[2020 Outlook] How the trend of coworking in India is set to grow further in the year
India, on the back of its strong and emerging startup ecosystem, has witnessed impressive growth in the coworking trend, especially in the last few years. The lucrative benefits this concept brings to the table – be it flexible working hours, engaging workplace or lower rentals – have not only attracted startups but have also sparked the interests of leading industry giants such as Starbucks and Amazon, and encouraged them to be a part of this maturing ecosystem.
The best part: coworking is not limited to large cities but even Tier 2 and 3 cities - be it Jaipur, Indore, Kochi or Chandigarh - have access to it. Recent YourStory research, showing that India already comprises over 179 coworking spaces across Tier 2 and Tier 3 cities, makes it very clear about the magnifying reach of coworking spaces across India.
The success of this concept can be attributed to the growing population of millennials and young workforce in the country that continues to look for jobs that offer maximum flexibility and innovation. Other factors that contribute to its growth are increasing a number of startups looking for cost-effective workspaces and the vision of large corporates planning to expand their operations and increase their footprint in newer markets. However, the key reason why companies are progressively going for it is affordability factor – giving companies access to numerous resources at reasonable price points and helping them save huge operational costs.
The aforementioned factors give a clear view of the promising future of coworking workspaces in India. Here’s looking deeply into how this trend can rise further in 2020:
Coworking benefits attract a young workforce
The growing endeavour of modern companies to attract a young workforce is one of the key reasons behind their shift to coworking spaces. Considering the wide range of offerings this ecosystem provides to youth - particularly workplace flexibility - numerous medium-sized as well as large organisations are tremendously investing in it and starting their operations in coworking spaces despite having their own buildings and campuses. In the coming years too, this trend is envisioned to grow with more companies expected to follow suit and embrace its power.
A wide pool of amenities ensuring greater productivity at the workplace
Nobody wants to work in old dingy offices. Especially, when it comes to youth, we can say the workspace is not about space anymore, but there’s more to it. Today’s workspace is more like an ecosystem that offers the freedom to everyone in terms of changing work styles and increasing engagement. Coworking spaces offer a wide range of amenities such as fun recreational areas, fast WiFi, snack bars, standing desks, big LEDs, etc. that make it a lucrative place to work in.
Access to these facilities drives more engagement and teamwork among professionals while allowing them to learn and grow from each other. Working in such an environment thus serves as a platform for professionals to collaborate, interact and bring greater productivity to their respective tasks and help improve the bottom line of the organisation.
Access to talent
When startups mature, conducting interviews at coffee shops naturally looks bad. It doesn’t give a good impression of the organisational growth one has achieved and repel people away from joining it. This is where coworking spaces come to the picture. It acts as a great alternative and calls for less capital while giving access to numerous workplace offerings.
Another advantage of such culture is having access to a large pool of freelancers that may be the right choice for the task another employer is looking for under the same roof. Doing so will help save both time and money. Moreover, in the wake of India’s growing gig economy, more employers will look forward to leveraging the benefits of coworking spaces and get the right person on board.
The future roadmap
All these factors when clubbed together show that coworking has a bright future in India. According to the recent report, companies in the last four years have invested around $3 billion in coworking. Another report shows that leasing by flexible workplace operators has surpassed seven million square feet in 2018. Despite the recent fall of WeWork that has shaken the overall progress of coworking spaces, the trend is expected to rise, slowly but surely. The fact that over 13 million people are already set to join the coworking league – most probably by 2020 – proves that there is no end to its growth, but only beginnings to newer opportunities and possibilities.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)