The ITSoffshore partnership was formed to provide both local and offshore businesses with a complete colocation and managed services solution, which includes a data centre, consultancy, hardware provision, software solutions and ongoing server management. A statement from Jersey Telcoms said that the new facility would enable companies to take 'full advantage of lower infrastructure costs and importantly, because electronic transactions take place on servers based in Jersey, they are only subject to the local, favourable, tax rates.'

Bob Lawrence, Executive Director of Jersey Telecoms, said: 'The States are aiming to make Jersey a centre of e-commerce business excellence through investment in all areas of the Island's information infrastructure. With the excellent telecommunications infrastructure we already have in place coupled with diverse connections out of the Island, such data centres are falling into place to allow Jersey PLC to move forward to attract profitable e-commerce businesses to the Island.'

Jon Crichard, Managing Director of XKO Communications Systems, added: 'We think that ITSoffshore provides enormous and easily accessible potential for business to business organisations and entrepreneurial companies who have realised the advantages of carrying out transactions offshore but have yet to make a definite move towards e-business.'

ITSoffshore has already established working relationships with the Globix Corporation - a leading provider of Internet connectivity and sophisticated Internet solutions in the US and Europe – and payoffshore.com, an accredited Payment Service Provider offering e-commerce payment solutions.

The launch of ITSoffshore comes just days after Jersey Electricity Company (JEC) managing director Mike Liston warned that JEC's Internet hosting service, Foreshore, needed two networks and service providers to attract international business. Jersey Telecoms' Bob Lawrence said: 'Mike (Liston) is saying that in order for e-commerce to work we need choice of supplier, and big US companies will look for choice and competitiveness because that ensures best price and innovation. I don’t think Jersey Telecoms disagree with that, but we must not put out the view that if there is no choice there will be no e-commerce.’

Mr Lawrence said e-commerce was already under way through both ITSoffshore and Foreshore, concluding: 'We believe the more of these sort of facilities there are the better it will be for Jersey. If the Island wants to be a successful e-commerce centre we need more.'