Businesses and residents in Bermuda have a commendable level of technological competence, a new report confirms.

This expertise, along with the Island’s digital infrastructure, offers opportunities to attract foreign investment and the possibility of creating a technology-related niche.

However, there are challenges, which range from calls for faster internet connection speeds and lower prices, to better cellphone and data services.

There are also security concerns related to digital data and cloud computing, and increasingly companies are looking to outsource IT departments.

These are among the findings of the Department of E-Commerce’s State of ICT in Bermuda 2014/15 report.

Commenting on the report, Grant Gibbons, the Minister of Economic Development, said: “Bermuda is part of the global market and its competitiveness and success are reliant on the Island’s digital infrastructure.

“The results of the report confirm that despite the current economic challenges, Bermuda residents and Bermuda-based companies continue to acquire technology and use it in most areas of everyday life.”

Some 89 per cent of households surveyed reported having internet access. There has been a move towards faster connection speeds by residents, with 20 per cent of respondents now receiving 8 Mbps, double the number recorded in 2012, and there was a corresponding halving in the number of households receiving 3-4 Mbps.

Residents receiving speeds of 10 Mbps or faster have jumped from 7 per cent to 17 per cent since 2012.

The report stated that residents and organisations are demanding higher and more affordable broadband speeds, and noted many companies are interested in updating to a fibre solution, such as fibre to the cabinet. However, this option will take significant investment to become a reality in Bermuda, according to the report.

“As the demand for broadband speeds continues to increase, there is little indication that prices will decrease to make it affordable for small and medium sized businesses,” stated the report.

Steve Bull, managing director of Bermuda-based technology firm Independent Consulting Solutions (ICS), believes the Island has good internet connections and good service providers.

However, he said: “The thing I hear most often is people saying they want to get what they pay for. If they pay for 8 Mbps, they don’t want to receive four.”

According to the report, a quarter of respondents felt there was a technology-related niche that Bermuda could further develop, such as fostering a “Silicon Valley” type environment. This was up six per cent from 2012. Among businesses who did not share that view, the most commonly mentioned reasons were economies of scale and high cost of living.

Mr Bull, of ICS, concurred and said he knew of three vendors who echoed that view.

However, he said Bermuda could be well served if it can entice back to the Island Bermudians who are involved in “cutting-edge stuff” overseas, or attract a technology-related niche that was in the process of being formulated.

The Bermuda Government report noted cybersecurity is now at the forefront of organisational conversations, with respondents wanting more information regarding security alerts and privacy.

This area of concern dovetailed into the increased use of cloud computing, particularly with mobile device apps that store and access data using the cloud.

Mobile technology is particularly popular with Bermuda residents. The report stated: “Their use includes tasks [such as] communications, banking, shopping, research, etc.”

In its conclusion, the report stated: “Looking into the future, employers see an increased need for IT specialists with specific skills in Bermuda.

“Certifications in Microsoft Office, CCNA, and MCSE/MCSA are currently considered beneficial, and students should keep an eye on such feedback.”

The report noted the number of companies that had entry level IT positions has fallen from 11 per cent in 2012 to 6 per cent, with some indicating they either had or were looking to outsource their IT requirements.

“We do note that companies may turn to outsourcing, as they may feel that the size of their organisation, cost-effectiveness, and the shortage of qualified Bermudians may push them in such a direction,” the report stated.

“While outsourcing to local service providers is indeed beneficial, encouraging high-skilled work to remain on the Island is critical.”

Residential statistics used in the report were compiled from the responses of 400 randomly selected households, with further research coming from interviews with 400 residents. The margin of error was stated as about 5 per cent.

The corporate statistics were compiled from interviews with 200 business professionals representing small, medium and large companies. The margin of error was stated as 7 per cent.