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Global IT Readiness : Country of Switzerland

Overview

Network Access

Networked Learning

Networked Society

Networked Economy

Networked Policy

Offshore Oppurtunities

Conclusion

References

 

 


Offshore Opportunities

 

 


Switzerland is undoubtedly one of the most attractive countries in the world in which to live, work, and run a business.

  • It offers a combination of political, business and economic stability, a clean and safe environment, and comparatively low personal and corporate tax rates.
  • It’s highly developed network infrastructure and vast connectivity to the Internet presents itself as a good opportunity for companies to consider the decision to offshore.
  • Switzerland offers multilingual skills. The population speaks French, German, and English. Furthermore, it is in the same time zone as some major countries in the e-commerce industry, such as Germany and France. This addresses the distance, language, and cultural barrier of offshore and offers an attractive opportunity for global companies
  • Switzerland has a strong educational system which is very focused on technology. The reason Switzerland would be a good fit as an offshore resource is because the country is highly integrated with the rest of Europe while still keeping its level of expertise within its borders. Switzerland is suitable for highly complex and technical offshore projects.
  • Switzerland Gains Draw as Tax Haven while several large U.S. companies are reincorporating from Bermuda to Switzerland. This helps them avoid expected legislation aimed at corporations located in tax heavens.
  • Switzerland boasts more than 180 international firms mostly from the U.S. and Europe. Corporations like Kraft Foods, Cisco Systems, Nissan, Yahoo, Cadbury and Google have moved their operations to the Geneva region during the last decade.

Switzerland however, does have a few drawbacks for global companies to consider.

  • The tax system, whilst relatively benign, is quite complex.
  • The cost of talented ICT workers may push some companies away and although Switzerland would meet several needs and wants of most European countries, the price to utilize Switzerland as an offshore location would be high in comparison to other favourable offshore locations such as India or China.
  • Switzerland is suitable for highly complex and technical offshore projects. It may be better suited for specific functions or industries such as the banking industry
  • A possible notable opportunity is that most Internet users in Switzerland are female, however they make up only 10% of workforce in ICT.
  • Another possible stumbling point in utilizing Switzerland for offshore work may be its exceptionally low unemployment rate (~4%-7%).  This implies there may be a resource contention for ICT talent.

Switzerland's well-known attractions as a home for IT Outsourcing are based on its widely perceived safe-haven status which is a direct consequence of its iron-clad banking secrecy provisions, the ever-appreciating value of the Swiss Franc, and the country's long history of neutrality which has kept Switzerland free of the ravages of war and has given it a political and economic stability unrivalled in continental Europe.

More recently the country's decision not to join the European Union has made it a major beneficiary of investment funds fleeing high taxation and the effective ending of banking confidentiality in the EU under the Savings Tax Directive. This makes Switzerland very attractive for investment opportunities from foreign countries due to its leniency on taxation policies and relatively stable economy free of political turmoil.
 

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