India The demand for workplace is increasing. This means that there is more demand for office space from companies. According to a report by Knight Frank, this demand is increasing due to multinational companies outsourcing jobs to India. World Capacity Center and third party IT service providers have contributed 46 percent of the total lease in 2023. Real estate advisor Knight Frank in its report ‘Asia Pacific Horizon: Harnessing the Potential of Offshoring’ said the offshoring industry in India has evolved into a leading global service provider, accounting for 57 per cent of the global offshoring market.
What is offshoring market?
The report noted that the offshoring market involves companies outsourcing business processes or services to external providers based abroad with the aim of taking advantage of cost savings, specialized skills and operational efficiencies. Also known as business process outsourcing (BPO), the offshoring market includes various models such as global competence centers (GCC) and global business services (GBS). The GCC Offshore Place houses international units set up by companies. Whereas GBS consists of centralized service delivery units providing a series of services on a global scale.
It has an important contribution in the Indian economy.
The report said that the offshoring industry in India is expected to witness a total leasing volume of 27.3 million square feet (sq ft) in 2023, a significant growth of 26 per cent over the previous year. Offshoring covers a wide range of services, including IT outsourcing, research and knowledge process outsourcing along with other service process outsourcing. India hosts about 42 per cent of global companies that seek end-to-end business offshoring solutions from the country. The offshoring industry contributes significantly to the Indian economy.
(With PTI inputs)
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