How to Set Up Your BPO Office in the Philippines: Location, Costs, and Legalities
The Philippines has emerged as a global hub for Business Process Outsourcing (BPO), offering a talented workforce, competitive costs, and a government that actively supports the industry. If you’re planning to establish a BPO office in the country, here’s a comprehensive guide on location selection, cost considerations, and navigating legal requirements.
1. Choosing the Right Location
Your office location can significantly influence your operational efficiency and cost structure. Here’s what to consider:
a. Metro Manila
- Key Cities: Makati, Taguig (BGC), and Ortigas Center.
- Pros: Proximity to talent, modern infrastructure, and access to top-tier facilities.
- Cons: Higher rental costs and heavier traffic.
b. Metro Cebu
- Key Cities: Cebu City, Mandaue, and Lapu-Lapu City.
- Pros: Skilled workforce, lower costs than Metro Manila, and robust IT infrastructure.
- Cons: Limited office space options in premium locations.
c. Emerging Locations (Tier 2 and 3 Cities)
- Examples: Davao City, Iloilo City, Bacolod City, and Clark in Pampanga.
- Pros: Lower rental and labor costs, government incentives, and less congestion.
- Cons: Smaller talent pool and fewer direct international flights.
Tip: Choose locations that align with your target operations and client requirements.
2. Costs Involved in Setting Up a BPO Office
a. Office Space Leasing
- Metro Manila: PHP 800–1,200 per square meter per month.
- Regional Cities: PHP 400–700 per square meter per month.
b. Workforce Expenses
- Average salaries for BPO employees: PHP 15,000–35,000/month, depending on role and experience.
c. Technology and Infrastructure
- Internet & Communication: PHP 30,000–100,000/month for enterprise-grade connections.
- Equipment: PHP 30,000–50,000 per workstation for computers, desks, and chairs.
d. Utilities and Overheads
- Electricity, water, and maintenance: Around PHP 20,000–50,000/month, depending on office size.
e. Compliance and Other Fees
- Business permits, fire safety inspection certificates, and registration costs: Approximately PHP 15,000–30,000.
3. Navigating Legal and Regulatory Requirements
Setting up a business in the Philippines involves several legal steps. Here’s a simplified guide:
a. Register Your Business
- Sole Proprietorship: Register with the Department of Trade and Industry (DTI).
- Corporation: Secure registration with the Securities and Exchange Commission (SEC).
b. Obtain Necessary Permits
- Barangay Clearance and Mayor’s Permit are mandatory.
- Special Economic Zone Benefits: If located in PEZA zones, apply for incentives like tax holidays and duty-free importation.
c. Secure Employee Benefits Compliance
Enroll your employees in statutory benefits:
- Social Security System (SSS)
- PhilHealth
- Pag-IBIG Fund
d. Adhere to Labor Laws
- Follow the Labor Code, particularly on wages, working hours, and employee rights.
- Offer health insurance and night differential pay, as BPOs often operate 24/7.
e. Data Privacy Compliance
- Comply with the Data Privacy Act of 2012 to protect customer information.
4. Leveraging Government Support
The Philippine government actively supports the BPO sector through:
- Incentives: PEZA registration for reduced taxes.
- Training Programs: TESDA offers language and IT skill development for workers.
- Industry Associations: Partnering with organizations like IBPAP (IT and Business Process Association of the Philippines) for networking and resources.
5. Final Thoughts
Setting up a BPO office in the Philippines is a strategic move for businesses aiming to optimize costs while maintaining quality service. By carefully selecting the location, understanding costs, and ensuring compliance with legalities, you can build a robust foundation for your operations.
Whether you aim to cater to global clients or tap into the local market, the Philippines provides unmatched advantages as a BPO destination.
Boost your business! Ready to start your BPO journey? Let’s connect, and we’ll guide you through every step of the way.
