Indian startups are demonstrating a new method of operation.
20 Dec 2022
Unveiling a New Approach: How Indian Startups are Revolutionizing Operations
Navigating through the pandemic, the office sector underwent a paradigm shift as organisations were forced into working remotely according to business analysis. Startups and IT organisations were the first to adjust to this change, but today, that act of resilience may have become an act of choice for some. The future of work has become a widely speculated and debated topic now that organisations plan and execute their return to the office.
Startups on a tight budget could be reluctant to return to conventional leasing strategies, which could accelerate the trend to hybrid working methods according to market analysis. By the end of 2025, the flexible space stock in India is predicted to reach 80 million square feet, according to our most recent report, The Era of Flexibility in India. It is expected that flexible workspaces will remain among the leading drivers of the office sector in the years to come, with "core + flex" strategies being at the heart of occupier portfolio planning.
Startups Powering the Hybrid Wagon
The factors that determine office space consumption for startups include capital reserves, scalability, business and industry requirements, talent availability, employee experience, and more. With flexible spaces, they can check most of these boxes while departing from conventional setups that were cost-intensive and rigid.
Thus, it wouldn’t be wrong to say that startups are leading the hybrid wagon—our reports corroborate this, as most small companies are expected to have flexible spaces as a very significant (about 25%) part of their overall portfolio.
Increased demand equals increased supply of flexible spaces.
The need for flexible workplaces is rising as major tech titans and other influential figures in business embrace hybrid work. Top flexible operators are reportedly interested in increasing their office portfolios by at least 30% over the next two years, according to CBRE's India Market Outlook 2022 research.
As a result, the supply of flexible space will expand in India; in fact, we predict that by 2022, the stock of flexible space would have increased by more than 25% year over year. In addition to expanding into tier 2 and tier 3 cities, several flex operators intend to increase the average centre size.
Flexible spaces have clearly come a long way from being a short- to medium-term solution for capital-light requirements to now being a part of the core strategy of the majority of business enterprises. Multiple industries, including conventional ones like the life sciences, engineering, and manufacturing, as well as BFSI, research, consulting, analytics, etc., are now embracing flexible solutions.
Other significant trends that will propel the industry
Some organisations in the market are also testing hub-and-spoke models by opening satellite offices across locations.
This is helping them attract and retain quality talent, reduce employee commutes, and allow their people to be closer to their homes. Leading Flex providers' virtual products and subscription-based offerings are helping organisations successfully implement their hub-and-spoke and distributed work strategies.
Flexible solutions are the ideal option to enable scalability and a mobile work culture as organisations continue to deal with the volatility of personnel and expansion, offering portfolio agility and flexibility in deal structures.
The traditional 9 to 5 office structure is vanishing as a result of a significant change that is altering how we work. While the office still plays a significant role in establishing a work environment and culture, flexibility offers a work-life balance, minimises travel, and improves convenience and wellness for employees.
Conclusion
While startups were quick to adopt flex solutions for cost efficiency and flexibility, medium- and large-sized organisations too are aligning themselves to meet the evolving needs of employees in the market.