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Sunday, March 18, 2018

Physical offices heading towards irrelevance

Quite a number of local firms have begun to make the transition, says MEF
Shamsudin says it seems that the office will eventually become irrelevant.
PETALING JAYA: Malaysian Employers Federation (MEF) director Shamsudin Bardan foresees a time when an appreciable number of Malaysian companies will run their operations through cyberspace and won’t see any need to have physical offices.
He told FMT the number of local companies already making the transition was quite significant.
Although this transition was still at its beginning stages, he added, it would be reasonable to expect them to dispense with physical facilities altogether in the foreseeable future.
“It seems as though the office will eventually become irrelevant,” he said.
Speaking of companies that were reluctant to make the move, he said they were clinging to the belief that clients or customers would lose confidence in them if they didn’t have a physical presence.
He said one of the advantages of running a business online was that it would be cheaper than doing it from a physical office. “For example, there will be no rent to pay.”
A business owner who already runs his company completely online agreed that it was a cheaper option.
“The cost of running my business is roughly 40% of the profits that I make,” said Mohamad Shazlan Ghazali, whose main business is public relations.
However, he said the snag was that it was difficult for him to hire interns.
“Most universities still require that the company have an office if an intern is to work there.” -FMT

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