In­dia a pre­ferred out­sourc­ing des­ti­na­tion in Asia­Pa­cific

REALTY BITES A boom­ing econ­omy and a ro­bust IT­BPO sec­tor with a grow­ing tal­ent pool make the coun­try an at­trac­tive des­ti­na­tion for firms: CBRE

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - HT Cor­re­spon­dent letters@hin­dus­tan­times.com n

NEW DELHI: CBRE In­dia Pvt. Ltd, In­dia’ s lead­ing Real Es­tate Con­sult­ing firm to­day an­nounced the find­ings of the 2017 Asia Pa­cific Oc­cu­pier Sur­vey Re­port.

As per the re­port In­dia has emerged as the “most pre­ferred out­sourc­ing des­ti­na­tion” owing to In­dia’ s for­mi­da­ble IT busi­ness process out­sourc­ing (IT-BPO). Among Asia Pa­cific-based com­pa­nies ,82% of In­dian re­spon­dents plan to in­crease their head­count in the next three years, re­flect­ing the coun­try’s buoy­ant econ­omy, steady progress in en act­ing reg­u­la­tory re­form sand boom­ing out­sourc­ing and ITeS sec­tor. Ban­ga­lore (29%), Mum­bai (23%) and Delhi NCR (20%) re­spec­tively have emerged as the most pre­ferred ex­pan­sion desti­na­tions for com­pa­nies.

Cor­po­rates dis­played strong in­ten­tions to ex­pand in tier 1 ci­ties with the tech­nol­ogy and out­sourc­ing hub of Ban­ga­lore re­ceiv­ing the strong­est in­ter­est. The sur­vey noted that with IT firms in Ban­ga­lore grow­ing larger, an in­creas­ing num­ber of com­pa­nies are opt­ing to ex­pand BAN­GA­LORE (29%), MUM­BAI (23%) AND DELHI NCR (20%) RE­SPEC­TIVELY HAVE EMERGED AS THE MOST PRE­FERRED EX­PAN­SION DESTI­NA­TIONS FOR COM­PA­NIES in tier II ci­ties such as Chen­nai and Hyderabad, which of­fer more space to choose from, lower op­er­at­ing costs and rapidly im­prov­ing in­fra­struc­ture.

An­shu­man Mag­a­zine, Chair­man, In­dia and South East Asia, CBRE says, “In­dia’s buoy­ant econ­omy, steady progress in en act­ing reg­u­la­tory re­form sand boo ming out­sourc­ing sec­tor, cou­pled with a grow­ing tal­ent pool con­tin­ues to make it an at­trac­tive out­sourc­ing des­ti­na­tion. With cor­po­rates in­creas­ingly adopt­ing cost ef­fec­tive work­place strate­gies, we be­lieve that key ci­ties in the coun­try will re­main on the radar of do­mes­tic and multi­na­tional cor­po­rates look­ing to ex­pand their oper­a­tions.”

While, multi­na­tional re­spon­dents iden­ti­fied eco­nomic un­cer­tainty as the main chal­lenge to fu­ture oper­a­tions, whereas tech­nol­ogy dis­rup­tion and tight er leg­is­la­tion laws across A PA Care be­ing seen as emerg­ing chal­lenges that are set to im­pact their de­ci­sions re­lat­ing to off­shoring. Con­cerns in In­dia largely re­late to higher costs and eco­nomic un­cer­tainty fol­low­ing the in­tro­duc­tion of de­mon­eti­sa­tion at the end of last year, as well as the im­pact of the new U.S. ad­min­is­tra­tion. Poor in­fra­struc­ture was se­lected as a unique chal­lenge along with Power and public trans­porta­tion bot­tle­necks in tier I ci­ties which are prompt­ing some com­pa­nies to spread oper­a­tions across mul­ti­ple ci­ties, a move which can also re­duce risk by en­sur­ing they avoid build­ing crit­i­cal mass in ma­jor BPO ci­ties.

Work­place Strate­gies emerged as the key trend from the re­port with cor­po­rates in­creas­ingly fo­cus­ing on pro ac­tively adopt­ing work­place strate­gies. Ac­cord­ing to the re­port, ap­prox­i­mately 50% of all multi­na­tion­als will in­vest more in their work­place and space ef­fi­ciency pro­grams, rank­ing it as their main pri­or­ity for the com­ing year.

The in­creased fo­cus on space op­ti­mi­sa­tion is poised to ac­cel­er­ate a rad­i­cal work­place change away from fixed desks to Ac­tiv­ity-based Work­ing (ABW). More than half of the sur­vey re­spon- dents plan to im­ple­ment ABW, com­pared to only 16% who plan to move to fixed desks. As per find­ings on CRE Strate­gies in In­dia for the next two years, 16% re­spon­dents in In­dia want to be more flex­i­ble to­wards build­ing qual­ity;17% want to re­lo­cate to PBD (Pe­riph­eral Build­ing De­sign) 33% fo­cus on Ef­fi­cient space uti­liza­tion.

CBRE’s Asia Pa­cific Oc­cu­pier Sur­vey 2017 was com­piled from a to­tal of 450 re­sponses; the anal­y­sis in this re­port largely fo­cuses on the re­sponses re­ceived from the 50 multi­na­tional re­spon­dents. Ma­jor sec­tors rep­re­sented in­clude bank­ing and fi­nance (32%), tech­nol­ogy and telecom­mu­ni­ca­tions (14%), in­sur­ance (12%) and man­u­fac­tur­ing (12%). Over 60% of multi­na­tional re­spon­dents were based in the West, with head­quar­ters in North Amer­ica (38%) and Europe (22%). Large cor­po­ra­tions based in Greater China and North Asia ac­counted for an­other 20% of multi­na­tional re­spon­dents.

MINT/FILE

Among Asia Pa­cific­based com­pa­nies, 82% of In­dian re­spon­dents plan to in­crease their head­count in the next three years.

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