Publication Date: September 6, 1996

Related article - Making Telecommuting Work for Your Organization

The Costs of a Virtual Office System

Costs for setting up remote offices vary greatly depending on equipment and utilities needs, but most estimates run between $5,000 and $10,000 per worker for initial equipment purchases and workspace modifications. Most companies will recoup that cost in one to three years, according to Tom Cross, chairman of Cross Market Management Co. Other costs include ongoing contributions to the workers' overhead expenses, including phone, electricity and heating.

Marlo Kosanovich, a research analyst with META Group, notes that equipment should be standardized to simplify installation, technical support and trouble-shooting. Some companies have created a new position, sometimes with the title "chief technical officer," to coordinate and maintain all the equipment needed for a telecommuting network. And because communication is key to the system, Cross recommends that each remote worker be outfitted with at least four phone lines.

Both Cross and Kosanovich emphasize that it is critical to a telecommuting program's success to supply workers with all the equipment they need to do their jobs well: the same quality equipment they would find on their desks at the office. Otherwise, remote workers are apt to begin their new relationships with the company feeling like abandoned children, rather than valued members of the family.

By Sue Mellen

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Tom Cross and Marlo Kosanovich were featured speakers at DCI’s Network World Unplugged.

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