Why outsource to Clark, Pampanga: The next outsourcing hotspot in Asia
Why should companies outsource to Clark, Pampanga?
Companies outsource to Clark because it offers a skilled talent pool, strong infrastructure, freeport tax perks, and lower costs than Metro Manila.
- Clark sits just 80 kilometers north of Manila with easy access.
- Its freeport zone gives foreign firms tax breaks and full ownership.
- Fiber internet, an airport, and government support make it BPO-ready.
Pampanga is famous for many things, both in Asia and around the world. As the home of Mount Pinatubo, the province has shown its strength against disasters. Today, it draws locals and tourists with natural wonders, rich culture, and unique food.
Beyond tourism, Pampanga has made a name in outsourcing, with Clark at the front. Over the years, more BPO firms have invested in Clark. As a result, it shines as one of the best alternatives to Metro Manila.
So what makes this city in Central Luzon so appealing? And why should global firms outsource to Clark? Let us find out.
Outsource to Clark: The city as an emerging BPO destination
The Philippines has long been hailed as one of the world’s top outsourcing destinations. In fact, it remains the primary BPO hub in Asia, with more than 1,000 BPO firms. Manila leads the way, and analysts still rank the country among the most attractive offshore locations worldwide. You can read more in this guide to the Philippines as a top outsourcing destination.
Apart from Manila, another city is steadily gaining ground in outsourcing. That city is Clark, Pampanga. Clark is a strong alternative to Metro Manila, with wide opportunities for local and foreign investors. It also has a good mix of new residential townships and commercial hubs.
Part of its appeal is its closeness to the capital, just 80 kilometers north of Manila. So it is easy to reach through the Metro Manila Skyway Stage 3 or the North Luzon Expressway. If you weigh the region against the capital, this guide to outsourcing to Metro Manila is a useful compare point.
In all, Clark is an up-and-coming offshoring powerhouse in the Philippines. These traits set it apart:
- rich pool of seasoned professionals
- rising infrastructure
- rapid developments
Clark as a freeport zone
Being a freeport zone is a big reason Clark draws investment, especially from foreign firms. The main goal of the Philippine government here is to encourage foreign firms to invest in the country.
Unlike other parts of the Philippines, foreign firms in Clark do not need Filipino shareholders. For example, multinationals like Samsung, Texas Instruments, and Yokohama Tyres run operations in Clark.
As global firms invest in Clark, more BPO and KPO firms are set to open there too. The zone is run by the Clark Development Corporation (CDC). The CDC reports directly to the Philippine government and follows a strict no-corruption policy.
Clark as a former military base
Clark also holds historical weight, since it was a US military base from 1903 to 1992. As a result, the city gained from the infrastructure the American military built during that time.
These include stormwater drains, steady power, and sealed roads. So they paved the way for further growth. Right after the base pulled out, the local government built a fiber-optic network.
These groundworks help foreign firms get top internet and utilities in line with global standards. In addition, Clark has tight security, since the Philippine Air Force base is located there.
Outsource to Clark: What makes it an ideal outsourcing location?
Below are the top reasons why many local and foreign firms of all sizes outsource to Clark.
Access to fiber-optic connection
A faulty internet link can disrupt virtual chats between remote teams and foreign clients. So a strong connection lets BPO firms talk with clients smoothly.
However, not all parts of the Philippines have fiber optics from national and local ISPs. In Clark, internet-heavy firms need not fear connection hiccups. In fact, the city was one of the first provinces to get fiber internet, back in 2015.
Strategic location
For access, Clark is ringed by many establishments, real estate, 5-star hotels, and high-tech sites. Besides its closeness to Metro Manila, it is also served by Clark International Airport. As a result, local and global firms can visit their BPO partners with ease.
World-class infrastructure
In 2018, the Clark Development Corporation set aside over 928 million PHP for infrastructure projects under the Build Build Build program. The goal was to draw more multinationals to invest and outsource to Clark.
Those projects included new power and transport utilities. For example, they covered the expansion of Clark International Airport. Overall, the work aimed to boost the Clark Freeport Zone, Clark Special Economic Zone, and New Clark City.
Industry growth
Clark developments are led by the Bases Conversion and Development Authority (BCDA). This is the same body behind top projects like BGC and McKinley Hill.
As more sites rise in Clark, more business and job openings follow. Moreover, since the CDC runs Clark, the local government cannot interfere with businesses. To see which jobs move there, browse these common roles outsourced to the Philippines.
Excellent talent pool
Clark appeals not only to firms but also to a strong workforce. Many workers in Regions I, II, and III move toward the BPO sector in Clark. This is because they want to escape Manila’s dreadful commute and traffic. Even so, they still earn competitive pay on par with BPO firms in the Metro. This guide to the average salary in the Philippines shows how the numbers compare.
Work-life balance
The easy commute helps workers keep a healthy work-life balance. So many skilled workers from other regions choose to move to Clark. Many local staff in Clark come from Angeles City. Although it is about a 45-minute drive, its transport is simpler than Manila’s.
Extensive government support
Another key reason firms outsource to Clark is strong government support. The BPO sector in Clark is now a top driver of the country’s growth. As a result, the national government treats Clark, Pampanga as a major part of its economic plan.
Cost-effectiveness
Although Pampanga is fast industrializing, it is still a province. Compared to Metro Manila, utility and fuel costs are cheaper here. So BPO firms in Clark can offer competitive packages. As a result, firms that outsource to Clark may save more than they would with Metro Manila vendors.
Weather-proof
Nestled in Central Luzon, Clark is shielded from the strong typhoons that hit the eastern coast. Moreover, the underground drains built by the US army help stop flooding. So they are a big help during severe weather.
Safe and peaceful environment
As noted, Clark houses both the Philippine and US military bases. So CCTVs sit across the Clark Freeport Zone. There are also checkpoints going in and out of the special zone.
Outsource to Clark: The next big thing
The booming BPO sector in the province will keep growing as more firms choose to outsource to Clark. To see who is already there, check these top BPO companies in the Philippines.
Besides multinationals, Clark is set to draw more tourists too. For example, large projects like Filinvest Cyberzone, SM Clark Highline, and Megaworld are expected to rise soon.
Meanwhile, the Malolos-Clark railway project will cut travel time to Clark International Airport from Metro Manila to under an hour. This high-speed railway system is set to boost access once complete. So looking at these plans alone, Clark promises to be the next big thing, not just in outsourcing but across the wider business sector.
Frequently asked questions about outsourcing to Clark
Where is Clark located in the Philippines?
Clark sits in Pampanga, Central Luzon, about 80 kilometers north of Manila. It is easy to reach by expressway or through Clark International Airport.
Why do companies outsource to Clark instead of Manila?
Clark offers lower costs, freeport tax perks, and a shorter commute. So firms often find it a cheaper, calmer base than Metro Manila.
What are the benefits of the Clark Freeport Zone?
Foreign firms there enjoy tax breaks and can operate without Filipino shareholders. As a result, the zone is very friendly to overseas investors.
Is the talent pool in Clark strong?
Yes. Skilled workers from nearby regions gravitate to Clark for good pay and an easier commute. So firms find a deep, capable workforce.
What industries thrive in Clark?
BPO and KPO lead the way, alongside manufacturing and logistics. Meanwhile, tourism and real estate keep growing fast too.
Key takeaways
- Clark is a fast-rising BPO hub just north of Metro Manila.
- Its freeport zone gives foreign firms tax breaks and full ownership.
- Fiber internet, an airport, and strong security make it BPO-ready.
- Lower costs and a skilled workforce help firms save and scale.
- New rail and property projects point to strong future growth.
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