Who Knew...Jamaica Is Becoming A Major BPO Hub

Of course,  by pure numbers Jamaica  lags the traditional outsourcing destinations like the Philippines and India. Never the less...the country has steadily increased its footprint in the BPO sector. It is estimated that the country will be home to about 20,000 ICT BPO jobs by the end of 2016.

Obviously 20,000 is not a big number when you compare it to the main outsourcing centers in the world. Given a total population of about 2.7 Mio though  the government is realizing that the BPO sector is worth to be promoted. At the given growth rate of 20 % the sector will employ about 1 % of its population by 2018/2019.

Jamaica's inroads into the global BPO industry are driven by an advantage none of the traditional outsourcing destinations can match. It shares the same time zone as Chicago (CST), therefor collaboration throughout the work day is seamless.

Jamaica's predominant language is English....another advantage why US BPO companies like to establish a presence there.

The local salary structure makes it highly feasible to outsource technology talent. The median salary in the Jamaican IT industry is about 150k Jamaican Dollars (about US- $ 1,220). The rate is therefore comparable (and even lower)  to what has to  be paid for local talent in India or the Philippines.

One issue is the relative small size of the Jamaican labor market. It is clear that with increased demand for IT staff local salaries are sure to rise. Given that the BPO industry is notoriously price sensitive it seems likely that the strategic advantages Jamaica enjoys will be buffered by the disadvantage of  increases in salaries in the BPO sector.  

Never the less, for the time being Jamaica might be a good place to establish a BPO center.