Vol. XXI, No. 161 [ Business World Online ]
Monday, March 17, 2008 | MANILA, PHILIPPINES
OUTSOURCING FIRM Logica is set to invest around $13 million in the country for a two-year expansion plan, a company official has bared.
On the sidelines of an awarding ceremony for business process outsourcing firms last week, Logica Global Business Development Executive Mitch L. Locsin said the United Kingdom-based outsourcing company will be adding a total of 2,250 seats in capacity up to 2009.
"We intend to migrate a number of seats from the UK to the Philippines to take advantage of the cheapers costs, quality work force and expand our global footprint," Mr. Locsin told BusinessWorld in an interview.
Mr. Locsin, previously executive director of the Business Process Outsourcing Association of the Philippines, said Logica plans to increase its capacity by 750 seats to 1,000 seats by end-2008, from the existing 250 seats. Next year, the firm is eyeing an additional 1,500 seats.
Asked how much in investments are required for the two-year expansion, Mr. Locsin said it would be "more or less $6,000 per seat."
"We are looking at different locations to really get a big site where we can grow Right now, we are talking to several real estate agents in Metro Manila," he said.
Mr. Locsin said that a new facility requires an operation of at least 4,000 seats, and so Logica is considering leasing a 6,000-square-meter facility for this year’s 1,000-seat target.
The firm is expected to move to its new site anytime in the second half of the year once its building reaches maximum capacity.
Logica’s half-utilized 500-seat production facility, primarily offering nonvoice business process outsourcing services to global clients, is at the Trafalgar Building in Makati City. — Marian Grace S. Ramos
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