Concentrix looks at next wave BPO cities to support client demand

Concentrix Corp., the global business process services company, is looking at expanding in second tier cities in the Philippines to meet the growing demand from clients, especially after its parent firm acquired IBM's customer care unit.

 

"Right now, we have more clients requesting for ramp up and so we're making sure we have enough space for this and our organic growth of our clients," Concentrix vice president and general manager Junar Amador told reporters in a briefing in Makati City.

 

"They need more people, they need more cost effective operations, they need specific language that can be delivered in specific regions and we see Philippines as a major source for this expansion," he added.

 

Last September, California-based SYNNEX Corp., the parent of Concentrix, bought IBM’s worldwide customer care services business for $1.2 billion. 

 

SYNNEX will fold the IBM unit under Concentrix starting February 1, expanding Concentrix to about 45,000 employees servicing over 300 clients in more than 40 languages through over 50 delivery centers in six continents.

 

Before acquiring IBM, Concentrix has over 5,000 employees in the Philippines, or half of its 10,000 seats worldwide.

 

Amador said expanding to new areas and growing the number of workforce is a natural progression to grow a business.

 

"So we're looking at new wave cities on how we can leverage their capabilities and what they can offer so that we can also meet the requirements of our clients," he said.

 

With that, Concentrix is setting up a group called Strategic Initiative for Emerging Delivery Centers to look at second wave cities not only in the Philippines but also in other countries.

 

"Here in the Philippines, there's a lot of new wave cities being promoted by IBPAP (Information Technology and Business Process Association of the Philippines) and we're looking at all those places," Amador said.

 

Concentrix currently has offices in Metro Manila, Cagayan de Oro and Davao, while IBM has offices in Metro Manila, Davao, Cebu, Pampanga, Laguna and Naga.

 

Manila ranked the second most important place for business process outsourcing, and next wave cities outside Metro Manila improved in the Tholons Top 100 Outsourcing Destinations for 2014 released last week.

 

In May 2013, the Department of Science and Technology and IBPAP named 10 more next wave cities for BPO including Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, Metro Bulacan, Metro Cavite, Metro Laguna, Metro Naga and Metro Rizal.

 

In 2012, the list included Davao, Bacolod, Sta. Rosa City, Iloilo City, Metro Cavite, Lipa City, Cagayan de Oro, Malolos City, Baguio City and Dumaguete City.

 

"We don't have a specific location at this point but I think Naga is one area that we can expand because it is already existing and the human capital pool is really very good," Amador said.

 

In the first quarter, Concentrix is opening a new site in Quezon City.

 

"We are also in the process of setting up another delivery location in (Metro) Manila and that will be announced probably in the end of the first quarter and this is within the Quezon City area," Amador said, noting this will raise the total seats by 3,000. – VS, GMA News