DESPITE an 11 per cent dip in employment for the global digital services sector (GDSS), the Jamaican Government is working to attract more investments on the higher end of the value chain.

“Jamaica is positioning itself to attract investments in the higher-value segment of the outsourcing sector by delving deeper into areas such as KPO and ITO under its Upsource Jamaica brand. Focusing on shared services, legal process outsourcing, medical process outsourcing, finance and accounting, software development, cyber security and data analytics, Jamaica, through Jampro, has actively engaged international KPO operators to get them to expand their business to Jamaica,” the Jamaican Government stated in its March 2025 Annual Report (Form 18-K) submitted to the United States Securities and Exchange Commission (SEC).

The GDSS comprises areas such as business process outsourcing (BPO), information technology outsourcing (ITO) and knowledge process outsourcing (KPO). This market segment has driven an increase in employment and economic activity over the last decade as companies like Concentrix, Itel, Sutherland Global, Alorica, and Ibex Global opened up shop.

However, there has been a decline in employment statistics for the GDSS, which has about 70 companies. The number of persons employed in the space moved from 62,000 persons in March 2024 to 55,000 persons in March 2025. The country had set a target of 70,400 jobs by March 2025 as per the follow-on strategy approved by Cabinet in February 2022.

“This decrease in employment is attributed to a variety of factors which include: onshoring/reshoring, geopolitical considerations, technological advancements, and the local challenges of cost of doing business. The estimated spend in the local economy is around US$1 billion — through wages, office space leasing, utilities and other categories,” the GOJ annual report added.

The GDSS had 60,000 persons employed in March 2023 and 50,000 persons in March 2022. There were 43,000 persons employed in December 2019.

The Government has also sought to support the sector through strategic investments, access to capital, and training. A US$15-million contract with the InterAmerican Development Bank (IDB) was completed in July 2024 with the Global Services Sector Project (GSSP) and Jampro (Jamaica Promotions Agency) which worked on improving Jamaica’s competitiveness and support for the development of the industry.

The HEART/NSTA Trust also created programmes which were meant to facilitate apprenticeships and access to internationally accredited courses. The Development Bank of Jamaica (DBJ) has also provided access to capital to various operators, in support of their expansion.

“Since 2012 the DBJ has committed approximately US$92.7 million to the BPO sector. Of this amount, US$90.1 million has been disbursed, to date, to BPO ventures which are engaged in developing a total of 1,184,000 square feet of operating space and projected to create 27,500 jobs at full capacity. Additionally, the DBJ’s financing has facilitated about US$153 million in private sector investments. To date, all 20 DBJ-funded projects have been completed, leased and occupied and have reported a total employment of 22,598 jobs,” the GOJ annual report said.

Ibex sees dip in nearshore revenue

Ibex Limited, parent company of Ibex Global Jamaica Limited, recorded a three per cent reduction in its nearshore revenue (from Jamaica, Nicaragua, Honduras) as some of its business moved to offshore locations (Philippines, Pakistan). That also represented the second-consecutive year when revenue declined for this segment. The nearshore segment recorded US$155.80 million in revenue for June 2023, US$143.59 million in June 2024 and US$139.96 million in June 2025.

With respect to the Jamaican business, Phil Taylor was appointed country manager in February as he took over from Tamara Ricketts-Brown. There were four centres in Jamaica, with 3,810 workstations as of June 2025.

Ibex’s financials also revealed that 12.3 per cent, or US$35.79 million ($5.69 billion), of its US$291-million in payroll and related costs was paid in Jamaican dollars (JMD) for the June 2025 period. This figure was 15.5 per cent or US$42.53 million ($6.59 billion) in the June 2024 period.

Ibex’s consolidated revenue grew 10 per cent to US$558.27 million, with operating profit rising 18 per cent to US$46.61 million. However, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) grew 10 per cent to US$72 million as it benefited from the migration of clients to higher-margin offshore locations and growth in the digital acquisition business.

After accounting for higher interest expenses and taxes, Ibex’s net profit increased 10 per cent to US$36.86 million, with adjusted net profit at US$43 million.

Ibex has set guidance for its 2026 financial year with revenue at US$590 million to US$610 million, adjusted EBITDA at US$75 million to US$79 million, and expects to spend US$20 million to US$25 million on capital expenditure.