Working from home

I read an interesting statement in an article today

(See Link: http://www.ibnlive.com/news/india-tech-market-pegged-at-243-bln-by-2011-gartner/58372-11.html. )

There was probably nothing interesting in the article except a statement that said

'Indian firms are spending more on hardware and software than on people, says Gartner.'

Partially true. True to the extent that firms are spending more elsewhere than they are spending on people. Let us for a moment pause to think about why we need to go to a centralised workplace to work? I mean in a world which is more connected than ever, where we can get things done acros continents, why do we still need to go to a centralised workplace?

1) It causes the employee pain and grief to commute to this workplace. (Traffic problems if you are India, commute time and cost of commute if you are in London suburbs like me)

2) It probably causes quite a lot of money (in terms of real estate rentals) for companies to setup office space in central business districts. In case the firm owns the office, it's probably even worse as it's unable to capitalise on a lucrative piece of real estate.

3) Lastly, it causes the firms a lot more in terms of providing infrastructure to its employees in such central workplaces -- infrastructure in terms of PC's, desks, telephones, vending machines, A/C, security guards, restaurants / cafeteria etc etc.

Given the recent squeeze in profit margins of IT companies, there is a need to be clever and smart about cutting costs in such a way that it makes everyone happy.

So here is my suggestion - get rid of 'centralised workplaces'. Lets gradually move to a scenarion where everyone works remotely - say from their home.

It help immensely. Some positive benefits:
1) Employee can spend the time he saved by not commuting and use it to work some extra hours / spend quality time with family

2) Reduced travel will ease the congestion in Indian cities (Chennai and Hyderabad will surely benefit)

3) Employers can reduce cost / capitalise on real estate gains. I mean if employees work from home, then why do you need a spanking BIG office in the city? As for entertaining clients, go on take them to your hi-tech facility outside city limits.

4) Pass on the cost savings of hardware / infrastructure reduction to your employees.

Who can say no to a employment contract that does not require you to travel in to work and pays you more?

Do we have the ability to risk and innovate in such a manner or are we content to cutting pay packets and laying off people to keep investors happy?