Why IT companies creating hybrid ecosystem with co-working spaces in remote locations
The unprecedented pandemic has significantly disrupted the normalcy of business operations during the last two years. The restrictions imposed during the pandemic have prompted most businesses to look for innovative ways to maintain productivity while working remotely. This has driven most IT companies to focus on creating a hybrid ecosystem to enable employees to work remotely; from their hometowns. Since the hybrid working module is becoming a new normal, the co-working spaces have become a prevalent practice and most businesses are leveraging these spaces to continue smooth operations.
Co-working spaces are basically creative office spaces designed to enable employees of multiple organizations from different fields to work in proximity in a flexible and shared office environment. The concept of the hybrid working module was primarily to cater to small businesses, start-ups, entrepreneurs, solopreneurs and freelancers. However, the trend is rapidly becoming popular among MNCs and big corporate, too.
Major companies, which are headquartered in big cities, are now seeking to expand their branches by renting co-working spaces in small cities and remote locations. Cities like Bhubaneswar, Guwahati, Indore, Jaipur and Chandigarh are becoming bases where major businesses are shifting and the co-working culture is gradually growing. Also, big companies from outside the country have also been taking huge spaces and increasing their businesses exponentially by operating from the Tier II and Tier III cities which have also led to significant infrastructure development.
One of the reasons behind IT companies renting co-working spaces in cities where they have no base is to enable employees to work from their hometowns. The pandemic has significantly drifted the way employees were comfortable working. Many employees across all industries have reported being more comfortable working from their home locations and this is one reason there has been a huge number of resignations in the past months. To increase their employee retention and avoid the ‘Great Resignation’, companies are now renting co-working spaces at remote locations; which is also a significant boost to productivity.
Furthermore, remote offices have been preferred by businesses while promoting collaboration, interaction and networking. They are well-equipped with technology, state-of-the-art facilities, and aesthetics. Furthermore, the high-end working infrastructures are cost-effective, especially in Tier II and Tier III cities, making it a smart choice for IT companies. Businesses are now focusing on leasing small spaces for a short period rather than buying big places for a longer term.
It has also been observed that a well-designed and well-organized workplace, with opportunities for co-working, generates higher levels of productivity than the conventional office-based work environment. Thereby, more employees and employers, especially in India have been encouraging the work culture in a communal space rather than in offices.
Market studies have brought forward that the co-working space market is projected to grow by $11.35 billion, at a Compound Annual Growth Rate (CAGR) of 11.31 per cent. Industry experts speculate that most commercial places in India will convert to hybrid offices by 2025, and the shared office spaces are certain to witness exponential growth; which will also balance and improve the overall economy of the country.
(The author is Mr. Aditya mehta , CEO & CO Founder, Akasa Co-working and the views expressed in this article are his own)