Fourthly, there’s also an ease of expansion or reduction. The companies can get bigger or trim down space hurriedly and without difficulty meaning that they don’t waste money on inoperative space and can expand without changing their business address.

Lastly, there is an advantage of minimal overheads as minimal advance, no fit out costs, no maintenance costs, and all inclusive monthly payment means ease of budgeting and there’s a great deal of relaxation for companies hiring serviced office space.

Foreseen as one of the increasingly growing trends in India, serviced office business has a huge untapped market potential in the country. l

(As told to PKS)

AGAINST THE MOTION

Dr. Devinder Gupta, CMD, Century 21 India

First and foremost, the disadvantage of serviced office is that the contract can be terminated any time. Even if the terms and conditions agree to allow a notice period of one month, the company that rented the premise will have a tough time resetting its office once again.

The office space service provider should be of repute and serviced office should be strategically located. Or else there is no benefit of renting a serviced space.

As the serviced offices provide a one-stop solution to companies and entrepreneurs, offering services such as executive offices, internet connectivity, video conferencing, wireless access, telephone and fax lines, receptionists and client service representatives, apart from on-site executive assistants, and meeting/board rooms on a pay-as-you-use basis. For those companies, which can manage without some of these services, there will be burden of some extra charges as compared to the traditional office space, where customised service, of use, can be in place.

... contd.