I don't think it's as simple as saying, essentially, "people who forbid telecommuting are idiots" or "there's no legitimate reason why telecommuting should be difficult." There <i>are</i> legitimate reasons to co-locate a team.<p>We allow working remotely one or two days a week, but our experiments with full telecommuting have not gone so well (though we'll probably keep trying). The level of success probably depends pretty heavily on the type of product you're trying to build and the resulting level of communication that's required. For enterprise software (or perhaps I should say "domain-specific apps" or something), you really need a customer proxy/subject matter expert on hand that you're talking to on a fairly constant basis, because the developers themselves aren't really experts in the domain; as a result, you want your development setup optimized for high-bandwidth communication. When 10 people are onsite but 1 team member is offsite, that communication just doesn't happen, and that 1 person ends up out of the loop and much less productive (at least that's what's happened with us). For other types of software, that's less of an issue.<p>I think it's also much less of an issue if the entire company telecommutes, or if at least a large percentage do: in that case, communication channels are optimized for that. If 5% of the staff telecommutes, the communication channels are optimized for face-to-face communication, and the people telecommuting are left out.<p>And on top of that, there are just different ways to go about developing: they're not necessarily better or worse, but they make different demands on physical presence. A lot of agile/XP practices work best when people are co-located in small cross-functional teams that are in constant dialog, pair-programming, etc. That doesn't mean it's the <i>only</i> way to develop, but it can be an effective way to develop (more so for certain domains than for others), and it doesn't mesh very well with full-time telecommuting. Other development strategies and methodologies make different trade-offs and will be more accommodating of telecommuting.