PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica
PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica
PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
D<br />
____________________<br />
Business Process Outsourcing (BPO) Industry 62<br />
1.0 Background<br />
<strong>Jamaica</strong> as an outsourcing destination is currently categorized by a concentration <strong>of</strong> call<br />
or contact centres and BPO activities. Approximately 26 firms, which have created some<br />
9,500 jobs within the <strong>of</strong>fshore industry, <strong>of</strong>fer services ranging from finance & accounting<br />
functions, voice customer support to network operations support & debt collection.<br />
Figure D.1 graphically illustrates the range <strong>of</strong> services <strong>of</strong>fered by the local industry.<br />
Figure D.1 Structure <strong>of</strong> the <strong>Jamaica</strong>n BPO Industry<br />
Data entry/<br />
transcription<br />
Call/contact<br />
centres<br />
Business<br />
process<br />
outsourcing<br />
(BPO*)<br />
Knowledge<br />
process<br />
outsourcing<br />
(KPO**)<br />
Non-core operations<br />
in <strong>Jamaica</strong><br />
Core operations<br />
in <strong>Jamaica</strong><br />
Limited or no operations<br />
in <strong>Jamaica</strong><br />
Increasing complexity<br />
* E.g., Finance & Accounting, Human Resources, payments processing, purchasing, insurance management<br />
** E.g., Market & equity research, analytics & data mining, legal services, engineering design, contract development<br />
2.0 <strong>Growth</strong> Trends<br />
Data from JAMPRO show that while the industry has attracted capital investment <strong>of</strong> over<br />
US$691 million and generated 10,871 jobs between 2006 and 2010, there have been no<br />
significant investments in the past five (5) years. This is juxtaposed against robust<br />
performance in the global BPO market over the last 10 years which is projected to<br />
continue over the next five years. The International Data Corporation (IDC) projects that<br />
the global BPO market will grow by 9% per annum and earnings will climb to just under<br />
US$1 trillion by 2014. Offshore BPO is also expected to increase at a cumulative annual<br />
growth rate <strong>of</strong> 25% reaching US$135 billion by 2014.<br />
The Caribbean and Latin American market accounts for US$2.5 billion <strong>of</strong> total revenue<br />
from the BPO industry, representing 5.8% <strong>of</strong> the total market share. This opportunity is<br />
expected to grow by some 20% per year and should therefore amount to US$5 billion by<br />
62 Prepared by JAMPRO.<br />
166