Co-Located Company

What is a Co-Located Company?


A co-located company operates from a centralized physical location, typically an office or a specific workspace, where its team members work together. This traditional business model contrasts with remote or distributed companies where employees work from various locations. 

What is Co-Location?

  • Co-Location Defined: It's the practice of having employees work together in the same physical space. This term has become more prevalent with the rise of remote and distributed work models.
  • Benefits of Co-Location: Direct, face-to-face communication, fostering a sense of community, easier collaboration, and often more straightforward management of resources and personnel.

What is a Co-Location Team?

  • Co-Located Team Dynamics: These teams work in person, typically in an office setting, allowing for real-time collaboration and communication. While they may have some remote members, the majority are based at the centralized site.
  • Hybrid Models: Some co-located teams may also operate with satellite workers or multi-site arrangements, blending co-located and remote work dynamics.

Co-located Companies vs. Remote and Distributed Companies

  • Flexibility and Coverage: Co-located companies are often limited to a specific geographic area, while remote and distributed teams can operate globally, offering access to wider talent pools and market opportunities.
  • Communication and Collaboration: Co-located companies rely heavily on in-person interactions, while remote and distributed teams utilize digital tools for both synchronous (like video calls) and asynchronous (like message boards) communication.

Challenges of Co-Located Companies

  • Scalability: Expanding a co-located company can be more challenging and costly, requiring larger physical spaces and resources.
  • Talent Limitation: Such companies are often limited to hiring talent available in their immediate geographic area unless they offer relocation.

Trends Influencing Co-Located Companies

  • Emergence of Flexible Work Arrangements: The rise of remote and hybrid work models has prompted many traditionally co-located companies to reconsider their work arrangements.
  • Technology Integration: Even co-located companies increasingly rely on technology for communication and collaboration, blending traditional and modern work practices.

Making the Choice: Co-Located vs Remote

  • Consider Company Culture: Co-located environments can foster a strong, unified company culture, while remote setups might require more effort to maintain cohesion.
  • Assess Business Needs: The nature of the business, client interaction, and team dynamics can significantly influence whether a co-located or remote model is more suitable.