Outsourcing has gained some traction across the Caribbean region, both among individuals and countries. We highlight some important considerations of that sector from a Caribbean perspective.
A recent article in regional newspapers on remote work in the age of AI sought to highlight the opportunities for outsourced work, which countries have been leveraging for decades. Moreover, the success experienced by India and the Philippines in the offshore outsourcing and business process outsourcing (BPO) space was held up as a model that Caribbean countries could emulate.
The article also highlighted the outsourcing/remote work opportunities for the individual contractor or consultant, especially potentially lucrative artificial intelligence (AI)-related roles that would require minimal academic qualifications but focus more on candidates’ relevant work experience and track record. However, gaining adequate and relevant experience to garner the big bucks might not be that simple.
The region’s success in outsourcing
Unlike what the article suggests, for at least the past decade and a half, most Caribbean countries have been working to develop their offshore outsourcing sector with varying degrees of success. Countries such as the Dominican Republic and Jamaica are among the leading destinations in the region, with countries such as Belize, Guyana, Saint Lucia and Trinidad and Tobago being known in the space.
Having said this, the sector has been changing. The region’s value proposition for voice-based work services with low wages, in particular, has been weakened by, among other things, AI and automation, the increasingly high cost of doing business, growing labour costs and a dwindling labour pool, which are making the region less competitive than other low-cost emerging economies.
The labour challenge
It is also important to highlight that Caribbean countries will never be able to achieve the scale and thus the success of India and the Philippines. For example, the size of India’s outsourcing sector employs over 5.4 million people (Source: Reuters), whilst the Philippines employs over 1.82 million people (Source: KDCI Outsourcing). However, to put those figures into perspective, the employee count of the Indian and Philippines sectors exceeds the population of Jamaica and Trinidad and Tobago, respectively.
A country’s outsourcing sector would be in a position to thrive when the participating firms can achieve scale can be realised. It is for this reason among others that most of our countries have not been able to attract or retain the big players in the global outsourcing sector, and why India and the Philippines still maintain their dominance.
An uncertain future
Although the article is encouraging readers to consider making the career change to outsourcing, to a considerable degree, the justification is based on past information. As we have witnessed over the past few years, the tech industry is changing rapidly, and to some degree, has become unpredictable. We thus cannot say with much certainty what the industry will look like two, or even five years, from now, and consequently, how best to navigate it.
Having said this, in today’s society, we need to become more comfortable in unpredictable situations. However, to a considerable degree, our societies have been designed to create an assembly line of workers, and so it has been the outliers who have operated outside of that established construct.
The hustle is real
Finally, it is crucial to emphasise that for both individuals and countries that seek to engage in outsourcing work, a considerable amount of legwork is necessary to begin to secure contracts. T However, even after a reputation has been established in the field, one cannot rest on their laurels. The market is competitive, and others are prepared to undercut your rates or include additional incentives to make themselves more attractive to secure the business.
In a different vein and consistent with the unpredictable nature of the sector, there are times when work will be plentiful and others when it is scarce. Resiliency is key to withstanding the uncertainty inherent in the outsourcing space, be it as an independent consultant or contractor, or a third-party outsourcing firm.
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