The ITeS sector has resumed its growth after a downfall due to the recession in US. Several companies have started hiring at campuses as they did a few years back. With India signing several agreements with other nations and with increased investment from international companies, the sector has begun to regain its foothold on the economy. IT giants such as TCS, CTS, Infosys and HCL have shuffled their workforce in recent years.
They have started recruiting graduates in huge numbers to train them for future requirements. The growth of small companies in this sector has also been very high. Several success stories in the SMEs have encouraged young talent to start their own software companies. With an expanding IT sector, there is also an increase in the demand for office space.
IT parks are huge and usually filled with shared office space by different companies. Even big players such as TCS and Infosys have started using rental space instead of constructing their own. It is very common to see such companies rent an entire floor in most of the IT parks in the city. This helps them is spreading their workforce in several locations. It is very much useful for them as a disaster recovery strategy and protects also from single point of failures such as with power and internet. Having a rental place helps them concentrate on their core business while not worrying about the infrastructure themselves.
Tata Consultancy Services (TCS) is one of the giants in Indian IT ITeS sector. It has several offices throughout the country and has huge employee strength. The headquarters of TCS is located in Mumbai and it also has another 18 other offices in Mumbai and Thane. TCS is supposed to have generated a revenue of about $15.5 billion during the last financial year till the end of March 2015. TCS has now decided to extend its base over 2 million square feet of built-in office space in Thane.
Talks had been going on for the last two quarters with Hiranandi Constructions over this deal worth several hundred crore. It has been reported that TCS has planned to lease this office space for the next 15 years. This would the single largest space transaction that has taken place in India until now. Plans to extend this deal to another 2 million square feet are also on the cards.
The Indian ecommerce leader Flipkart had earlier rented such a ready-to-occupy office space in Bengaluru this May. However the transaction was carried out in two phases. The custom-built office belonging to Hiranandi constructions will provide space for 30,000 employees and will cost between Rs 50 – 55 per square feet.
Once the deal is signed, Hiranandi constructions will have to provide the space to TCS within two years. Mumbai has experienced an increased absorption of office space during the quarter April – June compared to the first quarter of the year. Much of this has been occupied by BFSI and IT ITeS sector which accounts for over 1.91 million square feet. The recent changes to IT ITeS policy by Maharashtra government will help TCS benefit even more from this deal.
Author Bio:
Shamsudeen works in a property investment firm and his profile includes studying market trends and advising customers about making the right property purchase decisions. He shares his views on real estate on Indiaproperty.com
No comments:
Post a Comment