FEWER SEATS, BIGGER SPACES

Last week, I wrote about AI’s potential impact on the Philippine IT-BPM industry after IBPAP lowered its best-case 2028 revenue target by 14%.

Someone familiar with the industry shared an important observation: although hiring growth may be slowing, some IT-BPM companies are requiring more office space per employee.

The traditional BPO setup prioritized compact cubicles and maximizing the number of seats on each floor. But as the industry shifts toward more complex and higher-value work, workplace requirements are also changing.

Employees may now need larger workstations, multiple monitors, more advanced equipment, training facilities and collaborative spaces. In other words, each employee may become more productive while also requiring a larger and better-equipped workspace.

This creates an interesting divergence:

Employment growth may slow, while space requirements per employee increase.

That could partially offset the effect of slower hiring on office demand and may benefit newer, higher-quality buildings that can support more sophisticated operations.

However, it would still be premature to say that AI is increasing total office demand. Fewer new employees could ultimately mean fewer expansions and lower demand for additional space.

The future of BPO real estate may therefore involve fewer seats—but larger, more sophisticated and more productive workplaces.