74% of Companies will Shift some Employees to Permanent Remote Work: Here’s what it Means for Investors

By Avner Meyrav

The coronavirus pandemic has impacted numerous aspects of daily life, and some of these changes may stay with us for years to come. One of the most significant adaptations made by a large part of the world’s population is switching to remote work. This change will drive further development in technology, from cybersecurity to HR, and could potentially become an extremely large investment theme. To enable investors to gain exposure to this theme, eToro has created the RemoteWork CopyPortfolio.

The Switch to Remote Work

During the 2020 coronavirus pandemic, billions around the world went under lockdown and many workplaces had to switch to remote working. What started as a temporary solution ended up being a complete paradigm shift, as 74% of companies have said that they will shift some employees to permanent remote work positions¹.

The Technology Driving Remote Work

It is quite apparent that the remote work revolution that we are seeing would not have been possible without today’s advanced technology cloud computing in general, and cloud-based, office-specific applications in particular. However, many of these applications were usually considered as a supplement. Video conferencing, for example, was used when needed, in instances where a client was far away or at international meetings. Now, it has become the standard for almost any office interaction other than email. In fact, the video conferencing market is expected to grow 20% annually until 2026². 

And it will not end there. Remote project management platforms, shared drives and many other such applications will thrive and become much more widespread. The cloud market as a whole is expected to grow 20% each year until 2025³, by which time it will reach an overall cap of $700 billion⁴. Companies are already heavily dependent on the cloud — 90% of companies already use some form of it today⁵.

The Benefits of Remote Work

While some individuals and companies may fear the impact of remote work, the numbers actually tell a different story. For example, one study showed that employees who work from home are 13% more productive⁶, while another concluded that one day of remote work per month can increase employee productivity and happiness by 24%⁷. Either way, both employees and employers need to get used to the idea of remote work, as Gartner assesses that around 40% of all workers will work remotely at least some of the time in the future⁸.

Some other benefits of remote work include:

  • Lower costs: Employers can save on office rent and peripheral expenses, such as electricity and property taxes, while employees save on transportation costs.
  • Time efficiency: Remote work doesn’t require a daily commute, which can add up to hours each day. Not to mention the overall benefit of less air and noise pollution brought upon by less traffic.
  • Breaking down geographic barriers: If the best person for the job lives four hours away, that may no longer be a deal-breaker.
  • Better work-life balance: Working from home can be healthier for people who live with their families, as they can spend less time on the road and can enjoy breaks with family members. 
  • Environmentally friendly: Switching to remote work means less real estate is occupied, less cars are on the roads, less electricity is consumed by office buildings and many other reductions in emissions and consumption.

Investing in Remote Work

It is obvious that remote work has the potential to be a completely game-changing phenomenon. All the figures point to the change being permanent, at least to some extent, and that means many new business opportunities. And with these come investment opportunities. But how can someone invest in remote work? 

eToro has created a diversified portfolio, called RemoteWork, which offers investors balanced exposure to the many companies that are operating around this growing trend. Comprising pure players from the remote workspace, alongside tech giants which span many aspects of the phenomenon, RemoteWork is a managed, well-balanced investment strategy. To follow the portfolio and its performance, you may add it to your Watchlist today.

Add RemoteWork to Watchlist

  1. https://www.gartner.com/en/newsroom/press-releases/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently
  2. https://www.gminsights.com/industry-analysis/video-conferencing-market
  3. https://www.fool.com/investing/2019/08/06/why-cloud-computing-could-be-a-major-investing-the.aspx
  4. https://www.globenewswire.com/news-release/2019/05/30/1859268/0/en/Cloud-Computing-Market-will-grow-at-CAGR-of-10-2-to-hit-696-25-billion-by-2025-Global-Analysis-by-Trends-Size-Share-Deployment-Product-Organization-size-Application-and-Regions-Adr.html
  5. https://leftronic.com/cloud-computing-statistics/
  6. https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/f/wfh.pdf
  7. https://www.smallbizgenius.net/by-the-numbers/remote-work-statistics/#gref
  8. https://www.gartner.com/en/newsroom/press-releases/2020-04-14-gartner-hr-survey-reveals-41–of-employees-likely-to-

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