Hybrid here to stay; only 40% office space needed: Tech Mahindra's CP Gurnani

The day-long work calls over Zoom and Teams meetings are here to stay for good. India Inc. seems to be betting on a hybrid work model in a post-pandemic world — thanks to technology that has somewhat blurred the lines between a physical and virtual workspace.

“The world of work has changed. Artificial intelligence, automation, security, distributed platforms... is a given. Hybrid is here to stay. Technology has proven it. It is just a matter of which functions, areas require much more interaction,” says CP Gurnani, managing director and CEO at Tech Mahindra.

The IT firm expects to utilise less than 50% of the company’s office spaces in the coming months. “My own reading is that it will be more like 40%. If for every employee, I used to provide 150 square feet of space, I am now going to give them only 60 square feet because I can do the flexi working,” says Gurnani.

While the hybrid work model certainly gives companies the flexibility to save up on hefty real estate costs, it has also enabled companies to onboard skilled talent from tier two and three cities at cheaper rates. For instance, the average employee costs in tier two cities can be lower by as much as 15%, executives at Tech Mahindra had indicated at the company’s Q3FY22 earnings call.