Colliers, which is a leading diversified professional services and investment management company, in its survey released on Wednesday said hybrid working continues to be the most preferred workspace strategy, with 63 per cent of the firms currently embracing the same.
According to the survey of large, mid-sized and small firms, the firms from the Consulting, BFSI, and engineering sectors are at the forefront of adopting hybrid working.
Three days a week in the office is the most popular hybrid working style for India Inc, with 26 per cent of the firms preferring the same. The survey indicated that this hybrid pattern allows businesses to pursue business goals without hindrances while offering better work-life balance to employees.
About 38 per cent of the organizations indicated that they are planning portfolio expansion in the next 6-18 months by leasing traditional as well as flex spaces.
A majority of the businesses implement hybrid working in varying degrees, 35 per cent highlighted that they would like to retain their existing portfolios, while 13 per cent look to consolidate their office spaces.
“The tier II story is back in the market, and especially, big firms are leading this trend as almost 70 per cent of the large enterprises are open to exploring flex in non-metro cities, while only 27 per cent of the smaller firms are considering the same. About half of the firms who are planning office expansion in the next 6-18 months are from the Technology sector, followed by BFSI. This is led by the massive growth these two sectors are seeing over the last two years. Interestingly, about one-third of the occupiers surveyed revealed that their productivity increased by 5-10 per cent with hybrid working. Offices are now evolving into centres of collaboration and innovation, with the well-being of employees at the core. A hybrid work style needs to be supported by apt technological intervention to ensure seamless collaboration and communication”, said Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers.
About 35 per cent of the firms are willing to set up flex office spaces in non-metro cities to cater to changing employee needs. Employee convenience and higher occupancy costs in metro cities are prompting occupiers to consider non-metro cities.
Since last year, flex spaces have seen a surge in enquiries from firms for office space in non-metro cities. About 53 per cent of the firms feel that productivity has increased since remote work started. About 28 per cent of the firms feel that discrepancy in a workplace environment is the biggest challenge in hybrid working, followed by communication barriers and lack of collaboration.
“Consulting, BFSI and Technology companies are keen on setting up offices in non-metro cities. Overall, the interest levels towards building offices in non-metro cities will help reduce the infrastructure load on metro cities, and at the same time help build a cohesive business ecosystem in the smaller cities, leading to more equitable growth,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.