Business Process outsourcing (BPO) has become a vital sector in Jamaica, alongside tourism, providing significant employment opportunities and contributing to the growth of the national economy. Over the past 25 years, the industry has grown from around 5,000 employees to around 60,000 today, with projections indicating an increase to around 100,000 jobs in the near future. While there is clear potential for future growth, recent developments – such as VistaPrint’s decision to sell part of its facilities to a hardware company, the closure of several IBEX centers and the outsourcing of service calls customer by Flow in Guyana – highlight the evolving nature of the sector and highlight the need for strategic initiatives to guide Jamaica’s progress in this sector.

The rise of generative artificial intelligence (AI) technologies and automation is introducing new dimensions to the BPO sector, transforming job roles and necessitating a shift to higher value-added tasks. The global business sourcing industry is classified into three sectors: business process outsourcing (BPO), knowledge process outsourcing (KPO), and IT process outsourcing (IPO). Notably, 71 percent of employees in these sectors are women, while 29 percent are men. The BPO sector accounts for 97 percent of employment, with the KPO and IPO sectors employing approximately 1.5 percent and 0.82 percent, respectively. The latter sectors generally require more technical skills related to science, technology, engineering and mathematics (STEM) and are predominantly male-dominated. However, KPO and IPO represent significant opportunities for Jamaica’s economic growth; the KPO industry alone is valued at approximately US$40 billion, or two and a half times Jamaica’s gross domestic product (GDP).

Demand for KPO and information services outsourcing (ISO) services primarily comes from countries looking to reduce costs and improve efficiency. The largest markets for these services are the United States, United Kingdom, Germany, France and other European countries, especially in areas such as financial analysis, legal process outsourcing, healthcare information management, technical research and data services. Additionally, growing economies in the Middle East are increasingly outsourcing financial and legal services as well as market research and engineering tasks. Countries like Japan and South Korea are relying on outsourced analytics and health information management due to their aging populations.

Jamaica has a unique opportunity to expand its BPO landscape to encompass KPO and IPO services by leveraging its existing expertise. By focusing on services that require human insight, empathy and complex decision-making – qualities that machines cannot easily replicate – Jamaica can secure its position at the forefront of a sector More resilient and technology-integrated BPO. This transformation not only improves the resilience of the sector, but also plays a crucial role in Jamaica’s broader vision to elevate at least one million people into the middle class. A strong middle class is essential to Jamaica’s long-term economic strength, as it fosters an environment in which individuals have access to meaningful employment.

To support this vision, it is essential to empower the workforce to adapt to the demands of the digital age. This notably involves enabling young people to engage in sectors with real long-term growth potential. To position Jamaica as a viable provider of KPO and ITO services, it is essential to invest in workforce development through institutions such as the HEART College of Innovation and Technology. Programs are expected to focus on data analysis, financial research, health care information management, and legal research. Partnerships with universities and industry players can facilitate relevant training while increasing the emphasis on STEM education in all schools – not just within specialist STEM institutions – ensuring wider reach.

Equally important is strengthening Jamaica’s technological infrastructure; Reliable internet access and advanced data centers are essential to supporting KPO/ISO operations. Government investments or public-private partnerships can improve digital infrastructure, while investing in cybersecurity protocols is essential to meeting international data privacy standards.

Advancing the industry requires proactive government policies that guide its direction. Providing incentives and policy support to entrepreneurs and SMEs will encourage investments in the KPO and ISO sectors. The creation of a technology and innovation development fund similar to the Tourism Development Fund could be beneficial. Tax incentives for companies investing in these sectors will encourage both local start-ups and international investors, while simplifying regulations for foreign companies will encourage outsourced investments.

Countries leading in KPO and ISO typically focus heavily on technology, analytics, research, and back-office functions. India, Malaysia, the Philippines and China remain global leaders in these fields due to their large skilled English-speaking workforce and competitive labor costs. South Africa is emerging in this sector focusing on financial analysis and legal outsourcing while Mexico is expanding its KPO/ISO services to North America due to its geographical proximity. Poland is also becoming a hub within the European Union for finance-related industries.

Jamaica has the resources, talent and determination to embrace this future. With proper support focused on high-value technology roles, Jamaica’s BPO sector can not only thrive, but also set a standard for the Caribbean region. Together, we can cultivate an environment where innovation generates opportunity, paving the way for middle-class growth and economic resilience in our communities. This revised summary maintains clarity while improving readability by organizing ideas logically and ensuring grammatical accuracy throughout the text.

Dr Andre Haughton is a Senior Lecturer in the Department of Economics at the University of the West Indies, Mona. He is also the Minister of Science, Technology, Innovation and Entrepreneurship of the National People’s Party. He is the acting MP for the central constituency of St James West. He is the author of Developing a Sustainable Balance of Payments in Small Countries and Overcoming Productivity Challenges in Small Countries. You can contact him via social media at @drandrehaughton on Instagram, Facebook, Twitter and LinkedIn.