Citrix Forrester Consulting Virt Workforce

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June 22, 2009

Virtual Workforce: The Key To


Expanding The Business While
Cutting Costs
Virtualization Technologies Will Help You
Support A Virtual Workforce
A commissioned study conducted by Forrester Consulting on behalf of
Citrix Systems, Inc.
Virtual Workforce: The Key To Expanding The Business While Cutting Costs

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 

Virtual Workforces: The Key To Cost-Effectively Growing Company Talent ....................................... 7 

Virtual Workforces Promise To Solve Top Business And HR Objectives . . . ................................. 8 

. . . But Virtual Workforces Bring New Management Challenges .................................................. 12 

IT Departments Are Critical In Executing A Virtual Workforce Strategy............................................. 14 

Unfortunately, IT Is Not Well-Equipped To Support Virtual Workforces Today ............................. 15 

Look To Virtualization Technologies To Bridge The Virtual Workforce Divide................................... 15 

There Are Four Flavors Of Client Virtualization Technologies . . . ................................................. 15 

. . . That Are Supported By Traditional Infrastructure ..................................................................... 18 

Take A Three-Step Approach To Make A Virtual Workforce A Reality ......................................... 18 

Appendix A: Methodology .................................................................................................................... 20 

Appendix B: Endnotes .......................................................................................................................... 21 

© 2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
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trademarks are the property of their respective companies. For additional information, go to www.forrester.com.

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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:

A group of employees who do not work in a corporate headquarters. These workers


could include mobile workers, telecommuters, branch office employees, business
partners, contractors, outsourcers, and others types of workers who do not come into
an office on a regular basis.

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.

Organizations Must Cut Costs — But Not At The


Expense Of Growing The Business
In ordinary recessions, organizations are forced to cut costs wherever possible. However, in today’s
economy, simple cost cutting won’t do. Why? Because organizations must look to the future now
and be competitive today. This means balancing simple cost cutting with strategic spending (see
Figure 1). In fact, we found that:

• 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.

• Yet focus on expanding the business cannot be overlooked. Today’s organizations,


both in the US and in China, are looking beyond the here and now. They are looking at the
different growth activities at their disposal. Whether these activities include opening national
and international branch offices or working on mergers and/or acquisitions, organizations
are preparing their expansion strategy. This is shown by the more than three-fourths of US
and Chinese respondents who told us that expanding their business was a top priority for
today as we move forward into a better economy.

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Virtual Workforce: The Key To Expanding The Business While Cutting Costs

Figure 1: In The Current Economy, Lowering Costs Is A Top Priority

“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] )

Lowering the cost of facilities, including buildings and 90%


electricity 72%

89%
Lowering the cost of travel and expenses
70%

86%
Improving customer service
89%

Expanding the business through national and international 80%


growth opportunities 87%

65%
Managing mergers and acquisitions
51%

Increasing the use of noncorporate employees (such as 64%


contractors and business partners) 70%

60%
Increasing the use of outsourcing
60%

59%
Decreasing the use of outsourcing
34%

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.

Companies Will Recruit, Develop, And Retain


Talent To Meet Their Growth Objectives
With business expansion driving many of the critical decisions being made over the next year,
companies will need to tap into their human resources department for help. Why? Because building
up an employee base to tackle this new growth will be the key to the business success. This puts
HR departments on the fast track to meet these new business requirements by attracting and
retaining an all-star team. To do this, HR personnel will:

• 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.

• Prioritize initiatives around improving worker retention, balance, and satisfaction.


Not only must HR departments focus on hiring new workers, they must also constantly
make sure they are keeping their current workers happy in order to retain workers and
avoid costly turnover. To assure that they are not spending more time and money than
already necessary on the hiring and training of employees, more than three-fourths of our
US and Chinese respondents told us that improving worker retention and satisfaction, as
well as providing employees with a better work/life balance, are very important priorities
over the next 18 months (see Figure 3). By improving worker retention and satisfaction,
organizations can avoid turnover costs and lost productivity.

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%

Lowering costs associated with recruiting, training, and 79%


onboarding workers 64%

73%
Access to a broader geographic labor pool
77%

67%
Recruiting and hiring younger workers
74%

Recruiting different types of workers, such as part-time 66%


or home-based 57%

Potentially reducing labor costs by hiring workers in 64%


lower-cost cities 62%

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

Figure 3: Worker Retention And Satisfaction Will Drive HR Decisions

“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%

Incorporating workers faster during 72%


mergers and acquisitions 74%

Filling positions of workers of retiring 69%


age 66%

Lowering commuting costs for workers 68%


(i.e., gas, tolls, parking, etc.) 72%

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.

Virtual Workforces: The Key To Cost-Effectively


Growing Company Talent
Virtual workforces are not a new idea but instead an area of growing interest for many
organizations. Specifically, a virtual workforce is:

A group of employees who do not work in a corporate headquarters. These workers


could include mobile workers, telecommuters, branch office employees, business
partners, contractors, outsourcers, and others types of workers who do not come into
an office on a regular basis.

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.

Virtual Workforces Promise To Solve Top Business And HR


Objectives . . .
Fortunately, virtual workforce programs can do a lot more than support the business’s changing
worker population; they can also help companies meet their overall business objectives, such as
expanding the business, and HR objectives, such as improving satisfaction, for the next 18 months
and beyond. How? Virtual workforces allow companies to:

• 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.

• Solve the top HR priority — worker retention. As we learned above, HR professionals


have prioritized improving worker retention for the next 18 months and beyond. Thus it’s no
surprise that 67% of our US respondents and 77% of our Chinese respondents told us that
their HR-related interest in moving toward a virtual workforce is just that (see Figure 7).
Given how much employees want to have a flexible work environment, it is easy to see that
by opening up the working options, employees will be more likely to stay with their current

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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.

Figure 4: Lowering Facilities Costs Lead Interest In Virtual Workforce Programs

“Of the following, what are your cost interests in moving toward a virtual workforce?”
(select all that apply)

Lowering facilities 69%


costs
70%

Lowering travel 57%


costs US
57%
China

Lowering costs
associated with 54%
recruiting, training,
and onboarding 76%
workers

Reducing labor
costs by hiring 53%
workers in lower-
53%
cost cities

Base: All respondents


(multiple responses accepted)

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)

Increasing worker 67%


productivity
74%

Improving 65%
customer service US
87%
China

Improving 55%
business continuity
plans 68%

Improving speed 49%


to market
70%

Base: All respondents


(multiple responses accepted)

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

Lowering commuting 60%


costs for workers ( i.e.,
gas, tolls, parking,
etc.) 62%

Base: All respondents


(multiple responses accepted)

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 7: Worker Retention Drives HR Interest In Virtual Workforces

“Of the following, what are your human resources interests in moving toward a virtual
workforce?”
(select all that apply)

Improving worker 67%


retention 77%

Hiring the right people 60%


for the job 77%
US
Increasing the labor
pool by supporting 53%
workers independent China
72%
of location

Recruiting and hiring 44%


younger workers 51%

Incorporating workers 39%


faster during mergers
and acquisitions 57%

Base: All respondents


(multiple responses accepted)

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.

. . . But Virtual Workforces Bring New Management Challenges


Despite all the promise these virtual workforces can bring to organizations, there will be new sets of
both business and IT challenges. These include:

• 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.

• Chinese business concerns center around communication and user experience.


Unlike US organizations that are worried about their employees not getting their work done
if moved into a virtual workforce, Chinese organizations are more focused on their workers:
specifically, the potential breakdown in communication among workers who are not in the

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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

Supporting (from a training and growth standpoint) 32%


virtual workers is too difficult 42%

The costs associated with setting up and 27%


maintaining a virtual workforce 45%

Base: All respondents


(multiple responses accepted)

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)

Providing secure access 54%


to applications and data 74%

Securing workers' 49%


devices and data 66%

Maintaining compliance 49%


to both corporate and US
regulatory requirements 55%

China
Supporting virtual 44%
workers is expensive 49%

Supporting (from IT 38%


standpoint) virtual
workers is too difficult 53%

Base: All respondents


(multiple responses accepted)

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.

IT Departments Are Critical In Executing A Virtual


Workforce Strategy
To meet the business objectives that today’s organizations demand, such as lowering the cost of
facilities or expanding the business quickly, IT must step in. IT is the critical lynchpin that can create
and support a virtual workforce strategy that will enable organizations to see the cost cutting and
expansion they need over the next 18 months and beyond. And thankfully, IT has already gotten
involved. Today, IT departments are:

• Critical to the support of “anytime, anywhere” workers. Eighty percent of our


respondents told us that providing anytime, anywhere support to workers was very
important to their IT departments. Furthermore, more than 85% of respondents believe that
providing workers with access to their applications and data, regardless of their location,
are other important hot buttons for IT departments. This means that IT is starting to help
organizations expand to workers outside the corporate office.

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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.

Unfortunately, IT Is Not Well-Equipped To Support Virtual


Workforces Today
Although IT does a good job today at meeting business requirements, virtual workforce expansion
will expose IT weaknesses without the proper tools and technologies. IT departments are already
showing weaknesses in supporting certain populations of workers — specifically, supporting mobile
and home office workers was ranked last among a list of 10 things the business thinks IT can do
well. Therefore, IT needs new tools to help them provide better support to these remote workers as
well as to enable them to take this a step further to execute a solid virtual workforce strategy.

Look To Virtualization Technologies To Bridge The


Virtual Workforce Divide
Let’s recap: Organizations today are struggling with lowering costs, improving customer service,
and expanding the business. At the same time, IT is struggling with securing devices and access to
applications and data, as well as assuring that the desktop environment is compliant to all corporate
and regulatory requirements. These are not easy tasks, and thus it will take a new set of
technologies to meet all of these requirements in tandem.

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.

There Are Four Flavors Of Client Virtualization Technologies . . .


Part of enabling a virtual workforce strategy requires understanding the underlying technologies.
We will get a bit technical here, but stay with us for the bottom line for today’s business executives.
Client virtualization encompasses four different technologies: 1) local desktop virtualization; 2)
hosted desktop virtualization; 3) local application virtualization; and 4) hosted application
virtualization.3 Each address a subset of IT challenges when supporting virtual workers, but when
used together, they enable the IT organization to meet the productivity needs of the different user
types and can make the virtual workforce a reality.

• 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.

• Hosted desktop virtualization. Hosted desktop virtualization is where the desktop


environment executes in a protected environment on data center servers. The virtual
machine bubble runs directly on a data center server alongside other VM instances,
allowing multiple users to remotely connect to their desktops simultaneously.

• Local application virtualization. Local application virtualization is the next generation of


application packaging (see Figure 11). Applications are packaged as self-contained
executables that run independent of any other application on the machine. They run in an
isolated environment on the user's OS, unable to interact with other applications without
explicit permission.

• Hosted application virtualization. Hosted application virtualization is a new spin on an old


theme: server-based computing. Applications are run in isolated environments hosted on
data center servers, and users access these applications over the network. This is
transparent from the user's perspective; the application appears to be running on his/her
machine via a set of shortcuts on his/her desktop.

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

Figurre 10: The Tw


wo Flavors Off Desktop Virrtualization

Figurre 11: The Tw


wo Flavors Off Application Virtualizatio
on

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Virtual Workforce: The Key To Expanding The Business While Cutting Costs

. . . That Are Supported By Traditional Infrastructure


While client virtualization provides the productivity environment for your virtual workforce, there are
still three infrastructure components that are necessary to complete your strategy. These include:

• 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.

• Collaboration infrastructure. Forty-five percent of our respondents cited a fear that a


virtual workforce would potentially lead to a decrease in worker collaboration.
Consequently, organizations must invest in collaboration infrastructure that enables
workers to collaborate with each other as if they were in the same office. These types of
technologies include collaboration, application sharing, and conferencing platforms.

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.

Take A Three-Step Approach To Make A Virtual Workforce A


Reality
Creating and supporting a virtual workforce is not easy, yet we know it will be key in helping
organizations meet their objectives in areas such as lowering costs, improving customer service
and expanding the business. Thankfully, IT now has the tools at its disposal to implement a secure
and compliant virtual workforce. This means that IT is no longer the inhibitor to business success,
but instead, it can align with business needs in a cost-effective manner. To get this right, we
recommend that companies focus on three key initiatives.

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.

Step Two: Start With A Small Departmental Or Location-Based Pilot


Next comes the thought exercise: Where will a virtual workforce fit well in your organization? Is
there a department that has more mobile needs than another? Is there a branch office that is not
filled to capacity that could be closed if employees worked from home? Would you like to expand to
a new geography without the costly and complicated IT infrastructure? Could you connect your
warehouse and your factory floor to your headquarters operations?

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.

Step Three: Demonstrate Benefits To Expand Your Virtual Workforce


With your small pilots in place, it’s now time to take a step back to see where your cost savings
existed. Where did this test group face challenges, and where were the benefits? Work with
business leaders to make sure current objectives are being met with the program, such as faster
growth opportunities, serving more customers at a lower cost, and improved worker satisfaction and
retention. Work through any potential concerns they raise and extend the pilot to new groups with
different demands. You will find that in no time, your virtual workforce — supported by client
virtualization technologies — will enable your business to meet your objectives: cutting costs, but
not at the expense of growing the business.

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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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