A global network for a global workforce

A global network for a global workforce

IWG CEO Mark Dixon explains why corporations need a leading international workspace brand to futureproof their office portfolio

In recent interviews with Financial Times and The New York Times, IWG’s CEO Mark Dixon revealed how the workspace needs of corporations are evolving – along with the demand for flexible workspace beyond city centres.

“You don’t want to be the biggest in New York – you want to be the biggest in every state,” Dixon said. “We’ve done every state except Alaska – and we’re doing that now. We like those markets. In a decentralized, digital world you might find your next great analyst, but they don’t have to come to New York City, where it’s costly to live.” Thinking about the UK, he added: “It’s important not to have all your eggs in London and Manchester. Customers are not all looking for space there. Our strategy is one of national coverage. We try and avoid concentration of risk.”

As well as more than 30 years’ experience as a market leader in flexible workspace, IWG’s multi-brand proposition – Regus and SPACES are under its umbrella – helps corporations tailor-make their international workspace portfolios, offering an array of different working environments to suit different departments or regional teams.

As IWG continues its ambitious global expansion – the company currently has more than 3,400 locations in 120 countries across its flexible workspace brands – it’s important to target locations beyond city centres. As the international trend for a more flexible way of working continues, more of the world’s employees are working remotely, or at locations other than a central headquarters. IWG’s franchise model under the Regus brand is an important pillar in its growth strategy, deploying on-the-ground expertise and sharing liability with local entrepreneurs and franchisees.

IWG’s focus on flexspace as a service has allowed it to diversify its revenue streams – and Dixon said that 28% of IWG’s revenue comes from services such as meeting room hire and virtual offices. “Essentially, the space is a break-even business and the profit comes from the services,” Dixon said. “It’s like running a hotel and giving away the room service and having a free bar. You will have a very popular hotel but you won’t make any money.”

What’s more, IWG’s long-standing reputation and transparency with investors and customers alike means it makes a trusted, reliable partner for handling a business’s global workspace portfolio. This trusted relationship is something that cannot be overvalued for corporations who are relying on a provider to not only take care of their international workspace infrastructure and the services that come with it, but to help them grow into new markets.

“Corporations want to have a very reliable partner on the other side of the table,” said Dixon. “Real estate is one of those remaining, very difficult things companies have to do — find space, design space, build it, operate it. They just want space as a service, and if you do it in a shared way, it’s cheaper, it’s more flexible, and it’s not on your balance sheet.”

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