Small workgroups sometimes can get by using less formal team collaboration based on a combination of email, file servers with shares, and data on their own hard drives. Because all your project team members are probably already familiar with these tools, their use becomes the modus operandi for small project team information sharing.
What may be lacking in this collaboration system is an audit trail of all project team actions and efforts.
Furthermore, as size and complexity of a project grows, so does the potential number of issues, risks, and related documentssmall organizations can have fairly sophisticated team collaboration requirements as well.
It is imperative for project managers to be able to track all information relevant to any project risks and issues identified, who is responsible for the issue or risk resolution, and how and when the issues or risks are resolved. Without a centralized project space to collect and store this information, it can get overlooked or lost, and project performance can be negatively impacted.