Call technology a benefit or a bane, but corporations do not necessarily want to limit themselves to a strict work-from-home model in a post-pandemic world. IT firm Tech Mahindra intends to use less than half of its office space in the coming months.
“In terms of real estate, I don’t require more than half of the available space.” I estimate that it will be closer to 40%. If I used to provide 150 square feet of space for each person, I will now only supply 60 square feet since I can do flexible working,” CP Gurnani, managing director and CEO, tells Fortune India.
“Our internal polls reveal that most young people want to return to work, while middle-aged people prefer not to drive and want to work from home,” Gurnani says.
Gurnani supports his argument by emphasising the benefits of technology, which has allowed employees to work from anywhere in recent years. “The workplace has evolved. It’s a given that AI, automation, security, and distributed platforms will be used. Hybrid work is here to stay. It has been demonstrated via technology. It’s only a matter of figuring out which functions and regions require a lot more engagement,” Gurnani adds.
In fact, according to statistics from property firm Colliers, the average deal size for IT businesses leasing traditional office spaces in India fell by 15% in 2021 compared to pre-Covid-19 levels. According to the firm’s analysts, technology businesses consider a hub-and-spoke office model. One central office is located in a tech corridor, and numerous smaller offices are located near residential areas.
“This pattern is expected to continue. We expect small and medium-sized deals to gain prominence in the future, as opposed to large-scale deals,” says Ramesh Nair, CEO of Colliers India and managing director, market development, Asia.
With the hybrid work model allowing organisations to acquire qualified personnel from tier two and three locations at reduced costs, some IT firms turn to coworking spaces to house such staff. Smartworks, a coworking space, has around 55 per cent of its clients in the IT industry.
“Nearly 60% of the workforce from the top seven cities has returned to their native regions, and 10% of them may never return to their original workstations,” Amit Ramani, founder and CEO of Awfis, had previously stated. Tech Mahindra puts a lot of faith in people from tier two and three cities.
Bhubaneswar, Nagpur, Vijayawada, and Coimbatore are nine places where the company has engaged around 8,000 people. On the other hand, the corporation did not say whether or not they had reserved coworking spaces. It is believed that they have established smaller campuses in a couple of these sites.
The idea of a hybrid work model is gaining traction. Meesho, an e-commerce business, has opted to transition totally to a hybrid work paradigm. The company allows employees to work from home, the workplace, or any other location of their choosing.
However, depending on employee demand, the corporation may consider opening satellite offices in areas with higher talent density. Meesho describes the arrangement as a “boundaryless workplace model.” According to the startup, annual work sessions and in-person quarterly summits will be scheduled.
This story appeared in the 14 February, 2022 issue of India IT Blog and was originally published at : Hybrid work model: Tech Mahindra only needs half of the office space- India IT Blog