IT Outsourcing is now a key component across many services, keeping the bulk of work at bay for entrepreneurs and industry leaders, as well as to make sure that companies are in line with industry norms. IT outsourcing allows businesses to remain competitive nowadays; here’s why Mauritius is the ideal jurisdiction for IT outsourcing.
1. Cost-effective platform
IT Outsourcing in Mauritius is at a competitive rate in terms of the workforce and the operational costs. Mauritius IT specialists are internationally qualified taskforce at reducing business costs.
In fact, the cost of an IT specialist in Mauritius represents 1/3rd of the total cost of hiring someone in Europe. The literacy rate is over 90% in the country where most of the IT labour force are bilingual.
IT outsourcing allows companies to benefit from an adequately skilled team that is able to provide quality service in a cost-effective way.
It is easy to hire IT specialists with proven experience and expertise.
2. A favourable time zone
Mauritius boasts a strategic and convenient time zone, (GMT+4), which allow easy communication across continents, especially Africa, Europe & Asia. This gives you the advantage of making full use of the extra hours available, increasing your overall productivity with more work being done in a day.
3. The growing tech hub of Africa
Mauritius is an internationally proven platform that motivates businesspersons, and entrepreneurs to establish their IT firms and Fintech companies. The country is amongst the best country to do business in Africa and has solid international legal regulations. There are many smart cities and business hubs on the island with modern technologies and safe to work in any environment. In fact, Mauritius is ranked 84th for Internet connectivity worldwide, 55 in e-commerce index globally and 1st in ease of doing business in Africa.
4. IT risks mitigation
Offshore IT outsourcing firms can assist you in outsourcing certain projects, as they are cognizant of the IT risks that can happen at any time. They will enable you to find solutions to your problems and take care of major responsibilities, which you delegate to them.
5. International ICT firms prefer to settle in Mauritius
The ICT sector is one of the major pillars of the Mauritian economy. According to the government of Mauritius, about 850 IT firms have already established their operations in Mauritius. They are engaged in activities such as business process outsourcing, software development, application development, and disaster recovery services amongst others.
With an evolving high fibre internet connection, Mauritius braces itself as a famous place for many international firms and entrepreneurs for outsourcing services.
6. IT outsourcing gives you more time to focus
IT outsourcing gives the leadership team more time to focus on and strengthen your core process (e.g. planning and implementing your business strategies, managing important projects, etc.), rather than being involved in the operations.
7. Adaptability and flexibility
IT outsourcing allows firms to adapt more swiftly to fluctuations in demand and changes in the market. IT outsourcing companies have a readily available pool of qualified and trained talents. Therefore, they can scale their teams up or down based on your project requirements and priority. Some offshore IT outsourcing providers also provide flexibility in helping you select a customised pricing model fitting your objectives.
IT outsourcing is also a way to hire the right experts for your team and hiring a specialist can prove to be swift. The reason being vendors habitually having a large internal talent pool and also a big internal foundation of potential candidates can be beneficial for your firm.
8. Mauritius: A trusted and resilient IT platform
Mauritius ranks first on the (International Telecommunication Union) ITU 2021 in Africa. The ITU is a trusted IT player that evaluates the engagement of countries towards cybersecurity worldwide. Mauritius is a safe platform to mitigate IT risks.
With a growing digitisation of the economy, technology is at its peak in Mauritius. There are demands for digital transformation tasks, which present further opportunities for the Mauritian ICT/BPO industry. With further regulations enacted by the law, the government is ensuring that the population stays safe. During the pandemic era, more and more employees are working online, thus security needs to be enhanced and it is possible through IT outsourcing.
9. The fiscal edge of Mauritius
Mauritius has concluded double taxation agreements with 45 countries worldwide. Setting up a company gives the advantage of benefitting from these DTA’s. The prime benefit will be to lessen the risk of double taxation in the countries where the IT companies are working and in their country of residence. Mauritius also has a corporate tax rate and a personal income tax of 15%, no tax on dividends nor capital gains.
10. Presence of international institutions in Mauritius
There are approximately 23 banks in Mauritius and many are engaged in global business activities. Foreign currency like American Dollars, Euros, Pounds sterling are easily obtainable there. In addition to banks, Mauritius also counts a number of reputed local and international service providers such as law firms, advisory firms, brokers, Investment Managers, pension funds, insurers, hedge funds, and rating agencies.
Why outsourcing to Mauritius
A Eurostat study found that 55% of European companies experienced difficulties finding and recruiting IT specialists in 2019. The COVID-19 pandemic has only increased the demand for IT specialists as more and more companies have either initiated or accelerated their transition to an IT infrastructure that allow them to work remotely and securely.
According to Eurostat, while SMEs had more difficulties in finding appropriate IT specialists, both large enterprises and SMEs struggled with the lack of applications, lack of relevant qualifications and/or experience, and higher salary expectations. These are a few reasons why over 60% of European companies turn to offshore IT outsourcing, instead of having in-house IT specialists.
Furthermore, offshore IT outsourcing is a growth accelerator for many companies, allowing them to remain competitive in an increasingly challenging business environment.
It is important to be accompanied by experienced professionals for your IT projects. In Mauritius, a popular relocation destination among businesspersons, there are a number of IT companies, such as Business Data Integrator, that provide international companies with IT outsourcing services to help you optimise your IT and business processes.