Over the past decade, coworking has become the favorite commercial real estate choice of a vast majority of Indian startups, especially early-stage tech companies. Unsurprisingly, the IT sector is one of the largest consumers of coworking offices in the country.
So, what is the reason for this increasing popularity of shared offices among IT/ITeS companies? Is it just cost-effectiveness? Or, are there any other factors that make tech companies thrive in shared offices?
In this blog, The Office Pass (TOP), one of the leading coworking office providers in India, talks about how coworking spaces are beneficial for tech startups. Let’s check out the top 5 benefits as mentioned below:-
5 Top Benefits of Coworking Spaces for tech startups
- Facilitates Innovation
- Helps Attract the Best IT Talents
- Increases Visibility Though Location
- Reduces CapEx and Other Costs
- Offers Unmatched Scalability
1. Facilitates Innovation
The Indian tech startup ecosystem is quite competitive – it comprises thousands of companies, many of which offer similar products/solutions and target the same markets. The only way tech startups can differentiate and make a mark in such a highly competitive landscape is through constant innovation.
One of the key benefits of coworking for tech companies is that it provides them with a stimulating environment that drives innovation. The layout and design of shared offices help tech teams leverage the power of collaboration while developing new products and IT solutions.
That’s not all. Tech companies often need an environment that allows a seamless transition from solo work to collaboration. While developers and engineers need spaces to meet and exchange ideas, they also need quiet corners for focused work. With designated areas for collaborative and solo work, coworking offers them the best of both worlds.
💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282
2. Helps Attract the Best IT Talents
Due to the stiff competition in the IT sector, tech startups often have a difficult time finding, attracting, and retaining top IT talents. Today, it is not enough to offer attractive salary packages – flexibility is a key priority for many tech professionals, especially in the post-pandemic world.
Reports suggest that over 47% of Indian tech firms are willing to offer flexibility to lure the best of talents. Here again, coworking enables IT startups to offer their employees flexibility on three fronts – where they work (location), when they work (work hours), and how they work (hybrid office spaces).
(i) Flexible Locations: By choosing neighborhood coworking, companies can choose seats /desks in more than one location in the city and allow employees to work from an office closest to their residence.
(ii) Flexible work hours: Flexible work schedule is essential for IT startups, especially when they work on time-sensitive development projects. Tech teams operating from shared offices can plan their day around their most productive hours – they can start early, work late, or come to the office only on particular days of the week.
(iii) Hybrid spaces: When working from coworking offices, employees need not sit at their desks all day. They, on the other hand, can switch between desks, common work areas, meeting rooms, private nooks, etc., based on the type and intensity of the work.
All these factors help early-stage IT startups create a vibrant and productive work culture that attracts top talents in the industry. Moreover, coworking also enables them to build remote and distributed teams.
3. Increases Visibility Though Location
Location plays a crucial role in the success and growth of IT startups. That’s why many companies choose to set up their operations in IT hubs like Bangalore, Gurgaon, Delhi, Pune, Noida, and Hyderabad. However, setting up a traditional office in the CBDs and SBDs of these cities can be a challenging task, not to mention the costs.
One of the top benefits of coworking space for tech startups is that it allows them to have offices in the prime locations of IT hubs. Many reputed coworking operators have offices in the top business parks in Tier I and II cities. By setting up the office in such prime locations, tech startups can enhance their visibility, attract more clients, and increase their funding prospects.
As per the report by Anarock, startups can save rentals to a significant extent by choosing coworking over traditional offices. For instance, the price difference between coworking and traditional offices in the CBDs of Bangalore, Hyderabad, and Pune is 20%, 10%, and 33%, respectively.
4. Reduces CapEx and Other Costs
Rent is not the only expense coworking helps reduce. Tech startups often have to spend a huge portion of their budget on capital expenditure, which includes a wide range of physical assets required for the smooth functioning of the businesses. It leads to a massive cash drain and puts a financial burden on them, especially if they haven’t found an investor yet.
Since coworking offices come fully equipped with workstations, furniture, printers, phones, air conditioning, etc., early-stage tech companies need not spend money on such assets. By reducing CapEx, companies can prevent cash drain and allocate more budget on developing and launching their solutions.
💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282
5. Offers Unmatched Scalability
Most tech startups begin as a small group of motivated people with a great idea. Soon, they find themselves ready to scale up, which involves hiring more employees, building more teams, finding integration partners and collaborators, and more.
A start-up working from a traditional office might face hurdles when they try to scale up. For starters, the service agreements don’t allow them to add or remove workstations mid-contract period. Likewise, most agreements come with a lock-in period, making it difficult for early-stage startups to move out of the office without suffering financial losses.
One of the notable advantages of choosing coworking for tech companies is that it allows plenty of room for scalability. As they do more hiring and expand the team, they can easily add more workstations by paying extra. Also, if they feel they need an office of their own, they can opt for managed offices.
Are you an IT startup looking for a coworking office in Delhi, Gurgaon, or Noida? The Office Pass (TOP) provides fully equipped office spaces for tech companies with flexible plans and packages. Call at 08999 828282 to discuss.
