THE volume of business attracted into the finance sector shows no real sign of slowing down and the growth that we have seen over at least the last two years continues unabated. That certainly augurs well against the backdrop of the island’s new tax structure due to be introduced in 2008.

The ability for us to fill the so-called black hole which results from the change to the zero-10 regime relies in some measure on us being able to increase overall business levels and the industry is certainly well aware of the part it has to play in achieving that goal. Therefore the decision taken by the States at its last sitting not to allow the controlled increases, albeit small, in the number of people coming to the island and therefore effectively restricting the population level to about 60,000 for the future provides the finance industry with some challenges over the next few years.

In some specialist areas it has been difficult to recruit good staff for quite some time now and this is not getting any easier.

Indeed, that inability to recruit in those areas is spreading to many other areas and no part of the industry seems to be immune. Of course, the same can equally be said of the many non-finance businesses in the island.

The ability of business, however, to continue to manage growth but at the same time maintain what is essentially one of our biggest selling points – namely a quality, personal service – does become harder and harder and therefore the dichotomy of an effectively static resource and the exhortation to increase business levels stretches the ingenuity of management to square the circle.

But, never ones to shy away from a challenge, many finance businesses are now revisiting their business models, looking even more closely at what work is physically done here in the island and what could be, with the appropriate oversight, outsourced.

The knack, though, is surely to ensure that the higher added value, client-facing parts of the business are retained locally and the volume areas which are lower value and which demand resource are outsourced and managed off-island.

And whereas outsourcing sometimes conjures up visions of massive centres of people in India or some such far-flung parts of the globe, the reality is sometimes much different.

Businesses are using the widest variety of outsourcing opportunities from the UK to many of nearby ‘competitors’ such as Luxembourg or Dublin, where they have centres of excellence that can be plugged into effectively. South Africa now features on that list and I am sure that others will follow.

The resourcefulness of the industry never fails to amaze me and in many respects that is an attribute that GuernseyFinance markets heavily to prospective clients at exhibitions and conferences internationally and what we impress on journalists when they visit the island.

Indeed, in the latter case they can see and hear for themselves exactly what businesses are doing to continue to provide the levels of service that have historically been our hallmark, cope with increasing volumes of business and, at the same time, provide increasingly complex and innovative solutions to our international client base.

Unlike some of our competitors who aspire to attain the ‘gold standard’ of international finance centres – we are already at the gold standard and have been for some considerable time and it’s not just us saying that but our clients and those who are introducing the huge flows of business to the industry.

GuernseyFinance will continue to market the island’s finance industry proactively and consistently. To do otherwise and maybe give the impression that resource constraints mean that we are taking the foot off the gas will inevitably give out wrong messages.

I am confident that the industry will continue positively to rise to the challenge of resource against increasing business flows and ensure that we retain our coveted gold standard and, as always, GuernseyFinance will be there in support as part of the team.