What is a co-located company?

Co-location, in the context of business operations, refers to the practice of having all or most team members working together from a single physical location, typically an office or workspace. This term is often used to distinguish traditional companies with a centralized workplace from those that operate remotely or have teams spread across multiple locations.

A co-located team, therefore, consists of individuals who work together in person, sharing the same physical workspace. While some co-located teams may have satellite workers or occasional off-site meetings, the majority of team members are based at the same location. Here's a comparison of co-located companies with remote and distributed companies:

Flexibility and Coverage:

Co-located teams are limited by their physical location and may face challenges in accessing talent pools or markets outside their immediate area. Remote and distributed teams, on the other hand, can operate across different time zones and have access to a wider talent pool, allowing them to hire individuals regardless of their geographical location. This flexibility is particularly advantageous for startups and companies looking to tap into global markets. Communication and Collaboration:

In co-located companies, communication and collaboration often occur face-to-face, facilitated by in-person meetings, discussions, and interactions. Remote and distributed teams rely on technology and internet connectivity for communication and collaboration, using tools such as video conferencing, instant messaging, and project management platforms for synchronous and asynchronous interactions. While co-location offers the benefit of immediate face-to-face interaction, remote and distributed teams leverage technology to overcome geographical barriers and foster collaboration across different locations. Each approach has its advantages and challenges, and the choice between them often depends on the nature of the business, its goals, and the preferences of its workforce.