What is the significance of the increasing virtualization of project work for the social

organisation of projects?

A virtual team is usually refers to a group of individuals who work together from different
geographic locations and rely on communication technology such as email, FAX, and video or
voice conferencing services in order to collaborate. This virtual team can also be referred to as a
distributed team or geographically dispersed team or a remote team.

ADVANTAGES

1. Previously, for a large scale or complex project to happen, one would have to convene a
group, meet, come up with a brief, and then go through several phases of planning,
prototyping and revision. All this could only be ever done between several meetings of
the work group in one or several geographical location(s) to update each other on
progress, changes and how those have changed the project. Organisations no longer have
to be made up of teams camping together at a specific location; they can be spread across
continents and never have to meet each other in person. This slowed down the process.

2. Increased Profit returns and Productivity. In virtualised workplaces, people do not even
have to meet face to face regularly if at all. These teams tend to have a higher focus on
the task, no need to deal with unnecessary bureaucracy that slows down the decision-
making. The above enhances the productivity that translates into higher profits.

3. Cost savings - The biggest advantage of virtual team enjoyed by an organization is the
associated cost savings. Huge expenses such as office rentals and maintenance, office
utility bills (water, electricity, and security) or Travel or Subsistence expenses to
accommodate employees working out of the office or at project sites are reduced if not
eliminated thus a big save on the budget. Many organizations outsource their operations
to the low-cost regions. Thus production cost also decreases with the reduced raw
material cost, operational costs and lower wages of the employee.
4. Flexible working hours become very possible. No need to report to a certain place at a
certain time to work. Reduced Time to Market - Since the members span the time zones,
there could be different team working on the same project daily non-stop, so when one
member sleeps there will be another one somewhere else who would start work where the
former had left. This shortens the product development time as well as faster response
time to demands in both global and local markets. They can co-ordinate in real time and
are all aware of the changes or inputs that each makes immediately.

5. You can work from anywhere so long as you have a machine work can be done.
Teammates do not physically meet. They co-ordinate in real time and are all aware of the
changes or inputs that each makes immediately.

6. Prototyping can be done in the virtualized workplaces environments so you know

whether something will work before you even build it thus making it cost effective. No
funds will be utilised until the whole team is satisfied.

7. Teams can be setup across cultural and national divides. Individuals in different countries
and with different expertise can meet in real time and work on a project irrespective of
their location on the world map. Leverage Global Talent - Virtual Teams allows
organizations to look for talent beyond their country of origin. This brings together the
experts and specialists from across the globe to work together on the project. Increased
knowledge sharing and greater innovation happens as organizations human capital share
their understanding of global and local markets as well as best business practices.

8. Newer Opportunities - If we see at larger societal level, virtual teams have created newer
opportunities for people who are less mobile and hesitant to relocate due to either family
requirement or physical challenge. Now any task that does not require the physical
presence of a person and which can be supported by communication technology throws
an opportunity for many deserving candidates.
DISADVANTAGES

1. Cost of Technology The workings of a virtual team is supported by the efficient use of
multiple communication technologies, for example, emails, instant messaging or
tele/video-conferencing, contribute to the success of working in a virtual team. No one
tool can provide the complete support. The cost associated with these installation and
maintenance tools is expensive. Success of this is also dependent on everyone in the team
that is having technical knowhow of working with ICT in his or her day-to-day
operations.

2. Marginalises them from big projects. Loss of income for indigenous locals who are trying
to grow their businesses but are still working under a brick and mortar setup. That is,
need for office meetings, driving to project sites or even lack of understanding on the new
developments in ICT and how it can help their businesses grow from the comfort of their
homes.

3. Cost of Technology. The successful working of virtual team is supported by the efficient
use of multiple communication technologies such as instant messaging, emails and video-
conferencing, among others. No one tool can provide the complete support. The cost
associated with these installation and maintenance tools is little on the higher side.

4. The cultural differences between the members of virtual teams gives rise to number of
conflicts, lack of trust and difficulties in collaboration. These challenges are caused by
the absence of non-verbal cues (nods of approval, facial expressions or smiles) so
intrinsic to face-to-face interactions.

5. Social Isolation - Many members of virtual teams are adversely affected by the lack of
physical interactions. Most of the communications in virtual environment is task-
oriented. In todays society where job is an important social force for most of us because
many of our workplace colleagues also constitute our close friends, this gives a not-so-
 good feeling of social isolation. This in turn counter-effects productivity as well as leads
to stress.

6. Incompetent team members can adversely affect the virtual team concept. Recruiting the
right team members plays a critical role in the success of the virtual team.

Some of these disadvantages can be minimised by practicing different leadership or managerial

approaches, trainings, greater role clarity and effective communication strategies. Organization
both big ones such as IBM, Microsoft, Whirlpool as well as SMEs are reaping the benefits of
virtual teams for some time now. It has been a well-recognized fact that Virtual Team is not a
passing tide but it is here to stay.

Bibliography and References.

http://www.orgdna.net/wp-content/uploads/2011/10/VOSS-virtualizationofwork-final-05-26-
091.pdf

MSG Management Study Guide. http://www.managementstudyguide.com/virtual-teams-

advantages-and-disadvantages.htm

Managing Virtual teams, http://managing-virtual-teams.com/en/virtual-teams-articles/project-

management/advantages-and-challenges-of-virtual-work-teams.html

MaRS, https://www.marsdd.com/mars-library/virtual-teams-benefits-and-disadvantages/