Jamaica ready for US$b BPO industry

The charge was given at the second annual awards and scholarship gala of the Jamaican-American Bar Association, by Arthur Williams, minister with responsibility for information and the public service, at the Sheraton Hotel, Newark, New Jersey, recently.

BPO involves US companies utilising the services of a third party in order to perform its back office operations, including payroll administration, customer help desks/call centres, telemarketing and accounting at cheaper costs.

Speaking on the theme, 'Thriving in difficult economic times: business, growth and investment opportunities in Jamaica', the minister said the Government intended to unveil a five-point plan aimed at expanding Jamaica's ICT/BPO sector.

"This is with a view to doubling the number of jobs the sector currently provides, as well as enhancing the industry's global competitiveness," he said. "The US$145-million local BPO industry accounts for six per cent of the Caribbean and Latin American market, which is valued at US$2.5 billion," Senator Williams added.

The minister observed that already the local sector comprised about 26 firms and accounts for nearly 11,000 full-time jobs, but must attract significant investments in order to remain competitive.

"Analysts conservatively estimate that Jamaica's information and communications technology/business process outsourcing sector must grow at a compounded rate of between 20 and 21 per cent per annum over the next four to five years, in order to remain competitive regionally," Senator Williams said.

He explained that BPO has, increasingly, become the best practice for global corporations seeking reduced costs, by focusing on core activities, process and technological improvements, while benefiting from reduced transaction costs and easier markets.

The sector ranges from basic sales to more technical support in areas such as health care, finance and logistics management; and the minister, while reinforcing the promotional plug, noted that BPO is big business with global expenditure totalling US$460 billion in 2007 and is projected to reach US$680 billion at the end of 2011.

Senator Williams referenced information from the firm, International Data Corporation, which suggests that the global market would grow at an annual rate of nine per cent, and reach approximately US$1 trillion within three years.

"Against this background, increased investments in the local ICT sector will be a top priority of the administration over the next 12 to 18 months," he said. "In this regard, the Government's main investment promotion agency, JAMPRO, will mobilise its resources to attract more ICT entrepreneurs and corporations to invest in Jamaica," he said.

He also emphasised that the Government's position was that the local ICT/BPO sector presented the greatest opportunity to create jobs in the shortest possible time; jobs which will, in turn, increase the multiplier effect in the economy.