By Milton Grannum
Described as a strategic transition, Midas BPO has handed over its Linden operations to Prochant, a US-based healthcare business process outsourcing (BPO) company specializing in medical billing and revenue cycle management.
Malcolm Sobers, owner of Midas, in an interview with the Sunday Stabroek on Friday emphasized that the shift is a positive transformation rather than a closure, aimed at securing stable, high-quality jobs for employees in the Linden community.
“Midas BPO is not currently operational in Linden,” Sobers clarified stating that “We transitioned from Midas BPO in Linden to it being Prochant, which is being operated from the same facility.” Prochant, a company with over 2,500 employees globally, will take over the Linden operations from Midas, focusing on healthcare-related BPO services rather than telemarketing.
Prior to Friday’s interview there had been no statement from Midas BPO on the change.
Sobers stated that this transition marks a significant shift from Midas’ previous telemarketing based model, which Sobers described as “the lowest line of BPO work.” He added that the telemarketing industry often struggles with high turnover rates and lower job stability.
“Telemarketing is difficult, it doesn’t provide the kind of stability our employees need,” Sobers said. “Prochant offers higher-level, healthcare-focused roles, which are more stable and rewarding”.
Prochant’s services, which include medical billing, customer service, and healthcare management, represent an upgrade in terms of job quality and earnings potential. Employees who transition to Prochant will be engaged in end-to-end healthcare processes that demand specialized training and offer greater career growth.
“This is a job that requires more intellect, more training, and it’s less robotic,” Sobers noted. “It provides employees with meaningful skills that they can build careers on, even if they choose to leave Prochant in the future”.
The transition process, which took place between October 15 and 18, moved 30 employees from Midas to Prochant.
Midas, which opened in Linden less than four years ago, had celebrated hiring around 95 local workers during its first anniversary in 2022. Despite ambitious plans to expand its workforce to 150, the company’s operations proved unsustainable, reflecting broader challenges in the local BPO market. Sobers stated that due to the rigid telemarketing model several persons had opted to leave the company, but they did retain 30 out of the number that transitioned.
“With the transition, Midas didn’t lose any employees,” Sobers confirmed. The 15 office-based and 15 remote employees in Linden were all integrated into Prochant’s workforce, which plans to expand further by training and hiring an additional 100 employees by mid-2025.
Competitive
Sobers stated that the company is committed to providing competitive employment packages for its Linden-based employees. In addition to higher-than-market-rate salaries, Prochant will offer transportation, daily meals, health insurance, and other benefits to its workforce. “We’re paying higher than all other BPOs in Guyana,” Sobers highlighted, noting that Prochant’s employee benefits package is competitive with other industries in Guyana, outside of oil and gas”.
He added that Prochant has committed an initial investment of nearly US$1 million in Linden, with plans to expand that figure to US$4 million over the next two years. This includes significant upgrades to the facility that Midas previously occupied.
“We’re training 60 individuals at a time over 12 to 18 weeks, with stipends provided by both Prochant and the government,” Sobers said, outlining the phased training process that began on October 28 and will continue into December.
Prochant aims to employ 260 to 320 people in a single-shift capacity at the Linden facility. By the end of 2025, the company’s goal is to have between 100 and 150 fully trained employees on board, with plans for future expansion if demand allows
Reflecting on the broader challenges within the Guyanese BPO sector, Sobers noted that Midas faced obstacles related to the local market’s limited support and a lack of competitive, higher-end BPO opportunities.
“It’s difficult to maintain a sustainable BPO model when demand for low-end services like telemarketing is inconsistent, and labour costs are increasing due to demand from sectors like oil and gas,” he said. “Our goal with Prochant is to bring in higher-quality work that provides stable, rewarding employment.”
In response to these challenges, the government has committed more than $2 billion towards developing the BPO sector, including infrastructure investments and training initiatives. This support aims to create 15,000 BPO jobs nationwide by the end of 2025, with facilities in Regions Two, Five, Six, and locations such as Tuschen and Enmore, in addition to Linden.
A job fair hosted by Prochant, in partnership with the Government of Guyana, was held in Linden last month. The event was attended by Senior Minister within the office of the President with responsibility for Finance and public service Dr. Ashni Singh and Public Works Minister Juan Edghill, both of whom voiced strong support for the partnership.
“This transition from Midas to Prochant represents the kind of evolution we’re working toward in the BPO sector,” Dr. Singh remarked. He added that the shift from entry-level telemarketing jobs to more value-added roles in healthcare aligns with the government’s broader strategy for the industry.
Volatility
The BPO sector has seen other players pulling out, emphasizing the volatility that goes with the business.
In September this year, just 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 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, the company said that the decision followed extensive analysis and discussions among its leadership. 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.
Also in September this year, Acquity BPO advised employees that it was closing its operations here at Goedverwagting effective October 15 due to increased operating expenses.
In a memorandum to employees dated September 6th, it said that it had experienced several client acquisition issues which drove up expenses.
