IT companies realign workspaces for flexibility

The top IT and ITes companies are realigning workspaces to prioritise flexibility, innovation, diversification, and sustainability, resulting in flexible space in real estate portfolios doubling to 10-15% in 2024.

By area, that has surpassed 50 million square feet, accounting for approximately 7% of total Grade A stock as of Q2 2024, and this trend is expected to gain traction in 2025.

Arpit Mehrotra, Managing Director, Office Services, Colliers India, said that the demand for flexible workspaces continues to rise, driven by domestic and global enterprise space uptake across various segments, reflecting a broader shift towards adaptable workspaces.


Industry leaders note that companies are prioritising flexibility in their real estate portfolios, aligning workplace strategies to enhance resilience and adapt to changing organisational needs.

Colliers mentioned in its latest report that "80% of CRE leaders globally intend to reduce or maintain their office space by 2026," indicating a broader trend towards flexibility and real estate optimisation.

Companies are increasingly leveraging data analytics and AI to reshape real estate strategies, optimise resource allocation, and improve operational performance.

Moreover, they are exploring various corporate real estate (CRE) partner models for real estate and facilities management to enhance service delivery and operational flexibility.

“The corporate real estate sector has experienced significant changes, with an anticipated increase in outsourcing indicating a growing dependence on external expertise to enhance internal capabilities and optimise efficiency. Office spaces are being utilised as collaborative environments, and various teams are following a hybrid working model with dedicated anchor days,” said Sameer Saxena, founder of the Global Association of Corporate Services, which represents over 10,000 corporate real estate professionals across the country.

Experts say transforming office spaces involves creating environments that engage people, foster innovation, and support organisational missions. There's also a push to upgrade older real estate assets to meet sustainability commitments, reduce carbon emissions, and comply with new regulations.

“Improving the physical workspace has a direct impact on employee satisfaction and helps strengthen brand identity. The designs go beyond just visual appeal and also aim to encourage creativity, collaboration, and well-being, thereby making workspaces more appealing to top talent. As the need for flexible and responsive workspaces continues to grow, our proficiency in environmental branding becomes increasingly crucial,” said Nalin Gagrani, Chairman and MD, Blue Pebble Ltd.

Experts indicate that Indian technology firms, besides serving as back offices for banking and financial services, continue to operate under a hybrid work model, with 30% to 50% of staff working from the office on a rotational basis. As a result, corporations are reassessing their work strategies, adopting more managed space models, and emphasising flexibility in workspace design.

In the first half of 2024, the Indian office market saw diverse demands, resulting in a total absorption of 32.8 million square feet. Each region showed distinct trends, with the IT/ITES segment experiencing a strong resurgence. Bangalore, Delhi-NCR, and Chennai saw substantial demand from technology companies, largely driven by the GCC.