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As someone who has worked 10+ years remotely (based in South America) I think it's a combination of factors:

Supply and demand. Why hire remote when there's plenty of warm bodies locally? Most companies do not need, and cannot afford, top-tier talent. Labor shortages are a myth.

Managerial incompetence. How many of the managers have any experience managing a remote team? Do they know what to do and what not to do?

Remote is frequently seen as synonym with "cheap, sub-par foreign developer" and there are many good reasons companies avoid that.

IMHO, remote-friendly organizations will prevail. The ability to hire from a much larger pool of talent and save on office costs gives them the upper hand.




> Managerial incompetence. How many of the managers have any experience managing a remote team? Do they know what to do and what not to do?

What are the skills that someone needs to manage a remote team? How could someone measure whether he has them?


Ability to communicate properly and proficiency with collaboration tools rank high on the list. It's also crucial to be able to properly identify and evaluate the contributions of any team member.

Remote is also largely incompatible with micromanaging. If you don't trust the ability of your remote developers to take decisions on their own the team is likely to underperform and fall apart. This is one of the main reasons remote works much better with senior developers.




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