Just over three years after entering the Guyana market through its acquisition of Emerge, business processing outsourcer itel International will shutter its operations on December 31, 2024.

The Jamaican-owned BPO announced the completed acquisition of Emerge in 2021, though it had a relationship with Emerge from as far back as 2019.

Several media outlets in Guyana shared news of the pending closure as far back as September 2024. According to News Source Guyana, the decision was reached after extensive analysis and discussion among its leadership team.

Though itel described Guyana as a “gem”, the company explained that it faced ongoing challenges despite the country’s continued economic growth. It further outlined that as Guyana’s economy expands, the cost of doing business in Guyana is rising, and it has become more difficult to find and retain qualified candidates.

“The decision to close the facility in Georgetown was due solely to the performance of the business in Guyana, which unfortunately did not meet expectations,” itel CEO, Yoni Epstein, is quoted by Nearshore Americas, attributing the comment to a statement from the company.

While Nearshore Americas pointed out that itel’s communications team refused to elaborate on the unmet expectations and how the Guyanese operation fell short, reports from local media revealed that the closure was due to higher costs of operations and difficulty attracting Fortune 500 clients.

Guyana’s BPO industry after itel

“itel’s exit from Guyana caught interested parties off guard for its suddenness. The company described Guyana as a ‘nimble and efficient nearshore partner’ and wasn’t coy about its high hopes for the location,” the online publication further stated.

It is estimated that itel spent some US$5 million on the Guyanese operation’s acquisition and buildout. The BPO outfit’s closure will impact 400 employees.

However, chief executive officer of Guyana Office of Investment Dr Peter Ramsamroop has assured of continuity, noting that other investors are planning to enter the BPO space in the South American country.

“This is not an issue. We have other operators who are interested in Guyana, and we have operators taking over the centres,” he informed Television Guyana in September. “Teleperformance (another BPO operator) just expanded in Guyana. Why would they be expanded in Guyana if the industry wasn’t ready for it?” he added.

itel’s financial performance

The financial performance of itel in 2023 may have played a role in its decision to exit Guyana. Though not available publicly, investors in the company have indicated challenges and possibly concerns.

According to Pan Jamaica Group, a minority shareholder in Outsourcing Management Limited—the parent company for itel—for the year ended December 31, 2023, there were challenges with profitability in the BPO operation as it “saw margins compressed in a very competitive environment”.

Another minority shareholder, Portland JSX Limited, commenting on itel’s financial performance in its 2024 annual report, noted, “Outsourcing Management Limited, which operates as itel, uncovered anomalies in its financial accounts during the year resulting in financial statements not reflecting accurately the financial position of the company. itel has since made necessary organisational and operational changes to address this issue whilst also focusing on efficiency improvements to support margin expansion.”