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IT Firms Considering Different Real Estate Strategies
Over eight months after IT firms pivoted to the work-from-home model, it is still evolving. However companies are looking at different real estate strategies, such as shared workspaces, sub-leasing and expanding to tier 2/3 cities.
BY
Realty Plus
Published - Friday, 04 Dec, 2020
BY
Realty Plus
Published - Friday, 04 Dec, 2020
Over eight months after IT firms pivoted to the work-from-home model, it is still evolving. However companies are looking at different real estate strategies, such as shared workspaces, sub-leasing and expanding to tier 2/3 cities.
This comes even as the companies are yet to see a major cost benefit from the new working model .For instance business process outsourcing firm Startek has already reduced its physical capacity by 10 percent by giving up some real estate space. Tech Mahindra is exploring shared workspaces. However that will take another few quarters and the company is working with customers to figure out the best model. Cyient, a Hyderabad-based IT services firm has consolidated its offices in Bengaluru and Hyderabad. In the next 12 months, the company will have better planning, be it consolidation, subleasing or expanding. in some tier-2 cities to expand.
There are a lot of challenges, however. Most of the companies have a mix of leased, (long term) and owned premises. In terms of leased premises, not many are looking at ending agreements when the situation is still evolving. Also, companies that are housed in Special Economic Zones, which offer tax benefits to Indian IT firms, are unlikely to move.
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