The agreement may be licenced and supervised by a professional coworking space management organisation, or it may simply be a shared arrangement amongst the participating businesses themselves. The key advantage of coworking over traditional office space is that it is far less expensive and includes a slew of additional administrative amenities and utilities essential for the day-to-day operation of a business.
There were around 2600 co-working spaces globally in 2017. By 2022, the figure is expected to nearly treble to more than 49,500. Co-working as a practical and cost-effective solution is obviously gaining hold in the small business and startup communities. Demand is expected to rise significantly in the near future as office space becomes increasingly expensive in large metropolitan areas, particularly in the world's renowned cosmopolitan capitals and startup hubs.
With a spike in startups, a large demographic, and fast urbanisation, India is poised to become a key demand generator in the coworking industry. From an annual growth rate of only 4% in 2017, the graph has steadily increased to more than 10% yearly growth now.
COLLABORATION VS. TRADITIONAL OFFICES
It is apparent that the modern workforce has embraced coworking spaces as their preferred working environment. To understand why coworking has had such a transformative impact on the Revolutionining workplace, consider some of the important answers it provides in comparison to the drawbacks of typical office settings.
Savings on expenses
Office space is one of the most expensive investments you will ever make for your company. The escalating cost of infrastructure and office space is a daunting obstacle for small enterprises and startups scrambling to find impromptu sites to assemble and operate. Coworking provides significant savings of up to 25% by utilising pooled resources. This is ideal for a money-conscious and fund-conscious business in its early phases. Not just SMEs and freelancers, but also huge corporations, are seriously considering coworking as a low-cost expansion option. Corporates can now save 15-25% on operational costs by switching to a coworking space. Large corporations are expected to account for 40% of global coworking demand by the end of 2019.
Increased Geographical Flexibility
The location of your office is critical to the success of your company. Being located in a commercial hub can help you generate new business by making you easily accessible to potential clients and giving your company recognition and reputation. As a result, it is critical for your company to carefully relocate locations in order to capitalise on the changing terrain.
In typical office buildings, however, you either end up owning or mortgaging the property, or you sign into a long-term lease with the owner that forbids you from transferring to another site even if your business requires it. In contrast, coworking provides a yearly or even monthly contract. Simply check in and out as needed. Assist your company in becoming more agile.
Office amenities that are already in place and professionally managed
The addition of furniture and utilities transforms a house into a home, and the same is true for offices. After you buy or lease an office building, you must purchase cubicles, tables, and chairs, among other things, as well as install electricity and telephone lines, air conditioning, wifi, and IT infrastructure, as well as buy office-sized industrial copiers and printers and hire office boys to provide tea. This is not only costly, but it is also a huge headache and source of fear for fledgling firms. They are occasionally obliged to recruit professional logistics firms to assist them. And you can guarantee they aren't cheap!
Countless Opportunities for Networking
In order to advance your company, networking is essential. It not only provides you with new business opportunities and client leads, but it also provides you with exposure to key business insights and industry benchmarks in your field. You can also learn from the finest practises of others. The ancient adage "it's not what you know, but who you know" is more than just a platitude. It's an unavoidable fact of life and business.
However, because you are surrounded by people from the same organisation, a traditional office space cannot provide an effective networking atmosphere. You have entered the box. In contrast, employees from various firms interested in a variety of different industries work together inside the same workplace, sharing office space facilities, and, you guessed it, ideas.
Office Space that is Open and Relaxed
India has one of the world's youngest labour force demographics. More than half of the population is under the age of 30, and one-fourth is between the ages of 45 and 60. And the results are in: open offices are popular among millennials and younger employees.
New Age coworking solutions have transformed the business by offering an open office landscape that allows employees to sit in open view with one another and fosters a collaborative environment. Recreational spaces such as gyms, games rooms, meditation rooms, and open cafeterias and kitchens are included with special attention to create a comfortable environment that can increase staff morale and productivity.
So, did we persuade you to reconsider coworking? If you are seeking for a cutting-edge co-working solution in Bangalore, India's Silicon Valley, we at GoodWorks have the perfect answer for you.
