PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

2013. It must be noted that currently Jamaica represents approximately US$145 million,
a share of less than 1% of the regional market. Given the rapid growth trends in the
region, Jamaica would have to grow by 25% per year in order to maintain its existing
market share.
3.0 Current State of the Local Industry
Based on the nature of the industry, the BPO operators require a single storied building
with an open floor plan to allow for optimal use of the work space. Additionally, the
investors are interested in locations that are in close proximity to large pools of labour
and preferably where there are several options for entertainment for both clients and staff
(‘plug & play’ concept). It is based on these characteristics that Montego Bay and
Kingston have become popular locations for the BPO operators – more so in the case of
the former. It will be noted that the Montego Bay Free Zone is fully saturated.
Portmore has emerged as a new and popular BPO location in the general Kingston area,
as evidenced by location and planned expansion of the eServices/ACS centre in Naggo
Head, Portmore.
The real estate developers have access to benefits under the Industrial Incentives (Factory
Construction) Act, which can be applied to developers that construct factory shells for
potential BPO investors. The construction costs can be offset by waiver of both GCT and
customs duties under the Act. The recently amended Urban Renewal (Tax Relief) Act,
where applied to the developers as they build out BPO-ready office space, would also
provide significant benefits and incentivize investment in the industry. Specifically,
income tax relief on bonds accruing to the investor could be extended to private
developers in the BPO industry, as well as the elimination of transfer tax.
In general, it has been estimated that the construction of a fitted-out BPO office space
amounts to approximately US$150 per sq. ft. This sum is based on the average US$75
per sq. ft. cost faced by the local developers and the additional US$75 per sq. ft. to put in
place the necessary A/C ducts, telecoms cabling and raised flooring.
4.0 Planned Developments in the Industry
The Factories Corporation of Jamaica’s (FCJ) has recently committed to build 200,000
sq. ft. of space, of which 100,000 sq. ft. is located in Kingston 63 which represents the first
phase of the project 64 . Additionally, some 21 acres in Naggo Head in Portmore have
been identified as another location of BPO development. The FCJ owned property has
already received the necessary zoning permits and will be equipped with the ‘main
trunking’ (e.g. water, sewage) in order to facilitate easy build out by the private sector.
The Ministry of Industry, Investment & Commerce (MIIC) has also dedicated for use 40
acres of the 200 acres assigned to the Caymanas Economic Zone.
63 Five acres of land at the Portmore Informatics site
64 First phase is slated to be completed by the end of 2010
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