Do Big Corporations Really Save Money By Moving Into Coworking Spaces?

Flexible working has become one of the biggest trends the modern workforce has seen in recent years with more people now preferring to work from home here in New Zealand.

This has also led to the rise of coworking spaces.

Driven by digitalisation and globalisation, coworking spaces have now become a viable alternative to working from home or in an office. Typically fashioned in a way that accommodates meetings and solo work, coworking spaces address all the needs of a business’ operations.

Members can work independently, but coworking spaces can also function as an open office environment.

Shared equipment, utilities, and amenities, minimises costs and maximises sustainability. Statista reports that there are around 18,700 coworking spaces worldwide, with Asia Pacific and India leading the pack at 11,592 spaces.

Access to innovators

Coworking spaces allow companies to be closer to trailblazers in their respective fields. In fact, some major corporations are getting in on the act––arguably started by digital nomads who thrive in the flexibility of this set-up.

Chicago is one major city that has taken advantage of coworking with its growing tech market. Chicago-based coworking space Industrious explains how the city is a global economic powerhouse that houses more than 200,000 businesses and corporations.

The magnitude of this statistic can equate to the numerous opportunities that will be available to innovators looking to network and expand their territory. Similarly in the UK, coworking is at the heart of innovation and growth for companies.

Author and professor John Bessant says that coworking spaces create an atmosphere where creativity can thrive and the pitching of ideas is encouraged.

Collaboration helps drive this innovation, which is one of the main offerings that coworking spaces provide.

A fair trade

Although coworking spaces are common among startups, bigger corporations have begun to follow suit.

They have shown interest in what coworking facilities exhibit that standard offices do not.

The consideration of coworking facilities for more established companies stems from a number of reasons, both in cutting costs and in instilling a sense of identity among employees.

Microsoft has actually given 300 of its sales employees access to 30 different WeWork coworking locations in New York City.

In exchange for this, they gave these WeWork locations discounts on Office 365, which is what most people use for work at these spaces. It becomes a win-win as Microsoft has several coworking space locations to choose from to meet clients, while WeWork can provide premium software for all its users.

Among WeWork’s clients are other big names like Starbucks and Facebook as well, and roughly 25% of their revenue is generated from them.

Cutting costs

The shift big corporations make by moving into coworking spaces is also in line with changing conceptions of what it means to work in an office.

These are now seen as a source of thriving productivity and creativity among a more diverse and dynamic workforce. Big, and even expanding, companies can worry less about expenses on utilities and supplies as these are all commonly shared in coworking spaces.

If you have teams scattered throughout different geographical locations, then having your own office may seem like a superfluous added expense. Investing in membership in coworking spaces for teams in different areas reduces operational costs and rising rent prices, fostering more innovation and driving profit instead.

As changes in the modern workforce will only continue to commence, it’s logical for big corporations or any other company to stay ahead of the curve.

Purchasing a membership to a coworking space means accessing a number of opportunities to network and innovate while cutting down costs and satisfying employees’ needs for flexibility in return.

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Alistair is the Chief Technology Officer at Wealth Morning. An experienced developer, his responsibilities include the website, ecommerce and our WealthMail system. He is an investor and trader in his own right with a strong interest in high-growth technology businesses and cryptocurrency. He previously worked in web development and digital strategy with a leading local bank. Alistair is a shareholder of Wealth Morning.


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