EXECUTIVE
SUMMARY
EVOLUTION IN WORKPLACE TRENDS
COMMERCIAL REAL ESTATE PROPERTIES TO GROW; INCREASED
DEMAND FROM BFSI IN MUMBAI, & IT/ITES IN PUNE
Absorption rates witnessed in 2014 - 15 expected to continue in 2016 as well
FACTORS IMPACTING REAL ESTATE
In 2015, BFSI & Pharma continued to be the
leading segments absorbing real estate in Mumbai
COMMERCIAL PROPERTY ABSORPTION RATES
Points to positive sentiment of investors
Pune saw maximum absorption from the IT/ITeS
segment in 2015, followed by BFSI and
manufacturing (particularly in the outskirts of the
city)
MUMBAI - 2015
21%
New business districts coming up in the outskirts Navi Mumbai, Thane, Hadapsar, Vimannagar
Mumbai expected to see a rise in vacancies as a
number of projects are on the verge of launch,
which may not be absorbed quickly
Pune saw limited new supply as developers
focussed on completing existing projects
35%
Pharma
BFSI
34%
10%
IT
Others
PUNE - 2015
11%
9% 13%
67%
Manufacturing
IT
2
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
TELECOMMUTING, INNOVATIVE WORK ARRANGEMENTS LED
TO CHANGE IN THE CLASSICAL DEFINITION OF WORKPLACE
NEW DEFINITION
•
•
•
EARLIER
•
•
•
•
Fixed locations
Fixed timings
Hierarchy-based office seating
Limited options for “breaks”,
stress relief
•
•
•
•
Unlike in the past, companies
are now trying to revamp the
way they work.
Increased awareness about
people and office
management policies can
impact productivity and
costs.
INCREASED
AWARENESS
Work anytime, anywhere
Open seating - irrespective of designation
Multiple amenities to enable employees
work in a stress-free environment
•
•
Increased awareness,
exposure to alternate
technologies and willingness
to invest amongst end users.
Growing maturity of end
users across segments.
Need for improved safety,
professional maintenance of
workplaces.
BETTER IMPLEMENTATION
OF TECHNOLOGY
•
•
Changes led by office in
segments which are relatively
tech savvy, more reliant on
mobile technologies.
Workplace policies permitting
time, location flexibility to
employees.
Innovative efforts to make
“office space” more
employee-friendly, stressfree.
EASE OF WORKING, COST
EFFECTIVE WORKPLACE
3
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EVOLUTION IN WORKPLACE TRENDS
CHANGE IN WORKPLACE, DRIVEN BY INCREASED AWARENESS
ABOUT HOW CHANGES IN PEOPLE & OFFICE MANAGEMENT
CAN INCREASE PRODUCTIVITY & REDUCE COSTS
CONSIDERATION
Private companies evaluate all
possible avenues to cut costs without
compromising on work quality.
New-age employees prefer to work
with a fair degree of freedom.
Mobile technology, green building
initiatives help companies save costs as
well as offer flexibility to employees.
DEMAND DRIVER
CHANGE EFFECTED
OFFICE COST
IMPLICATIONS
Combination of changes done in
workplace setup & admin
practices leading to savings
in over 50% companies.
MILLENIALS
Companies which implemented
initiatives like work-from-home
and recreation areas, report a 1520% increase in productivity.
TECHNOLOGY
Innovative lighting, HVAC,
seating solutions and
communications, help effective
implementation of
HR and Admin policies.
4
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS TO WATCH OUT FOR ACROSS OFFICES SPACES
1
Office Space
Utilization
CO-WORKING
2
Employee Friendly
Workplace practices
FLEXIBLE WORKING
POLICY
3
Employee Friendly
Workplace practices
ACTIVITY BASED
WORKING
4
Leverage Technology to
enhance workplace
LIGHTING
Source: Nielsen Analysis; desk research
5
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
DETAILED
REPORT
EVOLUTION IN WORKPLACE TRENDS
ENGAGEMENT BACKGROUND
MUMBAI - COMMERCIAL REAL ESTATE VIEW
PUNE-COMMERCIAL REAL ESTATE VIEW
TYPICAL WORKPLACE
KEY TRENDS IN CHANGING WORKPLACE ENVIRONMENT
• OFFICE SPACE UTILISATION
• EMPLOYEE-FRIENDLY HR PRACTICES
• LEVERAGE TECHNOLOGY TO ENHANCE WORKPLACE
INDEX
UPCOMING TRENDS IN THE CHANGING WORKPLACE
APPENDIX
7
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
ENGAGEMENT
BACKGROUND
EVOLUTION IN WORKPLACE TRENDS
KEY RESEARCH OBJECTIVES ADDRESSED THROUGH THE
ENGAGEMENT
Established correlation between evolution of workplaces and increased morale/
efficiency of employees - corporate opinion and views.
EVALUATION
OF WORKPLACE
PRACTICES
ACROSS
SEGMENTS IN
MUMBAI &
PUNE
Identified past trends and evolving practices in workplace evolution across segments.
Relevant case studies across progressive segments included.
Studied impact of green buildings and other such green/ eco initiatives across
segments and its impact on the other trends across workplaces.
Analysis of emerging trends and future scenario in this space.
9
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
RESEARCH METHODOLOGY
Evolution of the workplace - studied by gathering information through primary research
including meetings with officials and architects, aided with desk research information
END
USERS
• Detailed interviews with key personnel in HR/ Admin
across companies in the identified segments.
• Key changes in the workplace/ components of the
workplace identified and their effects studied.
ARCHITECTS,
OTHERS*
UNDERSTANDING
THE EVOLUTION
OF THE
WORKPLACE
• Key architects met to ascertain the changing
demands from their end customers i.e. Corporates.
• Emerging trends assessed, and their likely impact
across segments analysed.
DESK
RESEARCH
• Latest available data on overall demographics,
real estate scenario, absorption rates etc.
• Inputs on emerging trends, employee/
employer behavior etc.
…..through Primary Sources
* – Associations, Industry experts etc.
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
10
EVOLUTION IN WORKPLACE TRENDS
TARGET ORGANISATIONS AND RESPONDENTS
SEGMENT
QUALIFYING CRITERIA
MUMBAI
PUNE
TOTAL
IT, ITeS
Minimum 100 employees
5
10
15
BFSI
Minimum 100 employees
20
5
25
BPO/KPO
Minimum 50 employees
10
10
20
MFG
Minimum office area of 1000 sq. feet
20
20
40
LOGI/AVDT
Minimum office area of 1000 sq. feet/ 10 employees
15
10
25
ARCH.
-
10
10
20
80
65
145
Grand Total
TARGET RESPONDENTS
•
HR Managers
•
Administration/Site Managers
•
Finance Managers
TYPICALLY
GRADUATES WITH
10 – 15 YEARS
EXPERIENCE
11
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
GEOGRAPHICAL COVERAGE
GEOGRAPHICAL COVERAGE
SAMPLE COVERAGE
City
MUMBAI
PUNE
SEGMENTS COVERED IN MUMBAI
Interviews
conducted in
business districts
of South Mumbai,
Bandra-Kurla
Complex,
Andheri etc.
ARCH. IT, ITeS
6%
13%
LOGI/AVDT
19%
MFG
25%
No. of Interviews
Mumbai
80
Pune
65
Base
145
SEGMENTS COVERED IN PUNE
ARCH.
15%
BFSI
25%
BPO/KPO
12%
IT, ITeS
16%
BFSI
8%
LOGI/AVDT
15%
BPO/KPO
15%
MFG
31%
Interviews
conducted in
key commercial
areas & IT
Parks like
Hinjewadi,
Magarpatta etc
12
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
MUMBAI
COMMERCIAL
REAL ESTATE VIEW
EVOLUTION IN WORKPLACE TRENDS
MUMBAI
OFFICE ABSORPTION IN MUMBAI INCREASED BY 9% QoQ
•
•
•
Mumbai’s office real estate market had a poor run post 2011, it witnessed 8 million plus sq. ft. of Annual space
Absorption in 2011 stoop down to 3.3 million sq. ft. in 2014.
Total annual absorption of 3.12 million sq. ft. in 2014 was 44% lower than that of 2013, (5.6 million), primarily
due to limited uptake from IT/ITeS companies and an overall pessimism in the corporate world.
However, absorption picked up at the end of 2014 led by e-Commerce & BFSI companies, and continued to
grow in 2015, particularly in the Pharma and BFSI segments.
NEW SUPPLY Vs ABSORPTION Vs VACANCY
12
25
10
20
8
15
6
10
4
2
5
0
0
2010
2011
2012
New supply in Sq.Ft
The positive sentiments of the
investors can be seen as there was a
rise of 9% QoQ compared to Q4 2014,
in office space absorption in the city.
2013
2014
Absorption in Sq.Ft.
The vacancies are expected to rise
as a number of projects are on the
verge of launch, which may not be
absorbed quickly.
2015
2016E
Vacancy (%)
Q1 2015 saw new office
supply of 0.6 million sq.ft.
Source: Desk Research
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
14
EVOLUTION IN WORKPLACE TRENDS
MUMBAI
PHARMA MAKES A COMEBACK AS THE HIGHEST OFFICE
SPACE ABSORBER, ALONG WITH BFSI
OFFICE SPACE ABSORPTION RATE 2015
Pharma - 34%
IT - 10%
BFSI - 35%
The Pharmaceutical
sector shot up, after being
at the bottom for the
previous two quarters
IT and related services
saw a downfall. The IT
sector was on top in
Q4 2014 and Q1 2015
BFSI contributed 35% of the
total absorption of office
space becoming the largest in
the MMR region
TRENDS IN OFFICE SPACE ABSORPTION RATE IN 2015 IN MUMBAI
Others - 21%
Top Office Space Absorbers (2015 :Q1-Q3)
57%
31%
28%
34% 33%
21% 23%
14%
10%
IT/ITeS
Source: Desk Research
34%
5%
BFSI
Q1 2015
Pharma
Q2 2015
10%
Others
Q1 2015
Q2 2015
Q3 2015
IT/ITeS
1st
2nd
4th
BFSI
2nd
1st
2nd
Pharma
4th
4th
1st
Others
3rd
3rd
3rd
Q3 2015
15
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
MUMBAI
BKC KEEPS ITS TOP POSITION IN THE RENTAL CHART
180
15600
130
15400
•
closely followed by the CBD and Worli area.
80
15200
30
-20
2011 2012 2013 2014 2015
•
There is a huge variation in the rentals of the business districts in
Mumbai.
15000
Rental Value INR per sq ft
•
Capital Value INR per sq ft
BKC continues to be the costliest place in Mumbai for corporates,
•
Navi Mumbai suburbs had the lowest rentals starting from INR 60/sq ft
•
BKC rates go up to INR 320.
Andheri, Goregoan region with rental rates within the range of INR
80-110/sq ft, were the most popular investment zones for
corporates.
•
Navi Mumbai saw some of the biggest deals in the quarter.
TRANSACTIONS DURING Q3 2015
Client
Building name
Area sq ft
Location
Transaction type
Godrej BKC
400,000
BKC
Sale
The Ruby
200,000
Dadar
Sale
Indus Projects Limited
100,000
Andheri
Lease
SBI
L&T Sea Woods
100,000
Navi Mumbai
Sale
Draeger Medical India P. Ltd
Oberoi Commerz
60,000
Goregaon
Lease
Abbott India
Axis Bank
DHL Bluedart
Source: Desk Research
16
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PUNE
COMMERCIAL
REAL ESTATE VIEW
EVOLUTION IN WORKPLACE TRENDS
PUNE
40% DROP IN Q1 2015 COMPARED TO THE PREVIOUS QUARTER
•
•
•
Pune witnessed nearly 568,600 sq ft of new supply in Q3 2015.
However, Pune office real estate is expected to maintain a steady growth over next year - almost 60% of the
upcoming Grade A supply of 1.7 mn sq ft expected to be available in the next quarter.
Multinational financial institutions have increasingly started absorbing office space in Pune to mitigate their
back-office requirements and other non-niche departments.
NEW SUPPLY Vs ABSORPTION Vs VACANCY
6
25
20
4
15
10
2
5
0
0
2010
2011
2012
2013
New suppy sq. ft.
The city saw an absorption of less than
40% in Q1 2015 compared to the
previous period, mostly due to lack of
investments from sectors other than
IT/ITeS.
2014
Absorbtion in Sq.ft.
There was a limited new supply in
the city as developers focused on
completing their existing projects.
2015
2016
Vacancy
The vacancies are
expected to see a fall in
the coming quarters.
Source: Desk Research
18
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
PUNE
IT CONTINUES TO DOMINATE THE PUNE MARKET
OFFICE SPACE ABSORPTION RATE 2015
Manufacturing - 13%
There is not much
movement in case of the
manufacturing sector as it
holds on to it’s second
position.
90%
IT - 67%
BFSI - 11%
IT sector continues it’s
dominance in the city, as it
holds a share of around 60%
of the total share.
BSFI continued to be at the
second position though it
saw a dip in the overall share.
TRENDS IN OFFICE SPACE ABSORPTION RATE IN 2015 IN PUNE
Top Office Space Absorbers (2015 :Q1-Q3)
Q1 2015
Q2 2015
Q3 2015
IT/ITeS
1st
1st
1st
BFSI
3rd
2nd
3rd
Manufacturing
2nd
3rd
2nd
Others
4th
4th
4th
70% 67%
17%
3%
IT/ITeS
Source: Desk Research
11%
BFSI
Q1 2015
13%
4% 8%
Pharma
Q2 2015
3% 5% 8%
Others
Others - 8%
Q3 2015
19
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EVOLUTION IN WORKPLACE TRENDS
PUNE
SLIGHT RISE IN THE AVERAGE OF OFFICE SPACE RENTALS
180
8000
130
6000
80
4000
30
2000
-20
2011
2012
2013
2014
2015
Rental Value INR per sq ft
Capital Value INR per Sq.Ft.
•
There is a slow rise in the of office space rentals in the city.
•
Majority of the office space is being absorbed by the IT/ITeS
companies.
•
Hence the newly developed IT zones in Hadapsar and on the
Airport Road, saw a rise in rentals.
0
•
A rise of up to 7% was observed in these regions when
compared to the first quarter of last year.
•
The CBD area of SB Road, areas of Bund Garden road and
Airport Road topped the charts in rentals.
•
However, overall there is a very small variation in the office
space rentals ranging from INR 35-85/sq ft
TRANSACTIONS DURING Q3 2015
Client
Building name
Area (Sq Ft)
Location
Transaction type
Seagate Technology HDD India Pvt Ltd
EON Free Zone SEZ
107,640
Kharadi
Lease
Tata Consultancy Services
EON Free Zone SEZ
67,000
Hapdapsar
Lease
Intel Technology India Pvt Ltd
Commerzone - B4
54,000
Yerwada
Lease
Access Health Services
Embassy TechZone
50,000
Hinjewadi 2
Lease
RVS Panchshil Tech Park
37,800
Ganeshkhind Rd.
Lease
Vistas India
Source: Desk Research
20
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
WORKPLACE
EVOLUTION
EVOLUTION IN WORKPLACE TRENDS
EVOLVING DEFINITION OF A WORKPLACE
The classical definition of a workplace is a location where an employee works for an
employee; however this does not entirely describes the modern workplace
MULTI SETTING
MOBILE
WORKPLACE
A workplace can be
located in a variety of
settings including
• Offices
• Manufacturing
facilities or factories
• Stores
• Farms, out-of-doors
• Any location where
work is performed
With the development of
electronic
communication,
employers are no longer
expected to always
provide a workplace with
a physical location at
which employees work –
particularly in the
services industry
EVOLVING
DEFINITION
Telecommuting
work arrangements, and
worldwide employment
relationships mean that
almost any location,
including the
• Office space
• Public places,
airports etc
• Employee's home,
may serve as and
accurately be called
workplace
THE NEXT SEGMENT FOCUSES ON THE TRADITIONAL OFFICE SPACE AS A WORKPLACE AND EVALUATES
THE EMERGING TRENDS IN WORKPLACES IN MUMBAI & PUNE
Source: Nielsen Analysis; desk research
22
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EVOLUTION IN WORKPLACE TRENDS
KEY COMPONENTS OF A TYPICAL WORKPLACE - OFFICE SPACE
Reception Area: Reception area is at the entrance of any work place.
It has a waiting area for the visitors. It’s also the place where security checks are performed.
Bay Area: Bay area has work stations where employees sit and work. These may be closed or
open cubicle formats, or running counters and cabins.
Meeting rooms are also part of these workplaces, as are manufacturing areas.
Conference Room Area: A conference hall or conference room is a room provided for
singular events such as business conferences and meetings.
In an office setup, conference rooms are used by employees to conduct meetings.
Canteen Area: A canteen area is present in an office to provide food for employees. Offices are also
equipped with a pantry where employees can get their choice of tea or coffee.
Canteens are equipped with a regular kitchen facility, or a dry kitchen facility.
Recreation Area: Office spaces are also equipped with recreation areas, where employees can
take a break and indulge in indoor games and de-stress themselves.
Wellness rooms, libraries and gymnasiums are also part of recreation areas.
Source: Nielsen Analysis; desk research
23
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
WORKPLACES ARE EVOLVING NOT JUST IN TERMS OF SPACEUTILISATION, BUT ALSO IN TERMS OF HOW EMPLOYEES WORK
Do you have an assigned cubicle in your office
Does your manager have a separate cabin
Do you travel to different cities for meetings
Do you to take a leave from work when the public transport is suspended due to heavy rains
Well it might not be the
same in years to come. If
your office has not changed
its look and converted into
a open, collaborative
workspace.
(Office Space Utilisation)
Companies are bringing the
walls down in their offices
and opting for various
changing working methods.
Newest technology options
in communication, security,
day-to-day operation are
undergoing changes to
enable employees work in
a friendly environment.
(Employee-Friendly
Workplace Practices)
Companies try to engage
employees in their
workplace, and at the same
time, focus on saving cost
on real estate and
infrastructure.
This has led to changes in
the way offices look and
operate these days.
(Better usage of
Technology)
AS OBSERVED DURING THE COURSE OF THE RESEARCH, THE KEY TRENDS WHICH ARE SETTING OUT THE CHANGE IN THE
WORKPLACE ARE OFFICE SPACE USAGE, WORKFORCE PRACTICES AND IMPACT OF TECHNOLOGY THESE ARE DETAILED OUT IN SUBSEQUENT SEGMENTS
24
Source: Nielsen Analysis; desk research
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
OFFICE SPACE UTILISATION
DISTRIBUTION OF CARPET AREA
INNOVATIVE SEATING ARRANGEMENTS
CLIENT SERVICE FOCUS
AMENITIES
EVOLUTION IN WORKPLACE TRENDS
OPERATIONAL AND RECREATIONAL NEEDS TOP PRIORITY
AT WORKPLACES
• The other spaces including
washrooms and open spaces
• Open Spaces have seen a
decline in recent years as
companies try to utilise the
vacant spaces for more useful
workspaces or for some other
purposes.
• The number of companies
having in-house canteens
and pantries are increasing.
• Companies do not usually
have any in-house cooking
but the vendors bring food
from outside.
5%
11%
DISTRIBUTION
OF CARPET
AREA
70%
• The number of meeting
rooms are increasing along
with the capacity of the
meeting rooms.
• The share of meeting
rooms in total area
currently is lowest in case
of manufacturing firms.
Source: Primary Research data
6% 2%6%
• There is a trend of increase in
recreational areas.
• Companies are utilising the
existing vacant spaces by
including various indoor games
and other recreational facilities.
• The receptions are getting
bigger especially in the
corporate offices of large
manufacturing firms and MNC
IT companies.
• In the BPO and Advertising
sector the receptions areas
are comparatively small.
• The workspace occupies more than
half of the area in all the companies
across sectors.
• In the advertising sector it is highest
70-75%.
• More the total area, more is the share
of workspace as the possibility of
increase in other categories is limited.
• With the increase in the number of
employees and real estate cost, open
spaces, recreation area and other
areas are being sacrificed for
increasing the workspace.
Base : 125
26
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
OPEN SEATING ARRANGEMENT IS EXPECTED TO BE THE
NORM ACROSS WORKPLACES…
•
•
•
•
•
•
The open-office culture was one of the first ‘workplace change’ steps undertaken by companies; particularly, by the IT and
advertising sectors.
Companies from the manufacturing sector, which are traditional in nature, are also quickly moving towards open
workspaces.
The slowest to adapt is the BFSI sector which still works in the traditional closed cubicle environment, mostly due to privacy
concerns - however going forward even BFSI is expected to move towards an open office culture.
Along with closed cubicles, cabins for the higher management are also quickly diminishing, as firms try saving cost of cabins.
The companies are offering cubicles to managers, either of the same size as that of other employees or slightly bigger.
The BFSI & manufacturing sectors still prefer closed cabins for higher management.
IT
BPO
Manu
BFSI
Other
Cubicle
60%
70%
67%
28%
56%
Cabins
40%
30%
33%
72%
44%
1
5
2
0
4
0
2
5
3
5
Base
PAST
Companies across segments
preferred closed seating earlier, but
it is not a popular option nowadays.
PRESENT
FUTURE
Open seating arrangement which
facilitate collaboration preferred,
particularly in IT & BFSI sector;
manufacturing sector still prefers closed
seating.
Smart desks are the way forward completely open seating arrangement
with unassigned & mobile seating.
27
Source: Primary Research data
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
…LED BY THE INNOVATIVE SOLUTIONS USED IN SERVICE
INDUSTRIES - PARTICULARLY IT/ BPO
Employee Advantage:
•
In an open workspace environment, it easier for employees to interact with each other on a regular
basis.
•
Constant intermingling generates a sense of camaraderie among personnel, enhances the flow of
information and teamwork.
•
Colleagues can turn to each other for advice or assistance without having to knock on doors or schedule
formal meetings.
NUMBER OF COMPANIES WHO HAVE MOVED TOWARDS OPEN OFFICES IN THE LAST 3 YEARS
( ) - sample size
85%
85% offices have moved to
open seating arrangements
%AGE OF OPEN OFFICE
The BPO/KPO industry
have clustered seating
arrangement
Manu-75%
(40)
BFSI-60%
(25)
IT-80%
(15)
Ad-80%
(35)
28
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
… LEADING TO VISIBLE IMPROVEMENT IN THE PRODUCTIVITY
AND COST MANAGEMENT, ACROSS 50% COMPANIES
Business Advantage:
• The increased collaboration resulting from an open-plan workspace leads to business innovation and synergy.
• Open-plan layout can benefit the business economically by reducing costs tied to construction, utilities and office
equipment.
8%
Base : 48
No. of
companies
who believed
productivity
improved
Less than 10%
60%
15%
IMPROVEMENT
IN
PRODUCTIVITY
IN OPEN
WORKSPACE
32%
COST
EFFECTIVENESS
IN OPEN
WORKSPCACE
30%
55%
Between 10-15%
Greater than 15%
Less than 5%
Between 5-7%
Base : 20
No. of companies
who believed open
seating systems led
to drop in cost to
management
(savings)
Greater than 7%
IMPROVEMENT IN PRODUCTIVITY AND COST EFFECTIVENESS AS SEEN BY COMPANIES WHICH HAVE IMPLEMENTED OPEN SEATING SYSTEMS
•
The increasing real estate cost and the number of employees, the stress and the need for collaborative workspaces has given birth to
the latest trend of Open Workspaces.
•
Companies which have implemented find workplaces are now more efficient and cost effective as there is a drop of 5-7 % in cost for
the management.
•
Employees find such workplaces joyful, interactive and productive; management believed that the efficiency has gone up by 10-15% .
Source: Primary Research data
29
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
MEETING ROOMS DRIVE INTERNAL SPACE ALLOCATIONS;
PARTICULARLY ACROSS SERVICE INDUSTRIES
55-60% of the companies use meeting rooms for
the purpose of training and retraining of the
employees. Training sessions have improved work
quality up to 15%.
Video conferencing tools have
become popular in meeting rooms,
to cut on cost and time.
70% meeting rooms are equipped
with the LED or projectors, which
can be used for presentations &
training.
Meeting rooms are used for
induction and on-boarding process
of the new joinees.
Average capacity of meeting rooms
is 8-10 people
Base : 125



As the number of meeting rooms have increased, the purpose of the meeting rooms has also increased. With the increase in open
workstations, the need of quiet and closed places to collaborate has also increased. This purpose is solved by the conference and the
meeting rooms.
To deal with the increasing real estate costs, the number of workstations for on-field teams are reduced & they are asked to utilise the
meeting rooms when in office.
The meeting rooms can be occupied by anybody when free, but the board rooms are restricted to client meetings, foreign delegations
and the directors meeting.
Source: Primary Research data
30
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
INCREASED EMPHASIS ON PROVIDING RECREATION OPTIONS
TO EMPLOYEES TO HELP REDUCE WORKPLACE STRESS
Sector
Sample
Recreation
Facility
IT
14
86%
BPO
19
74%
Manufacturing
39
23%
BFSI
24
29%
Others
24
29%

Breakout
and
Wellness
✔✔
✔✔
✔✔✔
✔✔✔
✔✔
Gym
✔
✔
✔
✔
x
Indoor
Games
Library
✔✔✔ ✔✔✔
✔✔✔ ✔ ✔
✔✔ ✔
✔✔✔ ✔ ✔
✔✔✔ x
Recreational facilities have made the work culture more efficient. Absenteeism has
dropped by 2-5% and the work efficiency is perceived to have improved by 5-10%.

With the increasing focus of employers
on employee satisfaction, the workplace
is going to be a fun place, with or playful
atmosphere, encouraging working in a
happy environment.
PRESENT
Increasingly, companies are providing
recreational areas to employees to enable
them to have breaks and work with
minimum stress.
The IT and BPO industries are early adopters of the trend of recreational facilities almost 80% of companies from these sectors have one or more forms of
recreational areas.

FUTURE
Companies usually have a combination of recreational facilities that may include
indoor games, gyms and wellness rooms to name a few.

Few companies have also introduced online gaming zones in the office.

Indoor games, breakout and wellness areas are the most preferred and popular
PAST
In the past office meant only work and
there were hardly any opportunities to
relax in office.
among all the recreational facilities.
Source: Primary Research data
31
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
MAKING A GOOD FIRST IMPRESSION BIGGER AND MORE ATTRACTIVE RECEPTIONS
• Receptions have become bigger as the clientele and other visitors have increased.
• The resultant increase in occupancy of the reception area is 2.5 times in the recent years.
• The average occupancy of the reception area is 20-25 people/ day.
• The infrastructure of the reception area has also become better with most of the
reception being equipped with better seating arrangements.
• 65 % companies have attractive sofas and chairs in their reception area.
• 70-80% companies have started having libraries for visitors and employees in their
receptions.
• Out of 43 respondents, 26% said they have a library while 74% said they have various
newspapers and magazines in the receptions.
RECEPTIONS IN PUNE
HAVE HIGHER
OCCUPANCY (MORE
VISITORS, LONGER
WAITING PERIODS)
THAN THAT FOR
OFFICES IN MUMBAI.
• Companies have also installed LED screens in their receptions. The screens have
promotional videos of the company running on the screens.
• Some also have various TV news channels playing on the screens.
Base : 125



Almost all companies believe the reception to be the face of the office and believe bigger receptions are
more impressive to clients.
The receptions are equipped with comfortable sofas and chairs.
Receptions have also reduced the discomfort of the waiting period of the visitors as they can be attended
in a better manner.
Source: Primary Research data
32
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
INCREASINGLY, WORKPLACES ARE SETTING UP CANTEENS/
FOOD COURTS TO ENSURE EMPLOYEES HAVE WIDE
AVAILABILITY OF GOOD QUALITY SNACKS
15
40
25
20
35
56%
43%
40%
45%
40%
36%
33%
27%
52%
27%
24%
24%
13%
8%
10%
10%
8%
5%
8%
0%
IT
Manufacturing
Pantry
Canteen
BFSI
BPO
Both (Pantry and Canteen)
Others
No facility

Many of the IT companies have either a pantry or a canteen in office for the employees.

Some companies are providing lunch and snacks free of cost for employees.

The overall effect is a reduction in the attrition rate of employees.

Moreover, it has led to time saving. Companies believe that having a pantry in office can
reduce the short breaks by 5 minutes and long breaks by 15-20 minutes.
In-house
canteen facilities
have led to
reduction in time
spent on
“breaks”
Very few
companies
provide lunch and
snacks free of
cost for
employees
Source: Primary Research data
33
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EMPLOYEE-FRIENDLY
WORKPLACE PRACTICES
WORKING HOURS AND DEMOGRAPHICS
WORKING METHODS
FLEXIBILITY IN OPERATIONS
EVOLUTION IN WORKPLACE TRENDS
24X7 IS THE NEW OFFICE TIMING….
Operating Shifts
3 SHIFTS
The IT & BPO/KPO companies in India generally operate with
various foreign clients in different time zones, hence they usually
have 2-3 shifts in these industries.
The shift timings may change with the change in clients.
• BPO/KPO
• Manufacturing (Production)
• IT/ITeS(50%)
2 SHIFTS
The BFSI, Advertising and Logistics industries work mainly on a
single shift policy. The shift timings differ according to the clients.
For the BFSI sector the timings are generally 9 am to 6 pm.
• IT/ITeS(20%)
•
•
•
•
•
1 SHIFT
Manufacturing(Offices)
Advertising
Logistics
BFSI
IT/ITeS(30%)
In the Manufacturing sector, the offices usually work in a single
shift while the production unit work in 3 shifts. The timings in the
production unit remains the same.
Gender Ratio
IT/ITeS: 35
BPO/KPO: 40
BFSI: 40
Manufacturing : 25
Logistics:30
Advertising: 35
Average Age
32
IT/ITeS: 65
BPO/KPO: 60
BFSI: 60
Manufacturing : 75
Logistics: 70
Advertising: 65
27
35
36
40
29
IT/ITeS
BFSI
Logistics
Source : Primary Research data
35
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
MILLENNIALS DISOWN TRADITIONAL WORKING METHODS
• Observable shift from the traditional working methods being followed in
the companies.
• Companies want to offer flexibility to employees, leveraging technology
to support this flexibility.
• Companies allow you to work from wherever you want at any hour of
the day; and the digital native generation is pretty happy to be working
with mobility.
FUTURE
All sectors (except manufacturing) are
likely to adopt various working methods,
encourage working from anywhere and
any time of the day, and make these
options available to a larger employee
base.
PRESENT
• Companies believe that offering flexibility to the employees increases
the productivity by 15-20%.
• The average time employees in Pune & Mumbai spend on going to
IT sectors and a few companies from the
advertisement sector have started
adopting changes in working methods.
office daily is around 60-90 minutes. So, work from home helps them
utilize this time in a more productive way.
• By one estimate, work from home coupled with smart desks helps
companies save almost 15% cost on utilities (estimate of a senior admin
manager in an IT firm).
PAST
Typical working methods like work from
office and fixed work timings were
prevalent in all the sectors.
36
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
MILLENNIALS PREFER “WORKING FROM HOME”- HELPS;
IMPROVE PRODUCTIVITY
The culture of
work from home is
increasing and
companies feel that the
productivity of the
employees increase by
10-15%
Companies are shifting from
the typical workplace to an
open workplace, though the
changes in working policies
are subject to client
requirements
SAVE TIME
IT sector companies
are the fastest to
adapt to the changing
culture with 60% of
companies offering
work from home
In the BPO/KPO
industry the work
from home culture
is not that
prominent as
technology used in
the industry is not
available at home
REDUCE STRESS
In advertising, a few
fields like designing
have the option of
working from home
Manufacturing
companies and the
BFSI industry still
follow the typical
work from office style
37
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
WORK MATTERS NOT THE TIME OF WORK
CHANGE IN WORK TIMINGS
Sector
IT
BPO
Manufacturing
BFSI
FLEXIBLE
HOURS
60% No
Others
Traditional Modern
✔
✔
✔
✔
✔
✔
✔
x
x
✔
Work from
Home
Flexihours
Rotational
Shift
✔✔✔ ✔✔ ✔✔
x ✔✔ ✔✔✔
✔ ✔✔✔
x
x
✔✔
x
✔✔
x
✔
40% Yes
• Flexible work timings have resulted in a higher
employee engagement and satisfaction.
• Employees report happiness with the work life balance
which flexible working hours provide.
• Flexible work timings are very popular in the IT sector
and the advertising sector, with 70% companies in this
sector allowing flexible work timings.
• The BFSI and BPO/KPO industries usually do not allow
flexible work shifts.
• Employees work together in teams, from different
locations, with the use of various communication
tools.
• Remote log-in company servers have made work from
home a feasible option.
• Companies have taken measures for data security in
case of remote logging.
• Other changes in working methods include
recruitment of freelancers, outsourcing some part of
the project etc.
38
Source: Primary Research data
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
LEVERAGE TECHNOLOGY
TO ENHANCE WORKPLACE
SECURITY
OPERATIONS
COMMUNICATIONS
GREEN BUILDING INITIATIVES
EVOLUTION IN WORKPLACE TRENDS
HIGHER EMPHASIS ON SECURITY IN THE MODERN WORKPLACE
- DATA, PERSONNEL, PROPERTY SECURED USING TECHNOLOGY
At the top level is the high end
technology used in security.
3.The
automation
in security
A
2.The security of the
office on each floor
A
FUTURE Biometrics
Then come the security personnel
at the office on each floor
At the ground level is the security
of the building or IT park
1:The shared security of the IT
park, SEZ or the building
A
TECHNOLOGY IN SECURITY
IT
BPO
Manu.
BFSI
Other
CCTV
85%
80%
55%
72%
40%
RFID
35%
20%
30%
45%
15%
Thumb reader
45%
60%
15%
30%
5%

Companies have either RFID reader or thumb reader for access, to increase the
security.

In the future the number of security
personnel may decrease as the security will
be more automated. Use of biometrics will
be prominent.
PRESENT Technology
With the increasing competition and the
stress companies have introduced many
facilities that will help the employees keep
fit and fresh. So employees work hard and
they have fun in the leisure time.
PAST Human Security
In the past, security was limited to
personnel, not all the offices had their own
security. Security was not considered an
importance aspect of the workplace
Many companies have made it compulsory that anybody without a valid ID,
needs to be escorted by somebody from the office for entry.

Smaller companies use shared facilities to save on cost.
40
Source: Primary Research data
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
ADVANCED COMMUNICATION DEVICES MADE IT POSSIBLE FOR
THE WORKFORCE TO BE DYNAMIC; MOBILE YET EFFICIENT
67% companies use different office messenger tools to
facilitate communication between teams at different
locations
The EPABX systems have made communication within the
office simpler and with a single line calling, it is easy for
outsiders to reach the right person.
With the help of advanced video conferencing tools it is now
possible to hold meetings, conferences and presentations
from different locations.
The use of technology in communication has made communication lot easier. Video conferencing
tools have reduced the need to travel to different locations leading to time and cost efficiencies.
Also use of EPBAX systems have reduced the cost on communication.
41
Source : Primary Research data
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
ENERGY EFFICIENT SOLUTIONS AN UPCOMING TREND;
PARTICULARLY WITH BIG FIRMS
FUTURE
PRESENT
Companies will be increasing their
sustainability efforts and new
inventions in use of renewable
energy and energy efficient systems
are likely to come in.
Use of energy efficient
systems help reduce
expenses on energy. Around
60% companies said they
invest in energy efficient
systems.
PAST
The belief has changed the results on
investments are visible and hence
more companies are investing in such
initiatives.
Offices are built in such a
way that that there is more
natural light in the office.
This increased the efficiency
of the employees.
The belief was that investing in
sustainability efforts have no return
and hence most companies avoided
any such efforts.
The waste is being recycled
and the use of paper is
being reduced by many
organizations as their effort
of sustainability.
Digitalization is increased to
reduce the use of paper.
Companies are investing in
green buildings which helps
in energy saving and
increasing efficiency of the
employees.
42
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
INCREASING USE OF LAPTOPS ALLOWS EMPLOYEES TO BE
FLEXIBLE WITH THEIR WORK SCHEDULE
TECHNOLOGY USAGE
140
120
100
80
60
40
20
0
60
55
70
75
30
Laptops
60
40
40
60
60
120
100
80
60
40
20
0
40
60
70
80
50
70
40
20
Desktops
WiFi
40
70
Lan
 Organizations believe that the use of better technology has reduced the cost of operation .
Also the time required to complete tasks is reduced by up to 30%, leading to or proportionate
rise in efficiency.
 Technology has enabled remote login into the office server and hence work from home and
outside office is possible nowadays.
 Many companies have developed their own tools to support their operation, like HRMS
system.
 Video conferencing has enabled online interview, meetings.
 Companies are switching to cloud server to save on cost of data center.
43
Source : Primary Research data
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
UPCOMING TRENDS IN THE
CHANGING WORKPLACE
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS IN THE CHANGING WORKPLACE
OFFICE
SPACE
OPTIMISATION
FLEXIBLE
WORKING
POLICY
ACTIVITY
BASED
WORKING
LIGHTING
45
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS IN THE CHANGING WORKPLACE

Co-working is a style of work that involves a shared working environment, often an office, and independent activity.

Keeping in mind rising realty costs, most startups struggle to work in confined spaces. For those “Co-working” is the
best option. This is a relatively new trend in India, though quite popular globally.
 Typically it is attractive to work-at-home professionals, independent contractors, or people who travel
frequently who end up working in relative isolation.

Co-working is an emerging trend in Mumbai office space. Till date there are around 25 co-working hubs In Mumbai,
these hubs include basic facilities like high speed internet, access to printers, scanners, and meeting rooms. Tea and
coffee are available as well. At some of these hubs, there are dedicated areas for workouts, gaming, or simply
networking.
SIX SUCH COOL CO-WORKING PLACES IN MUMBAI:
Colaba Social - Colaba
Bombay Connect Bandra West
The Hive - Khar West
Geekout - Andheri,
West
The Playce - Mulund West
Our First Office - Nariman
Point, Churchgate, Lower
Parel
OFFICE
SPACE
OPTIMISATION
Source: Nielsen Analysis; desk research
46
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS IN THE CHANGING WORKPLACE



Flexible working is simply any working methods that are outside the normal working methods. Flexible working policy
means the employee can work anytime of the day from anywhere as long as he finishes the work in time.
This implies that the working hours, instead of being repetitive and fixed, can involve changes and variations. Also the
employee may choose from where he wants to work.
Few of the common examples are:
 Flexitime: Employees can work anytime in the day but the no. of daily hours are fixed.
 Compressed hours: here the employees work for more hours each working day and reduce the total number of
working days.
 Annual hours: Employees agree they will work a given number of hours during the year, but the pattern of work
can vary from week to week.
 Job sharing: Here the employees share their work and decide between themselves which part of the day and
week will they divide the work.
 Work from home or working remotely is also one of the features of the flexible working policy.
EMPLOYEE
FRIENDLY HR
PRACTICES
Source: Nielsen Analysis; desk research
47
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS IN THE CHANGING WORKPLACE

The use of technology in communication has revolutionized the way business is conducted. Video conferencing tools
have reduced the need to travel to different locations leading to cost & time savings. Also use of EPBAX systems have
reduced the cost on communication.

Green Building initiatives - effective utilization of resources. Offices are built in such a way that that there is more
natural light in the office, improved air circulation, resulting in an increase in the efficiency of the employees.

Lighting plays a vital role in the performance of the employees. Building a good combination of artificial and natural
light may lead to an 5% decrease in the absenteeism.

Also productivity is seen to rise by around 6-8% by changing the lighting combination of the office.

The presence of ample daylight and windows, as well as opportunities for active and passive contact with nature,
sensory change and variability, all have a positive impact on people’s well-being space.
LEVERAGE
TECHNOLOGY
TO ENHANCE
WORKPLACE
Source: Nielsen Analysis; desk research
48
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS IN THE CHANGING WORKPLACE

A trend that’s yet to feature across workplaces in India

This means using the work space optimally rather than having the typical assigned personal space for all
employees.

In an ABW office, that would be a mix of team desks, quiet concentration rooms, telephone booths meeting
rooms & stand up meeting tables, a brainstorming area, multi-media rooms, a lounge area and stand up work
stations.

In an ABW the facilities are shared between coworkers and management and no one has his own desk.

Since 10-20% of the employees are not there in the office on any given day, ABW allows the organization to save
on the cost of real estate and infrastructure.
ACTIVITY
BASED
WORKING
Source: Nielsen Analysis; desk research
49
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
EVOLUTION IN WORKPLACE TRENDS
UPCOMING TRENDS TO WATCH OUT FOR ACROSS OFFICE SPACES
1
Office Space
Utilization
CO-WORKING
2
Employee Friendly HR
practices
FLEXIBLE WORKING
POLICY
3
Employee Friendly HR
practices
ACTIVITY BASED
WORKING
4
Leverage Technology
to enhance workplace
LIGHTING
Source: Nielsen Analysis; desk research
50
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
APPENDIX
EVOLUTION IN WORKPLACE TRENDS
ACRONYMS/ ABBREVIATIONS:
BFSI: Banking, Financial Services and Insurance sector

KPO: Knowledge-Process Outsourcing

IT: Information Technology

Shop-floor: Place of manufacturing in a factory

ITeS: Information Technology-enabled Services

SEZ: Special Economic Zone

Pharma: Pharmaceutical sector

CCTV: Closed-circuit television

Flexi-hours: Flexible hours

ID: Identity proofs/identity cards

e-Commerce: Electronic commerce (online or Internet commerce)

RFID: Radio-Frequency Identification

Sq ft: Square-feet

EPABX: Electronic Private Automatic Branch Exchanges

Q1,Q2,Q3...: Financial accounting quarter 1, quarter 2 and so on.

ABW: Activity-based working
Refers to three-month accounting cycles starting from April of

HVAC: Heating, Ventilation, and Air conditioning
every year, ending in March in the following year. Hence, Q1 would

HR: Human resources
be April-June; Q2 July-September, Q3 October-December etc.

Admin: Administrative
FY: Financial year; so FY15 is financial year 2015 or the accounting

MFG: Manufacturing sector
year 2014-15, starting in April, 2014 and ending in March, 2015

LOGI/AVDT: Logistics and advertising sectors
Demand rate: Incidence of demand for office space by a particular

ARCH: Architects


sector

BKC: Bandra-Kurla Complex (a commercial suburb in Mumbai)

INR: Indian Rupee, India's currency (also known as Rs)

BPO: Business Process Outsourcing (sector)

B2B: Business to Business

LED: Light-emitting diode
52
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
Delivering Measurable Results
Vestian, is a contemporary workplace solutions firm that specializes in providing occupier-focused solutions for
commercial, residential, industrial, retail and hospitality sectors. Our service portfolio includes Integrated Service
Delivery, Project Services, Investment & Consultancy Services, Transaction Advisory Services, Retail Business Solutions &
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We align and measure our key deliverables based on clients' strategic business goals. Our commitment to achieve
excellence and consistency in our service delivery models has helped us attain high standards of quality and raise the
bar for the industry. Our experienced team has the required expertise and exposure in different sectors. Combining
global best practices and local knowledge, the team provides an integrated solution for all real estate requirements.
Moreover, the belief in our corporate philosophy - Delivering Measurable Results - helps us to provide solutions, in
keeping with global delivery standards.
Vestian is certified in both quality management systems and environmental health & safety standards - ISO 9001, ISO
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For more information, visit www.vestianglobal.com/
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