Earlier quoted context omitted.
As someone who is regularly exposed to these types of decisions, I don't think cost is the reason. Everyone recognizes that engineers are more expensive than office space. Private offices result in engineers getting more done but working on the wrong things, or solving problems in slightly the wrong way. The goal is to expose developers to the organization more so they have a stronger sense of what users/customers va…
I think it's better to have a culture where engineers naturally feel comfortable leaving their offices. I worked at a company that had 3:00 tea time, like in academic departments. People drank coffee and played board games, but after half an hour, they were talking about work again and the cross-department communication that was needed would happen organically. That's a lot better than subjecting engineers to a 24/7…
The most individually effective tactic I've found is to eat lunch/play games/get coffee with people in order departments as much as possible. A lot of the best communication occurs in a relaxed setting-I'm convinced that a major key to success is to encourage/enable people who don't normally spend time together to hang out informally.