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I don't agree, having all engineers in the same room is akin to having only global variables in your code.

>Having everyone together in an open space increases communication

That it does, but often at the price of productivity. There is a line dividing productive communication and pointless distraction and the more people you put in one room the more often you cross it.

That sounds like a crutch for a malfunctioning team and bad management.

I find it incredibly ironic how many software companies apparently don't believe in the power or usefulness of Information Technology.

> power or usefulness of Information Technology.

in what regard? communication?

As someone who works in an open office, I often find communication so open that I have to take my laptop into a conference room to get any work done.