The grads didn't have the space at home, they needed exposure to the company culture, and they needed closer supervision. There are, however, a number of valid reasons for people wanting to work from home, or for encouraging them to do so. The shortage of skilled IT staff means that you may well have to accept demands from staffers or new recruits. Changing attitudes and technology give us a wide range of solutions for getting work done. Two part-time people can fill a single job if the division of responsibilities works.
Some people work for two companies at once.
And of course you can forget about the how of doing something through outsourcing. These ways of working all imply a change in management style. You need to adapt the way you work with your team, especially the supervisory aspects, when people change where they work. Not all jobs can be taken home. You can't assemble automobiles in your basement, for example.