Kunal Walia, CEO and Founder, Simpliwork Offices, discerns a clear shift in the relationship most companies have with centralized workspaces. India’s largest player in the outsourced office segment aims to double its inventory to six million sq. ft. by the end of 2023.
In 2021, the outsourced office and flex providers in India sold over 55,000 seats, up from 36,000 seats in 2020. The numbers are expected to double in 2022. Buoyed by the growth, leading operators are keen to capitalise on the window of opportunity and aggressively expand their portfolio across key markets, namely Bengaluru, Hyderabad, Pune, Mumbai, Delhi-NCR, Chennai, Kolkata, and Ahmedabad.
“The pandemic has redefined how companies look at workspaces. New format offices are seen reinterpreting the traditional work space to a more dynamic, cultural hub. Which, in turn, is contributing to organizational goals in a cost-effective, efficient and hassle-free manner,” says Kunal Walia, CEO and Founder, Simpliwork Offices.
As the top player in the outsourced office segment in India, in terms of revenues, Simpliwork has delivered India’s largest flex office (6oo,ooo sq. ft.) in Hyderabad and the second-largest flex office (450,000 sq. ft.) in Gurgaon, amidst the pandemic. “Global MNCs and Fortune 500 companies have made a definite shift towards outsourced offices in the last two years,” avers Walia. Start-ups too are contributing significantly to the demand for outsourced offices, he adds.
With 70+ centers currently operational, Simpliwork has aggressive expansion plans on the cards. The Bengaluru-based company aims to double its inventory to six million sq. ft. by the end of 2023. “We will continue to focus on the metros. Apart from Noida, we may consider Kolkata, very opportunistically. We will also consider Tier II cities with captive demand,” informs Walia.
Focus on flexibility
At present, flexibility is the buzzword in the office space industry. While corporates may retain an office location that serves as headquarters, workplaces have become location agnostic. “There is a clear shift in the relationship most companies have with a centralized workspace.
With a distributed network across key locations in different cities, flexible and outsourced offices have emerged as a partner of choice for small and large businesses alike,” reasons the entrepreneur, who believes that since good spaces are limited, corporates are eager to lease them quickly.
Flexible outsourced offices are emerging as a prudent option due to several reasons. These include benefits like shorter tenures, low capital investment, flexible team structures, operational cost re-assessment, facility management, ready to move-in arrangements, efficient solutions for legal, IT and other requirements, high standards of sanitization and social-distancing norms, wellness and security, and low maintenance.
“The hybrid work model, along with the emergence of start-ups and boutique firms have also led to an increase in demand for flex outsourced offices,” notes Walia. In fact, the new format office sector has become a key component of commercial real estate (CRE) strategy, thus drawing major investments from corporates.
Embracing the hybrid model
As a significant proportion of the workforce in India returns to the workplace, the hybrid model is likely to become the norm. There are several advantages to this, says the serial entrepreneur. “Including democratising access to opportunities and making newer opportunities available to a larger cross-section of people; providing access to a global talent pool without the hassles of relocation; the flexibility afforded to employees that directly translates to productivity and job satisfaction; and the reduced need for corporate real estate,” he elaborates.
After a protracted work-from-home arrangement, most employees too are looking forward to recreating a sense of belonging to the workplace community. The physical and mental strain of maintaining a virtual connection with team members, while being deprived of physical proximity in collaborative tasks, has certainly reversed the initial enthusiasm vis-à-vis working from home.
Experts agree that there is a need for employees to bond, have access to mentors, form friendships, and share in a workplace experience, especially in the case of those in the earlier stages of their careers. In order to retain talent, companies will need to step up with strategies and technologies to enrich and elevate jobs.
“Building, empowering, and managing the remote workforce will be one of the greatest challenges enterprises will face going forward. There will also need to be a heightened emphasis on the attractiveness of workplaces,” asserts Walia.
