By Deepti Gelli, Head of Demandbase India
As India emerges from the pandemic, companies across the nation—particularly within the technology sector—are deeply engaged in discussions about the future of work. The debate revolves around balancing the flexibility of remote work with the structured benefits of office work. This article explores the benefits and challenges of each model and highlights the hybrid approach many organizations are adopting as a middle ground.
The Rise of Remote Work In India: India saw a significant shift toward remote work during the pandemic, transforming how organizations operate. Companies have quickly adapted by investing in digital infrastructure and remote collaboration tools.
Numerous fully-remote Indian companies reported enhanced productivity with fewer distractions and reduced commute times. This model offered substantial cost savings, from reduced real estate expenses for the company to lower transportation costs for employees. The pandemic also influenced companies to tap into talent from smaller cities, allowing tech firms to expand operations to reduce costs and access a broader talent pool.
Work from Office – The Traditional Model’s Strengths: While remote work offers flexibility, many Indian companies advocate for a return to the office. The physical office environment fosters collaboration, encourages team cohesion, and preserves company culture—factors that remain integral to India’s unique work culture. The office provides a structured environment that supports tasks requiring coordination, rapid feedback, and minimal distractions. Some companies prefer in-office work for stronger communication and team accountability.
A recent Randstad India study revealed that approximately 46% of firms are pushing for a complete return to office, while only 16% continue to offer work-from-home options. Concerns over productivity, team cohesion, and preserving corporate culture often drive this stance.
Hybrid – The Best of Both Worlds?
As companies and employees experience the benefits and challenges of both models, hybrid work has emerged as a balanced approach. This model allows companies to offer flexibility without sacrificing the in-person benefits of traditional office settings. Hybrid work combines the flexibility of remote work while supporting in-office productivity and collaboration. Many organizations have tailored hybrid models based on roles and functions, providing flexibility where needed. It balances the risks of burnout from prolonged remote work with the benefits of periodic office visits, mitigating isolation and encouraging social interactions.
According to a report by NASSCOM, nearly 70% of organizations in the tech industry have adopted a hybrid work model, with 85% of India’s tech workforce operating remotely or in a hybrid setup. Many companies see hybrid work as a long-term strategy that meets evolving employee expectations without compromising organizational needs.
Challenges of Remote and In-Office Settings: Each of these models, however, come with their own challenges. Remote work poses challenges such as digital fatigue, employee isolation impacting productivity and mental health, and security concerns. In-office work brings issues like long commute times, health risks in crowded spaces, and rigid schedules that can hinder productivity. Hybrid work, while balancing flexibility and in-person collaboration, presents coordination complexities and risks of perceived inequality, as employees present in-office may appear more visible and engaged.
Perspectives Across Sectors: In India, different sectors have adopted varied approaches to work models based on their unique requirements. The technology and IT sector has widely embraced remote and hybrid models, prioritizing flexibility and cost-effectiveness. In contrast, banking and financial services often prefer in-office work to meet compliance, security, and client interaction needs. Manufacturing roles generally require physical presence for hands-on tasks, making in-office work essential, although some non-essential roles have shifted to hybrid setups.
Conclusion – The Road Ahead
India’s workplace landscape continues to evolve, with companies adopting varied approaches based on operational needs, employee preferences, and strategic goals. Demandbase, for example, shifted from a fully remote setup to a hybrid model in its Hyderabad headquarters. While remote employees aren’t required to relocate, the company is considering additional hubs to support a hybrid approach and provide in-office opportunities for those who are not located near Hyderabad. While the company is committed to our current hybrid approach, we believe in continuously reviewing what works best for both the business and its people and adjusting accordingly where appropriate.
As the debate between remote and office work continues, each organization’s journey will hinge on its unique needs, from achieving business goals to accommodating workforce demographics and regional demands. Companies that remain flexible and responsive to these needs will be best positioned to thrive in the coming years.
Also Read: 1 in 3 Indians saving up to Rs 5K a month due to work from home
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