Business Process Outsourcing
Business Process Outsourcing
Business Model Description
Investment to develop an outsourcing hub to serve as a central location with the necessary infrastructure to support significant outsourcing activities in BPO, ITO, and KPO.
Expected Impact
provide needed financing for innovation in key industries leading to more environmentally sustainable methods of production and service delivery.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
Disclaimer
UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.
The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.
Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.
Country & Regions
- Belize: Countrywide
Sector Classification
Services
Development need
Tourism accounts for more than 30% of tertiary sector income which makes Belize vulnerable to industry shocks such as the ongoing global health crisis. Diversification of its services sector is key to increasing resiliency.
Policy priority
Plan Belize speaks to the fact that Tourism (services sector) is one of Belize’s main economic pillars, generating over 1 billion dollars in revenue.
Policy priority
The industry is, directly and indirectly, responsible for 25% of the jobs in the country and is also the number one foreign exchange earner. However, Belize’s economy has become far too dependent on the tourism dollar, and that makes us vulnerable to any shocks (local or exogenous) or disruptions in the industry, suggesting the need to diversify its services sector
Gender inequalities and marginalization issues
The unemployment gap is larger for females: 17% than in Males: 11.6%) (SIB 2020)
Investment opportunities introduction
The financial and business services sector in Belize has grown by an average rate of 3.3% per year since 2005, and the offshore outsourcing sector has grown by over 80% in the same period. As the BPO sector grows, service providers are diversifying into new service areas, including information technology outsourcing and knowledge process outsourcing.
Investment opportunities introduction
Outsourcing helps Belize take advantage of its unique characteristics such as its official language, its relatively modern telecom infrastructure, stable currency, and strong government support.
Key bottlenecks introduction
Lack of a sector specific policy (outside of tourism) makes it difficult to attract investment in services other than tourism.
Development need
Business services currently account for only 8.4% of GDP with the sector in need of additional investment to support infrastructure development, geographic scope within Belize, and increase the demand for employment. There is also a need to increase workplace health by allowing for more remote working which can have positive impacts on labor force health.
Policy priority
Offshore outsourcing sector is a priority sector for the Government of Belize, BELTRAIDE has also identfied offshore opportunities (BPOs) as a critical area of invesmtent.
Gender inequalities and marginalization issues
The unemployment gap is larger for females: 17% than in Males: 11.6%) (SIB 2020)
Investment opportunities introduction
(The financial and business services sector in Belize has grown by an average rate of 3.3% per year since 2005 and the offshore outsourcing sector has grown by over 80% in the same period. As the BPO sector continues to grow, service providers are diversifying into new service areas including information technology outsourcing (ITO) and knowledge process outsourcing (KPO). Outsourcing helps Belize take advantage of its unique characteristics such as its official language, its relatively modern telecom infrastructure, stable currency, and strong government support.
Key bottlenecks introduction
Actionable market intelligence so that investors can be informed
Pipeline Opportunity
Business Process Outsourcing
Investment to develop an outsourcing hub to serve as a central location with the necessary infrastructure to support significant outsourcing activities in BPO, ITO, and KPO.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
24 active centers
Call center BPO market valued at US $200 million
Indicative Return
> 25%
Gross Profit Margin estimated based on publicly available financial information from publicly listed outsourcing companies.
Investment Timeframe
Long Term (10+ years)
Timeframe is based on estimates based on publicly available financial information from publicly listed outsourcing companies and the given ticket size of US $520,000 based on 240 person call center size.
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
The flexible nature of outsourcing can increase geographic mobility and inclusivity by offering employment opportunities to individuals in rural areas, marginalized groups such as single parents and women, and youth.
Gender & Marginalisation
Increasing demand for service sector skills can help increase wages for women and reduce gender inequalities. The unemployment rate in urban and rural areas is 15% and 12.6%, respectively. Call center locations in Belize employ 120 employees on average and a large outsourcing hub can have the potential to generate several jobs.
Expected Development Outcome
Potential to expand job opportunities for youth and rural communities.
Gender & Marginalisation
More job opportunities for women in the services sector.
Primary SDGs addressed
8.1.1 Annual growth rate of real GDP per capita
8.2.1 Annual growth rate of real GDP per employed person
8.5.2 Unemployment rate, by sex, age and persons with disabilities
-1.6% annual growth rate of real GDP per capita (2019)
-2.7% annual growth rate of real GDP per employed person (2019)
Unemployment rate: 7.82% (2020) By sex: (Female: 17% Male: 11.6%)- 2020
5% annual growth rate of real GDP per capita
5% annual growth rate of real GDP per employed person
Reduce to less than 6%
10.1.1 Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population
Indicator 10.1.1: -15% growth rate of gross national income per capita in Belize (2020)
5% growth rate of national income per capita
Directly impacted stakeholders
People
Indirectly impacted stakeholders
People
Outcome Risks
It can marginalize those with low levels of education and those 35+ that may not be familiar with remote working and virtual workplaces.
Impact Classification
What
By increasing investment in the outsourcing sector, foreign currency revenues can increase as well as contribute to GDP growth.
Risk
No large scale hub has been constructed in Belize to have a comparative benchmark of environmental or economic impact.
Impact Thesis
provide needed financing for innovation in key industries leading to more environmentally sustainable methods of production and service delivery.
Enabling Environment
Policy Environment
Offshore outsourcing sector is a priority sector for the Government of Belize.
Fiscal Incentives Program administered by BELTRAIDE can provide investors with tax and duty exemptions which can reduce costs.
Monetary policy ensures a stable exchange rate of BZD2 to USD1.
Financial Environment
Fiscal incentives include the Designated Process Area program that benefits companies that engage in IT Enabled Services such as BPO, ITO, and KPO.
Exemptions from Custom and Excise duties and taxes on imported goods. This includes General Sales Tax, Environmental Tax and Revenue Replacement Duties;
Exemption on Property and land tax on designated area;
Exemption from Trade License;
Eligible to maintain a foreign currency account in a domestic or international bank that is located in Belize.
Regulatory Environment
All BPO centers are governed by corporate and commercial law.
Marketplace Participants
Government
BELTRAIDE (implementing agency of DPA program) Ministry of Finance (responsible for final DPA authorization)
Target Locations
Belize: Countrywide
References
- (1) BELTRAIDE (2020). Retrieved from https://www.beltraide.bz/offshore-outsourcing.html
- (2) BIDeconomics Belize: Developing a Sustainable, Resilient and Inclusive Belize (2021). Retrieved from http://dx.doi.org/10.18235/0003055