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Expert speak : Why Managed Offices make Financial Sense

Understanding why managed offices make financial and management sense to an enterprise

Serviced workspaces are breaking the traditional norms of building business infrastructure by nullifying the accumulated costs of CAPEX, sunk costs, and peripheral costs that were hitherto a bane for companies.

 For a CFO it makes perfect financial sense as this enables businesses to achieve both cost and effort efficiency by outsourcing the fringe functions to the workspace provider to concentrate wholly on core activities. Furthermore, enterprises no longer need to bother about the costs associated with managing daily operations involved in running an office smoothly. 

Here’s how serviced offices make both financial and management sense:

Frees Growth Capital 

By offering ready to move fully serviced and stylised office spaces, serviced office operators help companies overcome the capital blockages. The significant amount of capital expenditure that is saved, can be further utilised in the crucial and central activities of the business that are essential for both the short term and long term aspects of the business.

Optimizes business operations- single interface for entire office management

What follows is a revolutionary shift in the way businesses operate. Serviced offices function as empowered platforms, or rather the tools of disruption, as companies now have an opportunity to break free from the constraints of CAPEX. With zero capital expenditure, businesses can now focus entirely on its principle operations. Thus managed workspaces are changing what can be called the very ‘dimensions’ of  the commercial real estate sector by constantly challenging , disrupting and improving upon the traditional forms.

Increases Flexibility, helps to avoid interest and sunk costs 

As in the traditional scheme of things,a business would suffer from the drawbacks of uncertainty even with an optimistic outlook as it could end up buying for more space and furniture in the hope of future expansion than it actually needs, or in the case of a company that has to settle for less than what is required for basic performance. Serviced offices allow instant scaling of assets to be initiated as per the business needs,which can be amended as per the demand of the hour,whether it is increasing the number of office desks or upgrading the IT systems at a fraction of the costs.

Case Study: How Skootr delivered 9,000 sq. ft. to Expedia in DLF Cyber City 

When Expedia wanted to expand its existing office in the 5C Building located at DLF Cyber City, Qdesq acted as an active platform in connecting Expedia and Skootr. There were a couple of specifications requested from the client side in terms of sizes and quality of workstations,overarching theme & aesthetics of the workspace. Skootr ensured that all the requirements were met beyond client’s expectations when we delivered a thoughtfully-curated 100-seater premium workspace for Expedia. 

With serviced workspaces, businesses have a bandwidth of opportunities & growth. Now,businesses can channelize all its efforts towards its primary goals and not worry about paying the electricity bills or ensure the coffee machine is in order, as all of that is now accounted by the workspace provider itself. Indeed the future is here, and it’s looking good. 

~~Written by Ankit Jain, Founder and JMD, Skootr

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