The concept of serviced offices is gaining popularity in India primarily because of factors like flexibility, cost savings, immediacy and convenience

that corporates find very valuable when setting up or expanding their businesses.

Also, there is no start up or teething problems as all serviced offices are fully functional, thus, enabling companies to fully focus on their businesses. Serviced offices are proving more sense to corporates now than ever before because the global economic downturn has made corporates unsure of their expansion plans and they do not want to get into long term lease agreements or invest into buying office space.

Compared to the conventional leased office space, a serviced office does not require any heavy investments neither it requires any lengthy legal procedures. One can move in immediately to a ready to use office which provides the ideal business environment both in terms of immediacy, flexibility, location and cost.

The concept is picking up in India largely due to:

Firstly, with shrinking revenues and thinner staff, companies are looking at compact office spaces that have all the facilities of a modern office and yet do not cost much in terms of rentals and maintenance.

Secondly, a company can vacate the office after giving a one-month notice. In the conventional lease agreement, a company pays up to six months advance rental and cannot vacate the space before three years of signing the agreement.

Thirdly, it helps companies unsure of their expansion plans and they do not want to get into long-term lease agreements with the real estate developers. The deal comes without any hassle of long term lease and advance payment of rentals to the real estate developers.

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