Remote Consultants vs Local Seat Warmers
Back in the 90's, the Internet was still very slow and limited. For just about every IT project, all developers would need to be in the office where their project was taking place, or at least in a satellite office that was connected by VPN or similar.
It amazes me that the IT lead mentality has not changed much since then. Most IT leads heading up a project still insist on having all team members locally present.
Local Seat Warmers
There are some good reasons to have developers locally on a project team. Communication can be a lot easier in person rather than over the phone. Additionally, having everyone physically in one location creates more of a team atmosphere.
However there are way more downsides to having a physically present team. Firstly, there will need to be a location to fit everyone in temporarily. Then, each team member will need a desk, computer, software, etc. This is hugely expensive.
There are also travel costs which add up very quickly. Each travelling consultant will require compensation for flights, taxis, hotels, and meals. Some factor these expenses into their rates, but either way it's the client that ultimately pays for these costs.
Also, if the project runs over a longer period of time, there could be complications with the government when dealing with income tax for contractors. Make sure you check with your local laws since many government revenue agencies (IRS in the USA) will consider a contractor to be an employee under certain conditions, and will then require source deduction payments from the so-deemed "employer".
I've been on a project of a provincial insurance company where they actually budgeted $600k per year for these special tax assessments. I guess government agencies can afford this.
Remote Options
Since the early 2000's, the Internet has made telecommuting a real option, even for large projects. Video-conferencing today can literally make you feel as if you're all in one room together.
Telephony in North America is dirt cheap with most long-distance calls only costing cents for the minute. Added to this are teleconferencing options which are equally inexpensive.
There are also excellent desktop sharing applications on the market which allow you to deliver online presentations and collaboratively work on the same computer.
Bottom Line
It's way more expensive to have a local team than a remote team. I mean *exponentially* more expensive. If there's resistance to changing the development concept on a project, start small, with just one remote developer, and slowly make the shift to a partially remote team as your needs dictate. You'll be happy you did.
-Andreas
Posted: 2009-05-22 14:44:40
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