February  2004

By Tim Parry, Associate Editor, Customer Inter@ction Solutions

About a million people a year visit Barbados for its white sandy beaches and crystal clear waters. But its economic stability and a commitment to free enterprise make Barbados an equally attractive environment for an offshore call center.
Independent since 1966, Barbados enjoys ongoing political stability as a sovereign state within the British Commonwealth. Its political system is based on the British style of parliamentary democracy, and its judicial system is derived from English common law statutes.

Less than five hours from New York and Toronto, Barbados is the most easterly of the Caribbean islands. It lies to the east of the Windward Islands and 286 miles northwest of Venezuela, which makes it a highly convenient location for doing business with South America.

Maximizing its accessibility and attractive year-round climate, Barbados has built a tourism industry which now serves as the base for its economy. An excellent infrastructure is in place, the quality of life is notably high and the 98 percent literacy rate is indicative of a progressive and successful nation.

Barbados is located in the same time zone as the Eastern U.S. for half the year and is only one hour ahead for the other half, which means early-morning starters can get service into Europe. Barbados is an English-speaking commonwealth, and its educational levels are similar to those of the British, U.S. and Canadian markets.
Companies looking to do business in Barbados will find a package of incentives that includes no restriction on foreign ownership; a tax rate of 1 to 2.5 percent on profits of information services companies, investment companies, offshore banks and international business companies; and full exemption from import duties on components, raw materials, production machinery and other production-related equipment, including computers and spare parts.

In addition, double taxation treaties have been entered into with 11 countries, including the U.S. and Canada, and business convention expenses incurred in Barbados by U.S. corporations or organizations are deductible against U.S. taxes.
Barbados also has a special benefit for companies based in Canada ' dividends paid to a Canadian holding company out of income earned from an active business in Barbados are considered as 'exempt surplus' and are not subject to tax in Canada.

While investment opportunities are many and diverse in Barbados, the most prominent areas of focus are international business and financial services, manufacturing and information technology. In recent years, call centers and CRM activities have emerged as a significant growth sector in Barbados' information technology industry. Advantages enjoyed in this industry include modern, reliable telecommunications, a service-oriented and trainable labor pool, competitive labor costs and high levels of productivity.

The Barbados government actively encourages investment in this sector and is working with private enterprise to promote its growth as a key player in the Barbadian economy. Call center companies on the island include Cable & Wireless, Shell Antilles, ICT Group and Technion Inc.

ITC Group opened its Bridgetown, Barbados contact center in February 2002. This center provides near-shore telesales support services primarily for clients within the financial services industry. Initially equipped with 75 agent workstations, the center now has 230 workstations.

ICT said it has found that the Barbados workforce provides consistent, high-quality sales and service performance, comparable to that of its other outsourced operations in North America, Europe, Australia, Mexico and the Philippines.
An important resource for companies choosing Barbados for offshore investment is the Barbados Investment & Development Corporation (BIDC).

With offices in Barbados, New York, Miami, London and Toronto, BIDC (www.bidc.com) is responsible for promoting and facilitating the establishment and expansion of business enterprises in Barbados, and for export promotion of Barbados' goods and services.

Additionally, the BIDC serves as administrator of a government incentives program for industry and of a special training grant program designed to help overseas companies offset a portion of training costs during start-up and expansion phases in Barbados.

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