In the past month I have read several articles on the growth of telework and the impact this is having on internal information technology groups. The press coverage is likely the result of recent reports from IT researchers such as the Gartner Group and Forrester Research. The Gartner Group's Bob Hafner was interviewed for an article in the March 1, 1996 issue of ComputerWorld Canada. Hafner suggests that "by the year 2000 more than 30 million people in the United States and 55 million world-wide will work away from the traditional work-place."
Hafner sees a trend towards moving to the virtual office with decisions being made on portable technology, high-speed digital phone lines and potentially cable modems. He continued that "productive telecommuters must have turbocharged technology -- hand-me-down PCs and antiquated modems don't cut it when connecting to the corporate network."
Forrester Research in Cambridge, Massachusetts recently released a report concluding that outfitting a teleworker is not cheap. They estimate the average cost to equip a teleworker at greater than US$4,000 for the initial installation and US$2,100 in annual expenses. Forrester also estimates that the average American corporation wastes about US$1.6 million each year on hidden costs incurred by telecommuters and road warriors.
The bottom-line is that teleworking has a cost. This should not be a surprise to anyone -- but it seems that it is. I agree with Hafner's comment about equipping teleworkers with the latest technology to a certain extent, but not fully. A certain percentage of an organization's teleworkers will be quite successful with less than the latest and greatest technology. A teleworker who only needs word processing software and a 486-based machine with access to the corporate network for accessing e-mail three to four times per day can probably get away with a "hand-me-down" PC. The teleworker who is providing front-line customer service from home and will need high-speed access to a client-server based customer information system probably needs a Pentium machine and an ISDN connection.
The point of my examples is to show that it is impossible for us to make sweeping statements about the cost of setting up a teleworker. If you believe that all teleworkers need to be "turbocharged" you are wrong. Or, if you believe that "hand-me-downs" will work for all, you are also wrong. The key is that you have to determine the needs of the individual and provide the technology that will allow them to do their job without overextending the organization while producing quantified business benefits (your basic business case analysis).
So now that we understand that teleworking is going to cost something why don't we look at how we can reduce some of these costs. First of all, it is my opinion that all teleworkers should use portable technology. Given the prices of today's technology it is certainly cheaper to buy one notebook computer rather than two desktop machines. In addition, I like the notebook solution as it allows for greater flexibility when the teleworker returns to the regular office. The portable technology allows us to "attach the technology to the individual instead of to a physical location." This means the teleworker can operate out of any available workstation that has a network connection, thereby providing more flexibility which should equate to greater real estate savings.
After the cost of the PC the next most expensive solution is the data communications. This will involve establishing some sort of gateway to your network(s) and some technology at the teleworker's home. The corporate office upgrades can be expensive if only applied over a small number of teleworkers. However, once these costs are spread over a larger number of teleworkers the incremental costs per teleworker drop significantly.
The key in data communications is deciding what speed the teleworker will need for their connection. Given the choice a "normal" teleworker would select the fastest line with the broadest bandwidth. Well let's not open the "vault" just yet! The first step is to determine what applications the teleworker will be accessing, how often this will occur and the criticality of these accesses. Teleworkers who are only accessing e-mail will probably find that 28.8Kb modems will be adequate (especially those who are using e-mail programs which allow for composing and viewing of mail off-line). Those who are using the network for major file transfers, constant access to client-server applications, etc. may need an ISDN (Integrated Services Digital Network) solution or some equivalent.
The key in data communications is picking the optimal solution. A mix of lower and higher speed/bandwidth solutions is probably the best. The cost of data communications will be a large portion of your ongoing operating costs. The good news is that the cost of these services is going down while the number of options available are increasing. Future solutions such as cable modems may dramatically affect the cost of high speed/bandwidth services.
Another area of cost and concern is security. For most organizations, secure access to their networks is a must. With a broad range of teleworkers operating from home, the security systems will be pushed to their limits. Again the good news is that several products are now available for beefing up your security. Telework International will cover more on this topic in the fall.
In conclusion, I would like to remind all organizations that you usually have to invest something to achieve expected benefits. The technology costs associated with telework should be more than offset by the tangible and intangible benefits you will achieve. If not then you should investigate how to improve your program to achieve the expected benefits, how to reduce the costs of teleworking technology and/or seriously consider the future of your program.
Note: Telework International will be implementing our own flexibile work practices by not publishing over the summer. Look for our next issue on the Internet on September 1, 1996.
CONTACT:
Ken Robertson
KLR Consulting Inc.
Phone: (604) 294-2292
e-mail: ken.robertson@klr.com
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