Robinson pushes for BPO stimulus

Opposition Spokesperson on Science, Technology and Information Julian Robinson is calling on the Government to place on the table a stimulus package for the outsourcing sector to respond to the COVID-19 economic fallout.

The global services/BPO and tourism industries are considered key drivers of Jamaica’s economy, but while plans are now in place to support tourism workers who might lose their jobs, no such specific offer has been made for the nearly 40,000 agents employed to outsourcing firms locally.

“A BPO stimulus package is absolutely necessary, because as we know the BPO industry is a low-margin, high employment industry,” Robinson said in response to questions from The Gleaner. “If we get to the stage where like the Philippines and some Central American countries, where we are forced to shut down centres to prevent COVID-19 transmission, there will almost certainly be job cuts or layoffs.”

“Also, as the global economy slows, so will things like call volume,” Robinson argued.

The opposition spokesman said that the Government should develop a support package and plan to support the industry.

“It should be a tiered support system: in the first instance to give financial support to workers who are laid off, and then to give relief to operators such as rent relief for tenants in the Montego Bay Free Zone.

Efforts to get a comment from the finance ministry were unsuccessful. Marlene Malahoo Forte, the member of parliament (MP) for North West St James, where approximately 50 per cent of local firms are located, could not be reached.

Last week, the Government granted outsourcing operators permission to remove equipment from their sites to facilitate a work-from-home regime as part of the measures to counter the spread of the virus.

Jamaica has recorded 21 confirmed cases of the virus and has implemented travel restrictions at ports of entry.

Other suggestions from Robinson:

n Offer incentives to help manage costs such as transportation for workers.

n Subsidise connectivity costs.

n Offer loan moratorium to developers who have built BPO space and offering for rent.