DATA CENTRE PREDICTIONS
clients on their approach to procurement , and to monitoring second and third tier suppliers . Performance security , bonds and third-party guarantees / letters of credit are extensively used on large construction projects in India and we play a role in monitoring these . Also structuring payments against milestones – in particular protections around advance payments – are , in our experience , common in India .
The quality and workmanship – and in particular compliance with local and international codes and standards – is an area of real focus and aligns with detailed staged and integrated commissioning processes . There are also a number of compulsory insurances required in India alongside those which would normally be expected by an international client .
Cultural considerations
When we are negotiating in a different country or culture , we work hard to understand how the approach of our negotiating partner might differ from your own . It is always risky to try to characterise a whole nation or culture by a set of rules and so there needs to be a lot of ‘ finding your way ’ with the relevant individuals . However , we find cultural frameworks
such as the well-known Geert Hofstede index , can be useful as a starting point . For example , through that , we learn that Indian culture scores highly in relation to its appreciation of hierarchy . It is therefore important to establish early on where the individuals we are negotiating with fit and ensure that either negotiations on specific points are conducted at the right level . An alternative is to provide enough justification for our stance to enable the individual to take the decision back to his or her superiors and make a convincing argument . It is quite easy to cause offence by not respecting the hierarchical structure ( perhaps by seeking to jump a level in order to get faster resolution of an issue ). To the western negotiator who is often time pressured , negotiating can feel like a very slow process but it is important to temper frustrations for the long-term goal . Also remember , as with many Asian cultures , that the term ‘ yes ’ is often used to indicate understanding of the point being made , not agreement to it . In our experience , this can cause clients great difficulty when they report that an issue has been closed out , only to find it has not been .
In conclusion , investment in digital infrastructure is happening at scale in India and there is a vast amount of further potential in this market . In fact , investment in the Indian data centre market is expected to reach US $ 8 billion by 2026 .
There are inevitable challenges in meeting the demand of a very techenabled population and business sector quickly enough , with reliable infrastructure to overcome historic under-investment in the region , such as quality construction and availability of highly qualified labour . We are proud to be part of it . ◊
INVESTMENT IN DIGITAL INFRASTRUCTURE IS HAPPENING AT SCALE IN INDIA AND THERE IS A VAST AMOUNT OF FURTHER POTENTIAL IN THIS MARKET .
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