Virtual office

Virtual Office
A virtual office is a combination of off-site live communication and address services that allow users to reduce traditional office costs while maintaining business professionalism^[1]. Frequently the term is confused with “office business centers” or “executive suites” which demand a conventional lease whereas a true virtual office does not require that expense^[2].

History

The virtual office idea came^[3] from the convergence of technological innovation and the Information Age. The concept has roots in the Industrial Revolution, where parallels to current work styles, specifically working from home, have been drawn^[4]. The term was first used in a 1983 airline in-flight magazine article about portable computing.^[5] The virtual office concept is an evolution of the executive suites industry. However, the inflexibility of an executive suite lease doesn’t work for many business models and helped spur the virtual office concept^[6]. The first commercial application of a virtual office occurred in 1994, when Ralph Gregory founded “The Virtual Office, Inc now known as Intelligent Office"^[7], in Boulder, Colorado.

Services

The term “virtual office” implies space utilization, but a full application includes professional live communications^[8].

1. Communications Services
   1. Remote Receptionist A team of workers in an office environment working remotely, using high-tech Computer Telephone Integration software, to replace a traditional receptionist.
   2. Virtual Assistant A virtual assistant is often a “lone eagle” working from home, who rarely meets their clients face-to-face^[9]. A virtual assistant typically has no access to CTI Software^[10]. Rates run $15 an hour and up^[11].
   3. Answering services/call centers operate from a centralized location for the purpose of receiving and transmitting a large volume of requests by telephone. Users lament problems of security^[12], impersonal staff^[13] with high turnover, language barriers, translation errors and a less-than-professional image^[14].
   4. Voicemail is a low-cost technology that stores voice messages electronically. In customer service applications, voicemail has limitations^[15]. Used for customer service, voicemail has become synonymous with frustration^[16]. The complaints are legion and have inspired spoofs^[17] on the voicemail experience.
2. Space Services
   1. Professional Address – A prestigious building to be used as the business address ^[18]. A professional address alleviates the privacy and personal security concerns of running a home-based business ^[19]. A user can expand into new markets by utilizing a provider with multiple locations to establish a professional presence in the desired growth markets.
   2. Mailing address – The professional address can be used for accepting, sending & forwarding mail without the connotations of a PO Box. Under US law, a PO Box is to be clearly indicated and so not condusive for most corporate entities in this regard. Some VO providers offer 24/7 access to individually assigned and locked mailboxes. This allows the staff of a VO user to have a centralized location as a convenient vehicle for the secure transfer of paper documents 24/7. A mail-only provider may be subject to USPS CMRA regulations^[20].
   3. Reception Courtesies – Receptionists at the business address can receive and sign for incoming overnights, deliveries, packages and provide document drop-off/pick-up services^[21]. On-site witnesses and notaries may be available, depending on the provider.
   4. Business Meeting Space – The on-demand use (hourly, daily or weekly) of conference rooms and offices for meetings.
   5. Casual Workspace – As an alternative to the distractions of co-working or the interruptions of a home office, office space is available on an occasional or “drop-in” basis, either hourly, daily or monthly.
   6. Executive Suite – A small percentage of VO users lease space full-time time^[22].
   7. On-Site Amenities – A full-service virtual office will provide broadband internet, fax-copier-printer, advanced phone features, conference calling, video conferencing, kitchenette and a business-worthy lobby/waiting area.

Users

A virtual office blends home and work to gain efficiencies in both^[23]. Office expenses are low, while the user’s professionalism retains the image of a traditional, high-cost office^[24]. A virtual office user can reduce their environmental impact, as well as the personal negatives of a daily commute^[25]. Virtual office clientele have the flexibility to match expenses with revenue fluctuations immediately, as the costs are usually variable^[26]. A virtual office can allow for low-cost expansion with no long-term commitments^[27]. Users taking advantage of virtual office receptionists eliminate the traditional burden of health care, records, payroll, insurance & rent. Also, traditional time-off (sick days, vacations, personal leaves, etc…) does not apply to a virtual staff^[28].

Common Virtual Office Users:

1. Home-based entrepreneurs
2. Accountants
3. Attorneys
4. Law Firms
5. Mobile salespeople
6. Trades (Home service industry: roofers, electrical, plumb, landscape, construction, repair/remodel, etc)
7. Doctors/Dentists
8. Therapists
9. Business consultants
10. Mediators/conflict resolution
11. Frequent travelers/foreign companies
12. Chambers of Commerce
13. Senior management
14. Real estate
15. Mortgage Companies
16. Stock brokers/financial planners
17. Collections agencies
18. Networking ^{[disambiguation needed]} groups
19. Trainers/instructors
20. Incubators ^{[disambiguation needed]}

Economy

Virtual offices are experiencing growth even in a recessionary economy^[29], and not just in the United States^[30]. As businesses look to trim expenses, virtual office services help reduce overhead while keeping professionalism high^[31]. For example, by paying for space and communication infrastructure on an as-needed basis, businesses can keep office expenses to a minimum^[32]. The portability of today’s technology also allows for a more flexible work environment ^[33]. As businesses trend to a more “online” workplace, the notion of paying for space full-time becomes anachronistic^[34]. Traditional receptionists making $12-14/hour^[35] can be replaced with remote receptionist services at a fraction of the traditional cost^[36].

Future

At an increasing pace, the VO concept is replacing the traditional office^[37]. Surveys reveal that a greater percentage of the workforce desires a more “mobile” definition of an office^[38]. The new generation of entrepreneurs is embracing the virtual office instead of the traditional on a global scale^[39]. Many companies are incorporating the flexibility of a virtual office into their culture^[40]. Corporations like Accenture, IBM and Crayon are at the forefront of publicly-traded companies actively utilizing the virtual office concept^[41]. Even the world of academia has discovered the advantages of a virtual office^[42]. The virtual office industry has spawned a sub-industry; companies are now developing products & services specifically for virtual office applications^[43]. Companies have barely scratched the surface of the concept of virtual offices. Working virtually is the future for all businesses that seek to (points 1-8)^[44]:

1. Make the world an extremely connected place, reaching smaller towns and cities across the globe.
2. Set up branches in important cities or abroad, regardless of current size.
3. Reduce carbon footprints by lowering consumption of fuel and electricity by eliminating distance variables and expanding boundaries for working creatively.
4. Cash in on the interaction technology wave and ensure that anything other than talent, skills, intelligence and aptitude are irrelevant (like a worker’s previously limiting physical location).
5. Expand hiring choices and provide a more comfortable working environment, less stress and a more balanced lifestyle while increasing personal productivity with time & money saved from zero commuting.
6. Cut commercial real estate costs with a viable alternative rents or leases and reduce large set-ups, hierarchies and innumerable administrative functions.
7. Encourage entrepreneurs who want to test a business location and expand their presence by removing the start-up company obstacles of infrastructure and fixed staff.
8. Have staff flexibilities instead of hiring secretaries

References