Office rents in Makati City seen to fall in the first half this year, report says

Developers examine locations outside Makati as BPOs look for labor in rural areas

Developers and investors have "projected a more cautious outlook as development yield continue to be less competitive compared with other markets," he said.

Developers have also started looking outside the Makati CBD "due to the strategic decision of large O&O companies to look for untapped labor in the countryside."

Cordero said it is expected the O&O industry, which aims to corner 10 percent of the global market share by next year with $13 billion in revenues, would trim down its forecasts.

"A downgrading of this projection is to be expected, given the short-term uncertainty arising from the reallocation of resources and the reconfiguration of the structure of affected companies. Local industry leaders are confident that over time, these companies, and probably even more, will begin to appreciate the value of outsourcing as an effective tool to further reduce costs amidst the challenging macroeconomic backdrop," he added.

Business Processing Association Philippines (BPA/P) chief executive officer Oscar Sañez said recently targets would be reviewed by the middle of the year although he did not discount the possibility of slower growth. - Ruby Anne M. Rubio, GMANews.TV