Several leading companies in India are adopting asset-light business models, putting expansive IT campuses up for sale.
This reflects a strategy to optimize operational efficiency, reduce costs, and adapt to evolving workforce dynamics, including the rise of remote and hybrid work models.
The asset-light approach involves reducing ownership of fixed assets, such as real estate, and focusing on core business operations.
By divesting non-core assets, companies aim to unlock capital, improve cash flow, and enhance agility.
This strategy has gained traction in the post-pandemic era, as businesses reassess their real estate needs in light of changing work patterns.
Major Players Leading Asset-Light Strategies: Cognizant, Wipro, and DXC Technology
Prominent companies like Cognizant, Wipro, and DXC Technology have been at the forefront of this transformation.
Cognizant, for instance, is reportedly in talks to sell its Chennai campus, a sprawling 13.39-acre property, for approximately ₹1,000 crore.
This move aligns with the company’s global strategy to vacate 11 million square feet of office space and save $400 million over two years.
Similarly, Wipro recently sold a 14-acre parcel of land in Chennai’s IT corridor for ₹266.38 crore.
The decision was driven by the company’s focus on streamlining operations and prioritizing strategic assets.
DXC Technology also divested its 20-acre campus in Bengaluru, which was acquired for ₹400 crore by the Sattva Group.
These transactions highlight the growing trend of monetizing real estate assets to fund business growth and innovation.
The Role of Real Estate Developers
Real estate developers have been quick to capitalize on this trend.
The Sattva Group, for example, has acquired multiple properties, including an 8.5-acre land parcel in Bengaluru’s Export Promotion Industrial Park (EPIP).
These assets are being repurposed for various uses, such as data centers, co-working spaces, and mixed-use developments, showcasing the potential for transformation in India’s commercial property landscape.
Driving Factors Behind the Shift to Asset-Light Business Models
Several factors are driving the adoption of asset-light models.
The rise of remote and hybrid work has reduced the need for large office spaces, prompting companies to optimize their real estate portfolios.
Additionally, the asset-light approach allows businesses to convert fixed costs into variable costs, enhancing financial flexibility and resilience.
Experts also point to the benefits of agility and scalability.
By shedding non-core assets, companies can respond more quickly to market changes, technological advancements, and new opportunities.
This adaptability is crucial in an increasingly competitive and dynamic business environment.
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