Bermuda as an International Data Services Centre The reputation of Bermuda as a global business centre is strong and getting stronger. Overview Bermuda's financial services industries - principally insurance, reinsurance, banking, trusts and investments - have never been so active. Yet many would have assumed that the reviews of Bermuda and other so-called offshore domiciles by OECD, FATF etc would have thwarted its growth. Not the case. In fact, as Bermuda has long claimed, and proved by the OECD "good housekeeping seal of approval", the business case for using Bermuda for global business is of the highest standard and repute. Thus, any lingering doubts about doing business in certain offshore domiciles, have disappeared. If the business case has been established for using Bermuda as a centre for certain types of international business, then by extension, those same business reasons can be established for using Bermuda as an International Data Services Centre ("IDSC"). Too often, technology considerations (in isolation) determine the choice of one company over another or one domicile over another, and too often business reasons are relegated to second place - perhaps a reflection of this new technology-driven world. However, the use of Bermuda for IDSC purposes cannot rest alone on technology and telecommunications - it must be driven by business rationale. Traditionally the offshore domiciles have been perceived as places to establish certain business ventures for tax-driven reasons. In some cases that still exists, but the pendulum is swinging towards using a Bermuda base for international operations based on a tax-neutral model. In other words, using Bermuda for reasons other than tax efficiency is becoming much more of a reality. Consequently, if Bermuda can blend its existing technology and telecommunications facilities with sound business reason, all sitting atop a clean reputation, then the IDSC initiative has excellent potential, especially as the telecom cost element reaches near-parity with competitive locations onshore. | |
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