Is Manila Cooked? The Impact of Congestion on BPO employees

On a recent trip back to New Zealand from our provincial BPO location, I found myself stuck in traffic—again. Manila has seen massive investment in infrastructure over the past decade: skyways, expressways, new flyovers. Yet, despite all this, it took two hours to get from Makati to the airport - it's 8.5 kilometers!
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And it wasn’t an isolated experience. This is just another day in Metro Manila.
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According to the 2024 TomTom Traffic Index, Manila ranks 14th globally for the worst city traffic, with an average travel time of 32 minutes and 10 seconds for every 10 kilometers traveled. For comparison sake lets consider Sydney - Australia's standout for horrible traffic - its a comparatively brisk commute at 23 minutes and 30 seconds. In other words what takes an hour in Sydney takes an hour and a half in Manila - crazy.  The economic impact of this congestion is staggering— a 2018 study by Japan International Cooperation Agency estimated that Metro Manila loses PHP 3.5 billion (US$60 million) daily due to lost productivity. Old data granted but from my experience at least, the situation has worsened significantly since then.
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For the average BPO worker, that commute—one way—is a daily reality. Packed into an overcrowded train, crammed into a jeepney, or sitting for hours in stop-start traffic, inhaling fumes, battling noise, stress, and unpredictability. Many employees spend four hours or more each day just getting to and from work. That’s not just a logistics issue; it’s an outright productivity killer.

For businesses, the impact is just as severe. Long, exhausting commutes lead to:
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• Tardiness and absenteeism – Employees are already drained before they reach their desks.
• Lower productivity – A workforce that spends hours in transit every day is simply not operating at full capacity.
• High turnover rates – Who wouldn’t consider leaving if they had a better option closer to home?
• Higher operational costs – Recruitment and training become an ongoing churn, driving up expenses.

Billions have been poured into roads, bridges, and expressways. But Manila’s congestion isn’t just about infrastructure—it’s a systemic issue. The number of vehicles on the road continues to grow. Jeepneys—still the backbone of public transport—remain largely unchanged. Meanwhile, the population density in the National Capital Region (NCR) continues to climb, with over 14 million people competing for the same limited space - all 620km2 of it. That's roughly 22,000 people per square kilometer (the median of the 50 most densely populated suburbs in Australia, mostly inner Sydney, is 9,614 per square kilometer).

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It’s hard to see how Manila’s transport system ever catches up. The city is growing - but only to stand still.

Some might argue this is all a moot point, with AI set to cut the knees out from under large corporate BPO providers in the coming years. That’s a conversation for another day. But for SMEs looking to build sustainable, engaged teams, the writing is already on the wall: the Manila model is broken.
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Why not work from home I hear you say? The productivity costs in the Philippines context just don't add up for most roles. The infrastructure, both in the private home (limited space, multi-generation living) and the technology servicing them, just isn't robust enough. The loss of visibility into daily activity, security challenges - the list is long. It does work for some granted - particularly higher knowledge roles - but for the majority, the commute is here to stay.

The alternative? Provincial BPO hubs, where the cost of living is lower, commutes are shorter, and employees can actually have a life outside of work. The benefits are obvious:
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• Higher employee retention – Happier workers stay longer.
• Better productivity – Less stress, more focus, greater output.
• Lower operating costs – Provincial centers benefit from lower real estate and salary costs.
• Access to untapped talent – Skilled workers who want career opportunities without the chaos of Manila.
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Manila’s congestion isn’t getting better. If anything, it’s getting worse. And while BPO providers in the capital keep battling with the same old problems, provincial outsourcing offers a clear, sustainable alternative.
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If you want happier, more productive staff who actually stay the course, it’s time to rethink where and how your offshoring is done.