The gush in start-ups and growth of the economy first created a demand for co-working spaces. Now, the MNCs too are moving out of their traditional office set-ups, triggering the next surge in their popularity.
As for fact goes, DXC Technologies, a part of the Tata company Jaguar Land Rover’s team, and one of Google’s many teams works out of co-working spaces.
Time and money
A growing number of companies prefer co-working spaces to create new spaces or expanding their facilities, especially if they are setting up new teams or departments. One of the big company who is into building materials, was trying to build a new product and a team of 25 needed a strategic environment. To set up a new office would have taken us weeks, if not months. They were able to set up and start work within 30 minutes when they moved into a co-working space.
Those in the co-working space business attribute the shift to an expensive real estate market and the ease and swiftness of setting up a new office with a plug-and-play model. In a traditional office space, business owners need to deal with landlords, contractors, brokers, security deposit, lock-in period and other legal and technical issues. This process is extremely time-consuming and takes at-least three to six months.
On an average, a team of 200 would need an office area of 10,000 sq. ft. and co-working spaces lease office spaces of that kind and with greater flexibility, time and cost. The companies are able to redirect this efficiency in costs to their clients. So, even for a big corporate, working from a co-working space turns out to be 50-60% cheaper than having their own office.
As a business model, flexibility is ensured, allowing businesses to free up capital expenditure and focus on their core competencies.
Not just about money
The reasons, however, go beyond capital and convenience. The corporate workforce, much of it comprising millennial, benefits from the vibrant design and environment such spaces have meticulously created. “The healthy, relaxed atmosphere in co-working spaces helps companies retain their employees, as they are happier working in such environments rather than in conventional protocol-driven offices.
When you’re in a traditional environment in a large organization, you’re in a silo. It’s the same boss, same friends and same conversation. There is no room for dynamism. The idea of an open, communicative, barrier-less office culture is finally catching up on this side of the economic ecosystem,
It’s a big change for corporate India, particularly leaders used to a certain style of operation. For one, the atmosphere is vibrant, buzzing with energy. Moreover, co-working spaces are great platforms for informal networking and collaboration as one keeps bumping into executives, entrepreneurs and freelancers from different sectors.