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The agile methodology runs short iterations which are 1 to 4 weeks in length. In addition the customer is embedded within the team continuously as they are all co-located to the same floor of the building and in many cases they are all in the same room. Also the agile teams are normally dedicated to only one project and are not faced with running numerous project simultaneously.
What advantages exist because your project team is co-located?
What are the disadvantage of having the project team co-located?
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