The vwo full form is Virtual Web Organization. A virtual web organization is an internet-based company with no office, workspace, inventory, or employees. It’s appropriate for start-ups that don’t require having a physical location or staffing to complete projects.
Benefits of this method include the ability to achieve scalable growth quickly and with little risk by eliminating costs associated with founding an organisation. The latter can be especially beneficial in industries where time is critical for success such as managed transportation services (e.g., Uber).
Web-based organizations also offer flexibility and convenience for professionals who desire more control over their schedules, such as telecommuters, independent contractors, and part-timers. However, similar to traditional start-ups, virtual companies face challenges when competing with well-established brick and mortar rivals. Namely:
Initially there were issues getting paid, but now each worker has their own account so they can go in and see the hours that have been submitted by their manager or supervisor.
From a technology standpoint, companies are using cloud-based software to help track time, manage projects, share files, communicate with team members, etc.
The next step is for virtual companies to focus on expanding into new markets outside of North America. According to Stephen Wunker CEO of WorkHabitat , “Virtual workspaces are at an early stage internationally with significant growth potential.”
According to Deloitte’s 2017 Fast 500 Asia Pacific report , China topped the list with over 10M virtual workers. India was ranked second followed by Indonesia featuring virtual employees contributing 41% of total GDP.
Virtual companies provide a way for people to work from virtually anywhere as long as they have access to the internet. This approach is especially useful in regions where the cost of living is high and average annual salaries are low. By combining online opportunities with virtual companies, individuals can earn a higher income while still enjoying the ability to live affordably. For instance, if you earn $450/month in China , you could work for an organization located in another country where the minimum wage is $5,000/month. Thus by travelling halfway around the globe each day via wifi connection, you’d be able to enjoy big city life with your family back home all while working remotely.