ILOILO City – The Information Technology and Business Process Management (IT-BPM) industry is a flourishing sector in Iloilo City.
Experiencing remarkable growth, it has become a key driver of economic transformation, creating thousands of job opportunities for Ilonggos and significantly boosting the local economy.
As of 2024, a total of 118 IT-BPM companies employing a total 47,200 full-time employees are operating in the metropolis, showing significant increase from 2014 with only 15 firms with 11,000 employees.
The number of BPO companies grew to 45 in 2015 (with 21,000 employees); 47 in 2016 (with 22,000 employees); 52 in 2017 (with 24,000 employees); 66 in 2018 (with 26,000 employees); 70 in 2019 (with 26,820 employees); 93 in 2020 (with 33, 000 employees); 100 in 2021 and 2022 (with 37,000 and 40,000 employees respectively); and 103 in 2023 (with 41,200 employees)
The booming sector includes Business Processing Outsourcing (BPOs), Knowledge Processing Outsourcing (KPOs), and shared services.
The number of indirect jobs because of this industry has reached 188,800 in 2024 from 44,000 in 2024, based on the data provided by the Local Economic Development and Promotions (LEDIP) Office.
Earlier, Mayor Jerry P. Treñas called on landowners to maximize the potential of their idle lands by developing them into buildings that can accommodate office and BPO spaces.
Treñas’ appeal follows insights on promising prospects for 2025 from David Leechiu, chief executive officer of Leechiu Property Consultants (LPC), who cites Iloilo as one of the three major markets outside Manila and Cebu in terms of office space.
In an interview with Market Edge, Leechiu noted that the demand in these markets, specifically Iloilo and Bohol, has outpaced supply, indicating a strong need for more office spaces.
“The need for more office spaces signals the influx of new companies that will bring with them thousands of job opportunities for Ilonggos. Such progress not only boosts our local economy but also enhances the quality of life for our residents by creating stable and high-paying employment options,” he added.
To recall, it was during the first term of Treñas as mayor that the Iloilo Federation of Information Technology in 2006 and Iloilo Economic Development Foundation Inc. (ILED) in 2007 were created to help Iloilo City push for investments in IT-BPM and achieve economic growth.
It was also in 2007, still during Treñas’ term that the first IT building in Iloilo City was declared as a Philippine Economic Zone Authority (PEZA) zone through Proclamation No. 1273 by then President Gloria Macapagal Arroyo.
Specifically located at SM City Iloilo, the center was occupied by the BPO company Teletech.
By 2009, Iloilo City was cited as among the Top 10 highlighted destinations in Asia-Pacific in terms of outsourcing boom, according to KPMG, a global network of professional services firms providing audit, tax and advisory services
Since then, an increasing number of BPO companies and other businesses started to relocate to Iloilo City.
The local government’s support, specifically under the visionary leadership of Mayor Treñas and his Uswag Iloilo direction collaboratively working with other stakeholders, has been instrumental in this growth. By maintaining favorable tax policies, ensuring peace and order, and providing a stable power supply, the city government has created an attractive environment for BPO companies to thrive.
Aside from its impact on the local economy and in the increase of employment rates, the BPO industry also helped boost related industries such as real estate, food, retail, and transportation.
THRIVING CAPITAL FOR BPO, GASTRONOMY
Charu Mae Tolato-Mendez, managing director of TruAlliant, an Iloilo-based BPO company, sees Iloilo City as a thriving capital for both the BPO industry and the food and beverage sector. Besides BPO, she and her partners ventured into the food business with Paluto Seafood and Grill Restaurant and Sari-sari Manokan located in Bito-on, Jaro.
“Iloilo has a strong talent pool of skilled, English-proficient professionals, making it ideal for outsourcing. The cost of living is also more manageable compared to Metro Manila or Cebu, allowing businesses to operate efficiently while offering competitive salaries,” she said.
TruAlliant is one of the BPO firms that continued to thrive even during the pandemic. Tolato-Mendez shared that this period marked a significant turning point for their company, as clients began to recognize TruAlliant for outsourcing.
“When COVID-19 hit, we housed over 100 agents, providing daily meals, beds, and other necessities for our agents and support staff. This was truly the turning point for TruAlliant; clients began to notice our company and chose to outsource to us,” she added.
To note, despite the challenges posed by the COVID-19 pandemic, BPOs in Iloilo City have continued to thrive. According to LCP, in 2020, Iloilo City led the country in BPO office space take-up, surpassing Makati, Ortigas, and Taguig. The city accounted for 48,000 square meters of the 191,000 square meters of office space taken up by the BPO industry nationwide.
Meanwhile, Tolato-Mendez praised Iloilo City’s rapid development, infrastructure improvements, business-friendly local government, and thriving consumer market.
“The support from the local government in terms of streamlining business processes and encouraging investments has been instrumental. Plus, Ilonggos value relationships and loyalty, which makes it possible to build a strong customer base for both BPOs and restaurants,” she noted.
“Iloilo has a rich food culture, and Ilonggos appreciate good food and quality service. A survey showed that Ilonggos don’t mind spending as long as the food quality and dining experience are superb,” she added.
Iloilo City’s sense of community and support for local businesses are also key factors. “If you offer something good, Ilonggos will keep coming back and recommend you to their family and friends. That kind of organic support is essential for any business,” she said.
STRENGTHENING INVESTMENT CLIMATE
Mayor Jerry Treñas has called on property owners, developers, and business organization leaders for a public consultation on proposed ordinances aimed at strengthening Iloilo City’s investment climate.
The proposals include granting real property tax (RPT) incentives for developers constructing buildings exclusively for business process outsourcing (BPO) operations.
As part of these proposed incentives, developers of buildings intended solely for BPO operations may qualify for RPT exemptions while their PEZA accreditation is pending. The incentive will be granted upon submission of the necessary documents and will have a maximum availment period of five years or until PEZA registration is issued, whichever comes first.
The proposed incentives are 100% tax reduction on the first year and second year; 75% reduction on third year; 50% reduction on the fourth year; and 25% reduction on the fifth year./PN
