Virtual Company/CorporationA virtual company (or virtual corporation) is a company that exists in the etherworld of the network of independent companies that are connected by information technology. The companies, centered around the procurement and distribution of information, are by nature very flexible. They share expenses, skills, and market access. Their employees (called telecommuters or teleworkers) do not gather in a building every day; for the most part, exchanges are performed online.
There are many advantages to virtual companies, and their numbers are expected to increase dramatically in the future. Since they don't have traditional office expenses, their overhead is very low . They can recruit talent at a global level. Speed is at the very core of their being, and their flexibility allows them to adapt quickly to the demands of their customers. Many see the rise of virtual companies as a partial panacea to the traffic woes that plague major cities. In addition, many telecommuters relish the opportunity of fast-paced, varied work in a home environment.
Drawbacks to virtual companies include difficulty in training employees, and that employees may suffer from a sense of isolation or become disconnected from their non-virtual communities (see the film "The Net" for a cheesy depiction of this plight). At this time, many telecommuting positions lack job security or benefits.