Let us assume that a team is working on a software project in New Orleans, USA. There will be less need for the workers to travel which signifies that less greenhouse gas emissions will be generated. Growing globally, and managing global teams are an essential A difference in time zones in this case is used to the advantage of a company as projects are continuously worked on. The concept of global virtual teams is growing in popularity by the day because of several reasons and that is inclusive of the benefits outlined below: Companies with global virtual teams only pay for the required level of support, pay significantly reduced costs compared to professional consulting organizations that support professional fees and large infrastructures. Turn any size of room into a video meeting space in minutes, reduction of relocation costs and travel costs, Higher profits and increased productivity. Being culturally aware in a virtual environment, where people are based … Turn any size of room into a video meeting space in minutes, Companies are capable of using global talent, A team will be capable of working 24 x 7 on a project, Employees are provided with ample opportunities. Companies, which happen to be in a new industry, are going to find themselves in a developing and creative niche by delivering these types of business solutions. What is going to happen in case you do not have the necessary expertise which you need? Saves Resources: When a team is working virtually from the comfort of home, one saves the cost of electricity, computer, internet, and other admin services and facilities. Virtual teams have become a tremendous asset for many businesses around the world thanks to the expansion of the internet. This has the benefit of enhanced knowledge sharing as well as greater innovation. At present, monetary issues have compelled a lot of companies to select members of project teams from around the globe and thus help in saving both money as well as time by making them interact virtually using email, phone, and video conference. This is one of the biggest benefits of a virtual team. In order to enjoy the potential benefits outlined above, it is necessary for companies with global virtual teams to overcome the hurdles inherent in the lack of direct contact among managers and team members. Virtual team benefits Based on research, virtual team members, leaders, and executives all agree that a main benefit of virtual teams is to promote work-life balance as illustrated. In a 2015 survey, only 7 percent of engineering professionals reported that their organizations were training people successfully for their work in virtual teams 1 . With high bandwidth saturation increasing in many major markets, it has become possible for small businesses to contract out certain tasks to freelancers and stay-at-home professionals in an affordable way. Virtual teams share a number of common challenges: limited face-to-face interaction; geographically dispersed team members; and operating in a spectrum of time zones and cultures. Virtual organizations enjoy significant decreases in operating costs. Even though business managers should consider and prepare for the challenges that come with remote jobs, there are many benefits of virtual teams. They can easily look after their family members and do other important household chores as well while working on a project. An experienced talent development firm can help companies navigate the trials that come with virtual collaboration across cultural boundaries. From a larger societal level, global virtual teams are responsible for creating new opportunities for individuals that are less mobile and quite hesitant to relocate because of physical challenges or family ties. Virtual teams allow companies to procure the … This is mainly because the human capital of an organization shares their understanding of local and even global markets as well as the best business practices. There are no overhead costs incurred for associated services like office space, computer, benefits as well as communication between in-house staff and virtual staff. This means that companies can control the length of service depending on their needs. Design/methodology/approach – … Members of global virtual teams will therefore have lower stress levels and eat healthier. Global virtual teams will assist in saving on expenses such as utilities as well as real estate. Furthermore, an employee who is more satisfied is going to be much more efficient in the long run. This will help the businesses to reply to the requirements of the local as well as the global markets a lot quicker. Something that that converges specialists and experts from different parts of the world to join their efforts on a single project. Satisfied team members are unlikely to quit their jobs, a fact that translates to a higher retention rate for companies. 2. Effective virtual teams bring together experts in the field, regardless of where they live. Furthermore, there are no documents that require printing as all communication is conducted on online communication platforms such as ezTalks Cloud Meeting. Furthermore, lots of businesses prefer to outsource their operations to areas having reduced cost and, as a result, it leads to lowered operation expenses, raw material cost plus reduced salaries which in turn help to save on production expenses. Purpose – This paper aims to extend knowledge about virtual teams and their advantages and disadvantages in a global business environment. Get our latest article updates as soon as they are posted! Establishing trust is key to building a strong team, but the idea of trust … There is a good reason why a recent forecast by the World Economic Forumcalled virtual teams “one of the biggest drivers of transformation in the workplace.” There are considerable advantages to virtual organization design. Top 6 Advantages of Global Virtual Teams. Business hours for global virtual teams increase and this is normally with more flexibility. Furthermore, lots of businesses prefer to outsource their operations to areas having reduced cost and, as a result, it leads to lowered operation expenses, raw material cost plus reduced salaries which in turn help to save on production expenses. Employing a virtual team means saving on expenses such as real estate and utilities. Cultural diversity causes a number of challenges on virtual teams, but by taking time up front to address potential challenges early on and enable for team members to get to know each other, team leaders are better able to address challenges when they occur and, possibly even more importantly, avoid the challenges in the first place! No one is born with the skill to understand people from foreign … Global virtual team. Lower Operating Costs Renting out office space, supplying equipment such as computers, and other types of supplies such as paper, printers, ink, and pens can add up very quickly over the course of a year. Teams composed of employees from diverse backgrounds and cultures tend to create more innovative solutionsthan teams that are more homogeneous culturally. Having a global virtual team consisting of highly trained employees capable of consistently delivering on tasks is going to be one of the primary secrets to being successful. When Xerox introduced the concept of virtual teams within their workforce, they reduced their carbon footprint by over 41,000 metric tons in just one year. In some cases, highly qualified professionals have rejected to work for a particular job since they do not prefer to stay abroad or are not ready to shift their family. There are usually different teams working on a similar project throughout since global virtual team members span across different time zones. The benefits of global virtual teams listed above are not exhaustive as there are many more advantages that are associated with the adoption of global virtual teams by companies. They also don’t need to go through the trouble of making their employees relocate. Companies that employ virtual employees don’t have to settle for less-qualified employees based on their convenient proximity. If most team members are located in Germany, for instance, with two or three in the United States and in South Africa, there may be a sense that the German members have … A lot of organizations also opt to outsource their operations to regions with low cost and as such, they can save on production cost through reduced raw material cost, operational cost and lower wages. This is because the need to use either private or public transport to work is completely eliminated. Benefits of Global Virtual Teams. External talent will be able to aid the organization in these types of situations. The benefits of virtual teams are only as strong as the technology that enables them to work together. But for Human Resource leaders, these virtual teams pose their own unique questions. They can reduce your time to the market. The global market is heavily supported by the work that takes place in virtual teams, and yet very few organizations are preparing their employees for this kind of communication. 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