Corporate India Moves to Next-Generation Workplace

India’s startup ecosytem is the third largest in the world after China and the US. From its current 5,200, startup ventures in India are expected to grow 2.2 times to reach 10,500 by 2020. A report by Cushman & Wakefield states that these startups are now looking for flexible working modes that would address their next-generation staffing requirements. Enter the concept of co-working spaces.

Co-Working Expansion in India

Here’s a glance of what the shared workplace environment in India looks like today:

• There are more than 120 co-working operators in the top eight cities in India
• Stock exceeds 8.1 million square feet (msf)
• Massive expansion plans of operators

Currently, companies are scaling up as they chase better valuation and funding, fending off competition in the process. Driven by surging corporate demand and encouraged by low entry barriers, flexible workplace operators are facing intense competition in swing space options.

Co-working Space as Next-Generation Workplace

Here’s what companies can expect from the co-working segment in the immediate future:

Rising demand from start-ups and enterprises

Call it the uberization of workplaces, or part of the shared economy phenomenon, but the flexible workplace space in India is witnessing a flurry of activity. As India’s gig economy strengthens, contractual workers, freelancers will form a large clientele base in co-working centers. Even start-ups, which typically have lean business models are likely to opt for freelancing positions, rather than have full-fledged positions. Enterprises will consider co-working spaces as their next-generation workplace owing to their flexibility in leasing space for shorter duration.

Consolidation on the cards

The market is expected to undergo consolidation through mergers, stake purchase by institutional investors and even complete acquisition at the corporate level as operators will look at means to fend off competition.

Minimal impact on traditional office leasing

There is no doubt that corporates are jumping on to the shared workplaces bandwagon, but it will be a while before it can alter traditional leasing.

In the report, it is expected that enterprises will have flexible workplace as a small percentage of the real estate portfolio but there will be minimal impact on traditional office leasing in the immediate future.

To get the full insight on India’s flexible workplace space, download the report.