required to give its employees a 13th pay equivalent to one (1) month salary Social Security System: As mandated by law, both employer and employees are to contribute for social security benefits of the employees based on the scale of compensation 5

6 National Health Insurance Program: As mandated by R.A on Medicare Program which is administered by the Philippine Health Insurance Corporation, both employers and employees are to contribute for medical insurance/benefits of the employees Home Development and Mutual Fund: Companies/employers are also required to contribute at least PHP100 per month to HDMF for employee benefits. Companies/employers remit this contribution plus that of the employees which will be deducted from their payroll, in accordance with the remittance schedule provided by the HDMF. Attrition Rates Non-Captive Centers: 35-40% Captive Centers: 25-30% Employee Wages 1- Customer Service Representative (with or without experience in the call center industry) - P13,000-16,000 (basic) plus night differential (differs depending on company), benefits, food/transpo allowance, etc 2- Team Leaders- P25,000-35,000 (basic) 3- Operations Managers - P50,000-80,000 (basic) 4- Trainers - P20,000-35,000 (basic) 5- Training Manager - P35,000-50,000 (basic) 6- HR Director, CFO and other Director level positions- P180,000-P250,000 (basic) 7- Managing Director, GM level - Php400,000 (minimum) TELECOMMUNICATIONS Telephone Land Lines Subscribers: Approximately 6.7 Million (2010) Mobile Phone Subscribers: Approximately 79.9 Million (2010) Telephone System: General assessment: good international radiotelephone and submarine cable services; domestic and inter-island service adequate Domestic: domestic satellite system with 11 earth stations International: 11 international gateways; satellite earth stations - 3 Intelsat (1 Indian Ocean and 2 Pacific Ocean); submarine cables to Hong Kong, Guam, Singapore, Taiwan, and Japan Telephone & Mobile Service Providers: PLDT and Smart Digitel and Sun Cellular Globe Telecom Eastern Telecoms Bayantel Internet Users: Approximately 29.7 Million (2010) Monthly Cost of Bandwidth: US$ 2,000 to 4,000 Electricity UTILITIES Service Provider: The Metro Manila Electric Company or MERALCO serves as the major provider of electricity in Metro Manila. Industrial Customers Basic Charge based on typical (in US$) consumption levels Small Industries 4,000 to 12,000 kwh US$0.07 to 0.10 per kwh Medium Industries 20,000 to 60,000 kwh US$0.09 to 0.11 per kwh Large Industries* 60,000 to 180,000 US$0.09 to 0.11 per kwh Very Large Industries* 400,000 to 1.2 million US$0.09 to kwh 0.12 per kwh Extra Large Industries* 2 million to 6 million kwh US$0.09 to 0.12 per kwh 6

7 *Note: Very Large Industries are customers with demand of 2MW but less than 10MW, and Extra Large customers with demand of 10MW and up. Water Service Providers: Maynilad Water Services serves the western part of Quezon City, Caloocan, Malabon, Navotas, Manila and western part of Makati and Pasay Manila Water Company serves the eastern part of Makati, Pasig, Taguig, Pateros, Muntinlupa, Las Pinas, Paranaque, eastern part of Quezon City, Markina, Mandaluyong, San Juan and Valenzuela Residential Rates (in US$) December 2006 First 10 cubic meter Residential-$0.60 In excess of 10 cubic meter TRANSPORTATION Mode of Transportation The public sector takes the bus, taxis and jeepneys which ply major routes in Metro Manila. Light Rail Transit / Mass Rail Transit This is the most efficient way of going around Metro Manila. The LRT runs along Manila North to South. The MRT runs along EDSA. For a cheap price you can get a ride and get off in one of the many stations. Trains depart on 15-minute intervals on ordinary hours and 5-minute intervals on rush hours. Basic Transportation Fare Residential-$0.25 to 0.26 per cubic meter Industrial & Commercial Rates (in PhP) First 1000 cubic meter PhP6 to 16 In excess of 1000 cubic meter PhP8.50 to 18 per cubic meter Jeepney: P8.00 first 5 kilometers (increment of P0.50 per additional kilometer) Taxi fare: P40.00 flag down rate (increment of P3.50 per additional 300 meters) LRT: P12.00 P15.00 (increment of P1.00 per 4 stations) MRT: P10.00 P15.00 (increment of P0.50 per station) Major Roads EDSA Avenue - While not technically a highway, this major road stretches across Metro Manila passing through several cities and municipalities. Major traffic is expected any time of the day. Rizal Avenue - 2 lane road dominated by the Light Rail Transit system (Elevated train) and the jeepneys (Public transport). It stretches along Manila starting from the North (Caloocan City) and ending at the central commercial district before the Pasig River. MacArthur Highway - starts from Caloocan City, where Rizal Avenue ends, and stretches all the way beyond the edge of northern Metro Manila. Roxas Boulevard - Runs along Manila and Pasay City. Most picturesque as you get to see Manila Bay. Roads here are generally wellmaintained. Ayala Avenue the major road that cuts through the Central Business District of Makati City. Airport The Ninoy Aquino International Airport (NAIA) serves as the international airport located south of Makati. The Manila Domestic Airport on the other hand is located in Pasay City. Seaport The Manila North and South Harbor serve as International/Local seaports CORPORATE REAL ESTATE Basic information on leasing an office space is provided to prospective companies looking to lease facilities in Manila. While this provides a broad range of useful information in giving initial guidelines, companies are advised to consult a professional corporate real estate agent to discuss other terms and conditions associated with leasing corporate space. A representative from the CBRE Corporate Services team will be happy to assist you. Useful Information Central Business District (CBD): Makati City 7

8 Prime & Grade A Office Supply: 8,318,602 square feet (772,817 sq.m.) vacancy at 3.43% for Prime and Grade A Ortigas Center Grade A Supply: 5,493,335 square feet (510,533 sq.m.); vacancy at 3.72% for Grade A Alabang Total Supply: 1,459,088 square feet (135,603 sq.m.); vacancy at 0.41% for Grade A Eastwood City and UP Ayala Technopark Total Supply: 3,792,265 square feet (352,441 sq.m.); vacancy at 2.73% for Grade A Bonifacio Global City & McKinley Hill Total Supply: 5,875,961 square feet (546,093 sq.m.); vacancy at 1.74% for Grade A Building Classifications: Premium, A, B, and C Short Term Lease: Typically three (3) years Long Term Lease: Typically five (5) years Required Security Deposit: Three (3) months office rent refundable at the end of the lease period. Required Advance Rental: Three (3) months applicable to the last three months of the lease term Succeeding Rents: Quarterly in Advance Grade A Headline Rents: Makati City PHP831.00/Sq.M./Month (US$1.81/Sq.Ft./Month) Ortigas Center PHP586.00/Sq.M./Month Quezon City (US$1.27/Sq.Ft./Month) PHP569.00/Sq.M./Month (US$1.24/Sq.Ft./Month) Fort Bonifacio PHP753.00/Sq.M./Month Alabang (US$1.64/Sq.Ft./Month) PHP537.00/Sq.M./Month (US$1.17/Sq.Ft./Month) Rental Payment Classification: Net Rent - electricity, water, air-conditioning costs, insurance, association and building management fees are for Tenant s account. General Hand-Over for Fitted Condition: external walls/partitions acoustic ceiling standard allocation of lighting fixtures air-conditioning ducts sprinkler system, fire hose cabinet, fire extinguisher and smoke detectors Space Measurement: Leaseable or Semi-Gross area which measurement is taken from internal finished surface of permanent walls and from internal finished surfaces of dominant portions of the permanent outer building wall. Included in the area are areas occupied by window mullions, window frames, structural columns, engaged perimeter columns or areas occupied by additional facilities specially constructed for individual tenants such as lift lobbies, passage ways, toilet areas, pantry and cleaners, cupboard and any similar useable area. Excluded are all stairs, elevator shafts and motor rooms and all vertical shafts carrying services. Typical Useable Floor Areas: Grade A: 10,760 to 18,830 square feet for traditional high-rise office buildings. Office buildings designed specifically for call center/bpos, business process outsourcing companies, and back office functions, which occurred mainly in the past two years, tend to offer floor plates of 16,140 Sq. Ft. up to 26,900 Sq. Ft. Grade B 7,532 to 10,749 square feet Parking Allocation 1 slot per 1,076 square foot leased Building Management Dues: Covers cost of building maintenance of common areas, staff salaries and normal hours of air-conditioning operations, subject to annual review. Makati City Grade A Grade B PHP187/Sq.M./Month (US$0.40/Sq.Ft./Month) PHP147/Sq.M./Month (US$0.31/Sq.Ft./Month) 8

9 Ortigas Center Grade A Grade B - PHP152.5/Sq.M./Month (US$0.32/Sq.Ft./Month) PHP95/Sq.M./Month (US$0.20/Sq.Ft./Month) still the preferred locations as shown in the chart. Eastwood City Grade A - PHP90/Sq.M/Month (US$0.19/Sq.Ft./Month) METRO MANILA: THE CALL CENTER/BPO HUB Metro Manila, also known as the National Capital Region, is the country's capital and considered the nation's gateway to the world. It is geographically defined by sixteen (16) cities and one (1) municipality, namely the cities of Manila, Quezon, Caloocan, Makati, Marikina, Mandaluyong, Las Piñas, Pasig, Muntinlupa, Malabon, Valenzuela, Pasay, Parañaque, Taguig, San Juan and Navotas and the municipality of Pateros. It remains as the country's major commercial, financial and educational center and the heart of the country's national government. It accounts for 30% of the nation s economy. The metropolis lists several trading centers and shopping malls including the Ayala Center, Greenbelt Shopping Center, Landmark (Makati), the SM malls in Mandaluyong, Quezon City, Las Pinas and Manila, Robinson's malls in Pasig, Manila, Las Pinas; Rustan's Department Stores, Festival mall, Trinoma and the Tutuban Center. Recent additions are major commercial centers such as The Fort Bonifacio Business Park and the Rockwell Center in Makati. Metro Manila is also home to the major financing institutions including the Asian Development Bank (ADB). There are 38 universal and commercial banks, 83 thrift banks and two (2) specialized government banks to date. Metro Manila can be called the call center/bpo hub since most of the call centres / BPOs totaling to more than 460 are located here with more than 600 sites. Makati and Ortigas Center (and vicinity) are Metro Manila hosts 309 higher educational institutions, 1,784 elementary and secondary schools. Popular educational institutions such as the Asian Institute of Management (AIM), University of Asia and the Pacific (UA&P), University of the Philippines (UP), Ateneo de Manila University (AdMU), University of Santo Tomas (UST) and De La Salle University (DLSU) are among the few that can be found here. These institutions provide the pool of labor where call center/bpos usually source their employees. PROSPECT OF THE OUTSOURCING INDUSTRY IN THE PHILIPPINES Philippine government has been very aggressive in promoting the country as the next call center/bpo and business process outsourcing (BPO) hub. As a matter of fact, several government agencies such as Board of Investment (BoI) and Philippine Economic Zone Authority (PEZA) have been very generous in granting incentives to all locators in the country and has also done their share in aggressively promoting the industry together with other private sector groups. The Business Processing Association of the Philippines (BPA/P) was established in July 2004 to promote the outsourcing prowess of the Philippines and to ensure the industry s continued growth and competitiveness. From call center/bpo services, business processing 9

10 work, animation, graphics, design, engineering, transcription and software development, our country is poised to be the outsourcing hub of the world. Based on reports, there are approximately more than 638,000 employees in the call center/bpo industry at the end of The outsourcing industry in the Philippines, especially the call centers and BPOs, is the fastest growing sector in the country today. The industry has witnessed a significant increase in capacity with the demand being continuously dominated by US companies. Inquiries from US based companies are still strong and a number of Indian companies are also starting to locate in the country. These companies see a number of advantages to locating in the Philippines. One of the plus factor for most call center/bpos is the steady supply of highly educated labor force who view contact center work as a career job and therefore produces lower attrition rates compared to other countries. Add to this the labor pool s fluency and proficiency in American English. There is also accessible technology and infrastructure in the country. Metro Manila is still the outsourcing center in the Philippines. However, the country is witnessing a geographical diversification of call center/bpo locations. This is due to the availability of labor force and the friendly business environment of provinces being extended to these companies. With available infrastructure complimentary to such companies and additional local government incentives, these provinces such as Cebu are proving to be good choices for call center/bpos secondary and additional sites. As a matter of fact, Cebu is the second most popular destination of BPO companies next to Metro Manila. In addition to the success of the call center/bpo industry, there are increasing amounts of Business Process Outsourcing companies providing medical transcription, legal transcription, data transcription, animation, software development, engineering design, and digital content services to their clientele base. The Philippines has been actively competing with the likes of India and China for the bulk of BPO work. NEXT WAVE OUTSOURCING CITIES IN THE PHILIPPINES METRO LAGUNA: Best place for IT-BPO operations outside Metro Manila and Metro Cebu. Metro Laguna is within a two-hour drive to the Ninoy Aquino International Airport (NAIA) in Metro Manila. It has good roads, excellent power and telecommunications infrastructure, good labor pool, and PEZA accredited sites. METRO CAVITE: Emerging urban center outside Metro Manila. Metro Cavite is close to Manila s high-density university belt and labor force. Rental rates are lower than Metro Laguna. ILOILO CITY: Most cost-efficient city. Iloilo City has the lowest average wage, rental and power rates among the next wave cities. DAVAO CITY: More than a million people. Davao City is the only city outside of Metro Manila with over a million residents and has an ample labor pool. It also has IT-BPO facilities ready to be leased at reasonable rates. BACOLOD CITY: Best business envorinment. Bacolod City has a sufficient supply of PEZA accredited leasable space. METRO PAMPANGA: Best infrastructure. Centered on the Clark Freeport Zone, Metro Pampanga s benefits includes an international airport, world-class infrastructure with reliable and redundant power and telecommunications and lifestyle amenities. BULACAN EAST and WEST: Manila s northern neighbors between bustling hubs. Bulacan is transected by two major north-south highways and is less than two hours away from two international airports (Manila and Clark). CAGAYAN DE ORO CITY: Most costcompetitive city. Cagayan de Oro has the cheapest power rates among the next wave cities, and also has the lowest rental and wage rates. LIPA CITY: Proven host with potential growth. Lipa City boasts of a good road network and telecommunications infrastructure. 10

11 CALL CENTER/BPO SITE DISTRIBUTION MAP (NCR)

12 CALL CENTER/BPO DISTRIBUTION LOCATION MAP (Philippines) BAGUIO (11) PAMPANGA (26) Digitel Stream Teletech METRO MANILA (980+) CAVITA, LAGUNA, BATANGAS (28) ACS Convergys SPI Teletech RIZAL (6) CEBU (80+) ILOILO CITY (11) E-PLDT Ventus Teletech Sutherland DAVAO CITY (19) Stream Global Services Sutherland Global Synnex Concentrix Corp BACOLOD (14) Convergys Teletech TelePerformance DUMAGUETE (2) Teletech SPI Technologies CAGAYAN DE ORO (4) Synnex Concentrix Corp. Disclaimer: The information contained in this document has been obtained from sources believed reliable. While all reasonable care has been taken to ensure the reliability of such information at the time of this document s release, we make no representation as to its accuracy and completeness. This document is solely for the benefit of CBRE clients. Neither CBRE nor any of its officers or employees accept any responsibility for any direct or indirect loss or damage arising from any use of this document and its contents. CB Richard Ellis Philippines, Inc