Is Jamaica’s BPO model reaching end of the road?

THE EDITOR, Madam:

For years, Jamaica’s business process outsourcing sector was one of the country’s strongest employment stories. That is changing.

Employment in Jamaica’s outsourcing sector has fallen from about 60,000 jobs to roughly 40,000 in two years. Industry earnings also declined to about US$900 million in 2025, from more than US$1 billion a year earlier.

Artificial intelligence is an obvious concern. Automation can already handle many routine customer-service enquiries and administrative tasks. Yet, industry leaders say AI is not responsible for the recent job losses. They point instead to low productivity, labour shortages, Hurricane Melissa and stronger competition from other outsourcing destinations.

The country should accelerate its move into higher-value global services, including cybersecurity, data analytics, financial services, compliance, technology support and healthcare administration. That requires closer coordination among government, employers, universities and training institutions. Programmes must prepare workers for where the industry is going, not simply where it has been.

This also means helping existing workers move into new roles before displacement becomes permanent. Reskilling after jobs disappear is harder, costlier and far more disruptive.

The sector’s local spending has also fallen substantially as employment declined.

Jamaica still has advantages: an English-speaking workforce, proximity to North America, and years of experience serving international clients. But those advantages are not enough if productivity, skills and operating costs fail to keep pace with competitors.

Jamaica benefited greatly from the first phase of outsourcing growth. The challenge now is to build the next one.

RENEE WATKIS