This guest article was written by Michael Ourabah, CEO of BSO.
It is certainly no secret that India has emerged as a force in the global economy during the past 10 years. According to a 2016 report from the Reserve Bank of India, the country has enjoyed a growth rate above seven percent over the past decade, and is currently regarded as one of the fastest growing countries in the world.
In fact, by 2030, India is expected to be the third largest economy on the planet, behind the U.S. and China, and could eventually surpass both countries to take the No. 1 spot, according to a report by UK think tank Centre for Economics Business and Research (CEBR).
At the heart of this progress is Mumbai, a sprawling city and the financial hub of India. As is the case with many emerging markets, Mumbai has become the driving force behind the country’s present and future growth. The need for the fastest and most reliable connectivity to help spur that growth is a top concern for the Indian government.
This, of course, is true for any emerging market within BRIC (Brasil, Russia, India and China) countries. With improved technological infrastructure comes interest from outside investors and opportunities for innovation. As such, service providers are working to address the growing demand for fast, secure and agile networks that keep pace with impressive growth in the workforce.
What’s more, Indian students are benefiting from a free college education. Once they have completed their studies, they are opting to stay and establish their careers in India. A decade ago, this was not the case. In the past, young, educated Indian citizens would leave for Europe or the U.S. to begin their lives in the workforce. But that has changed as more and more opportunities in the technology sector have surfaced – particularly within financial services.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
The globalisation of electronic trading, the burgeoning financial sector and explosion of high-quality connectivity have given rise to very intriguing opportunities in India. Those highly-educated and capable professionals who would previously leave for London or New York City with their degrees in tow are now establishing themselves in India and becoming incredibly successful at home.
All of these varied elements have combined to make Mumbai a stronghold for global high frequency trading (HFT) and hedge funds. Those involved in this industry shift are working to build smart, technologically-advanced trading firms that are now competitive with international heavyweights in Chicago, New York and London. As this new market has rapidly developed, the demand for telecommunications infrastructure has grown in parallel.
Aite Group, a Boston-based consulting firm, states that HFT and algorithmic transactions in India have ballooned from single digits to about 40 percent of total volumes during the past five years.
From a logistics standpoint, Mumbai trading firms require a network provider with local knowledge and presence, along with superior infrastructure, to maximise all trading opportunities and address the growing hunger for bandwidth and fast connectivity. Firms need secure routes that bypass traditional hubs where cyber threats are more substantial. At BSO we have recognised that need and created a comprehensive solution to meet the demands of an emerging market experiencing unprecedented growth.
Just last month, BSO announced ‘Mumbai Connect’, opening new electronic trading opportunities for the market and further solidifying India’s role in the global economy. As previously noted, India has the highest proportion of high-frequency and algorithmic transactions in the developing world, and ‘Mumbai Connect’ not only addresses the need for flexible, ultra low latency routes, but also takes into account the region’s unique cultural intricacies.
To compete in a world powered by technology, reliable and secure network infrastructure is core to Mumbai’s robust and growing economy. Leveraging ‘Mumbai Connect’, more than 20 Indian brokerages and proprietary trading firms have migrated to BSO’s network services in the last 24 months. This demonstrates that, as the country focuses on urban development and the economy continues to grow, investment in infrastructure is essential. Demand for cloud services has been on the rise for years as Indian businesses adopt this model, with connectivity and power forming the foundation.
Emerging markets such as Mumbai will continue to increase in magnitude. Recent research and projections have proven that India’s significance in the global marketplace shows no signs of slowing down. As this growth occurs, governments, enterprises and financial markets will continue to adjust to keep pace. A key indicator of success in India will be opportunity. With increased connectivity and bandwidth, a stronger workforce and a focus on infrastructure, the right strategy will open new doors within the market.