I'll give some reasons from personal experience (and I think it's a global thing, not just European).<p>I pitched a partially remote team to a previous employer in Singapore and they were reluctant to try it initially.<p>First, they didn't know what remote meant (except for that time they outsourced something to a cheap country and it was a costly disaster). So, had to spend some time explaining that. Not rocking the boat is quite valuable when you're busy and worried - just keep doing what you know.<p>Second, a contractor is not an employee - contractors are services you buy piece by piece, whilst you "own" an employee (not pretty terminology but unfortunately often true) and you can milk that employee with a potentially infinite return on your finite investment. Is this a stupid thing to think, yes, but nevertheless I encountered it.<p>Third, it's about control. It's possible, but harder to micro-manage remotely (and in practice no sane contractor will accept it without extreme compensation).<p>Fourth, it's also a hell of a lot easier for a "consultant" to "end the contract" when he's fed up with bad management, than for an employee to move his entire life yet again (metaphorically if not physically). A consultant benefits from having had many "clients", an employee is hurt by too many moves. These "traps" make an employee more pliable and invested emotionally (at least in managers' eyes) so the managers prefer employees.<p>Fifth, IP. Employee contracts usually sign over everything. Remote contracts, being for services, have more opaque IP agreements. This also applies to a lesser extent to security - that remote dude is working on a foreign network, foreign machine, etc.<p>I'm not saying these are desirable things, but these were my conclusions from experience. YMMV, different businesses have different cultures, etc. If you want to change your internal culture, I think these are the issues/fears to address.<p>We ended up getting remote jobs because the test we put up for the job ended up not getting a single application locally, but dozens from all over the world. About half the folks who passed relocated, the rest stayed on remotely.<p>I'm now running my company completely remotely. We have a mailing address in London and Hong Kong and work from home. I see almost no reason to get an office. Unfortunately we're also not hiring because we have a long waitlist of nice candidates that we will hire (remotely) as soon as we clear enough revenue. Maybe that's the case for the other remote businesses.