A Critical Look at Barbados’ Digital Transformation Journey: Post-Budget 2024

With the recent passage of the Appropriations Bill 2024, also known as the Budget, I felt it necessary to address and identify a few areas that are technology-specific regarding the government’s investment toward a digital economy for Barbados. Personally, I find these two areas particularly aspirational and encouraging, given the increasingly rapid rate of information technology advancement.

The first area involves the Prime Minister and Minister of Finance’s incentive for national digital transformation development. Digitisation and digital process re-engineering/reorganisation are central pillars of the government’s strategy to propel the widespread adoption of digitisation to enhance efficiencies across both public and private sectors, recognising it as fundamental to our long-term development. This ambitious focus aims at institutional strengthening, particularly within training and educational institutions, underlining the commitment to comprehensively transform operational landscapes.

Complementing this strategic orientation, the government has introduced a 100 per cent tax credit incentive for local companies engaged in digitising and/or reengineering their business processes and upgrading their systems. This initiative, effective from  April 1, 2024 to June 30, 2025, allows companies to fully utilise the tax credit within the same income year upon the completion of their digital transformation projects, thereby catalysing a rapid and meaningful adoption of digital technologies within the Barbadian economic fabric.

I would never take issue with any government’s technology initiatives, especially since I strongly support technology development. My concern lies instead with the private sector’s perspective on information technology and its adoption. The private sector should be the main driver of national digital transformation. In my experience, IT is often viewed more as a hindrance than as a platform for innovation. This situation raises an important question: Is the 100 per cent tax credit sufficient to significantly advance Barbados towards becoming a digital Shangri-La? 

To be honest, over the last 25 years, the government has been leading the way in digital transformation. Several backend services that can now be accessed via websites and web-based front ends have improved efficiencies in areas such as tax filing, corporate registration, and online procurement. However, there is still much work to be done, especially in those areas mentioned, but at least it’s a start compared to several leading private sector institutions that have yet to modernise their operations for the 21st century. To them, I ask, what is the holdup? Meeting customer expectations and maintaining global competitiveness are essential in 2024.

Another critical component of the national development program is the government’s proposed Tier 3 Data Centre, championed by Minister Marsha Caddle in the Budget. This venture is purported to be transformative, aiming to unlock new technological horizons while fortifying the island’s cybersecurity framework. One of its selling points is its potential to invigorate economic growth and enhance the array of technological services available locally. Minister Caddle emphasised the imperative of establishing a National Data Centre, slated to be a Tier 3 facility, strategically positioned to centralise data and technology services.

Despite the economic promise of such an initiative, my enthusiasm is tempered by the fact that I was also exploring the possibility of establishing a Tier-rated facility in Barbados, and the findings were less than favourable. The feasibility of a Tier 3 data centre seems virtually unlikely due to several challenges.

Realising a Tier 3 data centre in Barbados faces three core challenges:

Technology and Infrastructure: The need for dual-powered IT hardware, multiple power sources, and backup solutions for fault tolerance is crucial.

Cooling Infrastructure: Barbados’ climate demands advanced cooling strategies to manage data centres efficiently, significantly impacting operational costs.

Network Connectivity: The requirement for redundant undersea connectivity paths and the high cost of enterprise bandwidth complicates continuous network access, posing a significant barrier.

In conclusion, while the initiatives outlined in the 2024 Budget represent another significant step towards Barbados’ digital transformation, maybe an alternative to a Tier 3 Data Centre could be the creation of a Caribbean Data Resiliency Network. This concept aims to bolster regional data storage capacity, protection, and recovery capabilities by harnessing the strengths and infrastructure of premier data storage providers across the Caribbean. Such a network would be pivotal in ensuring data resiliency, accessibility, and security throughout the region, thereby fortifying our digital ecosystem against natural disasters, cyber threats, and other potential disruptions. It represents a critical step forward in enhancing data management and disaster recovery processes for businesses and governments alike within the Caribbean.

Moreover, I am particularly optimistic about the financial opportunities that the government has extended to the private sector, enabling it to invest in its own growth and, by extension, to propel the advancement of doing business in Barbados. This dual approach—promoting both individual enterprise growth and regional data resilience—encapsulates a comprehensive strategy for navigating our digital future. It underscores the importance of collaboration, innovation, and strategic investment in our journey towards becoming a more digitally enabled and resilient economy.

Steven Williams is the executive director of Sunisle Technology Solutions and the principal consultant at Data Privacy and Management Advisory Services. He is a former IT advisor to the Government’s Law Review Commission, focusing on the draft Cybercrime bill. He holds an MBA from the University of Durham and is certified as a chief information security officer by the EC Council and as a data protection officer by the Professional Evaluation and Certification Board (PECB). Steven can be reached at: Mobile: 246-233-0090 Email: steven@dataprivacy.bb