The Government said that it would soon sign Memoranda of Understanding with three Information Technology (IT) firms committed to providing nearly 15,000 jobs over the next three years, reports CANA (August 18, 2000):

Technology Minister Phillip Paulwell said that the companies include Netserv of Trinidad & Tobago, which is a pioneer in the Caribbean Call Center Industry and a transnational provider of telecommunications services. Netserv has plans to provide 10,000 jobs, beginning with the creation of nearly 600 by the end of September;

The others are Jamaica Call Centres Ltd., which projects 5,000 new jobs over the next three years, beginning with 1,500 in the Kingston Freezone by September of this year; and Baytel, a local firm, to provide just under 400 jobs;

The Government, which sees information technology as a major plank in its drive to restore dynamism and growth to the long-stagnant Jamaican economy, plans to spend J$5 billion (about US$115 million) in the sector over the next three years with the goal of creating 40,000 jobs. Paulwell said 8,000 new IT jobs for the first year were already identified;

The Government has agreed to provide loan financing to the three companies: J$180 million (US$4.29 million) to Netserv; J$63 million (US$1.5 million) for Jamaica Call Centres, and J$40 million (US$952,380) to Baytel. In addition to the loans, the companies have received concessions varying from rental of office space to fast-track provision of licenses and permits, Paulwell said. "If after a given period we are not satisfied that jobs are coming, we reserve the right to withdraw our concessions. There will be sanctions for non-performance. Gone are the days of giving incentives without accountability. We are impatient for employment growth and are pulling out all stops to get it," he said;

Jamaica Call Centres Ltd. will lease 200,000 square feet of office space in the Kingston Free Zone and 100,000 sq. ft. in the Portmore Informatics Park, Paulwell said. Netserv, he noted, planned to lease 60,000 sq. ft. of office space from Government. He also spoke of expansion plans of several IT companies currently operating in the Montego Bay Free Zone, including Citel, Omni/Alliance One, Outsourcing Management Inc. and Mobay Communications. Observing that there was a shortage of office/factory space in the country, the minister invited private sector companies to join with Government in constructing Free Zone facilities;

Venture Capital Loan Fund: Government has established a venture capital loan fund of J$1 billion (US$23.8 million), which will provide financing to entrepreneurs to start their companies, Paulwell said. During this fiscal year, J$500 million (US$11.9 million) will be used to provide training grants to firms seeking to expand or establish businesses in the IT sector, he added;

The state-run training agency HEART/NTA will undertake a massive training program aimed at expanding the human resource capacity in the IT Sector, he added. This agency will make grants available for the establishment of 60 IT training laboratories in community colleges at a cost of J$7 million (US$166,666) per laboratory, he said, noting that the Caribbean Institute of Technology, based in Montego Bay, had doubled its enrollment of students being trained in higher-end software skills;

Paul Pereira of Netserv said his reasons for doing business in Jamaica included the island's proximity and similar time zone to North America, the trainability of Jamaican workers, the common English language, and availability of suitable office space.