In fact, when Harvard Business Review contributor Keith Ferrazzi’s firm, Ferrazzi Greenlight, surveyed knowledge workers, they found a staggering 79% reported working “always” or “frequently” in dispersed teams.
Thanks to technology advances, pressure to innovate, and a tight labor market, organizations are looking to virtual teams for the flexibility and brain power needed to thrive in a very competitive landscape.
Development on demand: When and where it’s needed
Virtual teams are appealing for everyone. Organizations can source top talent in the locales that make the most sense to manage their software development costs and quickly assemble global software development services to enable cutting-edge software and web development at a fraction of the cost.
Saving on average software development costs
The overhead for equipping virtual teams with the cutting-edge technology they’ll need to do their jobs well (think web cams, laptops, and business-level Internet speeds) is pretty minimal compared to the cost savings.
For one, organizations can source virtual team members strategically. For example, a business looking to transform its HRS Talent management system may outsource the related software development projects to a team in Mexico, saving on talent cost without having to sacrifice skill or expertise, but keeping the project manager overseeing the project in the United States.
Saving on operations costs
With a virtual team, the organization also alleviates rent costs. And organizations that appreciate virtual teams enable their employees to mitigate commute time and costs, benefitting individuals in direct time and money savings, and then benefitting the business again through better retention, which in turn saves recruiting, hiring and training costs.
Challenges for virtual teams
Early research on virtual teams, such as professors Vijay Govindarajan and Anil Gupta’s 2001 study of 70 teams, indicated individual virtual teams can feel unsuccessful. In this particular study, 82% of teams missed their goals and a third rated themselves unsuccessful. Later studies would go on to report missing the mark for client requirements in most cases, and some virtual teams have reported that collaboration technology can overwhelm.
To unlock the most value from their virtual teams, organizations must intentionally design and actively manage them to avoid these potential pitfalls.
And here is the good news: an Aon Consulting report found virtual teams can actually improve employee productivity – by up to 43% in some cases.
Virtual team management
With a strategic outsourcing partner, organizations are often relieved of the burden of virtual team management. But regardless of who is establishing the ground rules, a clear plan for the virtual team must be laid out, including:
- Review. Establishing a probation period and conducting a performance review for each employee ensures all team members are strong contributors.
- Training. Just as employees are regularly coached in an office, virtual team members should also receiving organizational training and regular coaching touchpoints with managers.
- Accountability. Team leaders must establish performance metrics, evaluate team performance, and ensure the project stays on schedule and in budget.
Building a dream team
Virtual teams, perhaps even more so than teams located together in a single office, must be able to communicate well, divide labor, and stay on track. From the outset, organizations that assemble teams well can set them up to unlock better productivity or success. Key considerations include:
Hire the right people.
Team members must be able to communicate well, work independently, and work well with others.
Keep teams lean.
Massive teams can introduce a slew of new issues, include exclusive communication or a lower sense of responsibility. Not to mention a larger team simply means more people to communicate with for team leaders.
Although everyone may bring critical skills to the project, organizations must clarify roles to avoid a directionless mishap. For example, task one team mate with overseeing the development of chatbots for the business, another with social media API integration, and a third with natural language processing (NLP) development. A separate project manager may oversee the total transforming, scheduling and appointing leads for quality assurance and owning the team meetings.
Proven Success: Household names that are making virtual teams work
Some industry titans have already adopted virtual teams – and enjoyed the benefits. For example, IBM embraced a Results Oriented Workplace Environment (ROWE), enabling employees to live where they chose, work virtually, and choose their own schedule. How does a company with more than 200,000 employees dispersed across different countries and cultures ever accomplish anything? They lean on collaborative tools, virtual meetings, and cultivated trust, according virtual teams consulting firm Onpoint.
By design, SAP is dispersed globally, with headquarters in Germany and R&D centers spread across India, Israel, China, and the United States. But managers don’t always build their teams from just one location, Onpoint says. Instead, they assemble a mixture of employees from each specialty group, building a global, virtual team and building community with online learning, conference calls, coaching sessions, and briefings.
When designed and managed well, virtual teams can maximize talent, offer more skillset breadth, and save costs for organizations and management alike. The key to success is a foundation of trust, strong technology, and an intentional strategy. From there, the possibilities are virtually endless.
At TechGenies, we see ourselves as a trusted, strategic partner – not just another provider. We share ownership of your virtual team, whether we’re augmenting existing staff or building a solution from the ground up. We’d love to learn more about how we can build your organization a virtual team to help achieve your goals. Learn more about services here.
Did you know TechGenies has offices in seven locations? Find out how we can help you incorporate nearshoring into your business strategy, wherever your software development needs may be. Contact us today to start a conversation.