A virtual office is part of the flexible workspace industry that provides businesses with any combination of services, space and/or technology, without those businesses bearing the capital expenses of owning or leasing a traditional office.
A virtual office can be used by entrepreneurs, freelancers, and small businesses that do not need or cannot afford a traditional office space. It can also be used by larger companies that want to establish a presence in a specific location without committing to a long-term lease.
Some virtual office providers offer additional services such as meeting room rentals, administrative support, and live receptionist services. These services are usually provided remotely, but also some virtual office providers have a physical office space where clients can have access to these services. This can be an attractive option for businesses that want to project a professional image without the cost of a full-time office.
Virtual office services started in the 1960s as serviced offices and have evolved with technology to include a wide variety of personnel, physical space, digital storage and communication services. [1] Customers pay a contract fee for these services which may be offered à la carte, as packages or membership subscription. The concept is popular with companies of all sizes, including self-employed entrepreneurs. One of the primary allures of the virtual office is the flexibility it offers for employees and freelancers to work from a satellite office, home office, remote location or even on-the-go via a mobile device. At the same time, a company can offer its clients and employees a stable home office with access to amenities such as receptionist, conference rooms, desk space, mailboxes, printing and faxing at a permanent address, which are owned and maintained by the virtual office provider or a third party.
In 2021, a number of companies set out to fix the challenges of virtual meetings. This led to the appearance of virtual office software. When referring to a company having a virtual office, this no longer refers to a standard set of business services. Rather a virtual space for employees to gather and perform business-related activities.[ citation needed ]
Virtual office providers may also include digital capital such as cloud storage, web hosting, email and other web-based applications.[ citation needed ]
Also, according to the research, the attitudes and policies of employers in the virtual platform affect their employees' personal lives and productivity. Employees will be more productive if they believe their company trusts them, recognizes them, cares about them, and receives the proper training (including online processes, etc.), project management, and support to perform their tasks productively. When employees don't have to spend time, money, or resources on transportation between home and work, it positively impacts employee productivity. That is why it became necessary to create an appropriate software environment to ensure these processes' functioning. [2]
The concept of a virtual office had roots before and during the Industrial Revolution, where parallels to current work styles, specifically working from home, have been drawn. [3] The virtual office concept is an evolution of the traditional executive suite. As an executive suite, lease became increasingly impractical for certain types and stages of business, it naturally opened the door to a virtual office concept. [4]
In the mid-20th century, professionals and executives began to examine ways to make more efficient use of the rising cost of real estate, personnel and other capital. Below are some milestones in the resulting evolution of the virtual office, along with the advent of technologies that help shape the industry.[ citation needed ]
Year | Event |
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1962 | The first known serviced office company, OmniOffices Group, was created. |
1966 | Serviced offices and executive suites were rented by Fegen Law Suites. This included large blocks of office space with furnished suites, reception services, telephone answering, photocopies, conference rooms, and a law library. |
1972 | ARPANET, the predecessor to the Internet, went public by connecting 40 computers in different locations. |
1973 |
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1974 | Scientists with the Institute of Electrical and Electronics Engineers developed Transmission Control Protocol/Internet Protocol (TCP/IP), which allows different networks to communicate with each other. |
1978 | Alf Moufarrige founded Servcorp in Sydney. To reduce his overhead, he began sharing his premium office space, receptionist and clerical staff with other growing businesses. Servcorp took its virtual office concept international in 1980 and in 1999 became a publicly traded company. [7] |
1981 | Released 1 April, The Osborne 1 became the first successful portable computer, designed by Adam Osborne. Although it still required a power source, it was considered portable as it could easily be transported. This was a first step in allowing professionals to work away from the office. |
1982 |
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1983 | Chris Kern coined the term 'virtual office' in his column for the September 1983 issue of the American Way magazine. Kern used the term to describe the possibility of 'doing business while on the go' thanks to portable computers. [9] |
1984 | The first personal digital assistant (PDA), the Organizer, was released by Psion. |
1989 |
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1990 | The first Internet search engine was developed by McGill University. |
1991 | The World Wide Web was released to the public. Also the first webcam, located at Cambridge University, was developed. |
1992 |
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1994 | Ralph Gregory presented virtual offices as a franchise opportunity in the United States, turning the business into an industry. |
1995 | The motto that "work is something you do, not something you travel to" was coined. [11] Variations of this motto include: "Work is what we do, not where we are." [12] |
1998 | At the Winter Olympics opening ceremony in Nagano, Japan, Seiji Ozawa used IP-based videoconferencing to conduct the Ode to Joy from Beethoven's Ninth Symphony simultaneously across five continents in near-real time. |
2000 | The first Symbian phone, the touchscreen Ericsson R380 Smartphone, was released in 2000, and was the first device marketed as a "smartphone". It combined a PDA with a mobile phone. |
2003 | Skype is released to the public, allowing free IP-based communications using microphone, webcam and instant messaging to individual consumers. |
2005 | The official first "Coworking space" opened in San Francisco by Brad Neuberg. That same year, the first Impact Hub coworking space launched in London. |
2006 | Frank Cottle introduced the concept of wholesaling virtual offices and services to third-party retailers. This launched an influx of virtual office companies that still operate today. |
2019 | Due to the COVID-19 pandemic, there was a need to create high-quality software for permanent remote work. [13] |
2021 | Development of numerous software for virtual offices. This software looks to replicate the benefits of a physical office within a virtual environment. Companies have adopted this software because they find it helps with company culture, collaboration, and visibility. [14] |
The most significant factor in the spread of virtual offices was the forced transition to remote work during the COVID-19 pandemic.
Society introduced remote work quickly, so new technologies and operating systems must be adequately tested and trained. [15]
Communication and getting to know other team members come naturally when everyone is working in the same place, so when working remotely, employees and managers have to make more effort to maintain relationships with colleagues. New employees need to learn organizational habits even while working remotely. [16]
Virtual office infrastructure may include a variety of physical locations and services, as well as digital services. The infrastructure is shared across individuals and entities allowing resources to be used more efficiently. This allows users the flexibility of only renting or using the services they need.[ citation needed ]
Coworking is a related trend in flexible workspaces that places an emphasis on users interacting with each other to create an organizational culture without working for the same company. Similar to virtual offices, coworking venues offer serviced workspaces and customers can use these on an as-needed basis.
Virtual reality technology is another trend that may soon impact virtual offices. Virtual reality applications have the capability of creating offices spaces that are physical spaces within the virtual world where users can meet and work side-by-side. [17]
Remote work is the practice of working from one's home or another space rather than from an office.
An office is a space where the employees of an organization perform administrative work in order to support and realize the various goals of the organization. The word "office" may also denote a position within an organization with specific duties attached to it ; the latter is an earlier usage, as "office" originally referred to the location of one's duty. In its adjective form, the term "office" may refer to business-related tasks. In law, a company or organization has offices in any place where it has an official presence, even if that presence consists of a storage silo, for example, instead of a more traditional establishment with a desk and chair. An office is also an architectural and design phenomenon, including small offices, such as a bench in the corner of a small business or a room in someone's home, entire floors of buildings, and massive buildings dedicated entirely to one company. In modern terms, an office is usually the location where white-collar workers carry out their functions.
A receptionist is an employee taking an office or administrative support position. The work is usually performed in a waiting area such as a lobby or front office desk of an organization or business. The title receptionist is attributed to the person who is employed by an organization to receive or greet any visitors, patients, or clients and answer telephone calls. The term front desk is used in many hotels for an administrative department where a receptionist's duties also may include room reservations and assignment, guest registration, cashier work, credit checks, key control, and mail and message service. Such receptionists are often called front desk clerks. Receptionists cover many areas of work to assist the businesses they work for, including setting appointments, filing, record keeping, and other office tasks.
Hot desking is a work office organization system where each space is available for any worker, rather than reserved for a specific worker, so different workers may use the same spot along the day or week. The "desk" in the name refers to a table or other work space being shared by multiple workers on different shifts as opposed to every staff member having their own personal desk. A primary motivation for hot-desking is cost reduction through space savings—up to 30% in some cases. Hot desking is especially valuable in cities where real estate prices are high.
A virtual assistant is generally self-employed and provides professional administrative, technical, or creative (social) assistance to clients remotely from a home office. Because virtual assistants are independent contractors rather than employees, clients are not responsible for any employee-related taxes, insurance, or benefits, except in the context that those indirect expenses are included in the VA's fees. Clients also avoid the logistical problem of providing extra office space, equipment, or supplies. Clients pay for 100% productive work and can work with virtual assistants, individually, or in multi-VA firms to meet their exact needs. Virtual assistants usually work for other small businesses but can also support busy executives. It is estimated that there are as few as 5,000 to 10,000 or as many as 25,000 virtual assistants worldwide. The profession is growing in centralized economies with "fly-in fly-out" staffing practices.
Hoteling is a method of office management in which workers dynamically schedule their use of workspaces such as desks, cubicles, and offices. It is an alternative approach to the more traditional method of permanently assigned seating. Hoteling is reservation-based unassigned seating; employees reserve a workspace before they come to work in an office. An alternate method of handling unassigned seating is hot desking, which does not involve reservations; with hot-desking, a worker chooses a workspace upon arrival, rather than reserving it in advance. The use of the term has declined in recent years.
A serviced office is an office or office building that is fully equipped and managed by a facility management company, also known as an office provider, which then rents individual offices or floors to other companies. Serviced offices, also referred to as managed offices, flexible offices, business centers, executive suites or executive centers, are often found in the business districts of large cities around the world. A serviced office broker will commonly help business center owners and facility management companies to rent serviced office space. Companies offering serviced offices are generally able to offer more flexible rental terms, as opposed to a conventional leased office which may require furnishing, equipment, and more restrictive leases. Space is normally flexible, allowing for additional space to be allocated at short notice, should the size of an individual business change. Serviced office providers often allow tenants to share reception services, business machines and other resources, providing reduced costs and access to equipment which may otherwise be unaffordable. By providing businesses with access to a workplace, technology and people central to its operations, the serviced office can be considered a type of virtual office. Serviced offices are a central component to the flexible workspace industry.
A virtual workplace is a work environment where employees can perform their duties remotely, using technology such as laptops, smartphones, and video conferencing tools. A virtual workplace is not located in any one physical space. It is usually a network of several workplaces technologically connected without regard to geographic boundaries. Employees are thus able to interact in a collaborative working environment regardless of where they are located. A virtual workplace integrates hardware, people, and online processes.
Google Workspace is a collection of cloud computing, productivity and collaboration tools, software and products developed and marketed by Google. It consists of Gmail, Contacts, Calendar, Meet and Chat for communication; Drive for storage; and the Google Docs Editors suite for content creation. An Admin Panel is provided for managing users and services. Depending on edition Google Workspace may also include the digital interactive whiteboard Jamboard and an option to purchase add-ons such as the telephony service Voice. The education edition adds a learning platform Google Classroom and today has the name Workspace for Education. It previously included Google Currents for employee engagement.
Coworking is an arrangement in which workers for different companies share an office space. It allows cost savings and convenience through the use of common infrastructures, such as equipment, utilities and receptionist and custodial services, and in some cases refreshments and parcel acceptance services. It is attractive to independent contractors, independent scientists, remote workers, digital nomads, and people who travel frequently. Additionally, coworking helps workers avoid the feeling of social isolation they may experience while remote working or traveling and eliminate distractions in home office. Most coworking spaces charge membership dues. Major companies that provide coworking space and serviced offices include WeWork, IWG plc, Industrious, and Impact Hub.
Servcorp Limited is a multinational organisation that sells Serviced Offices, Virtual Offices, Coworking Spaces, Meeting Rooms, Community Packages, and IT Services to entrepreneurs, startups, SME's and large enterprises.
An executive suite in its most general definition is a collection of offices or rooms—or suite—used by top managers of a business—or executives. Over the years, this general term has taken on a variety of specific meanings.
The Network Hub is a coworking space launched in the summer of 2006 in East Vancouver, British Columbia, and is considered the longest running coworking space in Vancouver.
MakeOffices is an American coworking and real estate service company. The company currently operates in three cities: Chicago, Philadelphia, and the Washington, D.C. Metro areas.
AstraQomInternational is a multi-national holding company that serves the telecommunications sector. The company is a provider of VoIP services and integrated communication solutions.
The Scanlan Building is a building in Downtown Houston.
Premier Office Centers LLC dba Premier Workspaces is a privately held executive suite and office rental company. The company, which was founded in 2002, is doing business Premier Workspaces, one of the largest providers of private offices, meeting rooms rentals, virtual office rental and coworking spaces in the United States. Premier Office Centers is headquartered in Irvine, California and operates with locations in Arizona, Colorado, Washington D.C., Florida, Hawaii, Illinois, Nevada, Ohio, and Texas.
JustCo is a Singaporean company that provides coworking workspaces for individuals and companies. Headquartered in Singapore, JustCo was founded in 2011 by Kong Wan Sing, its current CEO, alongside co-founders Liu Lu and Kong Wan Long, as a response to increasing demand for flexible workspaces. Initially focused on Singapore, the company expanded to provide office space in cities across eight countries in the Asia-Pacific region: Singapore, Japan, Indonesia, Thailand, Australia, China, South Korea and Taiwan.
Coworker is an online marketplace and access solution for discovering and booking coworking spaces and flexible offices around the world. It was founded in 2015 by Leanne Beesley and current president Sam Marks. The company has offices in the United States, Canada, Spain, and Thailand, with its registration in the United States. By 2021, the company recorded 18,500 coworking spaces in 172 countries in its network.
Industrious, headquartered in New York City, provides coworking spaces to companies and individuals. It was founded in 2012 and operates in more than 200 locations and 65 cities in the U.S., Europe, and Asia.