Posts Tagged ‘ICT’

Increased business confidence to drive Africa ICT sector

February 2nd, 2012

Increased business confidence, recovering economies, infrastructure investment and enhanced product development will drive Africa IT markets, analysts say.

Analysts from IDC and Africa Analysis are projecting growth in cloud services as bandwidth becomes cheaper and companies seek ways to reduce capital and operational expenditure.

IDC expects IT spending in Middle East, Africa, and Turkey to 10 percent growth in 2012 and virtualization to attain must-have status, as a cornerstone and foundation for future expansion.

“Several medium-sized and large organizations, having proof tested virtualization in 2011 during data center consolidation efforts, will move to more extensive adoption with greater confidence in 2012; desktop, storage, and application virtualization initiatives will gain momentum, particularly within large organizations,” said Jyoti Lalchandani, vice president and managing director of IDC Middle East, Africa, and Turkey. “The emerging African countries of Kenya and Nigeria will also see higher levels of adoption in 2012 as awareness spreads and users begin to realize the benefits.”

In 2010, spending on IT services had slowed down in Africa but the budgets of international companies have once again started rising in outsourcing destinations like South Africa. An IDC study on IT services in South Africa released this month shows the country recorded moderate growth.

“After the freeze in IT budgets that came about as a result of the global economic crisis, 2010 saw a rebound in IT services spending,” said Suzanne Nolan, research analyst for IT Services for IDC South Africa. “The growth in IT services spending was driven by a recovering economy, increased business confidence, expanding bandwidth availability, and various infrastructure investments made in the country in 2010.”

IDC forecasts the total South African IT services market to expand at a compound annual growth rate of 8.7 percent to exceed $17 billion in 2015, with continued spending focus among end-user organizations and solutions that help reduce operating expenses.

Africa’s Business Process Outsourcing sector has stagnated with countries like Kenya unable to crack the global outsourcing market but South Africa has managed to sustain growth through innovative managed services.

“South African growth was mainly driven by managed services rather than by traditional information system outsourcing contracts,” added Nolan. “The healthy growth in outsourcing services signifies a level of sophistication and maturity within the IT services segment.”

In the telecom sector, the decline in tariffs has stopped as operators seek to streamline expenses as opposed to winning more subscribers. Bharti Airtel’s acquisition of Zain network in sub-Saharan Africa heralded the tariff wars two years ago but by late last year, call costs had started rising.

“The era of tariff war is over; operators have begun to streamline operational expenses and the strategy of winning more subscribers through tariff reduction will be terminated in 2012,” said Dobek Pater, senior telecoms analyst at Africa Analysis. “The economies of various countries in Africa are becoming more expensive to run businesses therefore the only way to have profitable revenue is proper product pricing.”

Pater expects enhanced product development, increasing product variety, and “last mile” telecom technology becoming more affordable outside urban areas.

“There will be a lot of focus on delivering quality service to subscribers rather than winning more subscribers especially with the large operators who have coverage in a lot of countries; subscriber retention strategies and loyalty will be the strategy employed for this,” added Pater.

With more operators rolling out their own infrastructure and improving on quality of service, competition is expected to be high in coastal countries that have fiber optic coverage, while connectivity costs in land-locked countries decline further.

Source:http://news.idg.no/cw/art.cfm?id=0B53F93D-E513-0666-EAECC3BEECC9AF33

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Clark BPOs need 30,000 employees

January 25th, 2012

At least 30,000 more call center agents will be hired to work in several business process outsourcing (BPO) companies inside this Freeport, the Metro Clark Information and Communications Technology Council (MCICTC) here reported Tuesday.

George Sorio of the CyberCity Teleservices based here said that P33 million worth of training scholarship vouchers will be awarded in Luzon to answer the need for more agents as various companies are expected to expand in the Metro Clark area.

Metro Clark is composed of areas in Clark and nearby towns and cities in Pampanga and Tarlac. It is one of only three centers of excellence in the country, alongside Metro Manila and Metro Cebu.

MCICTC recently awarded a total of 510 training scholarship vouchers to four local schools with accredited Technical Education and Skills Development Authority (TESDA) courses in the field of Information Technology and Business Process Outsourcing (BPO).

Initial awardees of the TWSP vouchers are Clark International College of Science of Technology, CCIS Educational Foundation, St. Nicholas College and Mabalacat College.

Schools within Metro Clark and Pampanga with accredited TESDA courses in the ICT fields are encouraged to apply for membership with MCICTC in order to qualify for the TWSP vouchers.

Part of the responsibilities of the council and the training institution is to facilitate at least 70% employment of scholars.

Some of MCICTC’s major programs are the fostering of Industry-Academe linkages, Industry trade and promotion missions and the hosting of the Clark ConEx International ICT Conference in October, which attracts thousands of delegates from business, academe and government.

Clark ConEx has become Metro Clark’s own signature ICT show.

The program dubbed Training for Work Scholarship Program (TWSP) originated from an agreement forged among TESDA, the Business Process Association of the Philippines (BPAP) and the National ICT Confederation of the Philippines (NICP).

Source:http://www.mb.com.ph/articles/349127/clark-bpos-need-30000-employees

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BPO jobs await skilled graduates

January 9th, 2012

The Information and Communications Technology- Business Process Outsourcing industry of Dumaguete City has assured students in Negros Oriental and neighboring provinces of the availability of jobs.

ICT Dumaguete Board Secretary Danah Fortunato said, the group had expressed positive prospects of trhe employment of graduates in the administration of Dumaguete City’s Higher Education Institutes at an ICT-BPO Industry Forum for Educators, recently at SPi Global’s facilities in Barangay Bagacay.

The forum was aimed at recognizing the valuable contribution of HEIs to the success of BPO companies in the city, and be the de facto beginning of a closer partnership between HEIs. It also focused on BPOs in bridging the gap between the skills of graduates and the entry level skills required in the industry, as reflected in the relatively low passing or hiring rates.

Dumaguete ICT president, Randolf Bandiola, said ICT-BPO jobs are not merely about “answering phone calls”, even if by the end of 2010, the Philippines had surpassed India in the number of voice jobs.

In Dumaguete, ICT-BPO jobs are now in customer management, copyediting, graphics, animation, web design, software programming, architecture, market research, medical transcription, and engineering.

Meanwhile, companies involved in other non-voice work, like legal research and accounting services, are checking out the city’s business conditions.

Guest speaker Dr. Jeff Sallaz, Fulbright Scholar and Professor of Sociology of the University of Arizona, said the industry could be a way for Negros Oriental to “leapfrog from an Agricultural Economy straight into the Information Economy”.

Sallaz cited BPOs that have drawn most foreign direct investments in the country from 2000 to 2010, thus reversing the lack of investment and manufacturing growth in the 70’s and 80’s.

Income derived from the industry, he said, is a welcome addition to an economy that is too dependent on agriculture and remittances.

Worldwide, BPOs is a rapidly growing industry where the Philippines is uniquely poised to increase employment from 500,000 individuals in 2010, to 1.3 million by 2016, he said.

Fortunato said ICT Dumaguete projected the availability of more than 2000 jobs in BPOs in 2011 alone. The reality, however, is that only about half of those positions were set to be filled by the end of 2011 because the critical factors mentioned kept the hiring rate only at around 20 to 30 percent.

Source:http://www.visayandailystar.com/2012/January/09/negor3.htm

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ICT innovations that will dominate 2012

January 2nd, 2012

As technological development is a constant process, like during the earlier years, in 2012 too, a whole new breed of technologies are waiting to reshape the ICT industry. Of course, one of the most important changes that are taking place in the industry is the consumerisation of technology where it no more remains with the enterprises alone and will make a giant leap in the consumer space as well. This year is going to be the year of mobile devices as the personal computing space will see changes in shape and sizes as classifications in terms of sizes and performances are increasingly being blurred with devices shrinking in sizes and expanding in performance.

On the cloud

Technology enthusiasts are virtually on cloud nine when it comes to doing things in the ‘virtual space’. No wonder everyone is talking about ‘getting on to the cloud’. The term basically defines the next level of data storage and processing without using one’s own infrastructure or less of it. ‘Cloud’ generally has more users, more data, more applications and better standards to meet. Explaining the trend, Microsoft India Director of Microsoft Business Division, Sanjay Manchanda, said, “Soaring maintenance and energy costs, space constraints, the time and IT resources that are required to maintain the status quo is leading to an IT set-up which is inflexible and cannot evolve fast enough to keep pace with the dynamic requirements of an enterprise.”

Manchanda believes that in 2012, performance and flexibility of IT operations management will dramatically improve for services naturally adapted for cloud environments. Hence, the next generation data centres are being designed differently. They are more modular, more flexible and much more open to new technology as it becomes available. This said, the cloud has plenty of offerings for consumers apart from enterprises. Already, most of us are on the cloud most of the time when we are surfing the internet, sending mails, storing and sharing pictures using a services provided by a host of operators free of cost. Google’s e-mail, Youtube, Picasa and Facebook’s social networking are some of the appropriate examples of how we are using cloud in our daily life.

Director of India and Research Operations at Forrester Research, Manish Bahl, says that consumerisation of technology, for one, is not exclusive to the enterprise IT world and will make cloud in the government sector a reality. Citizens and businesses are putting pressure on government organisations to become more proactive and Internet-savvy.
There are a couple of other players that have now entered the market. Recently, Sify launched ‘mystorage’, its consumer cloud services for personal computing and SMBs.

However, unlike Google, this does not come for free as one has to pay a minimum of Rs 175 every month for availing 10 GB storage space on the cloud. Microsoft also offers 5 GB of space free of cost to users of Microsoft Office 360, where they can directly upload their documents to the Microsoft cloud.

The mobile factor

The explosion in the mobility segment will continue to grow even more in 2012 and demands that IT teams keep pace with the business and adapt their processes, tools, and approach to support an increasingly dispersed and technologically diverse workforce. The rise of internet accessibility has changed the equation for businesses and workforces alike. Gartner believes that mobility offers new access channels to applications and data, and at the same time, provides end users with a wide variety of device choices.

Mobile products such as smartphones, netbooks, notebooks and tablets are coming up in various sizes keeping in mind the form factors a consumer needs. The technology has expanded the usage of such devices to such an extent that at times they even supplement the use of a personal computer or a laptop. The penetration of mobile phones that now stand above 880 million in India, has made internet access possible for a huge number of people who otherwise would have taken many years to go on the net. The cheap internet rates coupled with much higher speeds have made this transition from computers to mobile devices, possible. Some other factors that contributed largely to this trend of mobile devices are the lethal combination of user-friendly operating systems (OS) installed on smartphones and the huge number of applications (apps), mostly free, now available.

The tremendous popularity of the open-source Android operating system in 2011 is a good example. A research report shows that Android now has a market share of 53 per cent in the September quarter, much ahead of Apple iOS that has 15 per cent share of OS on handheld devices. People are certainly moving from personal computer usage to mobile devices since there are very few functions that a mobile device lacks in comparison to a PC.

Apart from these, the tablet segment that has big players like Apple, Samsung and Research in Motion (RIM), is all set to become a down-to-earth product and more accessible to India’s teeming youth as Datawind, a Canadian company recently launched their ‘Aakash’ tablet, priced at Rs 2,500.

This also shows how open source software, like Android, is scoring over its peers. As Red Hat India Managing Director- India Subcontinent, Anuj Kumar, said that businesses are increasingly becoming more confident about deploying open-source technology within the enterprise, instead of reducing it to the periphery or for experimental projects. Multiple factors are driving this increased adoption of open-source software, including greater flexibility and lower cost. The fast-growing e-commerce business is also tapping the mobile market by developing apps and payment gateways that are essentially suitable for the mobile platforms. Since the penetration of mobile devices is much higher than that of personal computers, these e-commerce sites can reach to a larger base of customer.

Video communication revisited

Communicating with people using video will continue to be a priority, says Cisco, over the next few years. Cisco Chairman John Chambers predicted that four years from now, video is going to be the leading way in which we communicate and the primary form of information technology (IT). He stated that in 2010, video accounted for 51 per cent of internet traffic and by 2014; the number will skyrocket to 91 per cent.

Telepresence, a technology which connects meeting rooms over high definition televisions, though not new, is going to be the game changer in 2012 with more companies adopting it to substitute travelling of executives for meetings and conferences. The advent of video conferencing, however, has enabled people from various parts of the world to join each other almost like sitting in the same meeting room.

This is actually enabling customers, mainly enterprises, to cut major travelling cost and doing most of the work off-site. A lot of Indian outsourcing companies are shifting to telepresence as visa woes hit them hard in countries like US.

Most companies provide only 25 per cent of the work on-site, whereas the rest of the work is done in India, to reduce cost. Cisco, in 2010, had launched a telepresence room in Dubai, in association with Tata Communications and Etisalat. The setup acts as a public telepresence room which can be booked online by interested businesses. Apart from Cisco, Chinese network accessories maker Huawei, in December 2011 launched their telepresence business systems in India.

Looking beyond

To understand the trend beyond the present year, some of Gartner’s predictions might come handy in the next couple of years. By 2016, at least 50 per cent of enterprise email users will rely primarily on a browser, tablet or mobile client instead of a desktop client. By 2015, mobile application development projects targeting smartphones and tablets will outnumber personal computers by a ratio of 4-to-1.

By 2016, 40 per cent of enterprises will make proof of independent security testing a precondition for using any type of cloud service.

Source:http://www.deccanherald.com/content/215997/ict-innovations-dominate-2012.html

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‘BPO still Cebu’s growth driver’

December 30th, 2011

THE business process outsourcing (BPO) industry will continue to propel Cebu’s economy as the province’s major economic driver, industry leaders said. The BPO sector is also poised to grow even bigger in the coming years, they said.

“In 2011, BPO companies accounted for 40 percent of positions posted in a jobs listing website. The expansion of BPO operations led to the rise in the demand for office spaces. This year, the region saw property developers putting additional investments in the leasing business,” said Cebu Property Ventures Development Corp. (CPVDC) president Francis Monera.

Plan your Sinulog week ahead and find out what’s in store for Sinulog 2012.

The industry recorded a 20 percent annual growth rate.

CPVDC is the developer of Cebu IT Park. It currently has eight building under construction.

Workforce

Monera said BPO companies are continually drawn to Cebu City with its workforce and healthy fiscal environment. He said Cebu is supported by nine large universities that turn out many workers for IT and BPO companies.

“The BPO industry in Cebu is fast-growing because IT/BPO companies in the US have found a viable destination in Asia where they can relocate after the 2008 global economic crash. The industry will continue to offer a lot of opportunities and will become Cebu’s main driver of economic growth,” said Cebu Chamber of Commerce and Industry (CCCI) chairman for information and communications technology (ICT) Jerry Rapes.

This year, global outsourcing firm Aegis People Support unveiled its own Aegis Tower Cebu at the Cebu IT Park. The company said their decision to build in Cebu is a sign of their “commitment to and confidence in the country’s booming BPO industry and Cebu’s workforce.”

Monera said they are anticipating an increase of 20 percent in the current 50,000 workforce with the completion of buildings within Cebu Park District.

CPVDC is looking at an estimated 11,000 additional seats with eBlock 2, Skyrise 4 and the Aegis Tower Cebu.

Stream Global, a major outsourcing company, was reported to be hiring between 60 and 70 employees weekly. Convergys, on the other hand, is also expanding with its new office in Cebu, according to Monera.

Some of the firms that expanded in Cebu this year include HP, Fluor Daniels, Dell, Convergys and JP Morgan & Chase.

Non-voice services

“Wide-spread employment is a by-product of these developments with a 35 percent increase in working population for both parks – majority in the BPO industry. (It strengthens) our bid of making Cebu the BPO capital in the Philippines next to Metro Manila,” Monera said.

Rapes, meanwhile, said Cebu is not only well-positioned for voice services but also for knowledge process outsourcing (KPO), information technology outsourcing and non-voice services.

He said it is just a matter of preparing Cebu “to get to a higher level,” particularly in terms of supplying the industry with skilled, competent and highly qualified workforce.

“There is not always enough people,” said Rapes, the president of information technology outsourcing (ITO) company Exist Global.

He said companies now move out from major call center hubs like Metro Manila and open offices in “next wave cities.”

Monera, who sits as the chairman of the board for Cebu Educational Development Foundation for Information Technology (Cedf-it) said the private sector, academe and local government have collaborated to improve the skills of potential workers for increased manpower pool via proficiency/certification, retraining and jobs-skills matching programs. The stakeholders are also intensifying programs that support infrastructure and tourism service to strengthen the investment climate in Cebu.

Scalability

Monera emphasized the need for talent scalability, not only in terms of available quantity of the workforce but also in training to match the skills required by companies.

Cedf-it announced last October it will get part of the P500-million stimulus fund committed by the Aquino government to facilitate “near-hire” training programs of IT-BPO companies. It said about P5 million worth of scholarships from the Technical Education and Skills Development Authority (Tesda) will be used to conduct “near-hire” trainings for 1,000 prospective IT-BPO employees here.

Monera also cited Cebu’s “big opportunity” in higher level services or KPO. He said although, manpower requirement for this category may not be as high as voice-related jobs, these are high-value services that mean higher average compensation for the Filipino talent.

While there is continued growth ahead in the BPO industry, Rapes said “being complacent” may threaten BPOs’ rosy outlook for 2012.

“We need to create more people for the industry rather than compete with each other. We need to produce more skilled workforce for a bigger ecosystem,” he said.
Rapes also announced that the outsourcing industry will soon start the second phase of the Cebu IT/BPO roadmap so it could further maximize the potential of IT/BPO services.

What to do

He said the study will “drill down what Cebu needs to get to higher level.”

“We have to know where we are going and what to do next now that we know we have the capabilities to do more KPO,” Rapes said.

He said that while waiting for the second phase of the study, entrepreneurs should start looking at opportunities in offering KPO services.

He said India has higher revenues than the Philippines because they do difficult services. “But if the Philippines will capitalize on its KPO potential and do its homework, the IT/BPO revenues will grow eventually,” Rapes said.

The Business Process Association of the Philippines targets to grow the industry by $25 billion in revenues in 2016 and increase IT/BPO employment to more than one million.

A bill seeking to create a Department of ICT was also filed as a support to the growing industry.

Source:http://www.sunstar.com.ph/cebu/business/2011/12/29/bpo-still-cebu-s-growth-driver-198053

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Why FG Should Leverage On ICT Sector

December 27th, 2011

Nigeria’s aspiration to become a digital economy could be realised through massive investments in information and communications technologies (ICTs) tools, infrastructures deployments, skills development and knowledge creation.
The country popularly referred to as the giant of Africa has come under serious searchlight as its influence on the continent continues to dwindle despite having the largest population.

Egypt, Tunisia, Mauritius and South Africa are now far ahead of Nigeria in the ICT Development Index. To prove that we are still far behind our peers, Lagos was ranked bottom of the largest cities in the world on the use of ICT to better the lives of its citizens in a research conducted by Arthur D. Little Institute and Ericsson.

Making Nigeria a digital economy has become the singsong of government since President Goodluck Jonathan won the presidential election in April 2011. Last week, the Minister of Communications, Mrs. Omobola Johnson, went a step further by coming out with a roadmap which if religiously followed, would the lead the country to the Promised Land.

Broadband for all

Broadband is really about getting fast internet all over Nigeria in both urban, semi urban and rural areas, according to Johnson. USA, Britain, Japan, Sweden, Norway and Singapore are digital economies courtesy of massive broadband investments. Johnson since assuming office has nudged the Nigerian Communications Commission (NCC) to come up with broadband policy to take internet to all rural communities in the country.

According to her, government was “Working to enable fibre optic deployment, complemented by Microwave and Satellite to enable access to core underserved areas. NigComSat 1R that was launched in China is an important milestone and a key part of the resources that we will have and will compliment fibre optic and micro wave infrastructure that we have in the country particularly to get internet to underserved and semi urban and rural areas that we have in this country today.”

The priority according to her is to get fibre to Universities and Schools and ensure they are connected to high speed broadband. “We believe that if we can get fast broadband to every university in this country, we will have an explosion in terms of research that can be done and knowledge that can be captured and innovation and creativity that come with accessed resources”

Digital Creativity
Mr. Leo Stan Ekeh, chairman, Zinox Technologies Limited, said government needs to invest about N750 billion in the ICT broadband internet connectivity through terrestrial fibre optic infrastructure, ICT tools and training such as computers, tablets, internet facilities for primary and secondary schools in the country.

The investment should subsidise computers for students, workers and development of internet access through building of wireless fidelity (Wi-Fi) and municipal internet coverage across major cities, schools and public institutions at very affordable rates for users. This way, the government will make ICT available, accessible and affordable to millions of Nigerians thereby raising the IT literacy level, equipping the youth and the unemployed with skills to be self sufficient and employers of labour themselves. “Government should create digital activity that would educate Nigerians through PC and Internet subsidies. We can wipe out poverty through software and hardware skills development, IT outsourcing and others,” said Ekeh.

Developing IT Parks
Already, the ministry is looking at harnessing software skills of young Nigerians through the development of IT parks in the country. “We will build IT parks, but for now in setting up IT parks, we are looking at places where there is already infrastructure and we see that in a number of places.”

Already, NITDA is set to sign an MoU with the Cross River State Government to leverage its Tinapa infrastructure to develop a knowledge city in Calabar, Cross River state. Nigeria can achieve greatness by replicating the success made in the telecom sector in other sectors of the economy.

Source:http://www.leadership.ng/nga/articles/11639/2011/12/27/digital_economy_why_fg_should_leverage_ict_sector.html

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Million-Dollar ICT Investment For MoBay

December 13th, 2011

A major investment in the information and communications technology (ICT) sector has been secured by Jamaica, which will result in the employment of nearly 1,000 persons when fully operational in 2012.

Minister of Industry, Investment and Commerce, Dr Christopher Tufton, made the announcement at a press briefing at JAMPRO, New Kingston last week.

The multimillion-dollar investment will create the first Jamaican contact centre owned by Convergys Corporation, one of the largest agent-assisted customer service companies in the world. The centre will be located in Montego Bay, St James.

Tufton observed that the Government has identified the ICT sector and, in particular, business process outsourcing (BPO) as a strategic catalytic element in its development plan.

“The opportunities for job creation from this sector, as well as for the raising of the international profile of Jamaica, particularly within the context of the recovering global economy, are significant,” Tufton said.

He added that the Government intended to continue facilitating the growth of the nearly 30 players in the local BPO sector, which currently employs some 11,000 workers.

The minister praised JAMPRO for making the investment a reality, in partnership with a number of other agencies of the ministry, as well as the HEART Trust/NTA.

Convergys Corporation is based in Cincinnati, Ohio. It operates in North America, Europe, the Middle East, Africa, Latin America, Asia Pacific, and now the Caribbean. Jamaica is Convergys’s first data contact centre in the Caribbean.

Convergys is a member of Standard & Poor’s (S&P) 500 and Forbes’ Platinum 400, and is the acclaimed global leader in integrated billing, employee care and customer care services provided through outsourcing or licensing.

The company serves more than half the Fortune 50 global companies as clients, and handles billions of customer interactions per year, processing more than one trillion wireless transactions per year for top companies in telecommunications, Internet, cable and broadband services, technology and financial services.

quality investment

Convergys operates nearly 70 customer contact, service and data centres, with approximately 70,000 employees worldwide. Tufton described the deal as a “quality investment” for Jamaica.

“We are confident that it will offer Jamaicans new employment and career opportunities in an industry with a bright future in Jamaica,” he observed.

Convergys cited Jamaica as an ideal location for BPO providers supporting clients in the United States, Europe, and other neighbouring Caribbean countries because of the similar time zones. The time zone varies from zero to three hours for North America and from five to six hours for Europe.

“They also remarked about Montego Bay’s status as a top tourist destination, and the strong customer service orientation of the available talent in the Second City and western Jamaica,” the minister said.

In addition, Tufton said, Convergys has expressed confidence in Jamaica’s “large educated English-speaking workforce of high school and college graduates, cultural and physical proximity to the United States and Europe, and the Government’s commitment to ongoing investments in its educational, communications, transportation, and facilities infrastructure.”

Government policy provides for targeted incentives to support strategic development sectors, such as the ICT outsourcing industry. Tufton explained that “in addition, the Government offers first-rate investment facilitation services through JAMPRO, working with a number of agencies across Government to make the process of establishment and operations uncomplicated and convenient.”

He commended JAMPRO and the HEART Trust/NTA, who “in the specific case of this investment, collaborated to provide the necessary support to Convergys in order to secure the investment.”

Source:http://jamaica-gleaner.com/gleaner/20111211/business/business32.html

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