London, United Kingdom – (The Hosting News) – July 20, 2007 –
The Channel Islands of Jersey and Guernsey, and Switzerland are cited among the highest ranking for tax efficiency and overall attractiveness in offshore hosting, according to a new report by consultancy BroadGroup, which also identifies Middle East and North Africa countries, among those rising in popularity.
The report, Tax Efficient Hosting – Global Competition and Growth in Offshore Hosting – draws attention to growth occurring in 33 offshore hosting markets, which is currently driven by higher taxes imposed in mature economies, competition in foreign inward investment e-commerce and online gaming. This study suggests that Tax Efficient Hosting will become increasingly important as a source of competitive advantage to companies in the e-commerce sector.
Identifying key growth drivers, the report analyses current and new opportunities fuelling demand to host offshore. International competition to attract businesses to host within low tax economies, offshore “tax-free” jurisdictions and near-shore zones is intensifying. Businesses appear to be adopting a mix and match strategy, dispersing different parts of their operational requirements across a number of jurisdictions.
The report also details the critical differences between jurisdictions, and provides easy-to-access summaries of the key relevant conditions prevailing in each market, in addition to a scorecard for each market.
Philip Low at BroadGroup remarked, ”More than half the world’s money is located offshore. Demand is increasing to shift not only back-office functions and BPO offshore, but new demand from rising e-commerce based organisations, and even bricks and mortar businesses such as the retail sector, are sensing the opportunity to leverage part or all of their operations offshore and derive not only tax benefits but a less complex administrative environment in which their businesses can prosper.”
Emerging markets still have some way to go to compete effectively and the report points to the level of investment required by administrations to enable them to succeed in establishing themselves as competitive offshore locations. However, as before specified, the report does mention that North Africa and the Middle East are also slated as rising stars in the sector.
BroadGroup is an independent consultancy based in London, employing key directors, consultants and researchers, working across a range of disciplines.
To learn more, please visit: www.broad-group.com.