Jamaica’s global services sector targets skills and AI amid workforce decline

Jamaica’s global services sector is seeking to reverse a workforce decline caused by hurricane disruption, higher operating costs, limited labour availability and widening skills gaps, according to Global Services Association of Jamaica president Wayne Sinclair.

The industry, previously widely described as call centres or business process outsourcing, provides overseas companies—mainly in North America—with customer service, technical assistance, back-office operations, IT support and other higher-value services.

Sinclair said a hurricane struck at the end of October, when operators were preparing staff for their busiest period. He referred to the storm during the interview as both Hurricane Melissa and Hurricane Matthew. Companies generally increase employment ahead of Thanksgiving and Christmas, while collections operations experience seasonal demand from January to April. Staff would normally be trained by October, systems tested in November and operations prepared for December.

The disruption forced some businesses to relocate campaigns or develop alternative arrangements. Companies suffering severe damage to buildings and other infrastructure did not fully recover. Kingston operations were largely unaffected, but western Jamaica represents an estimated 60 to 65 per cent of the industry’s workforce.

Sinclair also identified electricity, security, insurance, transportation, rent and other utilities as pressures weakening Jamaica’s competitiveness. He said operating locally is increasingly more expensive than in the Philippines, India, Guatemala, emerging African locations and South Africa.

Although Jamaica’s industry has operated for more than 30 years, competing destinations now offer similar advantages at lower costs. Near-full employment also makes it difficult to recruit the 250 to 400 workers sometimes required for a single campaign. Available applicants are increasingly entering with fewer skills and academic qualifications, he said.

The association views artificial intelligence as a tool for improving employee productivity rather than simply reducing jobs. Sinclair cited an article reporting that 30 per cent of people laid off globally following AI implementation had subsequently been rehired. He said companies must assess whether productivity gains justify technology costs.

The recovery strategy includes relaunching the Global Services Skills Council, whose first programme operated from around 2019 or 2020 through 2023. Training will focus on technological skills and AI adaptation.

The association also plans stronger overseas marketing, continued engagement with the Government on transportation and other expenses, and exploration of cost-saving technologies such as solar energy at company level. Sinclair said workforce training, international promotion and a renewed Jamaican value proposition would be central to the sector’s response.