The Prospect of the Virtual Company

Armed with technology at the hip, we as professionals have the capability of becoming a mobile office. Our aptitude for mobility and our access to growing technology has brought with it a vast amount of opportunities, posing greater options and flexibility for businesses. Among these exciting possibilities is the Virtual Company. The concept of the virtual company is certainly not a new one, but something within its scope has changed over the past few years, including a broadening definition and a more attainable prospect.

In the past, virtual companies were reserved for those functioning without a primary physical location, or those that worked strictly with contractors by assembling resources and teams on an as needed basis. This especially meant start-ups with limited budgets. But this is not always the case: virtual company also means that the majority of employees work outside of company “headquarters” and instead telecommute, work out of customer offices, or within small satellite offices. This indicates that the scope of the virtual company is not just about eliminating overhead and managing long-distance; it is also about assuring flexibility and making the workforce more mobile.

The typical profile of a company that goes “virtual” has also taken a shift. It includes start-ups, web-based businesses, corporations, and even large companies employing thousands globally. This profile has also expanded to include companies whose working model revolves around customer sites, and those that do not have a need to create a centralized office identity. As a result, a company can no longer be defined strictly by its virtual status.

There are several factors that make having a virtual company possible, with technology and travel prominently among them. It is no surprise that technology plays such a big role and is in fact what makes supporting a virtually managed business possible. The Internet itself becomes the bridge to a centralized office existing within well-designed and maintained company Intranets. Naturally, communication within virtual companies plays a key role in its success. With video conferencing easily accessible, and even free, phone conversations have become more personal than in the past. Of course, nothing surpasses in-person interaction, which is why travel is a critical and notable factor.

Even if a centralized location is a must for processing company phone calls and mail, or holding internal office meetings, there exist flexible options for the virtual company. One of these options is the Executive Office Suite service. This service provides live phone-service, call forwarding, mail services, and a physical conference room at the ready. In addition, large companies offering this service have offices globally that provide conference room space whenever needed. This particularly caters to the traveling employee who needs flexible office space without the overhead.

There are several pros and cons to existing within a virtual company. One of the greatest benefits is the flexibility of hiring the best without worrying about location. Company leaders can be spread out across the country and, in some cases, across the globe. Virtual companies also tend to partner with other businesses outside of their specialty – such as outsourcing HR or IT – allowing them to focus on their core business. In other cases, being ‘virtual’ encourages company leaders to spend more time physically visiting with their clients, resulting in a stronger relationship and understanding of client needs.

A typical obstacle that virtual companies are continuously working through is communication. This is a common challenge for any company, and even more so for one managed remotely. Ensuring that employees remain in step with company changes and expectations, maintain a high morale, and continue to perform at positive levels can be difficult to manage. Existing challenges experienced by virtual companies are similar to those of a telecommuter, because you do not have regular in-person contact with your manager, colleagues or team, and rely heavily on technology. To overcome these challenges, a company must place a strong emphasis on communication and ensure that enough attention is devoted to it.

With its broadening scope, it is no wonder that a greater number of virtual companies exist now than in the past. Much of this can be attributed to the paths and options that technology has created for businesses seeking higher flexibility. Companies are no longer required to maintain a centralized office identity, and employees maintain the capability of being reachable at all times with their capacity for mobility. The Virtual Company strategy has morphed into a workable and desirable option for companies that have the capacity of fitting it into their business model.

About the Author: Vanina Mangano is the Vice President of Business Development for BHNET Software Solutions, a software development outsourcing corporation based in Southern California. Vanina has extensive experience working with companies who have developed a presence abroad in Asian and European countries. She is also the co-founder of www.MYeFlora.com, an online gardening community.