India’s offshoring industry is fueling a surge in office space leases, now accounting for over 46% of the market. Companies increasingly seek Grade A spaces in metro cities like Bengaluru, Mumbai, Hyderabad, and Pune, driving demand for high-quality, sustainable office spaces.
India’s offshoring industry is experiencing a significant surge, propelling the demand for office spaces nationwide. According to a recent report by Knight Frank, over 46% of office space leases in the country are now driven by the offshoring sector. This booming trend underscores the growing influence of offshoring and its critical role in reshaping the Indian commercial real estate landscape.
Cities like Bengaluru, Hyderabad, and Pune are at the forefront, experiencing heightened demand as offshoring companies expand their operations. These firms are strategically harnessing India’s vast pool of skilled professionals, focusing on cost-efficiency and talent acquisition to strengthen their global operations. “The offshoring boom is not just altering the demand dynamics but also the quality expectations for office spaces in India,” notes a senior analyst from Knight Frank.
This shift has prompted developers to concentrate on constructing high-quality, sustainable, and technology-enabled commercial properties. Offshoring companies’ preference for Grade A office spaces is shaping market offerings, ensuring that these spaces meet specific business needs while promoting overall standards in commercial real estate.
Moreover, the rise of remote work and flexible office solutions further influences the market, with an increased demand for co-working and serviced office spaces. Offshoring firms seek agile and scalable workplace solutions that adapt to dynamic business models and workforce arrangements.
As India continues to attract multinational corporations and global players looking to outsource their operations, the commercial real estate market is evolving to meet these new demands. Stakeholders across the industry are adapting and positioning themselves to capitalise on the opportunities presented by the thriving offshoring sector, which promises sustained growth and innovation in the market.
About Indian Offshore Market
The Indian offshore market is renowned globally, predominantly in the information technology (IT) and business process outsourcing (BPO) sectors. This market leverages India’s cost-effectiveness, highly skilled workforce, and proficiency in English to deliver a range of services, including software development, customer support, and back-office operations. Significant cities like Bengaluru, Mumbai, Hyderabad, and Pune are hubs with robust infrastructures supporting this thriving industry.
Despite facing challenges such as data security and global competition, India continues to hold a significant position in the offshore market due to governmental support initiatives like Digital India.
With advancements in digital services and an emphasis on innovation, the Indian offshore market is poised for continued growth, adapting to new technologies and expanding its global footprint.
