Quick comms fix for the temporary office - Regus Business Centre

CommunicationsWeek International, Feb 15, 1999 by Annie Turner

Pulling together all the services for a short- or medium-term office, especially in a new territory, is a job best left to a buildings services outsourcer.

If you're an an upstart that needs an office in Prague for one afternoon, or a multinational that wants a regional base with full communications facilities for six months, the quickest way to get up and running is to employ the services of an emerging breed of outsourcer-the buildings facilities management specialist.

One such company is Staines, England-based Regus. Established 10 years ago, it has 210 business centers in 41 countries-predominantly in Europe-and caters for all types of companies, from one-person startups to the world's largest companies. It provides fully furnished, serviced offices: Switchboard operators are multilingual; communications services and physical mail are provided and managed; and the offices are cleaned and maintained.

"It is as easy as checking into a hotel," claimed Colin Peck, a spokesman at Regus. 'Unlike with a short-term lease-assuming you can get one-there are no hidden costs. The only things you pay for on top of the Regus fee are for telecommunications use and mailing"

At any one time, according to the company, more than half of Regus's user base comprises multinationals. customers past and present include Orange plc, Nokia Oyj, Belgacom, Andersen consulting, and Thomas cook Financial Services.

A basic package of IT and telecoms service is offered to all customers, including voice, fax, e-mail and secure Internet access, said director of IT Duncan Scott, and each building is cabled to provide "instant" networks and printing facilities. "Our core service allows customers to walk in, plug in and go," said Scott. More advanced comms services are available, as is any hardware, and customers can add a ha carte to meet their needs, he added, though "a lot of customers like to bring their own equipment with them."

Regus sets up and manages the relationships with local service providers, though customers are free to go it alone if they wish.

In addition, the company's Global Support centre is open all day every day and provides customers with a Help Desk, plus remote network management services. On-site support is provided within four hours during normal business times, and IT consultancy is available at all sites.

Tough task

Peck admitted that providing this level of service is not easy. For example, its global partnership with high-tech service provider ITS, part of Equant NV, was short-lived. ITS was responsible for IT infrastructure in all Regus centers, but, according to Peck, "ITS didn't deliver service up to our standards, so the partnership only lasted three or four months. Everything kept crashing. We had our reputation to think of, and we're only as good as our service suppliers."

Scott, who only joined Regus from city of London law firm Allen & Overy at the beginning of the year, is in the process of securing new partnerships to provide "better equipped and more focused" service.

Cost-effective

At present, Regus is best suited to customers looking for a "medium term" deal. "Until now, the typical length of a customer using our business center as a base is six months," said Peck. "For a period of up to two years, using us is always cheaper than conventional leasing and kitting an office out yourself. Plus, if you take a six-month contract out with us. you can move bases mid-contract if you need to, but after two years Regus is not necessarily economic for a company with 50 to 100 people."

This was highlighted in a report published 18 months ago by Stamford, England-based organization The chartered Institute of Purchasing and Supply (CIPS) tided Breaking Down Barriers To Entry. As a result. Regus is now taking steps to be an economic long-term option as a well as a fast, cost-effective, short-term fix.

And as a result of recent investment by a consortium of U.S. companies, Regus is planning to expand its presence in Asia and North America: "We'll be in 58 countries by the end of 1999," said Peck.