GoWork

What have been the key drivers for the growth of this industry in India?
Coworking spaces are slowly carving out a significant space across industries and bringing a paradigm shift in the way companies operate. They have escalated tremendously on the back of consolidations and buyouts in 2018, a trend that will continue in the coming year as well. Currently, India has close to 200 coworking players with 400 workspaces. As several medium and small-scale players start mushrooming in the sector, larger, more established ones will continue to acquire them in order to capture larger markets and a wider audience.

Factors such as flexibility, networking opportunities and cost-effectiveness have driven the demand for collaborative workspaces. The flexibility and autonomy that comes with coworking spaces have attracted many organisations. Leading players strive to offer seamless working experiences to occupants through open spaces, lush gardens, meditation and exercise sessions, stand-up comedy and musical performances. However, this year, coworking spaces will level-up and enhance these experiences for occupants by offering services like sleeping pods, crèche and pet-friendly spaces. These value-added services will allow professionals to focus on their productivity while being able to take relaxing breaks as well.

What, in your opinion, is the future of this segment?
While technology and e-commerce companies have been the primary adopters of coworking spaces, corporates will now tap its potential, since, besides cost savings, they are realising the significance of working alongside young, energetic and like-minded people outside the conventional office. So, traditional industries such as banking, insurance, manufacturing, etc, are also switching to coworking options. They all want to portray themselves as new-age companies with a modern culture and flexible work options to attract young talent. At present, Delhi, Mumbai and Bengaluru have the most coworking spaces in India. However, the sector has also reached tier II cities like Chandigarh, Ahmedabad, Kochi, Indore and Jaipur, which will continue to witness growth in 2019.

How are corporates adapting to this transition?
The competitive business ecosphere of today has made businesses, large corporate houses, MNCs and startups alike, focus on cutting costs and enhancing operational efficiency. In fact, coworking spaces have enabled businesses at different levels of growth to cut costs by up to 25% through the use of shared facilities. The flexibility of setting up and easy availability of high-quality infrastructure at coworking spaces helps substantially reduce the stress on the management of large companies, while establishing operations in newer markets. Another major factor is allowing great flexibility to the businesses to upsize and downsize operations to ensure growth and survival. In this era of high competition among companies, working on a lean model with limited expenditure often becomes the most decisive aspect behind the success or failure of an organisation. In fact, corporates are looking at coworking spaces as the ideal way to establish quick operations across newer markets in tier II and III cities in India.