Jamaica expects minimal impact of AI on BPO sector

KINGSTON, JAMAICA — Jamaica’s business process outsourcing (BPO) industry is expected to remain resilient against the disruptive forces of artificial intelligence (AI) in the medium term, according to Anand Biradar, president of the Global Services Association of Jamaica (GSAJ).
Biradar asserts that the complexity of systems used in the BPO sector will delay significant AI disruption.
Focusing on traditional BPO services
Biradar advises that Jamaica should consolidate its position in traditional BPO services rather than shift focus to higher-end services, which are more susceptible to AI disruption.
“AI can disrupt an industry in which system complexity is low, and 80 to 90 percent of our industry has complicated different systems, so for AI to disrupt the BPO industry, it will take a long time,” he stated.
Employment and economic impact
The BPO sector in Jamaica employs approximately 62,000 people and has significantly reduced the national unemployment rate to 4.5%.
Despite predictions of AI’s impact on the industry, Biradar believes that AI will not decisively reduce the sector’s growth in the next three to five years.
Navigating challenges and future directions
The push to transform from traditional BPO to knowledge process outsourcing (KPO) has been discussed, but Biradar emphasizes the need for education on AI’s complexities and potential disruptions.
“It requires education, which is not a ‘one call or one meeting’ situation,” he noted.
Jamaica also remains competitive in the nearshore market against countries like Guatemala, Costa Rica, and Colombia. However, it also faces competition from far-afield locations such as India, South Africa, and the Philippines, which offer similar services at lower costs due to their cost structures.
Government and industry collaboration
Biradar highlighted ongoing discussions with government officials to ensure the industry’s future growth and competitiveness.
“Going forward, we hope the government is willing to listen and make the necessary changes so that the industry can thrive,” he said.
While AI poses potential challenges, Jamaica’s BPO sector is poised to maintain its growth trajectory by focusing on its strengths in traditional outsourcing services.
The collaboration between industry leaders and the government will be crucial in navigating the evolving landscape and ensuring the sector’s continued success.