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>I'm implying that when you factor in the lack of time zone differences, communications issues, and the increased efficiency of having your employee in the same office as you, then you'll probably get the work done in half the time.

Even that's only the case if your office is designed for software/creative work. If it's a noisy, open-office plan full of interruptions and distractions, it's no guarantee that on-site software developers will be more productive than someone working remotely from a library or home office or the like.

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