Managed Office or Coworking Office: 7 Points to Consider while choosing one

The Ultimate Checklist on Whether a Managed Office or a Coworking Space is Right for Your Business

by | posted in: Business, Coworking Spaces | 0

Of the many trends that revolutionized the concept of modern workplaces, coworking spaces and managed offices top the list. The former, which is also called a shared office, is a collaborative setup where you share the space and amenities with other businesses. In contrast, a managed office is a dedicated private office tailored according to your requirements by a third-party operator.

While both coworking spaces and managed office space solutions are rising in popularity these days, how do you decide what is best for your business? Here’s a 7-point checklist to help you out:

 

7 Major differences between Coworking Space  and Managed Office Space

  1. What Is the Size and Maturity of Your Organization?
  2. Does Your Business Deal with Confidential Information?
  3. How Much Can You Spend?
  4. Are Your Requirements Fixed or Likely to Change?
  5. How Important Is Brand Identity for You?
  6. Is Collaboration Crucial for Your Business?
  7. How Soon Do You Want to Move in?

1. What Is the Size and Maturity of Your Organization?

The size of your organization and the maturity of your business are two crucial aspects to consider while making a choice between coworking and managed offices. A shared office is ideal for start-ups, SMEs, and growing brands, thanks to its informal setting, pay-per-desk plans, flexible leasing, open floor layout, and networking opportunities.

Custom-managed office solutions, on the other hand, are best suited for established corporates and medium to large companies. You get an entire office dedicated to your business without the burdens of a traditional leasehold. The office is managed and maintained by the service provider, making it easy for established businesses to focus on their core business operations.

2. Does Your Business Deal with Confidential Information?

Privacy and data security should also be your top priority, and for obvious reasons. Coworking spaces have open office layouts without cubicles or cabins, and the occupants must share amenities like Café, printers and Wi-Fi. All these make your sensitive information susceptible to prying ears and eyes.

Managed office space solutions score high on privacy and data security and hence are more suitable for businesses dealing with sensitive information. As you are not sharing the space with anyone outside of the company, you face fewer security risks. Likewise, you can install your own printers and secured networks to further reduce security threats.

3. How Much Can You Spend?

Before deciding in favor of coworking offices or managed spaces, consider the costs in detail. Though both the options are more cost-effective compared to traditional offices, the monthly rentals and security deposits for managed offices are relatively higher than shared office spaces. In addition to these, you must pay around 20% of the actual cost towards the office management fee.

10 Advantages of Shared Office Space vs Rented Office - The Office Pass

Moreover, managed offices attract other charges that a coworking space doesn’t. For instance, while the service provider will furnish the office as per your requirements, you will be required to share 50% to 75% of the furnishing charges. Needless to say, coworking spaces are an ideal option for start-ups and entrepreneurs in the bootstrapping stage as it helps reduce costs. Learn how.

4. Are Your Requirements Fixed or Likely to Change?

As a general rule, managed offices are best suited for companies with fixed medium-term requirements. The leasing terms of managed offices are less flexible, and the contract period is longer than coworking offices. If you happen to downsize the company during the contract period, you must continue to pay the full rent. Likewise, a full-term contract comes with a lock-in period of 3 years or more, which can be a hassle if your requirements change or you want to exit the office.

On the other hand, flexible leasing is one of the main coworking spaces advantages. Shared office contracts allow you to add or remove a few desks during the contract, making it easy for you to upsize or downsize the company. The term of the contract is short (11-12 months),  so you can exit the office or look for alternate solutions as your requirements change.

5. How Important Is Brand Identity for You?

When you want your workplace to reflect your brand voice and corporate identity, managed offices are the right choice. Your brand identity can be mapped to every aspect of the office, such as the colors, furniture, décor, furnishings, and more. Managed office services are best suited for organizations that want to promote their brand identity through the workplace.

In contrast, coworking spaces are pre-designed offices kitted out with all facilities. The scope for highlighting the unique identity of your brand is next to none in a shared office space.

6. Is Collaboration Crucial for Your Business?

A coworking space is much more a workspace – it also doubles up as an avenue for networking and collaboration. It serves as a collaborative ecosystem and allows people from diverse businesses and industries to network and work in partnership with one another, mutually benefitting from their strengths and skills.

Managed office spaces, however, are private offices that don’t promote high-degree collaboration and networking. Such spaces provide your business with an effective environment to focus on your core business activities.

7. How Soon Do You Want to Move in?

Lastly, when you want ready-to-move-in office space solutions, coworking offices are the way to go. You can move in and start working out of the office as soon as the leasing formalities are completed.

Since managed offices are customized according to your requirements, you can move into the office only after the furnishing work is completed. It might take a few weeks, or even months, depending on how much customization is required.

Final Thoughts

While it is important to have a workspace, choosing the right type is equally important. The questions in the checklist above will help you weigh your options and make the right choice. Want more guidance? Contact The Office Pass (TOP), one of the leading coworking and managed office space providers in India.

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12 Biggest Differences Between Managed Office vs Coworking Office Space

How is a Managed Office Different from a Coworking Office?

by | posted in: Managed Office | 0

Coworking spaces have been rising in popularity among start-ups and growing companies for quite some time. Of late, commercial real estate has witnessed another emerging trend, namely Managed offices.

So, what is a Managed office? Simply put, it is a tailored workspace offered and managed by a third-party operator. Unlike a coworking space where multiple companies work under the same roof, managed offices are dedicated spaces for your business and reflect your brand identity.

Managed offices are different from Coworking spaces in many aspects, starting from the design and layout to costs and lease terms. Here are the top 12 differences to consider when you opt for a Managed office vs. Coworking office space.

12 Major Differences Between Managed Office vs Coworking Office

  1. Layout and Design
  2. Office Environment and Culture
  3. Customization
  4. Flexibility for Expansion
  5. Flexibility of Location
  6. Setup and Upfront Costs
  7. Lock-In and Notice Period
  8. Autonomy
  9. Privacy
  10. Transition Time
  11. Opportunities for Collaboration
  12. Brand Identity

1. Layout and Design

Since coworking is designed to facilitate collaboration and ease of sharing amenities, it follows a creative, modern, and community-inspired open floor design complete with hot/dedicated desks, meeting rooms, recreation areas, and the like.

A managed office, however, is more compartmentalized than shared offices. It is more like a private office – you can choose to have cubicles, open workstations, or cabins, depending on your preference & requirements. It will also have meeting rooms, lounges, and other segregated areas within the space.

💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
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2. Office Environment and Culture

Coworking spaces typically have an informal, casual, and relaxed ambiance. Shared offices are often preferred by start-ups, evolving brands, and freelancers, so such spaces naturally radiate an entrepreneurial spirit. As managed offices are formal workspaces ideal for mature businesses, they tend to exude the look and feel of a corporate or professional setup.

The Office Pass Gurgaon
The Office Pass (TOP) Managed Office on Golf Course Road, Gurgaon

3. Customization

Customization is another factor to consider in the coworking space vs. managed office comparison. A coworking office offers limited room for customization – it comes pre-furnished and pre-designed with all amenities. On the other hand, managed offices are empty or bare shell spaces you can customize according to your preferences and brand identity.

4. Flexibility for Expansion

Compared to coworking spaces, a managed office offers less flexibility for expansion. When you work out of a shared office, you can upsize or downsize your team by adding or removing more desks to your package. However, managed office terms don’t allow you to remove seats during the contract period. Some service providers may allow you to add more seats at an additional cost.

5. Flexibility of Location

A top advantage of coworking offices is the flexibility of location. Neighborhood office providers like The Office Pass (TOP) offer offices in multiple locations, making it easier for your employees to work from the one nearest to their residence. Managed offices, however, are location-specific and don’t have the flexibility of location.

💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

6. Setup and Upfront Costs

A managed office has comparatively higher upfront costs than shared spaces and attracts setup costs too. When you opt for a managed office, you will have to pay a security deposit, which is typically equivalent to the rent of 4 to 6 months. You should also contribute towards the expenses of furnishing – between 60% to 80% of the total furnishing costs. The coworking office all fully furnished by the operator and you pay a relatively less deposit amount.

7. Lock-In and Notice Period

Coworking spaces typically have a lock-in period of 11 months to 24 months. After the expiry of the contract, you can choose to renew it or exit the office. However, managed office services come with a longer lock-in period. For a contract of 5 to 9 years, you can expect a lock-in period of 36 months or more.

Also Read: 5 Reasons Why Large Indian Companies and MNCs Favor Managed Offices

8. Autonomy

Unlike coworking spaces, managed offices give you more autonomy in setting up, designing, and furnishing the space. Likewise, since you are not sharing the space with any other businesses, you can enjoy uninterrupted access to meeting rooms, breakout spaces, and other amenities.

9. Privacy

Privacy is the main disadvantage for businesses working out of shared offices. You will be in the company of other businesses & people who are not related to your business. Managed office services give absolute privacy to the leaser and are beneficial for businesses dealing with confidential information or when you work on non-disclosure client work.

10. Transition Time

Coworking offices are move-in ready – once you have decided on the package, signed the contract, and fulfilled the payment obligations, you can start working out of the office. In contrast, the transition time is higher for companies moving into managed offices. After signing the contract, it might take 6-8 weeks before the office becomes ready for occupation.

11. Opportunities for Collaboration

Collaboration is the cornerstone of shared offices. As a space that houses several businesses, freelancers, and entrepreneurs, coworking offices naturally ignite collaboration and informal networking. The very concept, layout, and structure of managed offices are not conducive to collaboration, though. It, however, is ideal when you want to get your head down and work without distractions.

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12. Brand Identity

Managed offices help create and highlight your brand identity while coworking offices offer little or no scope in this regard. In a managed office, you can design everything – from the colors used on the walls to signages to furniture – in alignment with the identity of your brand. It also helps create a better impression on clients and investors, increasing your chances of getting funding.

Final Thoughts

Now that you know everything about the differences between managed and coworking offices, are you ready to make a decision? Get in touch with The Office Pass (TOP) today. We have managed offices and coworking spaces in Gurgaon, Noida and Delhi locations, so you can take a tour of both and make an informed decision.

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Co-Working Spaces: Why it makes sense beyond the obvious reasons

Co-Working Spaces: Why it makes sense beyond the obvious reasons

by | posted in: Coworking | 0

The early half of this decade was a heady time. A start-up boom had gripped India, and day by day, there was talk of a bunch of rag tag entrepreneurs walking away with millions in funding. Over the years, the euphoria did settle, but an idea born as a by-product; the co-working space, found steady footing in India.

Between the two waves, there was a moment of calm. I and my team took this opportunity to head back to our office that was a mid-sized, comfortable space in a co-working hub. Walking in reminded me why was it that a co-working space made for the perfect choice to get an office. Apart from the expected benefits like good internet, unlimited coffee, concierge services and decreased overhead costs, there are a few other intangibles that a co-working space can offer that neither home offices nor private offices can.

Let’s start with the obvious – networking. Unlike corporate offices where your only chance of peer interactions is in the lobby and the lift, the opportunities of connecting and collaborating are much higher. This is, in large part, due to the fact that co-working spaces have a relaxed atmosphere outside the work areas. Common lobbies, cafeterias, play zones help break the ice better than any business mixers, and once co-workers collaborate, seeing work happening in front of you develops trust and a sense of purpose.

The trend of Flexible Coworking or Shared Office Space

It’s not just business owners who draw inspiration at co-working spaces though. Even for employees, working in a hybrid environment makes way for new learnings. As a Digital Agency, my creative team works across industries. A lot of their research consists of craning their necks and observing an eclectic mix of freelancers, tech startups, bootstrapped e-commerce companies and other such ventures that dot out workfloor. As an additional measure, they can always have a one-on-one with a diverse group of people to narrow down audience-specific insights. Access to this organic, living dipstick has helped us bring forth a unique perspective when it comes to ideation, which in turn, helps us bag our clients.

Also Read: 5 Ways Coworking Spaces Can Help You Generate More Business

From a purely fiscal standpoint, there is always the advantage of having flexible costing which goes a long way in curbing overheads. Our digital agency is based in Mumbai, Bengaluru and Delhi. While the first two cities have our own dedicated office spaces in traditionally corporate pockets of their respective cities, our setup in Delhi operates from a co-working space in an up and coming neighborhood. Though we have a fair number of employees working from our Delhi branch, the overall cost per person (from an office expenses POV) is significantly lower than what it would be if we went for a dedicated office in Delhi. In fact, purely in terms of space, bandwidth and facilities, we get more than what we could have got if we chose a traditional office setup vis-à-vis the investment involved.

Don’t get me wrong. There is obviously a fair set of challenges that come from working in a co-working space. Primarily the privacy aspect and the fact that, as an ambitious business, you will one day outgrow the space. But once you weight the pros and cons and tie those back to your business goals, co-working spaces in Delhi will seem like a lucrative choice for many.

About the author Harsh Kedia:

Harsh is the co-founder of Auburn Digital Solutions, a full service agency that works with India’s biggest names in the Retail, Heathcare, BFSI, FMCG and PSU sectors. Harsh operates the Delhi branch of Auburn from a co-working space.

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Haryana Job Reservation Bill 2020: Many IT Firms Shifting to Noida from Gurugram

Will The Job Reservation Bill By The Haryana Government Boom Noida Office Market?

by | posted in: Coworking in Noida | 0

In November 2020, the Haryana government passed the Haryana State Employment of Local Candidates Bill. It is a bill that reserves 75% of the jobs in the private sector for local candidates up to a certain salary slab.

However, while announcing the bill, the state government may not have considered the possibility of companies moving their offices out of the state to cut costs and maintain a good resource pool.

Considering the fact that cities like Gurugram have grown exponentially mainly due to the offices and coworking spaces here, the new bill may have disastrous effects as companies are already looking at alternative locations like coworking spaces in Noida.

The Haryana State Employment of Local Candidates Bill,2020

When the state government came to power in 2014, CM Manohar Lal Khattar promised job reservation. The new bill states that all private companies in Haryana must reserve 75% of the jobs up to a salary of INR 50,000 per month for local candidates.

What this bill means that out of every 10 jobs with a salary up to INR 50,000 per month, only 2 would be available for out-of-state candidates even though the candidates from other states may be more qualified than local candidates. This can affect the quality of skilled workers a company can hire.

In specialized fields like medicine, research, hospitality, manufacturing and technology, this could be a major barrier for companies. It also means that they would need to invest more capital into skill-building. However, many SMEs do not have the resources for such training.

Why Consider Office Space In Noida?

With the bill in effect, employers in Haryana are not left with many choices but consider moving to emerging cities like Noida. Now the question is why Noida? Let’s find out.

Noida is emerging as a prime commercial real estate destination in the Delhi NCR region. Since the 2020 Q2, Noida has outpaced regions like Gurgaon. In the last year, a report showed that Noida accounted for 1.78 million sqft as compared to Gurgaon’s 1.4 million sqft net office space absorption.

This refers to fresh spaces leased in existing buildings as well as pre-commitments in currently operational buildings excluding lease renewals and pre-commitments.

Simply put, Noida has enough space and amenities to host businesses that are planning to shift from Haryana. Let’s dig a little deeper and find out the outlook commercial office space market in Noida.

So, What Does The Office Market In Noida Offer?

There are many reasons why companies are looking at leasing office space and working out of a coworking office in Noida.

3 Reasons Why Companies are looking for a Coworking Space in Noida

1. Cost-Effective Rentals

Commercial rentals in Noida are considerably lower than in other parts of the NCR. Perhaps that could be the reason why in 2020, the commercial office space leased in Noida stood at 2.2 million sqft while Gurugram’s leasing activity fell to a disappointing 63%.

The land cost is also reasonable here making the city ideal not just for companies with offices but manufacturing units as well. The lower cost of office space also translates to lower per-person costs at coworking spaces in Noida.

2. Well-Developed Infrastructure And Connectivity

Noida also has built up its infrastructure over the years. Even remote areas are well connected. The expressway gives the city a direct connection to the proposed airport and other commercial areas. This is one of the areas where Gurugram falls behind as the city’s remote sections are not developed or well connected. While only one part of Gurugram is connected by Metro, the metro extends to a number of sectors in Noida.

3. Institutional Hub

Noida has also seen opportunities grow with the emergence of data centers. The trend has seen office space absorption increase dramatically. From educational and healthcare institutes to companies providing financial services and insurance, Noida is acquiring tremendous popularity.

As more offices set themselves up in the city, networking opportunities increase making it even more lucrative for companies thinking of moving.

Also Read: How Do Coworking Spaces Help Startups and Entrepreneurs Reduce Costs?

Moving From Gurugram To Noida

Unless the government reverses its stance on job reservation for locals, companies will continue to prefer to work out of an office for rent in Noida as compared to Gurugram. There is a cost of moving to be considered but this is not the only deciding factor for these offices.

For companies that chose to stay in Haryana and comply with the reservation requirements, the cost of training employees and upgrading their skills may be much higher. Moving from Gurugram to Noida could be cost-effective when we consider the training and other operational expenses.

While the reservation bill may make political sense for the state government, it could trigger a commercial exodus from cities like Gurugram that have depended on commercial establishments for their growth.

Noida and other places in the NCR region are quickly emerging as better alternatives. Apart from not subjecting company owners to such job reservation structures, Noida also offers better infrastructure, lower rentals and greater networking opportunities.

A Concluding Note

For companies not looking at setting up fully-fledged independent offices, a coworking office in Noida is a great alternative. Space providers like The Office Pass (TOP) offer freelancers and SMEs co-working opportunities that are budget-friendly and flexible.

The offices are not just fully furnished but also equipped with modern amenities such as Wi-Fi, housekeeping, security, etc. To maintain their brand image, companies can also choose to redecorate according to the brand colors. If you want to know more, call 8999 828282.

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