Seat Leasing

What is seat leasing?

Seat leasing is a business arrangement where a company leases office space, specifically desks or workstations, to a seat leasing provider. This concept is common in shared office spaces or coworking environments.

In a seat leasing arrangement, the lessee (the company or individual renting the seats) gains access to fully equipped office space amenities such as:

• Desks
• Chairs
• Internet connectivity
• Reception
• Administrative support
• Conference room access

This model benefits startups, freelancers, or small businesses that may not want to commit to a long-term lease or invest in setting up their own office space.

The lessor (the company providing the seat leasing service) manages the shared office space.

Lessors offer a convenient and affordable option for businesses seeking workspace without the extra expenses of a regular office setup.

BPO seat leasing has become popular in most companies due to its flexibility, cost efficiency, and the opportunity for networking and collaboration in a shared workspace.

2 common seat leasing services options

There are various methods of seat leasing in different countries. However, it usually involves offering customers two options:

Warm seat leasing

Warm seat leasing involves renting seats or workstations with preexisting infrastructure and technology used by another tenant or user. This type of leasing is great for those who want a quick office setup without investing a lot initially.

It saves time and resources but might not offer as much customization compared to starting fresh. Also, the condition of the existing infrastructure should be considered.

Cold seat leasing

Cold seat leasing refers to an arrangement in which the leased seats or workstations are provided without any existing infrastructure or equipment.

In this setup, the lessee is responsible for furnishing the workspace, installing necessary equipment, and setting up the infrastructure required for their operations.

It essentially provides a blank canvas for the lessee to customize the workspace according to their specific needs and preferences.

Seat leasing in the Philippines

In the Philippines, seat leasing is particularly widespread in cities like Manila and Cebu, where the business process outsourcing (BPO) industry thrives.

The next level of outsourcing is staff leasing, where the BPO company is contracted to provide the staff needed by the business.

Outsource Accelerator‘s directory lists over 4000+ outsourcing companies in the Philippines. These companies are carefully selected for their innovation, expertise, and technology, which will benefit our clients.

We also guide you on the best seat leasing options you can get in the Philippines for your business.

By leveraging call center seat leasing in the Philippines, companies can gain a competitive advantage, streamline operations, and access a diverse talent pool, ultimately enhancing their overall business performance.

What are the benefits of BPO seat leasing?

There are several reasons why leasing a BPO seat is advantageous and the best investment a company can make.

By leasing office space instead of purchasing it, companies can significantly reduce overhead costs and allocate resources more strategically.

This allows organizations to focus on core business activities while the outsourcing services provided through BPOs handle non-core functions such as customer support, data entry, and IT support.

Here are some numerous advantages of seat leasing:

For startups and SMEs

Startups and small and medium-sized enterprises (SMEs) are allowed to access a fully equipped workspace without the need for substantial upfront investments in infrastructure.

Here are the benefits of BPO seat leasing for startups and SMEs:

Cost efficiency

BPO seat leasing is cost-efficient and beneficial to small and medium enterprises. A company’s location is a valuable resource, especially in urban areas.

With established companies willing to occupy any space to continue their business operations, rental costs are continuously rising.

Seat leasing solves this dilemma for SMEs and start-ups. The monthly payment for seat leasing services is cheaper than renting traditional office space — one that is seen as a luxury for start-ups and small businesses.

Up-to-date equipment

Outsourcing providers have specialized office desks and workstations equipped with modern hardware and software to meet customers’ needs.

Their computer networks also operate with advanced software that ensures the safety of your company’s confidential data.

Moreover, any dedicated office space, hardware, or seat leasing equipment is designed to promote productivity and ease in doing business operations within a seat leasing facility.

Location flexibility

Startups and SMEs can choose the location of their operations without the constraints of property ownership.

This flexibility enables them to establish a presence in strategic locations or areas with talent pools without a long-term lease or property ownership commitment.

Reduced administrative issues

BPO providers often offer administrative support services, such as HR assistance, IT maintenance, and facility management.

This allows startups and SMEs to focus on core competencies while relying on the expertise of the BPO partner for non-core functions.

For established organizations

It may seem unlikely that established call center companies would need to lease office space outside of their own, but several BPO companies do.

Additional capacity

Even the largest BPO companies with entire buildings can find themselves in need of additional capacity to run their business. Several companies rotate their workspaces in shifts to give all employees their own desk space.

Call centers can rent out a coworking space for their employees. Employees can bring their own devices and use the rental desk and internet connection through seat leasing.

High-ranking employees with company-issued laptops who might have to work longer hours will benefit from this arrangement.

Additional services

Another attractive feature of seat leasing is that it lets property owners and employers add additional services for the workers.

Features like game rooms, vibrant meeting rooms, quality furniture, and the availability of pantries all cater to an employee’s satisfaction in the workplace.

This helps promote comfort, productivity, and satisfaction for employees within a company.

Easily expand operations

Big companies can scale their operations up or down through seat leasing, depending on the market demand. This means that they do not need to find another office space, rent it, and fit it with the equipment needed for the job.

With seat leasing, companies only need to hire a seat leasing partner and immediately move the rest of their operations into the leased spaces.

Geographical expansion with minimal risk

For outsourcing companies looking to expand into new markets or regions, BPO seat leasing provides a low-risk entry strategy.

It allows them to establish a presence in different locations without the complexities of property acquisition or long-term leases.