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Citrix Forrester Consulting Virt Workforce
Citrix Forrester Consulting Virt Workforce
Citrix Forrester Consulting Virt Workforce
TABLE OF CONTENTS
Executive Summary ............................................................................................................................... 3
Organizations Must Cut Costs — But Not At The Expense Of Growing The Business ...................... 4
Companies Will Recruit, Develop, And Retain Talent To Meet Their Growth Objectives ................... 5
© 2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Executive Summary
It is no surprise that in the face of today’s global economic challenges, most organizations are
cutting costs — both variable costs like T&E and fixed costs like facilities. What is surprising is that
many organizations are also using this opportunity to expand the business into new areas, both
nationally and internationally. Sounds impossible, right? Management professionals across the
entire organization, including business, IT, finance, and even HR, who are ultimately responsible for
affordably recruiting employees to make business expansion a reality, are under tremendous
pressure to do the impossible. How can organizations balance the needs of cutting costs, while at
the same time hiring additional workers to make the expanded business successful? Forrester
believes that to do this, companies should invest in a virtual workforce strategy. Forrester defines a
virtual workforce as:
To understand the growing trends around virtual workforces, Forrester decided to look at two very
distinct markets: the US, which has mature technologies and fairly evolved teleworking practices;
and China, which is a maturing market that is using the newest technologies to gain even more
competitive advantage. There are commonalities: Both of these markets are actively expanding the
business both nationally and internationally while at the same time improving their customer service
practices and cutting costs where possible. Specifically, our survey found that almost 90% of the US
organizations and 70% of the Chinese organizations we spoke with would like to lower the costs
associated with facilities and T&E. At the same time, more than three-fourths of US and Chinese
respondents told us that expanding their business was a top priority as we move forward into a
better economy. Finally, more than 85% of both US and Chinese respondents named improving
customer service as a top objective. This makes these two markets great candidates for virtual
workforce programs.
Virtual workforces bring many benefits to the business such as reduced facility and travel costs, as
well as improved worker productivity, which are top priorities for more than three-fourths of the
organization we spoke to. Unfortunately, these groups also come with distinct challenges that until
now, companies have not been able to mitigate. For example, business users are interested in
virtual workforce programs to help lower costs, while at the same time HR professionals are
interested for reasons of increased employee satisfaction and retention. Unfortunately, there are
also business concerns around decreased worker productivity and lack of communication when
outside the four walls of the office. This, coupled with IT’s concerns around compliance and
security, has to date made full-scale implementation of these worker types an impossibility.
However, these are all challenges that can finally be addressed by focusing on three key initiatives:
• Make the business case for a virtual workforce program. Instead of focusing on
standard costs of technology acquisition, focus your business case for a virtual workforce
program around meeting business objectives, such as lowering facilities costs, improving
customer service by having your employees closer to the customer, less costly business
expansion, or higher employee retention.
• Start with a small departmental or location-based pilot. When choosing your pilot case,
make sure to set yourself up for success by looking to groups that support more than a
single function, such as a branch office that houses employees in many different
departments — there is no need to artificially limit your program from the beginning.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Additionally, successful pilots can be groups that can easily support overall business
objectives.
• Demonstrate benefits to expand your virtual workforce. Find your early victories, such
as enabling call center employees to work at home, and map them to business objectives,
such as lowering the cost of facilities. Then work with your business leaders to understand
additional unmet needs that could also be accomplished within this virtual workforce
strategy and increase this initiative from there.
• Lowering costs of facilities and T&E are the top priorities. If you ask any organization,
it will tell you that facility costs are one of its top expenses, thanks to the ever-growing
demand for more (and inefficient use of) office and data center space. In addition, the
number of remote and mobile employees is also on the rise, which has traditionally led to
increases in company’s travel and expense items. Thus, it is no surprise that in today’s
economy, almost 90% of the US organizations and 70% of the Chinese organizations we
spoke with would like to lower the costs associated with these line items.
• Improving customer service will be a key priority for the next 18 months and beyond.
Most organizations know that customer retention and satisfaction is based on service.
Therefore, now is the best time to kick customer service organizations into high gear. Why?
Because customers remember how you treated them in the tough times. Because of this, it
is not surprising that, looking forward, more than 85% of US respondents named improving
customer service as a top priority. Remember, in this economy, it is more affordable to
keep an existing customer happy than to acquire a new customer. Furthermore, when
looking at the emerging market of China, improving customer service was the top priority
for organizations.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
“Given the current economy, how important are the following priorities for your business
over the next six months?”
(4 or 5 on a scale of 1 [not at all important] to 5 [critically important] )
89%
Lowering the cost of travel and expenses
70%
86%
Improving customer service
89%
65%
Managing mergers and acquisitions
51%
60%
Increasing the use of outsourcing
60%
59%
Decreasing the use of outsourcing
34%
US China
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
• Focus on attracting the world’s top talent . . . After speaking with companies in both the
US and China, the answer is clear: Hiring the brightest talent tops recruiting initiatives (see
Figure 2). Should this be a surprise? No. In times of a struggling economy, companies can
be much more selective in who they choose to attract and retain. And in doing so,
companies tell us that they are open to a much more diverse set of workers than may have
been utilized in the past: remote (on a worldwide scale), part-time, home-based, and
others, such as a younger generation that may not be comfortable with the traditional
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
working environment, are being considered as finding that “right” employee is the top
priority.
• . . . while simultaneously trying to lower the costs of recruiting. With all of the hiring
that must occur over the next 18 months and as the economy recovers, HR professionals
must find ways to cut costs associated with recruitment. Some potential ways this cost
cutting can occur is through the hiring of workers who may live in cities or countries where
the cost of living is lower than that of the company headquarters or even through the use of
video training and online collaboration for remote employees.
Figure 2: Attracting Top Talent Will Be The Key To Recruitment For The Next Year
“To the best of your knowledge, how important are the following priorities in regards to
recruitment for your human resource (HR) department over the next 12 to 18 months?”
(4 or 5 on a scale of 1 [not at all important] to 5 [critically important] )
92%
Attracting top talent
94%
73%
Access to a broader geographic labor pool
77%
67%
Recruiting and hiring younger workers
74%
US China
Base: All respondents
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
“To the best of your knowledge, how important are the following priorities for your
human resource (HR) department over the next 12 to 18 months?”
(4 or 5 on a scale of 1 [not at all important] to 5 [critically important] )
88%
Improving worker retention
85%
83%
Providing better work/life balance
74%
80%
Improve worker satisfaction
94%
US China
Base: All respondents
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
To meet this worker recruiting and retaining need, many organizations are looking to enable more
effective virtual workforce programs. Why? To enable more strategic hiring of workers in remote
locations, as well as to satisfy employees’ requests for a more flexible working environment. Not
only does a virtual workforce promote a better work environment for employees, but it also benefits
the business as well.
When we asked our survey group about their current adoption of a virtual workforce, we found that
companies in both the US and in China have already started enabling these types of workers. In
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
particular, we found that 82% of US organizations and 94% of organizations in China have already
implemented some type of virtual workforce program. While typically these programs are small and
only available to a subset of the employee populations, these virtual workforce programs will see
significant growth over the next three years; Forrester Research has found that the number of
employees that classify themselves as “mobile” will increase from 44% in 2009 to 73% in 2012.1 In
addition, Forrester found that the number of US adults who telecommute will increase from 39
million in 2009 to 63 million in 2016.2 This means that these small virtual workforce programs have
less than three years to evolve from pilots to viable, enterprisewide strategies.
• Reduce facility and travel costs. As mentioned above, today’s organizations have made
it a top priority to lower the costs associated with facilities and travel. And, thankfully, these
are some of the major benefits of a virtual workforce. Sixty-nine percent of our US
respondents and 70% of our Chinese respondents stated that lowering facilities costs was
driving their interest in a virtual workforce; an additional 57% of respondents believe that a
virtual workforce will help them lower their travel cost (see Figure 4). Why? Because with
employees having the flexibility to work in lower-cost cities or outside of the office,
organizations no longer have to pay for office space (and all of the other associated
expenses) for workers that don’t come into the office every day. Also, with options like
online collaboration, organizations can reduce the travel costs of their employees.
• Improve worker productivity and customer service. While a virtual workforce absolutely
has cost benefits, it also has business benefits that can’t be quantified as easily. For
example, 67% of US respondents and 74% of Chinese respondents cited increasing
worker productivity as their key driver in moving toward a virtual workforce (see Figure 5).
This is thanks to developments like a globalized workforce where workers can work around
the sun and/or more working hours when not having to commute to work. Other business
benefits of a virtual workforce include improved customer service — as shown by 65% of
US and 87% of Chinese respondents who cited this as a driver. Why? Because a virtual
workforce enables workers to be out in the field, closer to their customers, project sites, or
wherever they need to be with access to a real-time data connection so that employees can
quickly and accurately respond to customers and make decisions.
• Improve employee satisfaction and work/life balance. When asked what was driving
their worker interest in a virtual workforce, our respondents told us that it was increased
worker satisfaction and better work/life balance (see Figure 6). Some may wonder how a
virtual workforce will help in these regards, yet the answer is simple: These workforces
enable a much more flexible working environment, which in turn allows employees to work
when and where it is best for them and the business.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
employer. And higher worker retention means less backfilling for open positions and
avoiding turnover costs and the lost productivity associated with it.
“Of the following, what are your cost interests in moving toward a virtual workforce?”
(select all that apply)
Lowering costs
associated with 54%
recruiting, training,
and onboarding 76%
workers
Reducing labor
costs by hiring 53%
workers in lower-
53%
cost cities
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Figure 5: Improving Worker Productivity And Customer Service Drive Business Interest In
Virtual Workforces
“Of the following, what are your business interests in moving toward a virtual workforce?”
(select all that apply)
Improving 65%
customer service US
87%
China
Improving 55%
business continuity
plans 68%
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Figure 6: Workers Will Be More Satisfied If A Virtual Workforce Program Was Enabled
“Of the following, what are your worker interests in moving toward a virtual workforce?”
(select all that apply)
75%
Improving worker
satisfaction
89%
65% US
Providing better
work/life balance
81% China
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
“Of the following, what are your human resources interests in moving toward a virtual
workforce?”
(select all that apply)
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
• US business concerns surrounding worker productivity and visibility. While time has
proven that virtual workforces can increase user productivity, there are still many business
concerns about how well workers perform when outside of the corporate office. This can be
shown by the 47% of both US and Chinese respondents that believe that they will lose
visibility into their workers’ actions if they were to let them work remotely (see Figure 8).
Furthermore, 46% of US respondents are worried that by allowing a virtual workforce, they
will be losing a good deal of productivity from their users. It is important that organizations
consider which roles and people are suitable to work remotely, as not all roles or people will
be a natural fit.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
office, as well as the feeling that they are providing their workers a poor user experience.
More than two-thirds of Chinese organizations have cited these issues around moving
forward with a virtual workforce.
• Universal IT concerns about compliance and security. While the US and China
respondents may have different business concerns with regard to a virtual workforce, their
IT concerns are completely aligned. Their main anxiety? Insuring that all workers not only
have secure access to their applications and data, but that their devices and data are
constantly secure and compliant with all requirements, such as those around intellectual
property, corporate data loss, data privacy, and regulatory mandates. This is shown by the
more than half of respondents who stated that these security and compliance IT concerns
gave them caution when moving toward a virtual workforce (see Figure 9).
Figure 8: Losing Visibility And Decreasing Productivity Are Major Business Concerns With A
Virtual Workforce Strategy
“What are your business concerns with moving toward a virtual workforce?”
(select all that apply)
47%
Losing visibility into day-to-day worker actions
47%
46%
Decreasing worker productivity
60%
44%
A breakdown in communications among workers
68%
39%
Decreasing worker collaboration
62%
US
33%
Providing an inferior user experience
66% China
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Figure 9: Security And Compliance Are Top IT Concerns With A Virtual Workforce Strategy
“What do you anticipate the IT concerns will be with moving toward a virtual workforce?”
(select all that apply)
China
Supporting virtual 44%
workers is expensive 49%
Source: Online survey of 211 US and Chinese HR and business decision-makers involved in hiring and
recruitment of workers. Commissioned Study conducted by Forrester Consulting on behalf of Citrix.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
• Helping with business objectives like customer service and cost containment. We
saw above that improving customer services and lowering costs are top priorities to today’s
organizations, but is IT helping with that? Absolutely. When asked about how satisfied they
were with IT’s ability to meet top business demands, our respondents gave IT all gold stars
– more than three-quarters of respondents stated that they were satisfied with IT
capabilities in helping the business improve customer service and in lowering costs of
facilities. Additionally, almost 75% of respondents also gave IT credit for helping the
business with global expansion. By employing the right technologies, IT can continue to
align with the business.
Over the past two years, the client virtualization market has emerged to solve these challenges.
While some of the technologies may focus on providing secure access to applications and data so
that your workers can work from home or any other remote location (lowering costs of facilities and
travel), others’ primary benefits are providing a desktop experience to remote workers no different
than from one in the office, and still others may simply lower IT costs so that IT staff spends less
time on the reactionary help desk tasks and instead can work on strategic initiatives. In the end, it
will be a combination of all of these technologies, combined with your traditional infrastructure, that
will help you support a virtual workforce.
• Local desktop virtualization. For local desktop virtualization, the entire desktop
environment executes in a protected environment on the user's PC (see Figure 10). This
"bubble" runs on top of the underlying hardware and host operating system platform. Virtual
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
machines run, like any other application, directly on top of an installed OS but are still
independent from any software that has been deployed.
The bottom line for business executives: When it comes to client virtualization technologies,
there is no one-size-fits-all solution. A successful virtual workforce may use a combination of all of
these technologies to meet the diverse needs of the organization’s workers. Here are four examples
of client virtualization meeting business needs for different user scenarios: 1) Local desktop
virtualization will give a “corporate desktop” to a contractor who needs access to corporate
applications and data yet does not have a corporate PC; 2) hosted desktop virtualization enables
branch office workers to access a full corporate desktop (and the associated support resources)
without the cost and complexity of the expensive branch office infrastructure and IT staff; 3) local
application virtualization is a must-have for all worker types, as it lowers the cost of supporting the
desktop environment; and 4) hosted application virtualization allows mobile workers that used to be
tied to a single PC the flexibility to work from any device in a secure manner.
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Virtual Wo
orkforce: The
e Key To Exp
panding The Business While Cutting Costs
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
• The end user device. The end user device consists of any machine that a worker can use
to get his or her job done. While most organizations see the end user device as a
corporate-owned desktop or laptop, these devices can come in many different flavors: thin
clients, handhelds, netbooks, and other non-corporate owned devices, such as a home PC
or kiosk. Most recently, organizations have listened to their employees demands around
choice and allowed these workers to choose the device he or she wants to use in the
corporate environment — this is one of the first steps companies are leveraging to improve
employee satisfaction.
• Networking infrastructure. When supporting a virtual workforce, there are three key
technology components that deliver a productivity environment to users: 1) the virtualization
technologies (usually housed in the data center); 2) the end user device; and 3) the
networking infrastructure that connects it all together. Using technologies such as WAN
optimization and VPNs, organizations can provide workers with a quality connection and
experience when connecting remotely to company resources, while at the same time
assuring that all connections to desktops, applications, and data are secure — solving top
IT concerns from our respondents.
While all of these virtualization technologies and traditional infrastructure have their place in
supporting a virtual workforce, it is important to note that each of these solutions puts more control
back in the hands of IT and helps them meet business objectives. This in turn helps IT provide a
productive environment to each and every user that is more collaborative, secure, and compliant to
current regulations than the standard PC experience can offer today.
Step One: Make The Business Case For A Virtual Workforce Program
Growing the business is no easy task — especially when you consider all of the costs associated
with doing so, namely the new facilities and IT infrastructure that will be required as well as the
recruiting costs for the new workforce that will be needed. Additionally, improving customer service
in many cases means putting employees where your customers are — so, again, new offices
means more expenses. These real-life problems are great starting-off points for building your
business case for a virtual workforce. Consider the cost savings of hiring employees in your newly
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
targeted areas and allowing them to work at a flexible location instead of a headquarters office.
Consider the revenue opportunities of keeping your employees near your customers without the
high costs of operating a full IT infrastructure in your branch office. Alternatively, think about the
increased recruiting base your HR team would have if location didn’t matter — if hiring the most
qualified worker meant just that, and not just the most qualified worker in a specific city. All of these
criteria should be considered when justifying your virtual workforce program.
Regardless of your scenario, find the group (or groups) that you feel would most benefit from going
virtual and set up shop. The key, however, is to not paint yourself into a corner by making two
common mistakes: 1) coming up with a pilot case that puts the program into a silo, and 2) investing
in infrastructure that doesn’t support the diverse requirements from the business, IT, and HR. For
example, location-based pilots have the opportunity to show breadth of capabilities of a virtual
workforce — and the unified infrastructure — as workers from many departments will all have the
chance to do their specific job in their new surroundings. This is beneficial as it proves to those
business leaders making the virtual workforce go/no-go decision that workers of all types can be
supported.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Appendix A: Methodology
In this study, Forrester conducted an online survey of 211 organizations in the United States and
China to evaluate their use of virtual workforces and the technologies that support them. Survey
participants included HR and business decision-makers involved in hiring and recruitment of
workers. In this survey:
• Of the 211 total responses, 158 were from the United States, and 53 were from China.
• US organizations had 1,000 or more employees and thin client, desktop, and laptop
computers. Chinese organizations had 500 or more employees and thin client, desktop,
and laptop computers. More than 80% of Chinese organizations had 1,000 or more
computers.
• All respondents were responsible for recruitment and hiring of workers and were decision-
makers or influencers in regards to their company’s remote workforce policies and
procedures or were in a position to make decisions about their employees, specifically with
regards to where they work.
• Fifty-four percent of respondents were from HR, while the remaining 46% were from
various lines of business. Respondents were managers, directors, or executives of their
department, with two-thirds of respondents were director level or above.
• Respondents were drawn from a broad cross-section of industries, including public sector,
finance and insurance, and manufacturing. Specifically, in the public sector, we looked at
healthcare, education, and federal, state, and local governments.
• Questions provided to the participants asked about their plans and priorities as it relates to
the workforce, demographics and interests of the workforce, and technologies used to
support the virtual workforce.
• The online survey began in April 2009 and was completed in May 2009.
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Virtual Workforce: The Key To Expanding The Business While Cutting Costs
Appendix B: Endnotes
1
See the October 9, 2008, “Enterprise Mobile User Forecast: Mobile ‘Wannabes’ Are The Fastest-
Growing Segment” report.
2
See the March 11, 2009, “US Telecommuting Forecast, 2009 To 2016” report.
3
See the April 9, 2009, “Demystifying Client Virtualization” report.
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