Friday, May 25, 2012

Why teleconferencing is not de-concentrating the population?

In my last post I wrote how you can use different conferencing tools for multi-location collaboration. It is true that modern telecommunication tools have made it possible to work at home, to work with teams in different countries and different parts of the world. So the location of jobs should become less and less relevant. This should mean that the pressure to move to the nearest growth-city would weaken in time and we should see a trend of people moving to places where nature is closer and housing cheaper. But this is not happening! Why?
We still see jobs and people moving to growth centers - to Helsinki, Stockholm and Tallinn, rather than Paide and Kärdla.

One explanation for this is that telecommunications and IT enables not only working from distance, but also ruling from distance. You no longer need a local office or locally adjusted services. So paradoxically the better the communications get the more economical it gets to concentrate the jobs in the capital. Or what do you think?

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