CEO (itel-BPO Solutions)

Jamaica is working to promote foreign direct investment. What are the island’s competitive advantages in regards to ICT/BPO compared to other countries in the region?

Jamaica is well positioned in the Caribbean as the most northern English-speaking country in the region and the third largest in the western hemisphere. Jamaica is also well positioned for economic activities because we are just 1.5 hours from Miami, 3 hours from New York, 3.5 hours from the mid-west and 5 hours from the west coast of the United States of America (USA).

I think that the Jamaican culture and people are a big facet to the success that the country has continued to see. I think that the cultural alignment and affinity with North America is extremely strong and even with the UK. There are 3 million Jamaicans who live on the island and around another 3 million Jamaicans who live anywhere else around the world so our roots are not only strong at home but abroad as well.

If you look at the more economic side of things, we are going through a tough challenge with our economy. The IMF program, which we’ve been successful with, has pushed the devaluation of our dollar. From a foreign investment perspective, this has made Jamaica far more competitive and attractive than it has ever been and we are able to compete not only with our neighbours in the region but also globally and with Asia.

The Jamaican government is working to attract investment through the logistics hub initiative, the north-south highway and special economic zones etc. Which project do you think has been most effective to date?

The logistics hub has not yet come into play and I think that it should not be treated as something that is going to come in and be a massive overnight success. The plan is brilliant and even one portion of it, for example, the expansion of the Kingston Container Terminal, is a huge success. If we are going to be a global logistics hub, that needs to be the first step because the containers are going to be coming in and wanting space because they’re not going to be sitting at sea where they waste time and lose money. I suggest that we take it in stages, look at what is most important and will provide the biggest economic value for the country and the people of Jamaica, and then focus on executing and succeeding at that. Then move onto step 2. It might take 10-15 years but if we don’t start now and take care of the initial pieces then we won’t be a global logistics hub so we need to focus on the importance of the short-term, medium-term and long-term goals rather than saying we are going to implement all of it at once.

Although I think that the government’s partnership with the Chinese has been very successful in terms of the highway system, I think that the biggest low hanging fruit is the BPO sector. Although I am somewhat biased, I think that BPO is a tremendous opportunity. You can touch, feel and taste it and you can see its success in a very short period of time. Since we started our business in 2012, we’ve seen the industry go from 12,000 jobs to 17,000 jobs, and we can see 20,000 jobs before the end of 2015. The sector is regulated so you will get the tax dollars from employees because it’s paid in statutory deductions by their companies. So employment will give employees cash to spend in the economy and drive more tax dollars which is going to help the government get out of the problem that they’re in. They’ve been very successful thus far with the IMF program, refinancing some of their debt and getting rid of some of the government paper or assets to free finance and move forward but there’s only so much in business that you can contract and then you have to grow your way out of your problem. In addition, the employment brings people into the formal system and gives them the opportunity to create wealth for themselves because we have the National Housing Trust. Once you’re vested you can get up to J$4.5 million towards purchasing a house so by putting more people to work, more people will be able to own a piece of property, a vehicle and other things that they thought they would never have. That’s why I think of the three you have mentioned, BPO is by far the fastest and easiest way to achieve economic growth.

There are currently more than 20 ICT/BPO companies in Jamaica and all offer services at a competitive rate. Do you see a limit in this industry in terms of supply and demand?

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I think that we could get 50,000-60,000 employees in this sector in Jamaica. I think that we are certainly going to have to develop Mandeville and Kingston. Montego Bay is the leader today but Kingston is going to have to surpass that if we are going to achieve the 60,000. I think Montego Bay could double the size and Mandeville could end up being at about 10,000 and the balance of that in Kingston. When we were strong in the manufacturing garment sector in the 90s we had 45,000 people working in that industry.

Jamaica’s BPO sector offers great advantages to near shore foreign companies. How about companies in Europe and Asia? Can Jamaica compete with sectors in other parts of the world?

Most certainly. In the Philippines the attrition is high and the cultural affinity is non-existent. The accent neutralization has to be taught and you have to fly 2.5 days to get there. With that alone, the more that we promote Jamaica and get its name out there, the more successful the industry will be. We will not be as successful as the Dominican Republic and Central America because they can provide Spanish and English I do think that as a country we have to act very quickly and teach our people Spanish or forge stronger partnerships with Cuba to have some sort of program where we can bring Cubans here to offer Spanish services.

You are Chairman of the Business Process Industry Association of Jamaica, which was created in 2012. Why exactly was it created and what did it aim achieve?

The main reason it was developed was to create an advocacy group so that we can develop better public private sector partnerships. The government is cash-strapped and can only do so much; JAMPRO also has a tight budget and can only do so much so if we really want to develop the sector, the private sector has to step up. The industry is predominantly built around foreign investors, mainly American companies, coming and setting up shop here which we are grateful for and we want more of. The local companies and individuals such as myself are, however, tied to seeing the success of the sector and country so we felt it was time for us to step up and say that we have to help the government of Jamaica to make this industry successful. We are the experts and operators and we know what we need to make it successful so let’s forge this partnership. That was the original ethos for getting the Association started.

Once we got it started we realized which areas needed work. This sector can’t grow, for example, unless we have trained human capital and professional individuals who can work in the sector. We forged a MOU with HEART, which is the national training agency, to revamp their curriculum for the BPO industry. They have already trained and certified between 700-1,000 people for the sector. In my opinion this has given companies the confidence that HEART can prepare individuals for the sector and as a result, many companies have gone and built their own mini programs with HEART.

Three years ago access to space was a real problem. Jamaica lost out on an opportunity with one of the larger BPO companies coming here because of this issue. As an Association we built and showed a level of confidence to the private sector members that this is the sector to invest in. The government had prepared Development Bank of Jamaica financing through the PetroCaribe fund but only when the private sector came in and said this is the place to put your money in, did the developments really start. Mark Kerr-Jarrett built 50,000 sq ft with no client but they knew as a company that they had the ability to go find one. Once they got their first client, somebody else came and said they want the other 25,000 sq ft but another 50,000 sq ft as well. So now they are building their second building and someone else has come and said that they want more buildings so it’s catching on like wildfire. Their dream is coming to life because they believed in themselves, the country and the sector.

The Association also looked at security, which is a big problem in Jamaica. We pushed the government to relook at the Cybercrime Act, change some of the stipulations in the Act and develop the Lottery Scam Act. This really put these illegal activities on their back foot so they are no longer a threat to the industry. So again that was the advocacy of the Association pushing the government to get its act together and to rectify these issues.

Lastly we looked at how we could develop unity within the sector, share best practices and meet as grown individuals to help to continue to grow this sector. We all said that rising tides float all boats so we would all be very successful if we can move together as a unified group to ensure the continual growth of the sector. As part of the IMF program, Jamaica moved from an incentive-based regime to an omnibus tax incentive regime, which is a flat tax. Our Association advocated that BPO be left out and we were successful because of the power of the group. We’ve done the same in regards to other ways that the government has tried to tax the sector. We’ve said that BPO is an employment generator, an enabler to put people to work and money in their pockets and a way for them to create wealth, which will then go back in to the economy. So I think again that we are on the right foot with the government in making sure that is not an issue.

How many members does the Association have?

We have about 36 members and 28 are BPO operators. We have all but four operators as members of the Association.

You previously mentioned some benefits of being a member of the Association. Are there any others that you would you like to mention?

We opened the doors for training. As an Association we won a competition and received USD500,000 of grant funding from Compete Caribbean, which is affiliated with the IDB, for the BPO industry.

One of the ways we have used this money is the development of a 200-seat incubator. Any local entrepreneur, foreign investor or BPO company that is starting up or expanding can go in and rent this turnkey facility. So you walk in and as fast as you can hire employees is as fast as you can start doing business so your access to the market is quicker and cheaper. 100 seats are currently being rented and we have a couple of other prospects that could fill the 200 seats before the end of this year. That is a start up centre so you are allowed to spend a maximum of 12 months there and then you have to be out into your facility whether it’s Barnett Tech Park, the Montego Bay Free Zone, the Cazoumar Free Zone or somewhere else.

We have also invested this money into security. Every employee who works in this sector has to have a background check and fingerprints done so we’re developing a full security office where police have a station to do finger printing, lie detection, personality testing etc. These enable companies to better understand the individual they’re hiring and we will provide that as a subsidized cost to the members of the Association.

As an Association, we also look at marketing because as I said JAMPRO is cash strapped. We have some funds to go out, market Jamaica and get the name known because you can still go to shows today and meet people who do not know that Jamaica is in the business. We partner with JAMPRO to go to the Gartner show in Florida, IAOP which was in Vegas this year, and Nearshore Nexus in New York. Here you have many vendor managers who are looking to outsource services so you can set up private meetings or just set up a booth.

Let’s speak now about your companies. How do Island Outsourcers and Intel BPO solutions differ from one another?

Island Outsourcers focuses on our travel–related business so anything that deals with hotels, airfares, excursions, rent a cars etc. Itel-BPO deals more with traditional BPO so utilities, health insurance, telecommunications, medical and online marketing.

Does your company adopt a certain philosophy?

When we started the business we didn’t want a typical vision or mission statement. We’ve adopted our four values: quality (in our infrastructure, people and team), integrity (being a partner that is open and transparent, willing to share our successes and weaknesses and manages clients independent of each other), reliability (ensuring employees come to work and that we can provide our services) and family (creating an environment where our employees want to come to work).

Jamaica’s BPO sector is increasingly competitive.  Why should potential clients choose to outsource with your company over some of your competitors?

Our company takes a different approach towards the client than larger companies. Being a smaller, more boutique company that operates in a niche market, each client is not treated as a number. If you are in a big boy BPO centre you are essentially going through the motions so, because of our entrepreneurially spirit and skill, we provide better services to the customers. In most BPOs you’re not going to be speaking with the CEO but with our company you have that ability because it is engrained in our culture.

I think that all BPOs will tell you that they can provide the service for cheaper and better results. I think that Jamaican people have a knack for this sector and for selling. When you look at a lot of the other companies that are part of the BPO sector, a lot of it really is transactional processing or customer service, which are very easy. When you look at the BPO industry it went to India because of costs, it went to the Philippines because of costs and now it’s coming back to this side of the world because of bilingual language skills, being near shore and people are not only looking for a cost saving, they’re looking for the value proposition. Clients are now looking at how your company is going to increase my return on investment by increasing conversions in my sales, rather than just taking a customer service call. I think that the ability of Jamaicans to add an up sale option is where they really set themselves apart from other countries in the region.

I think being English-speaking is also a huge aspect to our sale ability. Having also that cultural affinity to the USA, it’s very easy to build rapport with the customer. If you go into Central America where Spanish is your first language and English is your second, the cultures are somewhat different to North America so it’s a bit harder to put sales programs down there and I think that’s where Jamaica and certainly our company sets ourselves apart from others.

Your company has SEZ status. How does this help your company?

It helps us tremendously in making us competitive on a global landscape. We don’t have any tax or duties on any capital equipment that we bring into the country for use of services. We don’t pay GCT on our inputs or corporate income tax and 100% of our profits are repatriated, which is typical in free zones. With the devaluing dollar and the skill sets of Jamaicans, we can provide a full 360 package to our customers that is easy to understand, competitive with those to the south, west and east and you’re going to get more value for your money. When you start adding taxes it makes the cost of doing business more expensive and at the end of the day the person that is going to feel that is the consumer who is paying for those services. It is a commodity driven business and if your commodity is more expensive, the consumer will go somewhere else, which is why we are saying you cannot tax this industry.

How many staff do you employ?

We have about 400 employees in our new site in Kingston, two sites in Montego Bay and our office in the Bahamas.

How would you compare your work here with the Bahamas?

It’s very similar in some senses but different also. Our costs of doing business are more expensive there but we’ve found it easier to get business there because we are the only player on the island. There are needs not only by foreign companies but local companies to outsource and given we have the expertise and are the only player there, we’ve found it very successful thus far.

As far as an operating landscape, it’s very similar. Generally the Bahamas’ economy is pretty strong but they’ve had a depressed economy in Freeport so the human capital is similar to Jamaica in that the people want a job, to succeed, to earn more money and to do better for themselves. So we’ve been very lucky in setting up there and finding the labour there to run our business in Freeport.

What percentage of your business is international business and how do you attract clients?

85% of our business is international. I would say overall 95% of the country’s business is international, meaning North America. We have a business development team in the USA, which goes to shows and explores new areas to make leads and pitch our services.

Are you engaged in any CSR activities?

In the Bahamas we have provided training programs to a home for children in the inner city, and some people who were in that home are now employees. We do similar projects here and sponsor community football etc. We ensure that what little we can do makes a big difference in many ways.

Are there any ways that you’ve incorporated innovation into your work that you are particularly proud of?

We write a lot of our internal software. Our head of IT developed much of it during the early stages of business but it’s forever evolving. I really let the team take it to where it needs to go. Obviously we have meetings, discuss ideas and some get shot down, but I give them the leeway to develop their own ideas and be a part of it. It’s not me dictating what needs to happen but it’s truly a team built system that is proprietary and nimble. This has separated us from other companies because we can move and react very quickly to the needs of our customers.

You are a role model in the BPO sector. What advice would you give to budding entrepreneurs?

Someone I have a lot of respect for in business is Richard Branson. He has a saying: “Screw it just do it.” I really think it comes down to a lot of that and having no fear and saying, “I want to be in business or I’m going to be in business.”

With that you have to know your shortcomings and look at hiring and developing people to be successful because clearly I will not always be the smartest person in the boardroom. You learn a lot in business as in my opinion business plans aren’t worth the piece of paper they are written on. You go in with an idea and plan and reality strikes and it’s how you navigate through reality that will determine your success. You must also never give up, have dedication and determination and want to be the first one there and the last one out. You have to be constantly on the front foot looking for new business and new avenues, and you have to be self-motivated because it’s very lonely at the top. No body feels sorry for you but you have to be on stage and perform every day no matter because you have however many individuals that work for your company looking up to you and relying upon you. So you have to put on the game face every day and perform, and always find new and innovative ways to find your business to succeed.

Harvard Business Review readers include some of the world’s most influential and powerful figures. What message would you like to send them about Jamaica and your company?

Jamaica is always known for sun, sea and sand but as far as our business landscape goes, we are highly productive and cost-effective, and we care about your business and increasing your return on investment.

In terms of our company, through our entrepreneurial spirit and innovation, we can provide better services at better costs and develop lifelong relationships.