Given my experience as well as the success of software companies with distributed teams such as 37signals and StackOverflow (and I’m sure many more), I am increasingly suggesting that the benefits of a distributed team outweigh the launch of a centralized team, especially for start-ups.
Do you agree?
I agree.
Running a distributed team definitely has its drawbacks. As you noted in your own post, communication is a big problem. There are times, as a developer, I like to just bounce ideas from other developers and change ideas that I might not have come up with myself. Also, it can be difficult to get feedback or do code reviews (methods that I found useful in my development experience).
With that said, I also think that there is an advantage for a distributed team. The biggest of them is that developers strive for the best, when they can concentrate and just develop, and not worry about being interrupted or attending frequent meetings, etc. This was a huge advantage in one job that I had in a small company.
In your particular situation, you thought that one of the reasons you were so successful was not because you were geographically dispersed, but you were successful because you are a small company? Small companies have the advantage that you have a limited number of products, usually more attention, and as a result, you can maintain better control over your products / schedules, etc.
What are my 2 cents.
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