Outsourcing sector projects US$1b annually by 2024
The Global Services Association of Jamaica (GSAJ), formerly the Business Process Industry Association of Jamaica, is projecting annual revenue earning of US$1 billion from its membership by 2024.
Currently, the more than 70 firms operating in the lucrative global services sector rake in more than US$600 million per annum in revenue, and GSAJ President Gloria Henry is confident that the 2024 billion-dollar milestone is achievable.
“We are scaling up the value chain and that includes digitising our offerings as well as guiding our small players as to how they can access opportunities in the higher-value services; and as you know, higher-value services earn higher salaries and higher revenue,” Henry said at the Montego Bay Chamber of Commerce and Industry and the Global Services Association of Jamaica first quarterly breakfast in Montego Bay last week. “All 14 global players are expanding and increasing their product and services in terms of complexity, in terms of value, so we expect growth to be organic coming from these companies that are here now.”
Henry also noted that with new companies entering the sector, the target should be easier to realise.
“There are also new players coming in and expansions to be filled in Portmore, St Catherine, and we expect for these projects to generate higher income, so we are confident that the US$1-billion target can be achieved within the next four years,” she added.
The sector is also going through a rebranding phase with a shift from mainly voice-based customer service to knowledge process, and information technology outsourcing continues.
“We want to attract other types of players to Jamaica because Jamaicans are among the most productive in the world in terms of our capabilities. We are also looking to increase our pool of university graduates, as this sector will give them real opportunities to maximise their potential,” Henry said.
The GSAJ is also in the process of selecting 10 small outsourcing operators from a list of 20 applicants who will benefit from the US$480,000 Jamaica GSS project aimed at enabling them to move up the value chain. The initiative will assist the selected firms to digitise their operations and improve their growth strategy, through industry forecast, to identify and move into niche markets.
CCPF – a co-financing facility established by the Inter-American Development Bank, United Kingdom Department for International Development, Government of Canada and the Caribbean Development Bank – is providing US$400,000 for the undertaking with US$80,000 coming from the GSAJ.
The Complete Caribbean programme funded more than 100 private-sector projects across the region over the period 2010-2016. The projects generated nearly 12,000 jobs, a 23 per cent increase in exports (US$153 million), as well as improvement in the business climate for some countries through policy or regulatory reforms.