This need to step up the pace of business reinvention and dynamism is why digital innovation and transformation are so critical to Guernsey’s economy.
In PwC’s report, prepared for the States of Guernsey, we look at how accelerating digital transformation would not only help to meet and mitigate today’s disruptive challenges, but also enhance living standards and strengthen the economic sustainability of the Bailiwick. The research draws on both our economic modelling and an in-depth survey of 91 Guernsey organisations.
Encouragingly, our research reveals that solid digital foundations are already in place. Guernsey’s digital sector generates more than £120 million a year and over 10% of the workforce are employed in either digital roles or in digital sectors like telecoms, software development and IT consultancy. This is a much larger digital footprint than many might have assumed, reflecting the island’s strengths in digitally-intensive sectors such as financial and professional services.
The untapped potential is even greater. Currently, the economic value of Guernsey’s digital sector, in terms of gross value added (GVA) per employee, is notably lower than many comparable jurisdictions. Bringing our digital sector productivity per employee in line with those in Luxembourg, for instance, could boost the economic value of the sector from approx. £120 million to £270 million. These differences in sector productivity are partly driven by the nature of work in Luxembourg, where there is a concentration of digital head office and IP functions, as well as deep digital skills, infrastructure and an internationally mobile workforce.