Virtual Offices of the Future

chillibreeze writer — Shweta Sharan

The idea of a virtual office holds exciting prospects for businesses of all kinds, to save costs and expand possibilities. People have different notions of what a virtual office is, and these can include anything, from understanding it as a temporary renting space a virtual business address in a country or a city that doesn't house the company's branch office and a paperless office to an office that is 'on-the-go'. The virtual office is, in fact, an interesting hybrid of all these concepts and more.

In India, many businesses are yet to understand the benefits of setting up a virtual office, apart from fully grasping its possibilities, including its offline and online boundaries, its cost advantages and most importantly, exciting new concepts like Virtual Worlds and how they can traverse the very idea of what we understand as office space. Virtual offices also hold interesting prospects for small and medium businesses, not only in terms of cost savings but also in terms of ease, flexibility, the variety of choices and the reach and the diversity of doing business.

What is a 'virtual office'?

Different people in the world view and use the concept of a virtual office differently. For many, a virtual office represents a business address in a city where their company does not have a branch office, such as Singapore and Mumbai, which are important financial and business capitals but whose high cost of living makes it difficult for companies to run and maintain full-time offices there.

For others, a virtual office is a work-from-home set-up that is every bit as serious and diligent as a full-fledged office in a physical location. This work-from-home set-up will have in-built offices with superior Internet technology, and facilities like Voice over Internet Protocol (VoIP) and video chat. In many companies abroad, the concept of a 'paperless' office renders even a private office room in the house as being redundant – such companies usually have employees whose offices are their computers. These computers can be anything from PCs and laptops to palmtops, and store everything, including client data and work from the present and the past. This also functions as an office 'on-the-go', which means that the employee can just pick up their computers and associated portable accessories and add-ons, and leave for a different city or even a country and still continue with yet another day at work.

For some, a virtual office is a team or a network of individuals working for a company or even a specific team from a big company (IBM and Cisco are doing it already), who work from home. Such people work with superior technology and the right tools to help them be more productive due to time saved because of zero commuting time and other significant advantages.

With a virtual office, a one-man company with talent and skills can appear as big as an MNC in the same field. After all, companies like Google have proved that if one has the talent, then technologies and resourcefulness can bridge gaps and present exciting new opportunities for doing business creatively. Uniformly, a virtual office is an alternative to renting an actual physical office space. Employers can also reduce the commuting time of their employees and give them satisfactory working conditions.

There is no specific sector that will gain more from a virtual office setup versus the other. For instance, manufacturing companies will obviously need an offline presence where they will manufacture their products, but managerial, sales and marketing work can be done virtually, which means that apart from saving on rentals and fuel, they can use the power of technology and the Internet to expand their reach. Apart from businessmen, even architects, consultants, lawyers, marketing managers, designers, accountants and online business owners can benefit. A virtual office is also an option for entrepreneurs who want to test a business location and expand their presence, thereby reducing costs and eliminating organizational hassles.

Virtual worlds are becoming increasingly popular and are interesting ways to take the virtual office idea forward. According to a white paper brought out by Indusgeeks, India’s first and largest Virtual Worlds’ Development and Services Company based in Mumbai, it is estimated that around 550 million registered users of 2D and 3D virtual worlds exist in the world, which will rise significantly by 2011 to include about 80% of the online population. Many companies like IBM and Cisco already have sophisticated virtual office environments, but it is up to companies to come up with better and more cost-effective technologies to make mainstream businesses cash in on the interaction technology wave.

Benefits and hazards

The most obvious advantages of a virtual office set-up cannot be repeated enough. The company cuts costs in terms of real estate and maintenance. Employees cut costs due to no travel and they spend more quality time on their work and with their family. Most importantly, the beauty of the set-up is that it gives everyone opportunities that one would not have dreamed of, decades ago. Housewives can still work or set up their own businesses or offices and working mothers can work from home and spend time with their family. Distances are wiped out and boundaries are expanded in terms of the very nature of working and how creatively it can be done, which makes for a very satisfying experience. There is also relatively less peer pressure.

Above all, the idea of a virtual office expands one's opportunities in terms of doing business, where the fascination for new ideas and resourcefulness is rewarded. The middle class, whose employers can set up the required technological infrastructure in their homes, can benefit with bigger salaries. There is a comfortable working environment, less stress, a more balanced lifestyle and opportunities for freelancers and contract workers. There is also more choice in terms of hiring employees, since physical location is not a constraint.

Enterprises themselves and communication networks will soon get re-organized, and most importantly, it will reduce carbon footprint due to the consumption of less fuel and substantially less electricity. Companies like IBM are coming out with energy-efficient 'green' servers that are becoming the norm of the future. This is not just the next step in the evolution of the Internet but of the business world and society in general.

Possible disadvantages include the lack of social interaction and a sense of isolation among team members, which is detrimental to work but which can be solved by steadfastly working towards common goals and setting targets on applications like Google calendar. Getting rigorously organized this way can set the team its goals and monitor its functioning better. Another issue is security and security concerns over working in a virtual environment, both in terms of the data and the workforce. However, with a combination of the ingeniousness of the human mind and the possibilities that are unlocked by technology, these obstacles can be overcome.

Superior technological infrastructure

Due to a diversified and distributed workforce and due to the need for collaboration in terms of projects and businesses, virtual offices need an immaculate technological infrastructure. Solutions in a virtual office suite should include virtual private networks (VPNs) that allow employees to connect to the company's network through an Internet connection, wireless functions, optimized WAN management that can handle more load and video conferencing and online collaboration facilities. Quality WiMax, for instance, has a tremendous impact on how business is done due to the quality of the connectivity that it offers.

VoIP, routing, policy control technology and video, voice and data applications, apart from a host of hardware and software requirements, play important parts. The quality of the connectivity matters greatly. These details are not difficult to set up and form a worthy investment. Many companies like Cisco have virtual office packages for companies and entrepreneurs. These package solutions eliminate the need for employers to handle, install or troubleshoot the technologies with their 'zero-touch' easy set-up and their automated functions.

A superior intranet facility or a secure virtual private network (VPN) is important to store data and make them accessible to the employees and enable them to connect and share files. 'Cloud computing' or storing and creating 'clouds' of data network online for the whole company to access, is also becoming popular. Less expensive to buy and maintain than the more complicated virtual office solutions, cloud computing enables companies to have their offices online, for access anytime and is especially useful for SMEs. It also serves as a backup, in case data is lost in the employees' computers or otherwise. With many companies like TCS and IBM entering the market, there will be more choices and better prices for SMEs. Google Docs and Google applications are cloud applications, which means that when traveling, you can save time and handle version control of files by storing your documents on the Web and using your own browser as a word processor or an Excel spreadsheet so that you do not have to own the actual office suite and this helps if you are accessing your work from an Internet café. Collaborative applications like Google Notebook compile data and research into an online notebook.

Software as a Service (Saas) includes facilities like calendars, email systems and different kinds of software to enhance online working, collaboration and accounting. For large companies, SaaS is not enough, and so there are complete solutions that replicate virtual office experiences. Many companies have small business versions of these packages, which are more cost-effective and suitable for SMEs and start-ups.

Rental offices, incubation centers and 'plug-and-play' offices

The most common idea of a virtual office, especially in India, is that of offices and addresses to rent on a part-time basis, and hiring rooms or suites for unavoidable meetings and conferences in order to create favourable impressions on partners or clients. Companies like Evoma and Regus have facilities that enable enterprises to avail of physical, offline office space within a day of signing up for the same. These facilities, apart from offering physical space and comforts, provide video conferencing rooms and equipment, training facilities, conference rooms and Internet connectivity.

These facilities can be used as 'plug-and-play' business centers as well, and are also useful as 'incubation centers', as they remove all the obstacles that a start-up company would face, right from infrastructure woes and the lack of proper operational and service staff, to good quality Internet and hospitality services. Apart from this, they also offer a prestigious address, a receptionist who also handles mail and parcels and forwards it to the company, a physical location and, depending upon the package, free use of physical office space for a certain number of days in a month.

Offices whose employees work from their homes or small companies who have workforces that are spread geographically and therefore thrive on 'tele-working' can use these facilities in order to project an impressive image. Suddenly, it has become all about area of expertise as opposed to large set-ups, hierarchies and innumerable administrative functions. Small companies, self-employed professionals and even a one-man company can make use of these facilities, thereby enabling them to operate and compete with other companies, solely surviving on their talent and strengths. In India, many companies are providing such facilities at discounted rates. Alternatively, the beauty of these facilities is that companies from smaller cities and towns across India, which do not have the resources to set up branches in important cities like Mumbai, Bangalore or even abroad, can opt for these facilities.

Online computerized personal assistant services like Highrise, which help manage everything that a secretary does in terms of updating contacts and forwarding emails, are very useful instead of hiring secretaries. With these services, it is possible to perform functions like calendaring, setting up appointments, handling digital voice mail, setting tasks, organizing contacts, documents, presentations, files and notes, networking and sharing contacts and maintaining a history of past employees, clients and collaborations. This means that employees can access both general and specific information about people. Google Calendar is also useful, as it helps employees view one another's appointments and set cell phone alerts. Web sites like GoToMetting, FreeConference or WebEx can be alternatives to rented office spaces, provided these facilities are used and coordinated properly. These tools can also enable people to join in virtual meetings and conferences.

Virtual worlds and events

Indian companies have barely scratched the surface of the concept of virtual worlds and the power that they hold. Already, companies like Sun, Coca Cola and Nike and NGOs like CRY are using the concept of virtual worlds and events, not just to reduce costs and earn carbon credits by lessening environmental impact but also to network better by using the Second Life virtual platform. One of the negative impacts of virtual offices is the loss of social interaction in the offline, real world, in terms of productive collaboration and ideation. Virtual 2D and 3D worlds tend to lessen this problem significantly by reproducing physical office working spaces online. Virtual events can reduce costs by enabling the company to conduct orientations, seminars and training online, through virtual events. Virtual worlds enable users to create 'avatars' that enable them to interact and work in the virtual world.

Apart from significantly saving costs, the concept of virtual events and offices enables the company to earn carbon credits. Virtual worlds replicate physical business networking and working environments, allowing users to experience 3D replicas and representations of offices, meeting rooms and classrooms, as well as 3D representations of the users themselves with excellent interfaces. This enables interaction and the ability to give effective presentations even across long distances and to even exchange and navigate spreadsheets, with superior audio features, heavily dependent on good connectivity. These designs can be customized as per the office's criteria, even as newer and better tools for collaboration and virtualization are being developed, so that working, interaction and training can be easier and more dynamic, thereby contributing to the emergence of virtual business worlds.

Putting together your own virtual office

While it takes the expertise of a big company to put together a virtual office for a large or a medium-sized company, small companies and individuals can use these pointers in order to go forward with their explorations of the concept of a virtual office. Hybrids work well because of their adaptability to the company's situation and ideals.

Applications to get organized, set goals and track targets: The most important aspect that will make your virtual office experience count will be how organized you get. The reason that work-from-home employees are, unfortunately, not taken seriously is the fact that there is a misconception that they tend to work more at an office than at home. One can always rely on applications to get well-organized within one's virtual office, in terms of scheduling, setting goals, tracking targets and sharing and collaboration work. Google Docs and Zoho Office can also operate offline. Google GrandCentral and Skype can replace receptionists and secretaries. Google Calendar can help employers set targets and track the workers' progress. With such applications, which are available for free online, there is a transparency about the work that is being done and how much is actually being accomplished.

Most importantly, co-ordination and integration are necessary. Actual social interaction should not be curbed and employees should be discouraged from being confined to their computers.

Superior technology network: What distinguishes a successful virtual office experience from a failing one is not the amount of innovative software or applications that you get but in the quality of your connectivity and how effectively you use broadband. Technologies for laptops, Internet access and WAN acceleration are important. This is an important investment but there are tangible cost savings. In the case of a small or medium company, connectivity to the main office is important.

Hardware and software needs:

Some offices believe in a ‘paperless’ existence, which means minimizing the use of printers. You should determine the specific software and hardware needs of your business, such as web conferencing, publishing, virtual presentations or organizers, before deciding on the programs that you purchase. Other things to consider are the obvious decisions such as an effective anti-virus program and storage capacities, and whether or not you want wired or wireless Internet. While wired Internet is faster, wireless is preferable for those who are on the move, so it is wise to go for a hybrid, of having both options. Also, laptops are easier on the eyes than PDAs.

Getting a business address: You can get a business address for your office or even a commercial mail receiving agency (CMRA). Instead of going in for the additional services offered by companies who provide virtual addresses, you can go in for a modern phone system that has an interactive voice response or IVR option, which handles calls when you are not around, and diverts calls, apart from being less expensive.

Security tabs: Security is an important issue and it is necessary to keep tabs on the people who are accessing or using the company's database. Apart from this, there are also legal issues to tackle, such as business taxes, parking for clients who might visit you at home and permits to be granted to conduct business at home, although in India, these regulations are more flexible than the local zoning conditions abroad.

Quality monitoring: It is very important to check and monitor the progress of an employee and the quality of his or her work, in spite of being in a different location. Timesheets and tools like Digité can help. It must be mandatory for an employee to fill in work hours spent and to account for these hours. There should also be office guidelines that are stipulated.

With globalization making the world an extremely connected place and with the Internet and other technologies reaching smaller towns and cities across the globe, the actual physical location of the office and commuting become less and less important. More significantly, it is ensuring that anything other than talent, skills, intelligence and aptitude are irrelevant when it comes to working creatively and resourcefully.

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Shweta writes for chillibreeze.

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