Touchpoint says it will employ some 500 persons in its first year of operation, with employment moving to about 2,000 by its fourth year here.

"I am satisfied with the successful negotiation of this agreement, which demonstrates, as the Government has always maintained, that our investment in NetServ was recoverable," said Phillip Paulwell, the Industry, Commerce and Technology Minister.

A release issued through the Jamaica Information Service (JIS) yesterday, said that under the sale agreement, Touchpoint will make a cash deposit of US$750,000. It will pay the remaining US$3.5 million over the next six years at the London Inter Bank Offering Rate (LIBOR), plus 2.5 per cent. LIBOR is an average of the interest rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London.

As part of the agreement, which will be officially signed at the end of this month, Touchpoint will also receive a one-year moratorium on the principal.

"Based on the due diligence report, the management team is quite capable of turning around NetServ and contributing to the employment objective of the INTEC fund," the Minister said.

Last year, controversy engulfed NetServ following its collapse six months after the Government had injected it with about $177 million from its Information Technology (INTEC) fund.

The company was subsequently placed in receivership, even as calls mounted for the resignation of Mr. Paulwell, who was accused of ministerial negligence.

Receiver John Lee received 14 expressions of interest for the company following the placement of an advertisement in the local and international media.

"Firms had to demonstrate conclusively that they had the funding which they proposed for the NetServ purchase," Mr. Lee said.

The release quoted chief financial officer of Touchpoint, Paul Sisko, as saying he projected the company would invest between US$5 million and US$7 million in Jamaica over the next three years.

Touchpoint says it will start operations at NetServ's current location in New Kingston and in one year will establish another operation in Montego Bay, St. James, with a third plant to be established in Kingston by the fourth year.

"The people who are taking over the operation have considerable experience in the IT business and will be able to position Jamaica in a way which should have the required multiplier effect, in terms of employment creation, foreign exchange generation and producing the 'demonstration effect' for other IT companies," the release quoted Mr. Paulwell as saying.

President of Touchpoint, Dennis Puckett, was a member of the original management team and vice-president of National Data Corporation, one of the first companies to provide call centre services in the United States.

"We look forward to begin operations of our next generation contract centre in New Kingston," Mr. Puckett said. "The centre will serve the needs of US companies as well as companies throughout the world utilising advanced voice and data technologies," he added.

one year will establish another operation in Montego Bay, St. James, with a third plant to be established in Kingston by the fourth year.

"The people who are taking over the operation have considerable experience in the IT business and will be able to position Jamaica in a way which should have the required multiplier effect, in terms of employment creation, foreign exchange generation and producing the 'demonstration effect' for other IT companies," the release quoted Mr. Paulwell as saying.

President of Touchpoint, Dennis Puckett, was a member of the original management team and vice-president of National Data Corporation, one of the first companies to provide call centre services in the United States.

"We look forward to begin operations of our next generation contract centre in New Kingston," Mr. Puckett said. "The centre will serve the needs of US companies as well as companies throughout the world utilising advanced voice and data technologies," he added.

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