The development of artificial intelligence (AI), hybrid working\npatterns, and increasing global economic uncertainty are changing the\nway companies view their office space requirements. Where firms\npreviously tended to commit to long-term lease contracts, a growing\nnumber of corporations are now opting for flexible workspaces deemed\nmore adaptable to business changes.<\/p>\n
Senior Vice President of IWG Asia Pacific, Lars Wittig, assesses that\nthis transformation is no longer just a post-pandemic trend but a\nstructural change that will shape the future of work. He estimates that\nwithin less than a decade, around a third of workspaces worldwide will\nhave shifted to a flexible model. \u201cToday, perhaps less than five per\ncent of all office space is flexible. In less than 10 years, about a\nthird of workspaces will be flexible in one form or another,\u201d Wittig\ntold Republika.<\/p>\n
He explained that the change is driven by the increasingly widespread\nadoption of hybrid working patterns. Employees no longer need to commute\nto a central headquarters every day, as many tasks can be completed from\nlocations closer to home or from shared workspaces that offer\nprofessional facilities. According to Wittig, this shift is also evident\nin Indonesia. IWG, which operates several flexible workspace brands such\nas Regus, Signature, HQ, and Spaces, has been present in Indonesia for\ntwo decades. The company currently operates 56 business centres and is\ntargeting an increase to 62 locations by the end of the year.<\/p>\n
For Wittig, this growth reflects a change in the behaviour of both\ncompanies and workers in choosing where to work. He cited the example of\nmany workers living in Jakarta\u2019s satellite cities who previously had to\nspend hours commuting to the central business district. With the\nexpansion of flexible workspaces in various locations, workers now have\nalternatives that allow them to work in a professional environment\nwithout undertaking long journeys every day.<\/p>\n
Beyond providing flexibility for workers, the change is also\ninfluenced by the accelerating pace of business dynamics. Wittig noted\nthat companies today find it far more difficult to predict their\nbusiness needs compared to a decade ago. Technological change is a\nprimary factor, and he assessed that the impact of AI is even greater\nthan the combined effect of the personal computer, internet, and mobile\nphone revolutions in recent decades. \u201cAI is bringing more change in a\nmuch shorter time than all previous technological changes combined. The\nspeed of change right now is extreme,\u201d he said.<\/p>\n
In addition to technological developments, the business world is also\nfacing various geopolitical and global economic uncertainties, ranging\nfrom trade wars to shifting trade policies between countries. These\nconditions are making companies more cautious about making long-term\ninvestment decisions, including those related to office space provision.\nAccording to Wittig, in such a situation, companies can no longer\naccurately predict how many employees or how much workspace they will\nneed in one, three, or even five years\u2019 time. Flexible workspaces are\ntherefore seen as a solution that allows companies to adjust office\ncapacity in line with business developments without being burdened by\nlong-term contracts.<\/p>\n
Wittig revealed that this phenomenon is no longer confined to\nstart-up companies but is now also occurring among large global\ncorporations. He disclosed that around 83 per cent of Fortune 500\ncompanies have used IWG services in various countries. \u201cIn the past,\nflexible workspaces were synonymous with start-ups or companies testing\nnew markets. Now, large companies are also using them because they can\nno longer predict the future with certainty,\u201d he said.<\/p>\n
Wittig believes this change will continue as the need for more agile\nbusiness models grows. In a rapidly changing economic environment, the\nability to adapt is becoming a crucial factor in maintaining\ncompetitiveness. He is convinced that the future of work will no longer\nbe determined by the size of an office building a company owns, but by\nthe organisation\u2019s ability to provide a work environment that is\nflexible, collaborative, and capable of keeping pace with technological\nchanges and employee needs.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ai-and-hybrid-working-are-changing-how-companies-lease-office-space-1782744713", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }