BFSI sector digitization fuels need for local data centers in India

May 18, 2018

Data centers store, process, and analyze data for business use, and is a critical asset for the digital economy. Currently valued at US$2.2 billion (Rs 143 billion), India’s data centers market is expected to reach US$4.5 billion (Rs 292 billion) by the end of 2018.

This makes investing in homegrown digital infrastructure, including the set-up to host data services, crucial to India’s economic and digital growth. It is also an area of focus for the government’s Digital India initiative, launched in 2015, which aims to secure access to electronic services and internet connectivity across the length and breadth of India.

Data centers are the heart of operations for the modern banking, financial services, and insurance (BFSI) sector.

This sector is rapidly moving towards digitization, and any further transformation will be reliant on the hosting services powering it – taking into account the scale, speed, and security of the data that is required.

Indian companies in this sector are expanding at a fast pace with a compound annual growth rate (CAGR) of 12-15 percent, and increasingly confront the growing preference for online facilities.

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