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News » Ibex closes two centers in Jamaica, cuts 1,600 workstations

Ibex closes two centers in Jamaica, cuts 1,600 workstations

ibex-closes-two-centers-in-jamaica
Photo from ibex

KINGSTON, JAMAICA — Global business process outsourcing (BPO) firm ibex recently announced the closure of two contact centers in Jamaica, reducing its operational footprint from six to four centers. 

This move is part of a broader strategy to optimize the firm’s resource utilization across its onshore and nearshore geographies, including the United States and Jamaica.

In its recent financial disclosures, ibex cited challenges such as inflation and the rise of generative artificial intelligence as factors influencing clients’ decisions. 

Impact on workstations and equipment value

The closures have eliminated 1,600 workstations in Jamaica, a 29% reduction and bringing the total to approximately 3,850 seats. 

This reduction is part of a larger trend within ibex’s operations, with U.S. workstations decreasing by more than half. The impact on Jamaica is particularly notable as it has historically been a major employment hub for ibex.

The value of ibex’s equipment in Jamaica also declined, dropping from $13.4 million to $8.7 million. However, the firm also revealed its plans to acquire additional space in the future as it continues to expand geographically.

Global operations and financial performance

Ibex’s global presence now includes 29 delivery centers, down from 34 the previous year. 

The company’s nearshore revenue, which includes operations in Jamaica, Nicaragua, and Honduras, fell by 8% to $143.6 million. This decline was more pronounced than the overall group revenue decrease of 3%, which totaled $508.6 million.

Similarly, onshore operations in the U.S. also saw a 17% decrease to $120.2 million.

On the other hand, offshore operations in countries like the Philippines and Pakistan experienced growth, increasing by 10% to $244.8 million. 

AI integration and future expansion plans

Despite these hurdles, ibex has introduced its own artificial intelligence (AI) technology to offer competitive services. The company is actively integrating generative AI into its business model through its Wave iX technology launched earlier this year. 

The company also developed a three-pronged AI strategy aimed at enhancing agent productivity, providing deeper customer insights, and improving customer experiences through advanced voice and chatbots.

Moreover, ibex remained committed to expanding its workforce. The company recently held a job fair to recruit new staff, although specific targets and outcomes were not disclosed due to unavailable comments from local representatives.

As ibex navigates these changes, it continues to focus on leveraging technological advancements to maintain its position as a leader in digital transformation within the outsourcing industry.

Read more here.

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