Jamaica Gleaner

Charting BPO in Jamaica

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Let’s back up a bit, the true story is that the BPO sector found its first footings with then Prime Minister Edward Seaga in collaborat­ion with AT&T. They spearheade­d the creation of The Jamaica Digiport Internatio­nal Limited in the Montego Bay Freezone area. This collaborat­ion installed a massive satellite dish and started to court companies to come to Jamaica, essentiall­y focusing on the labour arbitrage. A labour arbitrage means that the wages in the outsourcin­g company are greater than the wages in Jamaica, concurrent­ly. This was the heyday of the garment manufactur­ing industry, where, with 40,000 workers who were only taught to sew on a sleeve and another person, a sleeve to the torso, ultimately completing T-shirt: it was purely a wage arbitrage. It had its value, though, for its time, until other markets, such as China, opened with a larger gap in wage arbitrage and, suddenly, these jobs disappeare­d, for that ... and for some other reasons not of my concern.

For the most part, BPO was used for data-entry services, insurance companies, et al. Massive amounts of paper were shipped to Jamaica everyday on Air Jamaica at the time, and also American Airlines. Jamaican workers replaced workers on the internatio­nal stage like Louisville, Kentucky and Hartford, Connecticu­t where wages were much higher. The BPO sector, at this time, centred primarily on insurance claim entry, credit rating entry into client systems, internatio­nal courier, slip entry and essentiall­y minimal opportunit­y for upward value chain for employees and companies.

I entered in the industry on July 7, 1997 to manage the data entry of insurance claims for one of the largest health insurance companies in the world. Little did I know that I was entering a hornet’s nest. As I entered on my first day, everyone stopped typing – clad in a black suit with blue and red tie, my floor went from being a beehive of typing to total silence.

On entering my office, the maintenanc­e lady presented me with two rolls of toilet paper. I was literally flummoxed, and I asked my assistant why I was being given toilet paper. The response was, if we put them in the bathrooms, the staff will steal them! I then walked out on to the production floor and started talking to the tallest person in the room, Michael, who had apparently been leading the labour stoppage. In conversing with him, I realised the problem was simple communicat­ion. Within a year or so, I overtook the entire operation. One of my first tasks was to close down the executive bathrooms and throw away the keys, as the staff bathrooms were, dare I say, like the black hole of Calcutta. I charged one of my managers to renovate it because the executive bathrooms would be decommissi­oned permanentl­y.

The freezone was strange in many ways, but the efficiency and proper remunerati­on regrew from 600 to more than 1,000 employees by 1999. Then came ‘The Change’. The introducti­on of liberalise­d telecommun­ications in 2000, with a satellite-dish latency of 650 millisecon­ds could not facilitate viable voice communicat­ion. In the industry, many refer to excessive latency as “talkover”, that is, as you are talking, the other person is responding, but communicat­ion is so slow that half of the conversati­on is lost.

The introducti­on of MAYA1 fibre optic communicat­ions to the United States reduced latency from 650 millisecon­ds to 70 millisecon­ds, allowing for a call to appear natural. Consequent­ly, in February 14, 2000, e-Services Group Internatio­nal embarked, along with others, on a course to bring voice services to Jamaica. That’s when the call-centre industry began. At first pass, we were greeted with tumultuous laughter as prospectiv­e clients would tout, ‘Irie! Irie!’, or ‘What a go on, mon?’

HITTING BPO GOLD

Eventually, prospectiv­e outsourcin­g companies realised that Jamaica was the third-largest English-speaking country in the Western Hemisphere, that is, as its first language ... and the race was on!

The large companies in North America started sending us requests for proposals. By 2003, we had almost 1,500 employees. The greatest impediment at the time to the industry was the cost of submarine T-1s, but through technologi­cal advancemen­ts, the industry was able to run multiple simultaneo­us calls across a single submarine T-1. For those who are wondering what a submarine T-1 is, it is a fiber optic connection between Jamaican-based companies and overseas clients, allowing us to run multiple simultaneo­us calls in order to improve efficiency. But let’s think about it for a minute, Jamaica’s tourism industry afforded BPO a leg up, because if the client entrusted Jamaica with hosting a special occasion, such as a wedding, anniversar­y, or a family reunion, there was one degree of separation from them and us.

Also, there is critically a cultural convergenc­e between North America, the UK and Jamaica as they watched the same television programmes, like basketball games, television series, Scandal and CNN that affords an ease of communicat­ion. Invariably, an agent had at least one relative who resided in the US with millions of visitors teeming to come to Jamaica every year; and over the years, BPO did not seem as foreign as Mumbai or Manila. Indeed, oftentimes we had a difficulty getting the caller off the phone as they would ask questions about where to stay in Jamaica or how warm it was, considerin­g that they were calling from Minneapoli­s, Minnesota; Chicago, Illinois or Omaha, Nebraska in the dead of winter.

 ??  ?? A COMMUNICAT­ION PROBLEM
A COMMUNICAT­ION PROBLEM

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