Teleworking does work, and always will work ... for some
Sitting here at home, chuckling over 'Wonderkid' and his lifestyle issues. I'll concede that if one views work as a sanctuary from the horrors of one's home life, teleworking is never going to work - for you. But don't go making stupid generalised assertions on behalf of those of us who routinely don't bother going to an office. I am quite happy working with offshore developers, global partners and disparate team members across the UK (many of whom also rarely bother with an office commute) and regularly deliver on time and to budget, bizarrely enough with fewer of the stresses and political headaches attendant to office culture.
The IT recruitment difficulty derives from what has always plagued the IT and Telecomms business in this country - incompetent and ineffective management. I have yet to work on a project that ever failed because of a lack of technical skill. I have worked on many that failed because of management ineptitude, under-resourcing, poor planning and an inability to listen to, or understand, fairly simple concepts relating to what can and can't be done. Many technical professionals worth the name have probably used the flexibility and mobility their skills afford them to position themselves in a role that is advantageous to them, not their employer/client. I know I'm not alone in having learned from repeated experience and taken the "work life balance" decision when it was a good time to do so, planning my future according to what suits me, not what suits the whims of a clueless corporate droid.
A system of managers that only values 'management skills' (whatever they are) inevitably leads to an environment in which recruitment is skewed away from the technically able and more towards the conformist suit. The giveaway to their cluelessness is their surprise that this should be the case. To continually repeat the same mistakes while expecting a different outcome is a symptom of stupidity.