Author: Sydney White
Business Process Outsourcing (BPO) centers have been operating in the Caribbean and Southeast Asia since the late 1980s and early 1990s, with companies like Accenture and AT&T establishing data centers abroad. Over time, several e-Services providers set up operations in the Caribbean, benefiting countries like Jamaica, Belize, and the Dominican Republic by offering valuable training and employment.
However, the integration of Artificial Intelligence (AI) is set to revolutionize the BPO industry, with major implications for employment. AI technologies such as Machine Learning (ML), Natural Language Processing (NLP), and Robotic Process Automation (RPA) are expected to streamline operations, leading to massive layoffs. Some AI-enabled BPOs have already reduced error rates by 85% and cut task completion times by 60%. By the end of 2028, AI will significantly impact labor, project costs, and operational efficiencies, requiring a complete overhaul of the existing business model.
Countries like Jamaica and the Dominican Republic, heavily reliant on BPOs, stand at a crossroads. They must navigate the challenges posed by AI and seize new opportunities arising from recent global shifts. Economic pressures in Europe and the U.S. have opened up avenues for the Caribbean to explore. To capitalize on these opportunities, a combination of strategies, international diplomacy, and workforce re-skilling will be essential.
Source: jamaicaobserver.com
Two key opportunities are emerging simultaneously:
- Distribution Centers: High tariffs on imports from Europe, Asia, and South America are pressuring U.S. distributors, many of which could be incentivized to establish distribution hubs in the Caribbean. The Dominican Republic has already taken the lead, opening the first Amazon Caribbean distribution center in September 2025. Jamaica, with its efficient port and potential for a revitalized Tinson Pen Aerodrome, is well-positioned to attract major distributors like Alibaba and Amazon. With an expanded runway, Tinson Pen could offer a strategic location for an airport linked directly to Jamaica’s harbor.
- Technology Parks: New U.S. immigration policies have raised the cost of H-1B visas, which could drive tech companies to look outside the U.S. for talent. In 2018, over 70% of Silicon Valley engineers held H-1B visas. With these new visa fees, Caribbean nations could replace BPOs with technology parks and centers. Partnerships with Indian and Chinese governments, as well as U.S. tech companies like Microsoft, Oracle, Accenture, and Apple, could establish tech hubs in the region. This would require a three-way partnership and strong public policy frameworks to facilitate workforce development, especially in STEM education, so the Caribbean can participate fully in this emerging market.
By developing these strategies, the Caribbean could transform its economy, replacing BPOs with sustainable tech-driven industries, and fostering new job opportunities in a rapidly changing global landscape.
