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Although coworking may be a relatively new phenomenon in India, it has already established itself as the new standard in many other nations. The traditional workplace has been challenged by shared office spaces, and as a result, the market has experienced tremendous development over the past five years. As workplace transformation and portfolio strategies shift in favour of more hybrid, agile, collaborative, and modern workspaces, flex spaces are becoming increasingly in demand. Flexible coworking spaces are an illustration of a new organizational structure that has completely changed the dynamics of the real estate market. To ensure cost-effectiveness and efficiency, businesses are frequently choosing hybrid office architecture. This is impacting the trend in the coworking space industry.
The growth of enterprise coworking has been remarkable in recent years since it provides a healthy working environment for a wide range of clients, including individuals, major companies, MNCs, corporates, unicorns, start-ups, and corporates. Enterprise coworking has the ability to reshape how people conduct business and determine how to use work to promote creativity, teamwork, and long-term expansion.
The rapidly growing coworking industry caters to all these factors as the future of work is changing rapidly. The future will be almost permanently oriented towards greater flexibility, rapid urbanization, increased productivity and sustainability, better work-life balance, customization benefits, cost advantage, and adoption of technology.
Large Companies Are Increasingly Choosing Coworking Spaces
For a variety of reasons, large firms are utilizing coworking spaces, and the advantages are substantial. These spaces offer a chance to cut back on overhead expenses and avoid enduring long-term commitments.
Large organizations can benefit greatly from the flexibility and scalability of coworking spaces rather than investing in their own dedicated office facilities. Companies now opt for a distributed office approach, to provide reasonable commutes for their personnel. Businesses are allowed to select workspace alternatives that can be easily modified as their operations change. Giving them the flexibility to respond swiftly to shifting market conditions. Hence, the decision of large firms to migrate into flexible coworking spaces is justified.
Large firms can access a varied network of talent and expertise by collaborating in the same workspace as other businesses and experts.
Another strong argument in favor of coworking among large corporations is access to first-rate amenities and services. Modern amenities, well-designed workspaces, and state-of-the-art infrastructure are frequently offered in these locations, encouraging productivity and creativity. Flexible coworking spaces provide a premium experience that major corporations can take advantage of, without the hassle of managing these resources internally. Including meeting rooms with cutting-edge audio-visual equipment, high-speed internet connections, and 24/7 access.
The rapidly growing coworking industry has attracted some corporate behemoths, including IBM, Microsoft, and Verizon, who are experimenting with the usage of coworking spaces for staff members, so they can be near and readily interact with creative startups.
Here Are Some Case Studies That Will Help You Understand Why Large Companies Are Inching Towards Coworking Space Culture:
Case Study 1 –
We Work’s chief revenue officer recently shared an intriguing statistic regarding his organization, noting that big enterprises occupy 70% of their coworking spaces, while small entrepreneurs occupy the remaining 30%.
Prior to the pandemic, desk occupancy was approximately 50% or less for large organizations. Every major tier 1 and tier 2 city has a We Work location, and these locations have seen a constant increase in demand from major organizations, mostly because of the lower capital expenditure, bespoke workspace designs, increased flexibility, etc.
Among the industries that are rapidly adopting the coworking space culture include IT, Financial services, engineering, research, and development has doubled in the recent past. Google, Amazon, and Accenture are among the big firms that have leased coworking spaces. Google recently purchased a 1 lakh square foot space from coworking space provider Smartworks in Pune. Amazon and Accenture have also leased facilities in smaller locations like Bhopal and Vijayawada.
Case Study 2 –
Microsoft’s acquisition of LinkedIn in 2016 led to a strategic shift in their workspace approach. They began offering coworking memberships through LinkedIn’s ProFinder platform, enabling freelancers and professionals to connect and collaborate seamlessly. Microsoft saw the value in leveraging coworking spaces as a way to expand their ecosystem, promote their productivity tools, and strengthen their position in the gig economy.
Also Read: Technology Companies Occupy Half of the Total Flex Space in India
The Impact of the Startup Funding Slowdown on Coworking Spaces
The business world is always evolving. Initially, startups, small enterprises, independent contractors, and freelancers were the first to accept and adopt the concept of coworking.
The concept of coworking has started to intrigue corporate behemoths due to its numerous benefits. 70% of their coworking spaces are currently used by huge firms, with the remaining portion by startups, and small, and medium-sized businesses.
Before the pandemic, 50% or fewer desks were occupied by large firms. The downturn in startup funding has also affected the demand for coworking spaces. The percentage of large corporations using flexible coworking spaces in the nation is thought to be approximately 80%currently.
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Smaller businesses controlled the market before the pandemic, but things have changed. Large businesses are increasingly more willing to sign agreements for two to five years in order to utilize the flexible workspaces offered by workspace aggregators. Even in smaller tier 2 and tier 3 cities, the big corporations are renting flex offices.
As they are of the notion that, it would be simpler to close down the establishment if a client decided one day they did not want staff to work from that location. As coworking space providers like us offer empowering decentralized shifts for huge enterprises with value-added services and B2B support for businesses. Major corporations are now embracing coworking space as an alternative to the traditional office environment.
Also Read: Mistakes To Avoid When Finding an Office Space for Rent
Role of Coworking Tools in Stirring the Demand for Coworking Space Culture
Coworking facilities can draw enterprises thanks to their coworking technologies, which increase clients’ general productivity. Like Stylework, coworking spaces need to attract businesses by carving out a niche for themselves.
Coworking space providers like Stylework have a competitive advantage in the form of the Corporate Product Suite. As CPS helps enterprises manage their Hub & Spoke model & Minimum Guarantee seat model seamlessly by – Employee tracking, Managing the Billing cycle, Schedule visits anytime anywhere, rescheduling and canceling visits, Book Allocated Locations, Check In & Check Out, Generate requests to Admins and RM and much more. We facilitate effective internal communication for the clients, which saves them time and increases their efficiency.
Stylework’s corporate product suite is an excellent tool to attract enterprises. It gives enterprises a nicer way to manage and conduct operations, and a greater hold on things with efficiency and effectiveness.
Despite the challenges faced by coworking spaces, more and more businesses are promoting coworking among their staff. As long as the aforementioned tendencies continue to intrigue individuals towards working, the industry will disrupt more and take a bigger piece of the traditional workplaces’ revenue.
These days, flexible coworking spaces are the new standard. Stylework and similar spaces are expanding swiftly and adding new locations, making them accessible and a viable choice. The coworking sector has expanded significantly over the past ten years.
Coworking spaces were first popular among entrepreneurs, startups, and small enterprises; but, large corporations are now rapidly embracing them. As a result of the growth of flexible coworking spaces, huge corporations now have new chances to streamline their processes and increase their level of flexibility.