Pros and Cons of Seat Leasing in the Philippines

There are many different ways to start or grow your business. Traditionally you select a location, buy or rent the space, get the infrastructure all set up, maybe furnish it a bit, then begin hiring. With all the different services available for businesses now, business owners don’t have to follow that usual flowchart.

Through seat leasing, recruitment can be done first. If a business just lost its location, seat leasing easily allows them to find a replacement office and be up and running faster than ever before.

What is Seat Leasing?

Seat leasing, also known as incubation, is considered a turnkey service. It essentially is the renting of already set up infrastructures to others who need the space. In the BPO world, imagine having access to the same tools as an already established BPO without the same overhead cost. While the exact specifications of each setup will differ from each provider, you generally will have a place to work and have plug-and-play setups ready for your staff.

Pros

Pricing:

One of the biggest draws to seat leasing services is the amount of capital you save by not buying and setting up your own office. While you will need to contact each potential seat leasing provider to find out exactly what you get at different price points, you can rest easy knowing that it will only be a fraction of the cost of owning or renting your own place. Monthly costs such as electricity, water, equipment, etc are all easily managed as the BPO providing the seat leasing will only send one bill with a breakdown.

Easily Customizable:

One of the biggest advantages of seat leasing is the ability to customize or extend the service. This means that you can start off with a single seat. If you only have one staff member who needs a station, it’s entirely possible to avail of a single seat. When you decide to ramp up and hire more people, you can upgrade to lease more seats and the price you pay will be adjusted.

In addition to more seats, the specifications of PCs can also be customized. For jobs that require more powerful PCs, arrangements can be made with the seat leasing provider to source more powerful hardware. If your staff needs additional services such as IT assistance, most places have a package that offers IT, HR, and recruitment services for additional fees.

Location:

The vast majority of places in the Philippines that offer seat leasing are situated in popular BPO locations. This brings benefits to those looking for the service. One such benefit is the ability to shop around more efficiently as there are many different locations to visit within a specific area. Another benefit of these BPO hubs is the availability of employees. When your company is ready for growth, hiring additional staff is a breeze (depending on the type of staff).

Cons

Search Time:

Finding a partner with the best rates and offerings within your budget might take time. This is all dependent on how much you’re willing to invest and what you’re looking for. If you have a big budget and the space available is amicable to you, your search for a seat lease won’t take long. On the other hand, if your budget isn’t as high as other startups, finding a place to lease seats at a reasonable price might take a while.

Sharing Space:

Amenities such as a lunchroom, conference rooms, restrooms, etc will all be shared spaces. This means that any other companies that lease seats or any of the staff in the same office as you, will have access to the same amenities. This isn’t necessarily a problem as all offices, in compliance with the new regulations regarding COVID, disinfect their offices regularly.

Rules:

As you don’t own the space, you will need to follow the rules set by the company providing the seat leasing. Familiarizing yourself with these rules may take time and you may not agree with some of the rules. Failure to comply with these rules may result in not being able to extend your lease.

The Wrap Up

While seat leasing gives startups the ability to begin their campaigns right away at a fraction of the cost of buying or building their own building and infrastructure, it does have its trade-offs. Finding a place that allows your business to thrive and grow may take some time, and you will not have the privacy that a privately owned building would provide. There is always someone offering the same type of service you need, all it takes is a little research and legwork to find the right people to partner with.

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