Janine Josephs Manager – Knowledge Services Jamaica Trade and Invest (JAMPRO) June 2008

1. Jamaica’s ICT Sector Today’s Jamaica Means Business Janine Josephs Manager – Knowledge Services Jamaica Trade and Invest (JAMPRO) June 2008

2. CONTACT: Janine Josephs  Manager  Knowledge Services  Head Office, 18 Trafalgar Road, Kingston 10, Jamaica, W.I.   Tel: +1 876-978-7755, 978-3337 Ext: 2208  Fax: +1 876-946-0090,    E-mail: jjosephs@jti.org.jm  Website:  http://www.jamaicatradeandinvest.org  Cellular: 876-579-9642

4. Why Jamaica? - Overview • Highly educated and available workforce • Dedicated workers with low attrition rates • English speaking population; cultural affinity with the United States • Competitive business costs • World class telecommunications infrastructure & competitive telecom costs • EST time zone convenient for doing business in the USA, Latin America and the Caribbean • Located just over an hour from Miami, 3 hours from New York, located next to the world’s biggest market for outsourcing services • Well developed recreational facilities for work-life balance • Government commitment to developing the IT sector including special Free Zone and training incentives • Track record of investment by Fortune 500 BPO and Call Centre operators • High performance in BPO, especially F&A BPO, and Debt Collection

5. Why Jamaica? LINKED LABOUR FORCE LOCATION COST COMPETITIVE

6. USA/Can Jamaica – Fast Facts • In 2002 (census), Jamaica’s population stood at 2.624 million people, with an annual growth rate of 0.5% (2007 c. 2,750,000) • Jamaica is 4,411 square miles in size (a bit smaller than Connecticut) and lies 550 miles south of Miami • Jamaica is the third largest Caribbean island and the largest English-speaking Caribbean island • Kingston is Jamaica’s capital city and the major commercial, port center • Jamaica occupies a strategic location between the Jamaica Channel and the Cayman Trench—the main sea lanes for the Panama Canal

7. Air Routes Map

8. Macro-Economic/ Investment Climate

9. Attractiveness of Jamaica for US-based offshoring market from exchange rate perspective Percentage Change in exchange rates against US Dollar (Base: July 01, 2005) HIGHLIGHTS • Data Range: July 01 2005 to April 30 2008 • Indian Rupee has appreciated about 16% since July 2006 • Filipino Peso has appreciated about 25% in the last 34 months • Jamaican Dollar has depreciated by 21% since July 2005 • Strengthening Indian Rupee and Filipino Peso against the US Dollar has added to increased costs in these countries driving down margins • Jamaica is increasingly becoming more attractive to setup offshoring centers for US clients: • exchange rate advantage • continued upward wage pressure in India and the Philippines • proximity to client locations Philippine Peso India Rupee Jamaica Dollar Source: Wall Street Journal, oanda.com, US Federal Reserve Statistical Release H.10; Tympana analysis

10. Jamaica – Foreign Exchange & Inflation Rates • Foreign Exchange Rate over a 10 year period • Rate of Inflation over a 10 year period Source: Bank of Jamaica Source: Bank of Jamaica website, www.boj.org.jm

11. Unemployment Rate • Rate of Unemployment over a three year period Source: The Statistical Institute of Jamaica

12. REAL GDP GROWTH Source: ESSJ Survey - Planning Institute of Jamaica

13. Jamaica - Political Stability • From the Economist Intelligence Unit: Source: May 14, 2008, Economist Intelligence Unit, The Economist

14. Competitiveness Indices • Global Competitiveness Report (2006) • 24th (out of 117) for cost of production inputs/natural resources • 25th (out of 110) for port infrastructure quality • World Investment Report (WIR 2006) • 21st (out of 141) as an Inward Investment Location; • Classified as an over-performing FDI location • E-Government – In 2005 • Jamaica was ranked 59th of 191 UN countries for government e-readiness. The country remains the leader in the Caribbean in this area. • Business Competitiveness Index (2007) • 53rd of 116 countries for ease of doing business • 54th for sophistication of company operations and quality of national business environment

15. FOREIGN INVESTORS BULLISH ON JAMAICA Source: UNCTAD

16. Priority Investment/Development Projects Couples Yallahs Bridge

17. Hurricane Season in Jamaica • The Atlantic Hurricane Season begins officially in June and ends in November. However, this does not mean that these storms are a regular occurrence. • It is important to observe that Jamaica has been very fortunate as the island seldom gets hit directly. The last direct hit was Hurricane Gilbert in 1988. So while the recent storms, in particular Hurricane Dean in August 2007, have created damage and flooding island-wide we have been able to recover and get back to business quite quickly. • 70% of the island's electricity services were restored just one week after Hurricane Dean which was the third most intense storm in history since the start of record taking in the 1850's.

18. Crime in Jamaica • Jamaica is in close proximity to the USA. Our hubs and ports are very important to countries that ship goods and move people throughout the Caribbean and Latin American Region. Because of our prime location, our fair island is a transshipment point for the trafficking of illegal drugs and guns for which we are often in the news. This results in gang violence, turf wars in the inner cities (no different from most major metropolitan cities). IMPORTANT NOTE: such incidences are divorced from the resort towns including Montego Bay • The resort towns are not in close proximity to the city of Kingston, which gained a nightmare image due to the violence which erupted during Michael Manley's turbulent administration in the 1970s. Not to imply that Kingston is not a safe place to travel but rather like everywhere else you simply must take precautions. • Kingston has it good and bad areas. You'll be surprised at how safe and friendly Kingston is. Drug-related organized crime is a frightening reality, but it is a reality that affects poor Jamaicans rather than tourists, expatriates or most normal Jamaicans going about their everyday business . It's restricted to isolated (identifiable) ghetto areas; elsewhere, the vast majority of locals and visitors experience no crime or violence during their lifetime.

19. Registering a Business in Jamaica:Process & Requirements

20. Multinationals in Jamaica

21. Multinationals in Jamaica, contd.

22. What’s Right With Jamaica What's right with Jamaicapublished: Wednesday | June 11, 2008 CHEN Jamaicans are an extraordinarily creative and talented people. We have produced more world-class individuals than any country this size has a right to. We have excelled in the arts and are a cultural superpower having given birth not only to reggae, but also ska, dub, and dancehall, which was the basis for hip hop and reggaeton. We have just recently produced Usain Bolt and Asafa Powell, the world's two fastest men. And these are only the latest in a long line of outstanding male and female athletes. International renown But more important than the great individuals of international renown is a force in Jamaica that mostly goes unnoticed, the 'Third Sector'. The private sector and the state are well defined and produce economic and social wealth but there is a third sector, based on the voluntary contributions of hundreds of thousands of Jamaicans. The significant expenditure of individual time and resources to improve our communities and ultimately our country is so commonplace that it is taken for granted. There are more active service clubs, citizens' associations, community groups, 'friends' of public institutions and so on than any country that I can think of. This force is one of the factors that explains why community life continues to flourish …… Contributed by Wayne Chen, chief executive officer of Super Plus Food Stores.

23. Infrastructure

24. The Networked Readiness Index 2006-2007World Economic Forum(ranked 45 out of 122 economies,1-7 scale score)

25. The Networked Readiness Index 2006-2007World Economic Forum3rd in Latin America & Caribbean

26. Jamaica: Relative Competitive Advantages: World Economic Forum 2007 (Ranks 45 out of 122 economies)

27. Since 2000 the deregulation of the telecommunication industry in Jamaica has created substantial improvement in quality and cost competitiveness of service Telecommunications Infrastructure • Highly reliable telecom infrastructure and world class communications • Modern telephone, facsimile and Internet facilities keep clients in touch with associates overseas. International direct dialing links subscribers to the United States, Canada, Europe and the Caribbean and there are operator connections to all major international cities. • The Fibralink submarine cable network provides enhanced delivery of business and broadband traffic. • Linked to the Americas Region Caribbean Ring System (ARCOS-1) submarine cable in the Dominican Republic; the link to ARCOS-1 provides seamless connectivity to the US, parts of the Caribbean, Central America, and South America • Jamaica Digiport International in the Montego Bay Free Zone provides a telecommunication infrastructure that features state of the art satellite earth stations with support technology to facilitate satellite links and digital switching to carrier networks in North America and Europe.

28. Flow Jamaica • Columbus Networks, parent company of Flow Jamaica, has completed cable installation on the first phase of an undersea fiber optic express route that connects Colombia with Florida. • The first-phase undersea cable segment links Cartagena, Colombia and Morant Point, Jamaica. The second phase of the cable connects Jamaica to Florida in Boca Raton. The principal operator of the ARCOS undersea network, Columbus Networks expects to complete the second leg of the express route in July 2008. • The express route will provide customers in Colombia with the most direct route, and increased performance and the lowest latency data and IP connection to the USA, adding data traffic diversity, redundancy, and improved network reliability. • Bandwidth speeds range from 64 kbps – 1536 kbps (T1), 2048 kbps (E1), DS3 and STM1 • Flow High-Speed VLAN Service – capacities range from 1 Mb to 1 Gb • Provides a clear channel, point to point connection between offices in Jamaica and the NAP of the Americas in Miami and can extend the connectivity to New York - a guaranteed bandwidth TDM solution • Provides a world class facility for collocation needs, which sits directly on the fibre backbone to ensure reliable on-line access for all equipment

29. ARCOS Undersea Network Image courtesy of Flow Jamaica

30. Image courtesy of Flow Jamaica

31. Flow’s Internet Access Packages

32. Cable & Wireless Jamaica Limited • Another major telecomms operator, Cable & Wireless Jamaica, Ltd., recently established a Network Operating Center (NOC). • NOC monitors their fixed line, mobile and broadband networks, and their global interconnections from one location • NOC will detect, report and record any faults in any of their Caribbean networks, enabling the team to diagnose and resolve issues • Looking to move toward an all-IP Next Generation Network infrastructure throughout its worldwide operations

33. Jamaica is investing for the future: ICT-driven development : Technology Parks Caymanas Economic Free Zone (CEFZ) When completed, the Caymanas Economic Free Zone will also be the Caribbean region’s first Science and Industrial Park and regional hub for industrial research and development. in the Caribbean region, the zone will be the premier institution for research and development facilities that are critical for diversifying the current base and facilitating industrial expansion. The Park will establish a platform for a knowledge driven economy through the creation of viable industries and the creation of job opportunities for highly skilled citizens of Jamaica and is expected to stimulate regional development and industrialization. The CEFZ will be zoned and designated as follows: a. The ICT Zone i. Software development ii. Telecommunications/Co-Location sites iii. Logistics iv. Bio-Technology v. Business Process Outsourcing (BPOs) vi. IT/Security Consultancy (NOC)

34. Part of the Portmore community Portmore: Largest middle-income dormitory city in the English-speaking Caribbean with over 700,000 residents, many tertiary educated • Educational Institutions • Greater Portmore High School • Portmore Community College • Portmore HEART Academy

35. Portmore Free Zone • The standard office module at the Portmore Informatics Park comprises of a two storey building of approximately 4,654 sq. meters(50,000 sq. ft.) gross with each floor being 2,230 sq. meters (24,000 sq. ft.) laid out on 1.8m x 1.8m (20 ft. x 20 ft.) square grids with minimum floor to ceiling height of 1.4m (15 ft.) • The Portmore Free Zone, is located in Portmore, the country's fastest growing township, with a young, well-educated and computer literate, English-speaking population. • The Portmore Informatics Park provides cost-effective and top quality information processing facilities

36. Montego Bay Free Zone: Centre of Offshore Call Centre Industry in Jamaica • Montego Bay has a highly developed financial services sector offering on-line banking facilities, and foreign companies may operate their corporate accounts at any of these institutions. Facilities include electronic banking, correspondent bank services, bank wire and communications, credit reference services, letters of credit, as well as local and international credit card transactions. • The city's many schools, tertiary institutions and human resource development agencies assure the investor of ready access to qualified graduates with the skills required for the competitive marketplace. • The Montego Bay Free Zone's Client Relations Division will assist investors to establish contact with recruitment agencies and training institutions, where specific skills are required. For example, it works closely with the H.E.A.R.T Trust/National Training Agency in recruiting and providing basic training for workers entering companies in the ICT Zone.

37. Project Profile – The Barnett Tech Park • Type: Development lands • Description – The Barnett Tech Park is a concept for a private sector ICT Free Zone located on 100 acres in Montego Bay, St. James. The project has the potential to create approximately 3,000,000 sq. ft. of production and office space which will be developed in phases. Also being considered in the development plan are the following amenities: Banking and ATM facility, First Aid Center with pharmacy, Supermarket and Post Office, Central security post, Day care center and Dedicated training center. Plans are in place to incorporate a central transport centre in order to minimize the parking needed and to maximize the available production area. • The project seeks to expand the ICT industry in a consolidated area so that the necessary services are provided to make Montego Bay the undisputed ICT hub for the Caribbean Region. . • Estimated Investment Cost – USD$270 Million Time Frame for Completion – 2010Status • Environmental and Planning Approvals being sought • Incentives • Duty free on capital imports • Free Zone Status • No GCT and Income Tax to the operating company 16

38. Technology Innovation Center (TIC): Incubator facility linked to the University of Technology • Located at the University of Technology Campus, the TIC is an incubator that provides support to start-up technology businesses. It also provides training, business, consultancy and information services to existing small and micro enterprises and institutional clients. • The TIC has 25 flexible offices averaging 25 sq. m. and 4 units suitable for light manufacturing. • The offices come fully furnished and air-conditioned and tenants have access to a conference room, computer laboratory and meeting rooms. • On-site services include a café and a business services unit. • At no extra charge, tenants will have on-going access to practical business advice and networking opportunities.

39. Offshore Call Center & BPO Sector

40. JAMAICA – RANKED 6TH IN LATIN AMERICAN REGION FOR NEAR SHORE OPERATIONS ATTRACTIVENESS

41. BPO Hot Spots will move from North to South: Canada >>> Latin America & Caribbean and Ireland/Eastern Europe > South Africa & Asia

42. Countries with Potential:

43. Making the Right Call : Business Facilities Magazine (August 2006) • According to a recent report, the call center industry is in a period of growth, and there are plenty of prime locations in the U.S. and internationally for your call center to grow. • Two years ago, the World Bank named Jamaica among the top 10 countries for ease of regulations for doing business. This achievement highlighted the country’s continued efforts to create an environment that gives Jamaica a competitive edge in the global environment. Further punctuating this point, in 2005 the island recorded approximately $800 million in investments due largely to the economic reforms in place and the strategic initiatives being undertaken by the country’s trade and investment promotion agency, Jamaica Promotions Corporation (JAMPRO), to ensure sustainable investments. • In recent years, the country has seen increased growth in several sectors including tourism, telecommunications, and infrastructure—in addition to the more traditional sectors of agriculture and natural resources. This positive growth has helped the country to meet the challenges of restructuring and opening the economy to international competition, as well as helping to enhance the island’s business sector. For example, the country’s information communication and technology (ICT) sector has witnessed some $700 million investment over the last four years.

44. Making the Right Call : Business Facilities Magazine (August 2006) • Due to an increasingly liberalized environment and with the entrance of companies providing broadband services, telecommunication rates in the country have fallen significantly. The cost of a T1 line from Jamaica to the U.S. has fallen from $21,795 per month in the year 2000 to $9,907 per month, making Jamaica significantly more cost competitive and attractive for investment in ICT-enabled & Business Process Outsourcing (BPO) services. • Increased competition in the ICT-enabled & business process outsourcing (BPO) services sectors brought on by new business investment has helped keep Jamaica’s telecommunications infrastructure on the cutting edge while customer service improved. In fact, Jamaica is considered the outsourcing destination of choice for service providers looking to the Caribbean for an English speaking, near-shore destination. • The country is also a leading contact center destination, providing competitive capabilities and value and achieving 8,000 seats in customer contact, business process, and information technology outsourcing. Companies such as e-Services Group/SITEL Caribbean have had a tremendous impact on the development of the sector, employing some 2,100 persons and processing over 20 million transactions annually. Over the past three years, U.S. companies of note that have entered Jamaica include Fortune 500-ranked West Corporation and Verizon, as well as Vista Print.

45. Current Level of Offshore ICT (Call Centre & BPO) sector development

46. Main Players:- Offshore Call Centres & BPO

47. Offshore BPO Key Players Offshore BPO Key Players

48. Profile: e-Services Group International • Largest employer in the Jamaican information technology sector • Processes over 30 million transactions annually, has invested approximately US$5.3 million in expansion projects in the past two years and ended 2007 with a staff complement of 4,100 • Provides customer care for health, life and pharmacy insurance companies, inbound member services and data entry/back office processing • Operations are spread across 120,000 square feet in three buildings at the Montego Bay Free Zone, 60,000 square feet at Naggo Head, St. Catherine, and 17,500 square feet in St. Lucia

49. e-Services Group International:Jamaican Success Story • Within its first three years of operation, e-SGI, with locations in Montego Bay and St. Catherine, recorded 55 per cent growth and forecasts growth of up to 70 percent in the next few years, based on its existing lines of business. • The Group’s success in wooing Fortune 500 contracts to Jamaica, and keeping them here, speaks volumes of e-SGI’s all round quality and a growing international confidence in the country. • In August 2005, e-SGI inked a US$1.7-billion deal with financial institution Woodforest National Bank of Houston, Texas, to provide backroom office processing support for the Bank’s internal operations. • In January 2006, Xerox Corporation became the first document management company to receive certification from J.D. Power and Associates for excellence in customer service. And of course, Xerox’s customer care is in the hands of e-SGI. • In February 2006, e-SGI signed the biggest outsourcing contract in the English speaking Caribbean with Delta Airlines – the world’s second largest airline in terms of passengers carried.  • The success of e-SGI in the contact centre and BPO arena has earned it the accolade of placing Jamaica on the map as a country with a viable future in the industry.

50. Business Facilities Magazine: e-services Group International (2006) • Jamaica’s ICT Sector Scores a Major Win • One of Jamaica’s largest employers will supply customer contact services to Delta Air Lines as a pilot program, with the potential for a large partnership between the two companies. • By Michelle Janowitz • The Information Communications Technology (ICT) industry is big business in Jamaica. In 2003, there were 13 call centers on the island employing some 5,000 agents, and by 2005 the agent population had risen to around 7,000. Datamonitor, a provider of online database and analysis services for key industry sectors, estimates the total agent population in Jamaica will reach approximately 12,000 by 2008, and will grow at a compound annual rate of 9.7%. • With 1,500 employees, Houston, TX-based e-Services Group Internationale (e-SGI)—a call center and back-office processing solutions company—is currently one of the largest employers in Jamaica. The company just announced that it is beginning a pilot program with Delta Air Lines, which will involve e-SGI providing Delta with customer contact services, including reservations for U.S.-based customers. Subject to a successful test period, the agreement has the potential for a hefty partnership between the two companies. e-SGI will manage the work for Delta from its existing facilities in Montego Bay, Jamaica. • “We are pleased to have Delta Air Lines join our other U.S. clients who require their customer service representatives to have both superior English speaking communication skills and the ability to resolve complex customer issues,” says Patrick Casserley, CEO of e-SGI. “We anticipate that with the success of the pilot our partnership will redefine the outsource sector in Jamaica, and we are putting all resources in place to ensure a successful agreement.” • For Delta, e-SGI’s “nearshore” position was a factor in its decision to try outsourcing to Jamaica. “We selected e-SGI based on their proven ability to deliver high-quality customer service at a significant cost savings, as well as their proximity to the U.S.,” says Steve Scheper, vice president of reservations for Delta Air Lines.”