Paulwell told guests at the event that the government was considering incentives to encourage investment in factory space - given the demand from information technology companies for space from which to operate.

Verizon operation is a joint venture between Verizon International Teleservices, a major information processing services provider based in the Dominican Republic, and Verizon Dominicana, the leading telecommunications company in the DR.

The call centre started operations in August 2004, with a customer service centre that will initially concentrate on customer service and telemarketing, with plans to add help desk, technical support, and other more complex services.

Verizon, which has so far invested US$2 million in the Jamaican operation, says it will offer US customers the advantage of proximity and will leverage its experience as a provider of information processing services to the telecoms industry.

The key market for the services will be customers requiring English-speaking agents.  Verizon says it will continue to use its facilities in the Dominican Republic to serve the Spanish-speaking and bilingual (Spanish/English) markets.

In his address at the launch, Paulwell cited some of the developments that had taken place in the local telecoms market, including the creation of the Jamaica Trade Point - Jamaica's trade facilitation portal for exporters and importers.

"The facility not only offers the convenience of electronic payment but has the potential for enhancing market access and competitiveness," he said.  The minister gave the example of a rural farmer who he said would now be able to gain access to a buyer for his product via Trade Point.

"Through this facility, the farmer can contact a buyer, negotiate prices and work out delivery details...all within a few hours or less... a process that would take weeks, not to mention the expense of the middleman."

Paulwell also cited what he described as "a wave of efficiency now sweeping across a wide range of public services through e-government/e-commerce initiatives".  Among these services:

.  Jamaica Customs now accepting online payment of duties and user fees.

.  Customs' importing and exporting forms;

.  The Trade Board's applications for licences and export certification;

.  JAMPRO's exporter registration and

.  Shipping Association of Jamaica's e-manifest can now be processed on-line.

Paulwell also cited studies, which he said demonstrated the huge potential of the IT industry in jurisdictions like Jamaica.  For example, studies by management consulting firms Deloitte & Touche (June 2003) and AT Kearney (May 2003) point to the growing practice of many US companies, particularly financial institutions, outsourcing their business processes to lower-cost developing countries.

The study revealed that competitive pressures were encouraging financial institutions to send work offshore with one-third of the globe's major financial institutions already utilising offshore outsourcing with 75 per cent reporting they will be doing so in the next 24 months.

Cost savings ranged between 39 and 50 per cent.  Paulwell said that Jamaica was the leader in the Caribbean, and cited the following reasons:

.  Opportunity to achieve significant cost savings while maintaining quality,

.  Large pool of English-speaking, educated workforce,

.  Well developed telecommunication infrastructure and a liberalised sector,

.  Presence of well-known global players,

.  Ease of access from most major US cities.

"To increase the number of jobs in this segment the government will continue to invest in our human resource capability to attract inward investment and provide Jamaicans with the skills and expertise to develop IT solutions for the export market," said the minister.

"Jamaica does not have the critical mass of developers nor the price competitiveness to attract large-scale software development," he added.  "The real opportunity is in the development of local software solutions for export."

Paulwell said that the government's information and communications technology policy "has served to sensitise the country to the importance of ICT in enhancing international competitiveness".

He noted that under the training component, over 10,000 persons at varying levels in information and communications technology (ICT) had been trained.

http://www.jamaicaobserver.com/magazines/Business/html/20041026T170000-0500_68283_OBS_PAULWELL_CITES_VERIZON_INVESTMENT_AS_EXAMPLE_OF_IT_S_VAST_POTENTIAL.asp