Research undertaken for the report Changing the way we work - the role teleworking can play in how, when and where we work found that allowing employees to work away from the office can bring numerous benefits to a business, with 46% of businesses stating that teleworking meant that work was undertaken more quickly and nearly a third (29%) believing that it improved the quality of an employee's work.
A quarter of businesses (25%) saw a reduction in annual costs of between £3,000 and £100,000 due to teleworking.
The report outlines how businesses can ensure teleworking works for them including making sure that staff are trained in managerial skills and suggests that higher apprenticeships in management and leadership could improve the success of teleworking.
Albert Ellis, chief executive at Harvey Nash, said: "The Olympics provides the perfect opportunity for businesses to test out teleworking and what it can bring to a business.
"However, as more and more companies embrace flexible working practises we need to ensure that we have the infrastructure, such as high-speed broadband, in place to ensure that businesses aren't limited in what they are trying to achieve by technological concerns."
Colin Stanbridge, chief executive of the LCCI added: "Home working is clearly a growing subject for London companies as technology changes the way we live and work.
"Being flexible with how and where staff work can bring enormous benefits to a business and getting it right can add to the productivity of a firm as well as staff morale."