20,000 outsourcing jobs lost, but AI not to blame, say experts

Employment in Jamaica’s outsourcing sector, which includes the business process outsourcing industry, has declined by a third over two years to about 40,000 jobs.
Industry leaders and policymakers are concerned, but they expressed determination to reposition the sector.
Newly elected President of the Global Services Association of Jamaica (GSAJ), Yoni Epstein, cited low productivity levels, disruption from Hurricane Melissa in October last year, and limited available labour talent as factors for the sector’s downturn.
“Our most recent census of the industry would confirm that the jobs are down to 40,000 from 60,000 a few years back. The loss has been caused by a lack of productivity, which has made us uncompetitive versus other global destinations, Hurricane Melissa and the low unemployment rate,” Epstein told the Financial Gleaner on July 15.
Epstein does not see artificial intelligence (AI) as causing the job losses in the BPO sector, which generated more than US$1 billion for Jamaica in 2024.
“The job loss has been caused by a few things, but artificial intelligence isn’t one of them,” Epstein said.
To counter the decline, Epstein, who is founder and chief executive officer of itel, one of the largest outsourcing operations, outlined a three-point recovery plan: marketing to restore investor confidence to pre-COVID levels; upskilling the workforce to handle the evolution of the customer service industry; and working on ways to reduce operating expenses to make the industry competitive again.
“Through the GSSC there continues to be a plan to upskill the workforce, but we have to remember that the most important thing in this industry is the will to work, as each company can teach the skill. We have to create a workforce through accountability that wants to work again and wants to do better than the next person, because we are a determined nation to succeed,” the GSAJ president said.
The Global Services Skills Council (GSSC)  is an industry-led body that promotes productivity and growth within the sector, addressing skills development needs and enhancing global competitiveness. The Global Services Sector Project, funded by the Inter-American Development Bank, is a five-year initiative that seeks to provide Jamaicans with access to training and better jobs in the sector, namely, in knowledge process outsourcing, information technology outsourcing, and business process outsourcing.
According to a release from the GSAJ earlier this month, outgoing President Wayne Sinclair said many of the jobs lost were among top-tier global companies that have relocated work to jurisdictions offering stronger incentives, sustained international marketing and enhanced competitiveness.
However, Sinclair said that “despite these challenges, Jamaica remained well positioned to reclaim its leadership in the nearshore market through a coordinated national strategy focused on skills development, productivity, innovation and stronger public-private collaboration”.
Epstein expressed confidence that the jobs lost can be brought back to Jamaica, but said it will take a combination of technology, marketing and execution to make that a reality.
“It is possible, but we have to think with technology first, market our differentiator second, and execute on the job handed by our clients third. If we achieve all three we will get the jobs back, and then some,” Epstein said.
Earnings from the outsourcing sector fell 10 per cent alongside the slide in employment, to about US$900 million in 2025. However, Epstein said an estimated 80 per cent of that amount, or US$720 million, stays in Jamaica through wages, operating expenses, taxes and other related items. Over 70 per cent – approximately US$504 million – goes towards wages, he said.
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