Minister Hill Urges BPO Sector to Pivot to Higher-Value Knowledge Services

Minister of Industry, Investment and Commerce, Hon. Aubyn Hill, has charged stakeholders in the business process outsourcing (BPO) sector to make the shift to higher-value knowledge services to remain relevant and competitive in a changing global environment.

He was addressing the Global Services Association of Jamaica (GSAJ) Outsource2Jamaica Glance event on Wednesday (September 30) at the Jamaica Pegasus hotel in New Kingston.

The Minister’s call comes against the background of a reduction in earnings in the sector last year, falling from approximately US$1 billion to US$750 million.

“Some people see these numbers and conclude that the best days of the industry are behind us. I do not; I see a signal. The industry is changing and Jamaica must change with it. Everything you have around you is changing… . We have to change,” Mr. Hill said.

“We should not be asking how quickly we refill that space with the same businesses [and] with the same business model that was drafted and executed 10 years ago. We should be asking what higher-value activities will occupy that space during the next 10 years, the next 15 years? The strategic question we have to answer [is] what new plans and better and more productive execution [can we introduce]?” he said.

The Minister said software development, cybersecurity, data analytics, data centres, high-level and high-paying financial services, compliance operations, trust administration, supply chain management and artificial intelligence (AI)-enabled business services are opportunities that should occupy Jamaica’s attention and possibly populate new plans for the BPO growth.

He expressed confidence that the BPO sector, which is a key player in Jamaica’s economy, employing thousands of people, has the potential to grow further.

“BPO helped Jamaica prove that Jamaican talent can successfully serve global clients from Jamaica. The next step is increasing the value of the services we provide.

“It means expanding Jamaica’s presence in higher-value, knowledge process outsourcing (KPO), back-office cybersecurity services, higher-level fintech, accounting, compliance, trust administration, and advanced logistics services,” Mr. Hill said.

He noted that Jamaica is competing for BPO jobs with countries such as India and the Philippines, which have lower wage rates.

“What we did 10 years ago can’t work now, and the Philippines aren’t going away, India is not going to go away and we aren’t going anywhere either. We’re going to change. We’re going to get better. We’re going to look at new markets. That means higher-paying jobs, exports, earnings and growth,” he said.