The aim of the research is to assess Finland’s recent development towards an information society. The study focuses on knowledge work or, in other words, occupations related to the production and distribution of information. In Finland, following the example of the United States, knowledge workers now comprise the largest and arguably the most important segment of the workforce. In contrast to optimistic expectations, however, the growth of knowledge work seems to have reached its natural point of saturation. Growth in these occupations has been virtually nonexistent since the mid-1990s, and currently knowledge workers comprise 46 per cent of all employed persons. Although the proportion of information occupations as a whole has not increased since the mid-1990s, the internal differentiation within this stratum has continued. The share of occupations related to the production of new information has continued to increase at the expense of jobs related to routine information handling. In addition to the rise of knowledge work, new flexible work arrangements have become more common than before. Although pure virtual organizations remain very rare, at least in principle modern information and communication technologies provide a possibility to organize work irrespective of time and space. Yet time and space matter. Despite the information technology revolution, it has proved extraordinarily difficult to distribute work organizations across temporal and spatial constraints. From the point of view of individuals, the taking up of telework also seems to be progressing much more slowly than anticipated. The flexibility and mobility of work has increased due to technological development, but the majority of employees consider teamwork and face-to face interaction more important than the possibilities offered by distributed work arrangements. The study draws on research projects funded by the Academy of Finland and the Finnish Work Environment Fund. In these projects the development of Finnish working life has been monitored on the strength of extensive survey and interview materials. The survey data, representing Finnish wage-earning population, covers the years 1981, 1988, 1994 and 2000. Between 2001 and 2003 32 qualitative interviews were conducted in the context of seven business organizations. The focus of the study is on the latter data set.