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India: Bengaluru
Bengaluru’s position as a premier and global o¥shoring
hub catapulted in the 1990s aided by incentives from the
State government to MNCs, availability of talent and cost
competitiveness. While the IT-BPM sector has long been
servicing clients across various sectors, BFSI companies too
have been seen to set up their captive centers for back-end
operations. Since the last decade or so, the submarket of
Outer Ring Road (ORR) emerged as a sought-after oce
location as the city of Bengaluru expanded beyond its seams.
While this submarket primarily caters to the IT sector, several
BFSI companies are setting-up their back-end operations
here. The market has now gained prominence led by the
presence of Grade A buildings with modern amenities, and
the need for companies to have large contiguous space for
their back-end operations. The BFSI sector has leased a
total of 1 msf in the ORR market since 2010 and has several
prominent companies, such as Wells Fargo, Royal Bank of
Scotland present here.
Besides the ORR submarket, Whitefield too is seeing
BFSI companies beefing up their back-end operations. In
the last few years, companies such as JP Morgan Chase,
Societe Generale, etc. have leased space in this submarket.
A study of leasing activity since 2010 shows that the BFSI
sector has leased approximately 1.1 msf of oce space in
Whitefield. Going ahead, the ORR submarket will be the
most preferred market for back oces of BFSI companies
in Bengaluru, led by developing infrastructure, Grade A
oce projects and competitive rentals. Considering that
approximately 13.2 msf of oce space is expected to
become operational by 2017 in ORR, the submarket o¥ers
companies ample scope to scale up.
Manila: Bonifacio Global City
In the span of a decade, Bonifacio Global City (BGC)
has arguably become another premier business address
alongside Makati City. And while the latter remains as the
main CBD of the country, it is dicult to deny the rise to
prominence of BGC. This relatively new urban area exhibited
strong agglomeration of businesses and unprecedented
construction of oce buildings in recent years. This is
supported by the positive growth trajectory of market
indicators, with oce rentals and selling prices of the
district being comparable to and even poised to outperform
that of Makati CBD. The planned movement of the Philippine
Stock Exchange from Makati CBD to BGC serves to validate
the potential of the district as an alternative business and
financial hub. JP Morgan, HSBC and Deutsche Knowledge
Services have established operations there.
OFFSHORING/OUTSOURCING HUBS
While the o¥shoring movement began at the turn of the millennium, the wave of new
regulations in the wake of the 2008 sub-prime crisis provided further impetus. The
high cost of compliance compelled the financial industry to greater use of shared
services and o¥shore centers as financial companies moved to centralize their
risk, control and compliance activities.
MUMBAI, INDIA
38 ASIA PACIFIC BFSI OUTLOOK 2017