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