Organisations looking to cut overheads, to make better use of office space and to increase productivity, are considering teleworking as an alternative to the traditional office. The issue were explored at a recent conference, Teleworking 92 Corporate Telecommuting & Centre-Based Teleworking, sponsored by the Brighton-based Beacon Group, which specialises in communications consultancy to government and industry. Director Ian Young says that one of the basic problems when discussing teleworking is that of definition. What is it? Working from home is one option, but others include telecentres, satellite offices and space-sharing. Given the options, what are the driving forces?

Productivity

A National Computing Centre survey of 2,500 members indicates costs, retention of skills and productivity are perceived benefits. CPS, the UKP5m ICL-owned systems house was established in 1969 with four staff, now 200, of which only 60 are full-time. Helene Hook, CPS’ marketing manager, says that a CPS employee working a 25-hour week is as productive as a 37-hour per week office worker. Rank Xerox Ltd claims a 60% improvement in productivity through teleworking. It’s difficult to translate productivity into bottom line figures, but no employer can ignore 40% to 60% efficiency gains. Cost reductions are more tangible, but they are difficult to achieve unless teleworking facilitates either office closures or some form of desk-sharing. IBM UK Ltd wants to make more effective use of its existing facilities and cut back on its property portfolio. It established a number of hot-desking pilots and now has 1,000 staff in shared space schemes. The company’s marketing centre at Bedfont Lakes will house 1,000 staff formerly working in four leased buildings, and 50% will be involved in the Space, Morale and Remote Technology programme, SMART. IBM anticipates that 3,000 out of 15,000 staff will share space, and to date, it has achieved a 20% saving. Ratios vary, and while two desks can be shared by three marketeers, one desk can be shared by four consultants. Since 1989, sharing ratios have improved from 0.07 to 0.25 and ‘touchdown desks’ have been introduced for short-term use. Employee travelling has fallen by 13%, time in the office is down by 23%, but time with customers has increased by 30%. PS/2s are linked via local area networks to servers and the existing electronic mail system. Laptops access mailing systems via docking stations at IBM and user premises, and the Siemens AG telephone system enables users to personalise their number so that it is location-independent. IBM won’t say how much money it has saved, but it has reduced its property portfolio by 1m square feet. British Telecommunications Plc’s report, The Economics Of Teleworking, says inner London rent and rates per employee are some UKP3,600 a year. Outer London, the Home Counties and other major cities come in about UKP2,160, UKP1,440 for the rest of the UK. CPS’ Ms Hook reckons that a one-off UKP5,000 to set up a teleworker more than offsets the UKP10,000 per annum an office worker may cost. British Telecom cites a financial institution’s 20-man teleworking scheme which resulted in a saving of UKP430,562 per annum. Set-up costs were UKP13,850, but the savings per teleworker were UKP21,528. By Janice McGinn

The third benefit, retaining staff, is less of a priority than formerly, but National Westminster Bank Plc says that management training costs are UKP10,000 per head, while Pacific Bell calculates that a systems analyst costs $100,000 to recruit and train. On operational costs, Mercury Communications Ltd’s Chris Ridgewell says trials indicate that average user costs are UKP2,000 per worker. Ridgewell’s costs are about UKP3,000 per annum and he spends two days working at home, one day in the office and two days on the road. His home has two extra telephone lines, one for voice and the other for facsimile, electronic mail and data. The fax cost UKP350 and an answering machine doubles as a photocopier. A luggable Macintosh has an internal modem that enables him to send data via

a public electronic mail service, he has a cellular phone and uses Centrex to divert his office extension. Itemised bills enable him to reclaim the cost of calls and provide evidence to the Inland Revenue that he is making genuine business calls. Ridgewell claims productivity has increased by 250% over the past year. Helene Hook reckons that initial setup costs are between UKP2,000 and UKP4,000 per worker. CPS has about 150 project staff and the marketing managers use DRS/6000 Model 55s linked into ICL’s electronic mail system and connected via a local pad so that costs are charged at local rates. Mercury is used for long-distance calls and Hook’s phone bill averages out at UKP1,800 per year. Set-up costs vary but British Telecom calculates that the investment is UKP1,000, excluding modems and computers. The company offers a 20% discount on a range of packages and the more sophisticated Network Services is rent-free for three months. Extra phones lines cost UKP140 and fax machines start at around UKP300. British Telecom’s ISDN network is only 50% complete, but it is available in most business centres and enables users to send and receive data, voice and images over the public network. Speaking at the Brighton conference, David Brain of Systems Synthesis Ltd says the two main technology influences on teleworking will be network intelligence and bandwidth. The first will enable wider use of virtual numbering and alternative billing options.

Fibre optics

Fibre optics and switching systems mean that capacity is increasing with ISDN carrying 2 x 64Kbps channels and broadband ISDN offering 150Mbps. This means faster file transfers, and eventually, multi-media applications. British Telecom’s Inverness-based Directory Enquiry showcase combines ISDN and video phones built into personal computers with a chatline and electronic mail. But without funding from the the European Community, it is doubtful that the UKP16m project could have gone ahead. The videophone ships this year, but British Telecom acknowledges that the technology is pricey. Effective teleworking is about simplicity and cost-effectiveness. Telecentres, which many local authorities are setting up, can cut costs and reduce isolation. Other issues are employment contracts; restrictions on the use of domestic premises as workplaces; mortgage agreements; tax status and insurance. If an organisation is considering some form of teleworking, it is essential that certain procedures are followed. Establish objectives – why adopt it, what form, what is the business case; involve everyone – management, trades unions and teleworkers; run a pilot and monitor it; assess candidates for suitability, ensuring that teleworking is always voluntary; stress the importance of management to ensure productivity and avoid isolation.