We have a friend in the US, who is a fairly senior civil Servant (LTC/COL equivalent), who works from home in Arizona and just goes to D.C. every couple of weeks for meetings. Otherwise everything is done by email, or FaceTime, and that stuff. For that (largely Administrative) job it seems to work fine.
We've moved a long way from passing big fat paper files from one desk to another at MoD and elsewhere.