The definition of virtual organizations ( VOs) is very wide, but we can generally distinguish some features, that every kind of virtual organizations has in common. These are Outsourcing (process of finishing necessary work outside company’s boundary) and so-called Groupware. We can distinguish several kind of virtual organizations, that depends on definition we choose. VOs refers to a new organizational form characterized by a temporary or permanent collection of geographically dispersed individuals, groups or organization departments not belonging to the same organization – or entire organizations, that are dependent on electronic communication for carrying out their production process. In VOs, member contact together through email, Internet chat and telephone. Nowadays, Many organizations and governmental agencies have established virtual organizations. For example:
- Private Sector Case Studies: Dell Computers- Companies are rapidly moving away from self-contained, vertically integrated organizations to virtual entities that rely on business partners to fulfill major parts of their supply chains. This means a company will outsource any part of its operations to companies that can more efficiently, reliably and cost-effectively implement the work. Like most of the components in a Dell computer are made by other companies while Dell focuses on its strengths--marketing, customer support and integration of these components into the final computer products. When buying a computer from Dell, the virtual organization includes the Dell customer service rep, assembly line and assembly crew, supply people for various components, the UPS truck and driver who delivers the computer, and people from MasterCard who pay for it. All of the inventory in the system, regardless of location and ownership of the company, can be viewed as a single system. Benefits may include overall lower inventory levels in the whole system and better customer service.
- Public Sector Case Studies: US Department of Agriculture (USDA)--USDA's Animal and Plant Health Inspection Service merged all 250 IRM employees throughout the agency's 11 units into a single organization. Instead of moving employees to a centralized location, they were left physically and budgetarily where they were before the initiative began. Employees are funded by one unit and receive direction from another. At the USDA's National Plant Data Center, 90 percent of interaction is done via teleconferencing, e-mail and video conferencing. "Some of the team members have never met each other in person," a USDA representative said.