-around 400 jobs could be lost
Just some three-plus years after establishing its large customer call centre in Guyana, Jamaica-based itel has announced plans to close its operations in the country, leaving hundreds facing unemployment in what will be a blow to the government which has been seeking to expand the sector.
In 2021, itel, a customer experience provider led by Founding Chairman and CEO, Yoni Epstein, and headquartered in Montego Bay, Jamaica, revealed its acquisition of Emerge BPO, a business process outsourcing company here. While Epstein’s itel is winding up here it is expanding in Jamaica.
In an internal message to its staff yesterday, the company said that the decision followed extensive analysis and discussions among its leadership. The closure will result in more than 400 workers losing their jobs.
Despite significant investments over the years, the company’s management disclosed that its Guyana operations are no longer sustainable. While itel described Guyana as a “gem”, it pointed to ongoing challenges despite the nation’s continued economic growth. As Guyana’s economy expands, the rising cost of doing business has made it increasingly difficult to find and retain qualified candidates, according to the company.
Itel explained that these challenges have impacted its ability to attract and retain Fortune 500 clients, which are crucial to maintaining a steady flow of business for the centre. It also revealed that despite efforts to reduce costs and engage the workforce, it has struggled to overcome these hurdles.
These positions from itel will challenge the government’s rosy outlook for the business process outsourcing (BPO) sector. It is unclear if the government had been in dialogue with itel before its decision to close operations.
Several employees yesterday expressed uncertainty about their future following the announcement. According to sources, reactions to the closure varied across departments. One employee told Stabroek News that on March 31, 2024, they arrived at work only to find their department had been shut down. Since then, the company has gradually been shedding staff and closing departments.
One employee described the announcement of the full closure as a shock, stating, “I don’t know what my next move will be.” This sentiment was echoed by other workers, many of whom felt blindsided by the news. “Our department did not receive a notice,” another employee shared.
Regarding severance pay, multiple sources confirmed that employees who have been with the company for less than a year will not receive any severance but instead will be paid for their leave days. Workers employed for one to five years are expected to receive severance, while those with more than five years of service will be paid in accordance with the company’s policy.
The closure will be carried out in phases, with all operations ceasing by November 30, and the official shutdown of itel’s Guyana operations scheduled for December 31.
A PRNewswire release on August 29 said that despite a challenging quarter for most industries, itel had shown remarkable resilience by expanding in Jamaica, increasing its employee headcount to serve two new clients in the logistics and retail sectors.
“Despite an industry-wide downturn that is affecting CX (Customer Experience) providers globally, itel is defying the challenging macroeconomic conditions with strategic expansion that includes investment in building out its sales team and aggressively going after a new client roster. As many companies have scaled back their customer support services in response to lower consumer demand, itel has shifted its focus on branching out into emerging sectors that show immense potential for growth, such as rising startups and SMBs, along with its current list of larger, global clients”, the release said.
In August this year it was announced that in a bid to spur the BPO sector more than $2b has been spent on call centre shells as the Guyana Government aims for 15,000 jobs in the sector by the end of next year.
The Guyana Office for Investment (G-Invest) said that President Irfaan Ali’s commitment to advancing the BPO sector began to take shape with the implementation of fiscal incentives and various forms of support such as skills development in the labour force. This process was advanced further in 2022 when G-Invest held the first stakeholder meeting with the various BPO operators in Guyana.
The mission was to create 10,000 jobs in the sector by 2025 and this target was backed by strategic government initiatives, including the introduction of coding and ICT skills training from grade school through secondary school, ensuring a future-ready workforce. The target figure is now 15,000 jobs.
According to G-Invest more than $2 billion has been invested in constructing readymade call centre shells, strategically located across the country in regions such as Region Two, Region Five, Region Six, Tuschen, Enmore and Linden. This infrastructural development has been complemented by training programmes for new recruits and enhancing ICT literacy.
“Strategic initiatives by President Dr. Irfaan Ali and the unwavering government support have positioned Guyana as a top destination for Business Process Outsourcing in Latin America and the Caribbean. Under his leadership, we have implemented fiscal incentives, invested heavily in ICT skills training, and developed essential infrastructure to attract significant global players to our shores. Our natural advantages, combined with these efforts, have made Guyana an ideal BPO hub. The Guyana Office for Investment has played a crucial role in facilitating these developments, ensuring a smooth and efficient process for BPO companies looking to establish operations here,” said Dr. Peter Ramsaroop, Guyana’s Chief Investment Officer and Agency Head of G-Invest.
The agency said that the President’s support has attracted major industry players such as Qualfon, Teleperformance, and Midas BPO, along with smaller operators. Companies like India-based VChart Services are expanding their operations, with plans to hire 100 new employees for their Tuschen and Enmore call centres by year-end, according to G-Invest. These developments are transforming communities, providing permanent employment opportunities in areas like Tuschen, which traditionally depended on seasonal farming jobs.
