ICT Export Strategy - Jamaica Trade and Invest

Jamaica, a leading per capita export 

country known for its commitment to 

creativity, innovation and exceptional quality. 

April 2009 

The National Export Strategy of Jamaica 

was developed on the basis of the process, 

methodology and technical assistance of the 

International Trade Centre (ITC). 

www.jamaicatradeandinvest.org/nes | 1-888-429-5NES (1-888-429-5637)

ICT 

4 

i n d u s t r y s e c t o r s t r at e g y 

Introduction 

Rationale 

As in a number of other industries, 

Jamaica has a solid foundation upon 

which it can base the future growth of 

this industry. The country has already 

emerged as a recognised leader in 

ICT services in the region as well as in 

target markets, supported by a solid and 

improving infrastructure, and has the 

opportunity to build upon this position to 

tap into the large US market. 

Increasing exports will result in a larger 

and more comprehensive ICT services 

industry. The industry is already 

exporting services of consultants and 

programmers, some firms have moved 

to providing higher value-added, 

knowledge-based, bespoke solutions and 

others have ended up at the quaternary 

activity of selling proprietary software. 

Growth of exports will contribute to 

the continued progression of local 

activities up this value chain and will 

provide a number of long-term benefits 

for the country, such as speeding the 

transformation to a knowledge-based 

economy and creating better, higherpaid 

jobs. 

The industry is a priority based on the 

significant levels of FDI, jobs created 

and potential employment generation, 

current and potential technology 

transfer, contribution to GDP, linkages 

with other industries, range of potential 

markets and scope for enhancing export 

performance. 

It is critical to note that the Export Strategy 

for this industry, though articulated for 

a short-medium term, is designed in 

the context of the long-term impact the 

industry potentially has on the country’s 

development. The more thorough 

long-term direction is articulated in the 

National Development Plan, Vision 2030 

Jamaica. 

Sub-Industries and Related 

Initiatives 

The Export strategy will be an 

enhancement of the baseline work 

done in the Strategy for the Promotion 

of Professional Services Export from 

Jamaica, which identifies the following 

focus areas: 

1. Software development and 

Programming: Firms are providing a 

mix of bespoke design and advisory 

services and sale of proprietary 

products. Developing and selling 

proprietary software leverages 

intellectual capital to provide a much 

higher earning potential, but which 

has less potential for job creation.

2. Contact centres/ BPOs: As a result 

of the country’s leading regional 

position as a source of call centre 

services, a range of front and backoffice 

services are on offer. This sub- 

industry has significant potential for 

job creation. 

3. Other Services: Consultancy, design 

and advisory services provide an 

important source of higher valueadded 

jobs, but are volume-based 

business as what is being sold is the 

time of personnel. 

As such, much of the baseline information 

and analysis is taken from this study. 

While Vision 2030 Jamaica contains 

a strategic plan for the ICT Sector, the 

scope of this industry plan treats ICT 

as an enabler for other industries, and 

as a service and export industry in its 

own right. The proposed role of the 

local ICT industry as an enabler of the 

development of other industries is also a 

key element to strengthening the sector, 

but is addressed in only a limited way in 

the NES. 

The National Planning Summit also 

identified ICT as a focus area for 

accelerating the nation’s development 

through job creation. There are strategic 

initiatives that are underway that address 

issues identified by the export strategy 

group as priority for advancing the 

ict 5 

industry, such as increased availability 

of strategically located office space that 

meets market requirements. 

With several ICT strategies in place, their 

alignment is critical, and will hopefully 

be achieved through the proposed 

management structures. 

Where Do We Want to Be? 

The Vision 

The Vision Statement for the ICT Sector 

for Vision 2030 Jamaica is: 

“A globally competitive ICT 

sector that is widely accessible 

and makes the greatest possible 

contribution to the social and 

economic development of 

Jamaica”. 

This vision is being maintained for the 

NES. 

Goals & Objectiives 

As decided in the Professional Services 

Export Plan, the following will be the 

objectives of the ICT Export Strategy. 

1. Double annual contact centre/

6 


BPO exports by US$150 million. 

Assuming 75% of the revenue is 

added value, the total addition to 

GDP from this sector would be 

around US$110 million. 

2. Establish a venture capital fund 

to support the ICT industry. 

Government contribution to the 

venture capital fund should reach 

US$1 million annually; private 

contributions should reach US$10 

million annually. 30% of the fund’s 

resources should be set aside 

for ICT start-ups (including call 

centres), 50% for development of 

proprietary software and 20% for 

export marketing. 

3. Attract 15 foreign contact centre/BPO 

service providers to the country. FDI 

in this segment has enabled rapid 

growth and has raised Jamaica’s 

profile as a regional industry leader. 

These benefits, along with the jobs 

created and transfer of expertise that 

have resulted, should continue to 

be pursued by courting investment. 

4. Facilitate the set-up of at least 5 

local BPO service providers. While 

foreign investment does have 

a number of benefits and even 

though their exports do count in the 

output calculation of GDP, much of 

the profits generated do not remain 

in the local economy. Given the 

labour expertise that now exists in 

the country, local firms should be 

encouraged to set up shop. 

5. An industry association to be 

established (within the first 2 years 

of implementation of this strategy). 

At the end of the period, the 

association should represent 60% 

of the ICT firms in the country. 

In addition to taking on the roles 

outlined above, it should lead on 

implementation of the Strategic 

Plan. 

Where Are We Now? 

- An Assessment 

Export Performance and 

Assessment of Overall 

Competitiveness 1 

Based on previous national studies, 

Jamaica has an active ICT sector centred 

around software development services 

and the largest call centre industry in the 

region. Exporting is already taking place 

across the segments of this market, with 

exports from the call centre industry 

alone conservatively estimated to be 

between US$300-400 million. 

The ICT sector continues to experience 

1 Taken from the Vision 2030 Strategy for the Sector and Professional Services Export Promotion Plan.

growth with respect to investment 

within the various industries, including 

Information Technology, business 

processing outsourcing (BPO) and 

telecommunications. One indicator of 

the performance of the sector in recent 

years comes from the data for investment 

and earnings in the sector. Foreign direct 

investment inflows to the ICT sector has 

averaged US$69 million per annum over 

the period 2001-2005, representing 11% 

of total foreign direct investment inflows 

over the period and primarily reflecting 

the levels of new investment since the 

liberalization of the telecommunications 

industry in 1999. Annual inflows of 

earnings from communication services 

and computer and information services 

have averaged US$199.2 million over the 

period 2001-2005 while annual outflows 

from these services have averaged 

US$76.5 million, indicating that the 

sector has generated average net foreign 

exchange earnings of USD122.7 million 

annually over the five (5) year period 

2001-2005 from ICT services including 

ICT-related professional services and 

net international call settlements.. It is 

estimated by Jamaica Trade and Invest 

(JTI) that the ICT projects facilitated by 

JTI in the telecommunications and call 

centre industries employ over 14,000 

persons, many of whom are engaged in 

the exportation of services, and represent 

ict 7 

capital investments in excess of JMD4 

billion. Jamaica also has developed as 

an outsourcing destination for service 

providers looking to the Caribbean for a 

near shore outsourcing location, largely 

due to the large English speaking, 

trainable labour pool, proximity to the 

largest outsourcing market in the world, 

the U.S., and competitive cost.. There 

are currently 22 contact centres in the 

sector with 4 being local companies and 

16 multinationals. Net imports of office 

machines, automatic data processing 

equipment and telecommunications 

equipment to Jamaica increased from 

JMD 7.0 billion in 2000 to JMD 15.4 

billion in 2004, indicating increased use 

of ICT’s in the domestic economy. 

The industry’s Value Chains 

– Illustration and Analysis 

The value chains for the software 

development, contact centre/BPO, and 

ICT consulting services were developed.

8 


Value Chain/Bsuiness Model: Contact Centre/BPO

Value Chain/Bsuiness Model: Software Development 

ict 9

10 


Value Chain/Bsuiness Model: Software Development (Open Source)

Value Chain/Bsuiness Model: ICT Services 

ict 11

12 


The assessment of the value chains 

revealed the following, grouped by each 

industry: 

Software Development 

1. There is a continuous stream of 

qualified professionals for this 

industry. However there are 

concerns about the ability of firms 

to retain professionals: who once 

attaining a certain level of experience 

tend to migrate to markets with better 

salary packages or become selfemployed. 

This is an opportunity 

for the industry, however, that may 

foster its development and growth if 

effectively facilitated. 

2. Linkages to brokers and the external 

market are very poor. 

3. Most firms do not have the operational 

scale to attract large contracts 

(based on capital requirements, pool 

of professionals, experience in the 

industry). This may be overcome 

by joint bidding, but is not done 

because of the current fragmentation 

and lack of incentives to encourage 

joint bidding. 

4. Skilled, experienced professionals 

in specialised areas, such as quality 

assurance systems (in order to adhere 

to international quality standards), 

software design and architecture, 

localisation/globalisation (packaging 

for specific markets), and prototyping 

are not adequate (in number). 

Other IT Services 

1. Like Software, there are qualified 

professionals for this industry 

who once attaining a certain level 

of experience tend to migrate to 

markets with better salary packages 

or become self-employed. 

2. There is also insufficient joint-bidding 

by local firms who end up losing bids 

to international enterprises. 

3. With a limited market, there is a 

tendency to have a range of skills; 

that is to be multi-skilled rather than 

having a large (or significant) pool of 

specialised skills. However, as “allrounders” 

they are able to provide 

better designs – based on the 

perspectives that may be brought in. 

4. Linkages to brokers and the external 

market, as well as knowledge of the 

buyers’ markets are weak areas in 

this industry. 

Performance against Critical 

Success Factors 

The industry’s critical success factors 

are noted below with comments on

performance in these areas. 

• Services (consulting): 

• Proven methodology: The 

methodology of firms has been 

tested locally and in their current 

export markets, but as the 

markets are not expansive the 

extent to which these are proven 

is difficult to assess. 

• Efficient, disciplined consultants 

to enable work to be delivered 

within contracted timeframe 

(services and software): 

Jamaican consultants are not as 

disciplined as in other countries, 

from the perspective of not 

simply accepting and carrying 

out tasks, but they are more 

motivated by challenges, which 

seem to improve performance. If 

tasks are simple and require little 

questioning, then they tend to 

be slower and less interested in 

producing results. 

• Software: product consistently 

functions according to specifications 

which is a mark of quality. The 

industry is confident in its ability to 

match competitors globally against 

this factor. 

• General: 

2 Vision 2030: ICT Sector Plan. 

ict 13 

• Destination reputation and track 

record has been established and 

is a solid foundation for further 

developing the sector. 

• Facilities and infrastructure are 

among the success factors. While 

infrastructure is determined to 

be adequate, there is a need for 

more facilities to facilitate the 

industry’s growth. 

Jamaica is building its reputation 

as an ICT service provider 

and has a long way to go in 

cementing its reputation. This 

may be accelerated with the level 

of infrastructure in place to the 

support the sector, and may be 

helped or hindered by the pace of 

developing office space (facilities) 

for the sector. 

Government Policy and Strategy in 

Support of the Sector 2 

The Ministry with portfolio responsibility 

for the ICT Sector, currently the Ministry 

of Mining and Telecommunications, 

has responsibility for providing the 

overall policy framework to guide 

the development of the ICT sector in 

Jamaica. The Ministry recently led 

the development of the revised draft 

Telecommunications Policy 2007 to

14 


provide an updated policy framework 

for the sector. The goals of the new 

policy are the improved productivity 

of the national economy, attraction of 

local and international investments, and 

support for all sectors and industries 

(including health, education, tourism, 

security and agriculture). The policy 

has declared as its mandate the 

establishment of an island-wide modern 

telecommunications network, universal 

service for all Jamaicans, and wide 

deployment of broadband services. 

The Policy Principles include the 

recognition of telecommunications as a 

development instrument, establishment 

of universal service and access, respect 

for technology neutrality, and fostering 

competition. 

The development framework for the 

ICT sector also includes the National 

ICT Strategy 2012 prepared under 

the leadership of the Ministry and the 

Central Information Technology Office 

(CITO). 

The Vision 2030 Jamaica ICT Sector 

Plan seeks to build on these existing 

policy and development framework for 

the sector to ensure compatibility and 

continuity of the long-term planning for 

the sector. 

The Electronic Transactions Act 2006 

was enacted in April 2007 to promote 

confidence and security in electronic 

transactions. The government is also 

developing other companion legislations 

to further enhance the development of 

the sector, including the Data Protection 

Bill and the Cyber Crime Bill. 

In May 2002, the Government established 

the Central Information Technology 

Office (CITO). The main purpose of 

CITO is to monitor the implementation of 

the ICT strategy, including coordinating 

ICT plans by the different ministries and 

developing domestic and international 

partnerships to promote ICT. CITO’s main 

mandate is strategic planning, while the 

different ministries and agencies carry 

out the implementation of projects and 

programmes. CITO in conjunction with 

the Ministry led the development of the 

National ICT Strategic Plan 2007-2012. 

The ICT sector is one of few in Jamaica 

that has had specific support from 

the Government of Jamaica. Efforts 

and resources to support the sector’s 

development are still in place despite 

issues related to previous efforts to 

advance the sector and its industries. 

There are a number of incentives and 

programmes from which the sector 

still benefits, including Export Industry 

Encouragement Act (EIEA).

The Sector’s Trade Support 

Network: Capacity, Competency 

and Coordination 

The service providers to the industry 

include: 

• Jamaica Trade & Invest (JTI/ 

JAMPRO): the focus of JTI/JAMPRO’s 

strategy and activities is on attracting 

foreign investment in the sector, 

with less emphasis on working with 

local firms to develop and promote 

their exports. The importance and 

relevance of the investment strategy 

is to build/solidify the industry’s global 

reputation, after which local firms 

may emerge and benefit from this 

reputation. It also facilitates export 

from the sector, as all investments 

are export-driven. The participation 

in trade development and promotion 

activities has been limited by the 

required funding for participation 

– both for the agency to subsidise 

industry participants and on the part 

of the firms to finance the necessary 

supplementary and follow through 

activities. 

The agency however stands ready 

and willing to improve on its service 

delivery to the industry, especially by 

initially strengthening its relations. 

• Jamaica Computer Society: The JCS 

is primarily a professional association, 

catering to the development of 

ict 15 

professionals in the sector. There 

are therefore some gaps in its ability 

to assist the export development 

and promotion of the local sector’s 

services. 

It is recognised that the JCS needs 

to be strengthened to be able to 

implement and manage a professional 

qualification system to facilitate their 

sustainability. A part of this is the 

need for resources for administration 

staff or professional fees. 

The JCS will therefore seek to 

reposition / redefine itself becoming 

more relevant and useful leading 

to greater impact on the sector. 

For this, it participates in sector 

initiatives to inform its transformation 

and to ensure the support of industry 

members.

16 


SWOT Analysis of the Sector 

Strengths 

• Country reputation for creativity that 

may be stretched to the sector. 

• Thoroughness – more complex 

systems developed. 

• Creativity: 

o Design talent, espeically software 

Weaknesses 

• Poor perception of Jamaica as a 

destination of quality products. 

• Work ethic and attitude / 

discipline(generally, but is absent 

Opportunities 

• Proximity to the USA for both English 

and Spanish projects. 

Threats 

• Loss of skilled persons to overseas 

job market. 

• Lack of affordable office space in 

key locations. 

o Programmers 

• English as a first language. 

• Time zone – same as main (buyer) 

markets (N. America) while 

complementing the partner (supplier) 

markets (Asia & Europe). 

when the individual or team is 

challenged). 

• Education system producing 

insufficient programmers. 

• EPA partnerships. 

• Actual and perceived impact of 

crime on the industry.

The Way Forward 

(over 3-5 years): 

The Development Perspective: 

Developmental Considerations 

and Priorities 

The development contribution of the 

industry is strongly linked to the nature 

of the service and the stage in the 

industry’s development, which may be 

considered young. Its aspirations are 

articulated below. 

Employment 

• To be one of the most significant 

contributors to new services jobs in 

the Jamaican economy. 

• To contribute to higher standard 

of living by creating higher paying 

jobs based on higher value-added 

services. 

Regional Development: 

Locations for ICT jobs are projected in 

several urban centres (Montego Bay, 

Kingston, Portmore), and although not 

in rural areas the migration may be 

stemmed as employees may commute to 

these centres or by persons supporting 

family in rural areas and preventing 

further migration. 

Disadvantaged groups may be targeted 

ict 17 

for training and employment in the 

sector. 

The Competitiveness Perspective 

Strategic Consideration #2 

– Border-In Issues and Priorities 

• Lack of joint venture and angel 

funding, but also an unwillingness 

to engage share partners when such 

funds are made available. 

• Lack of development funding for: 

• Product development, 

• Standards compliance / certification 

achievement and maintenance, 

• Marketing and product promotion. 

An objective is to have adequate number 

of quality / well-trained persons for the 

industry based on: 

• Sufficient number of high school 

graduates with “appropriate” levels 

of achievement in mathematics to 

supply engineering, ICT, and all 

fields requiring such skills; 

• Training to address the current 

shortage of programmers, 

• Greater private sector participation 

in curriculum development and 

upgrading resulting in the training

18 


provided by institutions not being 

matched to the skills required by 

the industry. 

• Limited resources to protect IP in 

domestic and international markets. 


– Border Issues and Priorities 

• Insufficient office space in locations 

closest to the human capital. 

• Limited use of existing incentives 

based on lack of awareness. 

• No accepted valuation model for IP 

that may be used as collateral. 

• A gap in the import system where 

taxes may be avoided on internet 

purchases, while purchases from 

local firms that attract GCT thus 

placing them at a disadvantage. 

• As it relates to the temporary 

movement of persons to deliver 

services, it is often challenging to 

obtain work permits of longer than 

6 months. 


– Border-Out Issues and Priorities 

• Limited promotional support for the 

industry in target markets. 

• USA: Compliance issues related to 

some regulations (such as the SOA, 

HIPAA). 

The Client Perspective 

Implications for Sector Support Services 

Most service requirements for the 

industry are not in place, or are not at the 

required capacity or competency that will 

address all the concerns at the moment. 

Public sector support providers may be 

constrained in their ability to quickly 

respond, and so private entities will have 

to be enhanced as a priority to provide 

some of the required services. 

Strategic Consideration #8 – Finance 

• Assistance to identify sources of 

funding needs to be enhanced. This 

includes angel and venture funding. 

• A funding programme for the sector 

should be developed to foster their 

growth. 

• Included in the national IP framework 

for valuation and use of collateral 

should be the IP for this industry, 

such as software programmes. 


– Quality Management 

• Advisory and financial support 

required for certification of firms and 

for testing and certification of their

products. 


– Other Support Services 

• International marketing support to 

identify markets and buyers and a 

focussed approach that matches the 

channels of the market for which the 

Jamaican firms are suited. 

The Institutional Perspective 


– Strengthening the Sector’s Strategy 

Support Network: 

As noted, policy exists for the ICT sector. 

Strengthening for the strategy support 

network should therefore be geared to 

the capacity to facilitate and promote the 

implementation and monitoring of the 

policy to achieve the stated development 

objectives. This network should also be 

engaged in securing resources for the 

implementation. 

Strategy Coordination and Management: 

1. Structure 

The ICT industry is interested in 

expanding the scope of the Software 

Developers Association to include other 

sub- industries as well as enhancing the 

capacity to take on the proposed mandate. 

ict 19 

There is also interest in strengthening 

the JCS, so that it is able to carry out 

some quality standards initiatives and 

benchmarking programmes, as well as 

perform advocacy in areas related to 

human capital. The first Association 

would have firms as clients/ members, 

while the latter services individuals 

directly and addresses policy related to 

skills and training. 

Based on the distinction, as well as an 

interest in being an affiliate of the JEA, it 

is proposed that the redefined enterprise 

association be the lead private sector 

partner for the initiative. 

The scope of JTI as it relates to the ICT 

industry should also expand beyond the 

investment focus, to include business 

and export support for the domestic 

sector. While it is proposed that this 

would be conducted through the NCSI, 

the expertise for the sector rests within 

the investment division should also be 

dedicated to the domestic sector. 

2. Process (Strategy Monitoring) 

While either of the proposed private 

sector associations are upgrading to 

be able to take on the role of strategy 

monitoring, it is proposed that JTI leads 

for the first 2 – 4 quarters.

20 

s t r a t e g y a t a gl a n c e 

Vision 

The Jamaican ICT sector is globally competitive, widely accessible and 

making the greatest possible contribution to Jamaica’s social and economic 

development. 

Development Perspective 

The Jamaican ICT sector is one of the most significant contributors to new job creation and 

improved living standards through better paying jobs based on higher value-added services. 

SUPPly SIDE (BORDER-IN) 

Well-trained workforce 

available. 

Institutional training and 

industry requirements 

matched. 

Resources for protection 

of Intellectual Property in 

domestic and international 

markets available. 

TRADE INFORMATION 

Market Intelligence on IT 

trends provided. 

Competitiveness Perspective 

TRANSACTION COST OF BUSINESS 

(BORDER) 

Office space in close 

proximity to human capital 

available. 

Government incentives 

available 

to the sector. 

Client Perspective 

QUAlITy MANAGEMENT 

Advisory and financial 

support 

provided for certification 

of firms 

and for testing and 

certification of products. 

Institutional Perspective 

DEMAND SIDE (BORDER-OUT) 

Firms’ compliance with 

market regulations 

increased. 

Sector promotion 

increased. 

FINANCE 

Angel and venture 

funding established and 

accessible. 

Valuation model for IP 

as collateral established. 

The Jamaica Coalition of Services Industries is established as the focal point for coordinating 

support to the sector including facilitation of an active Software Developers Association.

a c t i o n p l a n 

n a t i o n a l e x p o r t s t r a t e g y 21 

o w n e r /su p p o rt 

o b j e c t i v e s m e a s u r e s ta r g e t s i n i t i at i v e s e n t i t i e s t i m e l i n e 

THE DEVElOPMENT PERSPECTIVE 

Increase 

exports from 

the sector 

Increase the 

size of the 

sector by 

building the 

domestic 

base of 

participants. 

Annual 

contact 

centre / BPO 

exports. 

Annual 

output from 

the sector 

(covering all 

sub-sectors 

identified in 

the scope). 

US$150 

million. 

THE COMPETITIVENESS PERSPECTIVE 

BORDER–IN: (Value Chain Development) 

The ICT 

sector has 

access to 

funding for 

start up and 

expansion. 

Funds 

available 

through VC 

and Angel 

financing. 

Funds 

available 

through VC 

and Angel 

financing. 

• Attract 15 foreign contact centre / BPO 

service providers to the country. 

• Facilitate the establishment of at least 5 local 

BPO service providers. 

• Package and promote investment opportunity 

for office space for the industry. 

TBD • Seek to be engaged in the (re)development of 

an education policy (to address literacy and 

mathematical skills). 

USD10 

million. 

USD10 

million. 

• Engage industry professionals in the 

enhancement of the CXC curriculum . 

• Establish an advisory body (core group of 

consultative experts) for the curriculum and 

programme design of tertiary institutions. 

• Train more software developers to meet the 

skills needs for the projected growth of the 

sector. 

• Upgrade current BPO employees’ skills. 

• Provide opportunities to foster innovation and 

develop skills. 

• Develop a plan to use software incubators 

to develop systems for the Government of 

Jamaica, based on identified needs, thus 

providing experience to strengthen the 

sector. 

• Facilitate linkages between the ICT sector and 

other sector enterprises for increased delivery 

of innovative business solutions. 

• Develop the feasibility and action plan for the 

Venture & Angel Capital fund and establishment 

of the Fund. 

• Seek international and domestic funding for 

the development and entrepreneurial funds for 

the sector. 

• Establish a venture capital fund to support the 

ICT industry. 

• JTI 

• Sector 

Association 

• Sector 

Association 

• JTI 

• Ministry 

of 

Education 

• JTI 

• Sector 

Association 

• JTI 

• Sector 

Association 

• Services 

Coalition 

• (Financial 

partner) 

Y1-3 

Y1-3 

Y1 

Y1 

Y1 

Y2

22 




BORDER 

Cost of Doing 

Business 

Infrastructure 

To provide 

adequate 

space for the 

growth and 

development 

of the 

industry. 

Number of 

firms listed 

on the Junior 

exchange. 

Framework 

in place 

for IP to be 

accepted as 

collateral. 

Number of 

financial 

institutions 

that accept 

IP as 

collateral. 

Increase in 

the number 

of firms 

accessing 

incentives. 

Increase in 

office space 

available. 

2 

5 news 

firms 

TBD (sq. 

ft.) 

3 • Promote participation in the Junior Stock 

Exchange. 

• Develop a standard for IP (to include patents 

and copyrights) as collateral and engage 

financial institutions in accepting these. 

• JTI 

• Sector 

Association 

• Services 

Coalition 

• JSE 

• JTI 

• Sector 

Association 

• Services 

Coalition 

• JIPO 

• BOJ 

• JBA 

• Ministry 

of 

Finance 

• Promote relevant incentives. • JTI 

• Investigate the inclusion of the respective 

sector in the proposed technology park(s) in 

Jamaica, and engage the owners. 

• Become engaged in current national initiatives 

to develop a Technology Park and provide 

feedback and support for Business Model / 

Plan / proposal. 

• Review zoning laws, and assess the adequacy 

of infrastructure in commercial (and ICT) 

zones to plan and locate any infrastructure not 

deemed to be sufficient, such as electricity and 

telecommunications capabilities. 

• Sector 

Association 

• Services 

Coalition 

• Ministry 

of 

Finance 

• JTI 

• Sector 

Association 

• Services 

Coalition 

Y1-Y2 

Y1 

Y1


n a t i o n a l e x p o r t s t r a t e g y 23 



BORDER-OUT 

Sector 

Promotion 

THE ClIENT PERSPECTIVE 

Business 

Development 

& Export 

Competency. 

• Diversify marketing approach to identify 

opportunities in Caribbean/ Latin America. 

• Provide business development services for 

software developers to improve the business 

competency to include an entrepreneurial 

programme for their start-up or strengthen 

back-office services for the sector. 

• Facilitate knowledge exchange and transfer 

within the industry between (i) more 

experienced participants and new entrants 

and (ii) foreign and local participants in the 

sector. 

Financing See initiatives for (i) IP as collateral, (ii) VC and 

(iii) stock exchange. 

Quality 

Management 

THE INSTITUTIONAl PERSPECTIVE 

Number of 

institutions 

increasing 

capabilities. 

Association 

created. 

Number of 

members. 

• Identify the relevant international standards 

for the industry and develop programmes to 

foster implementation of these standards and 

certification of firms and individuals. 

2 • Increase capability to train designers, 

developers, programmers and analysts. 

15 

• Provide support to establish and build 

capacity for the proposed sector-wide 

industry organisation. 

• Provide support to the JCS for their 

transformation. 

• Perform Benchmark or JCS/JTI survey as an 

extension of the Services Sector Study: 

• Software development. 

• ICT services. 

• JTI 

• Sector 

Association 

• Services 

Coalition 

• Sector 

Association 

• JTI 

• Services 

Coalition 

• UWI 

• UTech 

• Sector 

Association 

• Sector 

Association 

• JTI 

• Services 

Coalition 

• Ministry 

• Sector 

Association 

• JTI 

• Services 

Coalition 

Y1-2 

Annual 

Y1-3 

Y1 

Y1, Y3

24 


Annex 1: Overview of the 

Sector’s Global Market 

(EME) 

Global Trends 

As outsourcing has matured, companies 

have moved away from a simple model of 

using a home location that is supported 

by outsourced services, usually located 

offshore. A trend over the past few years 

is the use of a mix of on-site, offshore 

and nearshore services to provide a 

delivery model that balances risks and 

rewards. Generally functions are divided 

between those that are provided on-site 

and those that use off-site delivery. 

Off-site activities are assessed for their 

suitability for offshoring, and if that route 

is not chosen, they are carried out at a 

nearshore or onshore location. 

Diversifying operations in this way 

allows companies to benefit from cost 

effectiveness, high productivity and 

round-the-clock service while minimising 

risk. As a result of this approach, 

several nearshore destinations have 

arisen to serve the large US and 

European markets. Typically, Canada, 

the Caribbean and Central America 

serve American outsourcing needs while 

countries such as Ireland and Poland 

handle Europe. 

The desire for a diversified service offering 

has led service providers to situate higher 

value-added services closer to their 

clients’ headquarters with the majority 

of their process-oriented and labourintensive 

functions in low cost locations 

such as India and, to a lesser extent, 

nearshore destinations. Additionally, 

major Indian service providers have 

matured and are considering the use 

of nearshore options not only to provide 

better service but to expand their reach 

and tap new markets. A number of firms, 

including TCS, Infosys and Satyam are 

setting up operations in Eastern Europe 

to serve the broader European market. 

In terms of North America, centres have 

been established in Canada, Mexico, 

Brazil and Puerto Rico. A number of 

these operations were created through 

acquisitions or joint ventures, and 

were direct responses to specific client 

needs. 

Supply Markets 

India continues to dominate the market 

for ICT services and outsourcing. It 

holds a 44% share of the global offshore 

outsourcing market for software and 

back office services. And Gartner 

predicts that India will continue to attract 

the bulk of global offshore spending 

on IT services. Part of its dominance

is due to the labour cost advantage it 

enjoys. The table below provides some 

indicative comparisons between the cost 

of labour in India and other countries. It 

is important to note that China and the 

Philippines compete closely with India 

on cost, and Jamaica can match the 

advantage these countries enjoy. 

Table 6: Indicative ICT Annual Salaries 

Country 

Programmer 

(2-3 years experience) 

However, in addition to its cost 

advantage, India benefits from the fact 

that it dominates perceptions as the 

leading supplier of services in this area, 

particularly in the large US market. Over 

82% of American companies rate India 

as their primary choice for software 

outsourcing. However, some trends 

in outsourcing have led to the rise of 

nearshore locations as part of a more 

rounded service offering. 

ict 25 

Canada has become the most widely 

used nearshore location for outsourcing 

from the US. From 2002 to 2003, 

the number of outsourced agent 

professionals in Canada grew by 8.3%. 

The cost of Canadian labour can be 

up to 30% lower than in the US, and, 

as a standard of comparison, Mexico 

affords a 50% savings on labour. After 

Call Centre Agent (2-3 years 

experience) 

Programmer 

(average cost) 

India $6,000 to $9,000 $5,500 to $7,000 $7,500 

China $5,500 to $9,600 - $7,550 

Philippines $6,500 to $10,900 $7,600 to $9,200 $8,700 

Ireland $21,000 to $28,000 $16,000 to $25,500 $24,500 

Mexico $18,000 to $23,000 $3,000 to $15,000 $20,500 

Singapore $27,300 to $34,600 $22,300 to $28,400 $30,950 

Canada $25,000 to $50,000 $18,600 to $28,300 $37,500 

USA $45,000 to $85,000 $25,000 to $40,000 $65,000 

Malta $18,000 to $21,000 - $19,500 

Jamaica $18,500 $6,500 to $7,500 - 

accounting for all costs including labour, 

telecommunications, travel, and dualmanagement 

required for different 

cultures, Canada presents a 20-30% 

savings over the US while Mexico comes 

in between 25 and 30%. Aside from 

the savings issue, Canada is particularly 

attractive to US firms as the two cultures 

are very similar, allowing for strong 

client-facing relationships.

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ICT Export Strategy - Jamaica Trade and Invest

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