Given the Indian economy could well contract in 2020-21, following the disruption to the pandemic, even bigger companies might encourage some employees to work from home. For small businesses there might be no other option.
With revenues drying and receivables piling up, several small firms are fast switching to a work-from-home model to save on rent. The managements at these firms reckon that teams of anywhere between 10 and 100 people should be able to function effectively enough even if they don’t meet everyday.
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Pranshu Sikka, founder and CEO at marketing consultancy The Pivotals, has already told his landlords in Noida the firm is moving out and says he will soon take a call on co-working spaces in Mumbai and Bengaluru. “We need to conserve cash and saving on rent is one way to do this,” Sikka said, pointing out he’s not sure if the firm will be able to recover the dues which are now close to a third of the annual revenues.
Kewal Kapoor, director, Chai Kreative, an advertising and consulting company, said the firm may altogether give up a physical office and slowly transition to using video-conferencing and other telecommunication facilities. Kapoor pointed out that with receivables having risen to about Rs 3 crore and revenues having halved, it would make sense to give up the offices in New Delhi and Mumbai. “Rents account for about 8% of revenues and we can use the money elsewhere,” Kapoor added.
Source: Financial Express
