Co-Working Space in Demand in Covid World

March 11, 2021

We had reported in our last newsletter that IT services providers were treading cautiously over rationalizing office campuses despite the success of work from home model and remote working culture. Now, co-working and managed space providers are seeing an influx of new clients, as companies explore flexible, cost effective working models for employees returning to the office. This includes giving employees options of working out of distributed offices near their homes on a rotational basis, or even from tier-2 cities. Companies are actively pursuing flexile workspaces, which help reduce capital costs and place greater emphasis on employee well-being and sustainability. Options like the hub and spoke model, or part time model, where employees come in on a rotational basis and therefore require fewer seats, are gaining traction. Leading players in the co-working space are aggressively scaling space/seats in line with the growing demand. 
 
HRPI View: Revised business case for stand-alone and existing workspaces should be revisited and aligned to long-term workforce strategies. We strongly advise the HR leadership to prepare for the best and worst case scenarios from the perspective of changes.