Sector is flourishing
Global information technology (IT) and social media companies are expanding their footprints in the Asia-Pacific region following the unprecedented growth in social media use in recent years.
Used to a more flexible way of working and looking for a quick, efficient office set-up and low-cost structure to hit the ground running, many IT firms prefer to use serviced offices.
The Executive Centre is one of the serviced office chains benefiting from this influx, gradually increasing its market share in this sector.
'The IT sector, which includes social media companies, accounts for 21 per cent of The Executive Centre's client portfolio. Data from the company shows a remarkable increase of 92 per cent year on year in new business from IT-sector clientele across the Asia-Pacific in last year's fourth quarter,' says CEO Paul Salnikow.
'This is attributable to the flourishing IT sector in Gurgaon and Mumbai in India, and strong demand from IT companies establishing new project teams for 2012 projects that need to be located off site in cities such as Hong Kong and Sydney.'
The Executive Centre manages 900,000 sqft of grade-A prime office space in major business cities across the Asia-Pacific region. Notable clients include Microsoft, Cisco, Google, BlackBerry, Salesforce, Facebook, Twitter and LinkedIn.
Twitter and Facebook are using the business centre at various locations, while LinkedIn has its Asia-Pacific headquarters in The Executive Centre's Singapore office, and has another office in Mumbai.
'It's to connect with users and advertisers directly. From the United States you are not only far removed from Asian culture but also from your clients and advertisers. By setting up in The Executive Centre, you can rapidly deploy your workforce and immediately scale up when the business case supports it,' Salnikow says.
IT companies look for flexible and secure IT infrastructure with fast, effective, hassle-free technology, best-in-class systems, professional on-site technical support and an optimal
blend of hardware, software, storage and networks.
'We are seeing continued strong growth from this segment, especially from China and India, where 27 per cent of our IT clients have indicated their intention to expand this year. Based on our data, I anticipate that IT companies including social media will account for 24 per cent of our client portfolio by the end of 2014,' Salnikow says.