The Benefits of Virtual Teams

In today’s hyper-connected world, virtual teams have become a game-changer for businesses, shattering geographical limits and redefining how work gets done.

Far beyond cost savings, virtual teams unlock a wealth of benefits—from tapping into a global talent pool to boosting employee satisfaction and reducing environmental impact.  Embracing this model isn’t just an option; it’s a strategic necessity for companies aiming to thrive.

Let’s explore how virtual teams drive cost efficiency, talent diversity, and enhanced work-life balance, paving the way for greater productivity and success.  But first, let’s make sure we are all on the same page.

What is a Virtual Team?

Virtual teams are groups of people with a shared goal who fulfill their roles with little or no time spent meeting face to face.  Why would you want to do this?

What are the Benefits of Virtual Teams?

The benefits of virtual teams are many.  But here is a list of the 6 key benefits:

• Forms the ideal project team
• Adds specialized expertise to a project
• Saves money
• Improves Stakeholder Buy-in
• Increases employee morale
• Staffs a project 24/7

Form the Ideal Project Team

The main reason you would utilize a virtual team is because the people you want to be on the team are located in different places.  In the past, they would have to travel in order to work face to face for the duration of the project.  However, today they work in their own locations.

A face to face project kick off meeting would be recommended, however after this meeting videoconferencing and web based communications technology are sufficient to allow people to work side by side over the web.

Add Specialized Expertise to a Project

Most projects could use a bit more expertise to ensure their deliverables are of the highest possible quality.  But specialized expertise is hard to find, and when you find it they might not be available to the project.

With virtual teams, you can use an expert anywhere in the world.  And that eliminates the biggest variable.  There is certain to be an expert somewhere in the world that can assist your project, and teleconferencing technology ensures the distance is no longer an obstacle.

Save Money

Virtual teams can utilize the lowest cost labor anywhere in the world.  This provides additional income in developing countries while at the same time making the project more competitive (if it’s in a developed country).  It’s a win-win.  Of course, if virtual teams are used in their full capacity, incomes in the developed country will rise over time and eliminate the advantage.

In addition, virtual teams save money on office expenses.  Some examples are:

• Utilizing home offices for project team members and employees who wish to vacate the centralized project office.
• Using office space that is available from other projects or organizations, such as contractors, consultants and so forth.  That is, subcontractors can work out of their own offices.
• Moving employees into cheaper offices outside of downtown areas (or silicon valley), and maintaining only a small, core group in the centralized location.

Improve Stakeholder Buy-in

Virtual teams can even increase project success by locating critical team members in critical places.  For example, a major supplier might have a representative in the same city as a project team member.  These stakeholder relationships can be a very important element in project success.

Some examples of this are:

• A software development team is located in silicon valley, but the database manager is located in Seattle, where the database supplier is located, thereby strengthening the relationship.
• A new vehicle design team has a member located in the location of a major parts supplier, where many face to face meetings can take place on short notice.
• A large highway interchange project has a team member located in the state capital, where liaison with the applicable government officials (project sponsor, etc.) is easy and promotes strong client relationships.

Increase Employee Morale

Can virtual team employees be happier than traditional ones, all other factors being equal?

You bet.  According to one study, virtual teams can even outperform traditional ones if they are managed right, including strong processes and the right (not just more) communication.

Many employees want the work-life balance that comes with working from home, or working when and where they want (away from the project office).  This work-life balance allows project team members to be happier, which makes them more engaged with the project.

Staff a Project 24/7

In theory, every incremental project team member adds a corresponding amount of productivity, but this is not a universal law.  For example, if production can be maintained around the clock the time spent waiting for other team members to complete project tasks can decrease, raising productivity.

Not many projects have the ability to utilize round-the-clock labor, but those that do can realize significant productivity benefits.  For example, the software industry utilizes 24/7 labor quite frequently.