Virtual engineering design teams: A cost analysis perspective

Virtual worlds, such as Second Lifereg, are gradually evolving as common business practices. Some companies, e.g. IBM, use the medium to conduct meetings and others, e.g. Nissan, use its 3D design capabilities to build prototypes. Virtual engineering teams may be dominant in a future where globalization and competitiveness will require faster and more international team settings. This rise will be facilitated by the gradual ascendance of ldquodigital nativesrdquo into the workforce, along with advances in technology. Research on virtual teams has concentrated mainly on the technological, management, and cultural aspects. However, very little, if any, research has concentrated on the economic aspect. Cost is one of main drivers for the progressive switch to virtual teams; it accounts for a majority of the reasons for companies developing virtual teams. Despite that, research on virtual engineering teams has rarely focused on cost. This preliminary investigation will look at life cycle costing of virtual teams. A cost structure and categorization will be developed and a framework for life cycle costing of virtual teams will be elaborated.