Mangaluru is witnessing a surge in demand for managed workspaces, a trend that accelerated post-pandemic as many professionals who returned to their hometowns during Covid-19 are now opting to stay. According to Gurudutta Shenoy, managing partner of Vertex Workspace, companies both in India and abroad are pushing for employees to return to offices. However, many professionals who embraced the Mangaluru lifestyle during the pandemic are reluctant to leave. “Some are willing to take pay cuts for the lifestyle Mangaluru offers, which metro cities cannot,” said Shenoy.
Mangaluru, known as an education hub, produces around 20,000 STEM graduates annually, helping the city retain talent. “During Covid-19, we assured professionals of reliable office space, and it paid off,” he added. Vertex Workspace now hosts 35 companies, with 60% of them in IT and 40% managing backend operations for parent companies. The demand for office space in Mangaluru is being further driven by European and Saudi-based companies attracted to cost-effective solutions.
The city’s IT workforce, currently around 25,000, is expected to quadruple to one lakh in the next five years. To meet this growing demand, nearly 10 lakh sqft of workspace is in the pipeline. Local builders are collaborating with companies to offer managed workspaces, anticipating a boom. Shenoy shared that over the past two decades, Mangaluru had 18,000 IT seats. However, post-Covid, 9,000 seats were added, and another 10,000 are expected this year.
Rohith Bhat, founder of wrkwrk, 99Games, and Robosoft, highlighted the shift toward managed workspaces. He noted, “Companies that once leased properties directly are now moving towards managed workspaces. This change is evident as workspaces shift from small buildings to entire buildings exclusively designed for IT/ITES/GCC operations.”
wrkwrk alone plans to add 1,500 more seats, with the first dedicated managed workspace building for IT companies set to open in Mangaluru in July. Bhat also pointed out that the IT workforce in Mangaluru has grown significantly, with 3,000 new additions in 2023 and another 5,000 expected this year. “This proves that if we provide world-class workspaces in smaller cities, companies will follow,” he said. Bhat stressed the need for government support in facilitating this shift, as it offers a viable solution to the overcrowding of big cities while maintaining career growth and quality of life for employees.
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