In the world that is increasingly diffusing physical borders due to always online concept, virtual organizations are on the rise. These are very different from the brick and mortar ones. People can now be employed in an organization that exists in a different city, state or even continent and never leave the comfort of their home.
There are many barriers to forming a virtual organization. Yet, with the work becoming highly digitized, many aspects of an office can be performed on a computer that is connected online.
For types of work that are completely computer based, such as a software development team, the trend has shifted towards remote teams. The work primarily consists of constructing wares that are compiled on a computer and can be delivered to seniors or management through the internet. The remote developers can even be freelancers, not a permanent part of the organization, with their services requested on as is and when need basis.
This has numerous benefits over having a dedicated team:
● Remunerations: Having a remote team means organizations do not have to pay for different benefits, such as travelling and food allowances. If the remote development team is a contract or project based, this translates into further savings as not being permanent employee, organizations do not have to pay for insurances, paid leaves, medical or dental plans and even some form of taxes.
● Lower Pay: Depending upon the location and economy of the team or its members, the pay that the organization gives can be far lower than what they would pay for local ones.
● Flexible Timing: With the remote team working in different time zones, they can be more comfortable to work on the assigned tasks and work on it when it is more efficient for them during the day.
● No Relocation: In physical companies, when a talent is found who is not located in the vicinity, the organization has to pay for relocation of the employee. This cost can be significant, with provision of travelling intercontinental, house rent for the family and even education of the children.
● Talent Galore: With the relocation and other factors such as work visa and immigration out of the equation, the organization can select talent from any part of the world. This opens up hundreds, if not thousands of potential candidates that would be otherwise not even considered.
● Multi Cultural Environment: Mostly this is about increasing the interaction of the team. People within the same development team can be from different cultural backgrounds. As they interact on the tasks, they will also begin to have casual conversations, leading to understanding the differences and bringing to appreciate what each unique background delivers to the team and the work. This, over time, increases the cohesive nature of the team and brings better productivity.
There are issues that can affect negatively when selecting a remote team over a local, dedicated one, such as trust, communication barriers, timing and others. Yet, with careful planning, these can be overcome. Once done, the benefits of having a remote development team outweigh the cons and deliver a superior product with higher efficiency and low cost.