India Ranked as a Risky Country for Data Center Operations
Jun. 12 – Cushman & Wakefield recently compiled its annual “Datacenter Risk Index” survey assessing 30 of the world’s most important markets. For the second year in a row India has failed to improve its standing.
The risk index provides valuable information that can assist companies with choosing the right location to host their data centers so as to increase efficiency, lower costs and mitigate risk.
Safe and secure data centers are essential for businesses as they house critical IT systems which could, if jeopardized, significantly impact company revenues, customer services and organizational viability.
India’s low ranking came as a result of obtaining low scores in key areas such as energy costs (25th), ease of doing business (30th), inflation (30th) and GDP per capita (30th). Furthermore, India ranked near the bottom in terms of natural disasters (28th), energy security (28th), corporation tax (28th) and education level (28th).
However, India did rank highly in cost of labor (4th) and sustainability (6th), and quite well in political stability (13th) and international bandwidth (16th).
Cushman & Wakefield’s Executive Director Arvind Nandan recognizes that India “has a significant scope to improve its rank… [but] will need to build on its strengths like labor and operational sustainability.”
Furthermore, Mr Nandan advised that India should, in the short term, address its energy cost and security problems while aiming to improve its business environment in the long term.
In contrast, the United States maintained its position as the safest location to host data center operations. Not only did it maintain its top position, but it swept the top spot in the following key categories: energy cost, international bandwidth and ease of doing business. The UK remains second in the rankings, followed by Sweden in third place.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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