ODesk

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oDesk
Type Private
Industry Internet
Service Marketplace
Workforce Management
Founded Campbell, California
2005
Founder(s) Odysseas Tsatalos
Stratis Karamanlakis
Headquarters Redwood City, California
Key people Thomas Layton
(Executive Chairman)
Gary Swart
(CEO)
Website oDesk.com
ODesk
Alexa rank negative increase 394 (February 2014)[1]

oDesk is a global job marketplace with a series of tools targeted at businesses that intend to hire and manage remote workers. Based in Redwood City, CA, oDesk was founded in 2005[2] by Greek entrepreneurs Odysseas Tsatalos and Stratis Karamanlakis.[3]

Background

oDesk was founded by Odysseas Tsatalos and Stratis Karamanlakis. The two friends created a new technology platform (an online workplace) to allow distributed teams to work together and help instill trust in work happening via the Internet. oDesk, along with its network of freelancers (spanning any type of work that can be done via the Internet) launched in 2005.[4]

As of 2012, oDesk is the largest online marketplace in which independent professionals and their clients can establish and fulfill work arrangements.[5] The company’s business strategy, including new pricing, is credited with helping it surpass competition to establish market dominance.[6]

Online Work Industry

Staffing Industry Analysts puts oDesk into a category of fast-growing staffing businesses that it refers to as "online staffing" platforms:

"Online Staffing — A type of Talent Exchange consisting of an online platform where contingent workers, contractors, freelancers can offer their skills and services for limited projects or even on-going assignments and where organizations and individuals can post their requirements or put tasks/projects out to bid." [7]

Staffing Industry Analysts estimated that the total global market for "online staffing" was approximately $1B:

'Fifteen years ago, this industry segment did not exist. But today (after an acceleration starting around 2007) it generates about $1B+ in global revenues, consists of over 50 firms, and is growing at high double-digit growth rates. Six major players account for about half of the total industry segment revenues in 2012, but it can be expected that future market/industry expansion will also be based on now-smaller or not-yet-formed players." [8]

While there is awareness of the largest players in this segment (oDesk, Elance, Freelancer.com), other players are developing often along evolutionary paths (e.g. Work Market, Workana, Onforce, NextCrew, et al).

In March 2013, Staffing Industry Analysts, projected that the "online staffing" segment would grow to $5B by 2018.[9]

Online marketplaces often manage the payments and make money by charging membership fees and/or "marking up" on the billings of the contractors/freelancers. The mark-ups can range from 5 percent to 15 percent. In general, these mark-ups are significantly less than the mark-ups of traditional staffing firms, which usually—technically—enter into an employment relationship with their workers.[10]

Description

oDesk allows clients to create online workteams coordinated and paid through the company's proprietary software and website.[11] The name is a short version of "online desk"[12] in reference to the company's intent to enable anyone to work anywhere, anytime. Prospective clients[13] can post jobs for free, and freelance workers (“contractors”) may create profiles and bid on jobs, also for free.[14] The company collects 10 percent of the payment.[15] Payments are made through oDesk, which handles many bookkeeping tasks for the transaction. In addition to the marketplace aspect and the payment/bookkeeping services, the company uses collaborative software, “oDesk Team,” that allows clients to see a provider's progress while he or she is billing time. The transactions are transferred into the contractors' accounts only after a 6-day safety period. The company's site is entirely in English, and all transactions are made in U.S. dollars.[16]

The company describes itself as an online workplace. As of December 2012, oDesk had 2.7 million freelancers and 540,000 clients worldwide.[17] In January 29, 2012, the company reported that its top 5 countries (in terms of dollars spent for oDesk contractor services) were (in rank order): (1) US, (2) Australia, (3) Canada, (4) UK, and (5) United Arab Emirates.[18] oDesk reported that services paid by clients hiring through the site for the year totaled $360 million in 2012.[18]

The specific areas of expertise supported by the site include web development and a wide variety of programming/software development skills, graphic design, writing and administrative support. The company provides voluntary skills tests in various disciplines from English aptitude to specific programming skills, and profiles include a feedback mechanism.

Financing

oDesk has raised four rounds of financing. The first was by Globespan Capital and Sigma Partners.[19] The second round was raised in September 2006, led by Benchmark Capital and included the previous two investors.[20][21] The third round was raised in May 2008, led by DAG Ventures and included the previous three investors.[22]

The most recent round was announced in March 2012. Certain investment strategies managed by T. Rowe Price Associates, Inc. led the round, with participation from Benchmark Capital, Globespan Capital Partners and Sigma Partners.[23]

The venture investors on oDesk's board include Greg Gretsch and Kevin Harvey.

Innovation

The company's oDesk team software increases transparency and allows a client to have confidence in the billing done by a contractor whom the buyer may never have met and who may be half a world away. In an October 2008 interview with website Web Worker Daily, CEO Gary Swart said the work diaries “give buyers unprecedented visibility into work performed,” and that the Team software's “hassle-free tracking guarantees convenient, safe, and accurate billing for all work performed.”[24]

Merger

On December 18, 2013, oDesk announced that it would sign a definitive agreement to merge with its competitor, Elance to create an online workplace for a combined total of 8 million registered individuals. A joint statement issued on the same day stated that Fabio Rosati, chief executive officer of Elance, would lead the combined company. The new entity’s name was to be announced after the deal was closed. According to Rosati, the executive team and board will be balanced with people from each company. Both websites would stay open, and the company will keep both Silicon Valley headquarters, with ODesk in Redwood City, California, and Elance in Mountain View, California.[25]

Competitors

Awards

  • Bersin by Deloitte "WhatWorks" Award (2013)[26]
  • oDesk ranked #543 in the 2012 Inc. 5000, #441 in the 2011 Inc. 500, #286 on the 2010 Inc. 500, and #110 in the 2009 Inc. 500[27]
  • AlwaysOn Global 250 Top Private Companies (2012[28] and 2011[29])
  • AlwaysOn OnDemand 100 (2012[30] and 2011[31])
  • Silicon Valley Business Journal Fastest Growing Private Company List (2011,[32] 2010[33] and 2009[34])
  • San Francisco Business Times Fastest Growing Companies List (2011[35] and 2010[36])
  • SAMCEDA Innovation & Entrepreneurship Awards - 2011 Fastest Growing Innovator Award of Excellence [37]
  • 2011 TiE50 Internet/Social Networking Winner[38] of TiE50 Awards Program.
  • TechCrunch50 DemoPit Winner (2010) [39]
  • Silicon Valley Business Journal Emerging Technology Award (2009) [40]
  • International Association of Outsourcing Professionals 2009 Global Outsourcing 100 Rising Star [41]
  • Deloitte Technology Fast 500 [42]
  • Finalist for the "Red Herring 100 Global" Awards 2007 and 2009.[43]
  • 2007 Rising Star in Deloitte's Technology Fast 500 Program.[44]
  • Finalist in PC Magazine’s 2006 Small Business Awards[45]

See also

References

  1. ↑ "Odesk.com Site Info". Alexa Internet. Retrieved 2014-02-02. 
  2. ↑ "oDesk Crunchbase Profile". Retrieved 22 Feb 2013. 
  3. ↑ "oDesk About Us Page". Retrieved 7 June 2011. 
  4. ↑ Weiner, Jenna. "What Does ‘oDesk’ Mean Anyway? Our Startup Story". Retrieved 26 March 2013. 
  5. ↑ Staffing Industry Analysts, http://www.staffingindustry.com/site_member/Research-Publications/Blogs/Andrew-Karpie-s-Blog/Online-Staffing-Seeing-the-Forest-For-the-Trees
  6. ↑ Gurley, Bill. "A Rake Too Far: Optimal Platform Pricing Strategy". Above the Crowd. Retrieved 20 April 2013. 
  7. ↑ Staffing Industry Analysts, http://www.staffingindustry.com/site_member/Research-Publications/Blogs/Andrew-Karpie-s-Blog/Online-Staffing-Still-Partly-Cloudy-Clearing-Trend-Ahead
  8. ↑ Staffing Industry Analysts, http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/Region-North-America/Online-Staffing-The-Landscape
  9. ↑ Staffing Industry Analysts, http://www.staffingindustry.com/site_member/Research-Publications/Daily-News/US-What-will-happen-to-staffing-in-2018-24891
  10. ↑ Staffing Industry Analysts, http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/Region-North-America/Online-Staffing-Threats-Opportunities
  11. ↑ "Interview with Gary Swart (oDesk)". March 11, 2012. 
  12. ↑ "What Does ‘oDesk’ Mean Anyway? Our Startup Story". March 26, 2013. 
  13. ↑ "The Unofficial Client Success Guide for oDesk". 
  14. ↑ Raymund Flandez (2008-10-13). "Help Wanted – And Found". The Wall Street Journal. 
  15. ↑ "oDesk Policy". October 2010. 
  16. ↑ https://kb.odesk.com/questions/1350/Can+oDesk+charge+me+in+my+local+currency%3F
  17. ↑ Leeder, Jessica. "Virtual offices are altering the future of work". The Globe and Mail. Retrieved 22 February 2013. 
  18. ↑ 18.0 18.1 Karpie, Andrew. "oDesk Reports 2012 Gross Services Revenues of $360M; 60% Year-Over-Year Growth in Hours Worked/Billed". Staffing Industry Analysts. Retrieved 22 February 2013. 
  19. ↑ "Internet startup oDesk gets $6M funding". Silicon Valley / San Jose Business Journal. June 1, 2006. 
  20. ↑ "oDesk Announces $8 Million Series B Round Led by Benchmark Capital". Yahoo! Finance. September 27, 2006. 
  21. ↑ Marshall, Matt (September 27, 2006). "oDesk, marketplace for developers, raises $8 million". VentureBeat. 
  22. ↑ "oDesk Secures $15 Million In Series C Funding". oDesk Press Releases. oDesk. June 4, 2008. 
  23. ↑ "oDesk Raises $15 Million in Funding Round Led by T. Rowe Price". Bloomberg Businessweek. March 22, 2012. 
  24. ↑ Samuel Dean (2008-10-16). "Interview: oDesk’s CEO on Opportunities for Web Workers". Web Worker Daily. 
  25. ↑ Levy, Ari (December 19, 2013). "Elance Merges With ODesk to Boost Service for Freelancers". Bloomberg Technology (San Francisco). Retrieved January 18, 2014. 
  26. ↑ "Bersin by Deloitte Announces Winners of the WhatWorks® Awards". Bersin by Deloitte. 
  27. ↑ "oDesk Company Profile". Inc. 
  28. ↑ "Announcing the 2012 AlwaysOn Global 250 Top Private Companies". AlwaysOn. Retrieved 30 April 2013. 
  29. ↑ "Announcing the 2011 AlwaysOn Global 250". AlwaysOn. Retrieved 30 April 2013. 
  30. ↑ "Announcing the 2012 OnDemand 100 Top Private Companies". AlwaysOn. Retrieved 30 April 2013. 
  31. ↑ Posted on March 30, 2011 (2011-03-30). "Announcing the 2011 OnDemand 100 Top Private Companies | AlwaysOn". Alwayson.goingon.com. Retrieved 2012-01-12. 
  32. ↑ "Fastest-growing Silicon Valley private companies named". Silicon Valley Business Journal. Retrieved 30 April 2013. 
  33. ↑ "Valley's fastest growing companies honored". October 14, 2010. 
  34. ↑ "70 FastPrivate valley companies hailed". October 9, 2009. 
  35. ↑ "Slideshow: The fastest-growing Bay Area companies". San Francisco Business Times. Retrieved 30 April 2013. 
  36. ↑ Young, Eric (October 25, 2010). "CEOs say staying nimble, efficient aids growth". 
  37. ↑ Chan, Stacie (April 1, 2011). "Despite Slow Economy, Six County Companies Are Posterchildren for Growth". Patch.com. 
  38. ↑ 2011 TiE50 Internet/Social Networking Winner
  39. ↑ Monday, September 14, 2009 (2009-09-14). "TC50: DemoPit Winner oDesk Launches A Real-Time Work Stream For Your iPhone And Desktop". TechCrunch. Retrieved 2012-01-12. 
  40. ↑ "Emerging Tech award winners honored". December 4, 2009. 
  41. ↑ "The 2009 Global Outsourcing 100 Sub-Lists". IAOP. Retrieved 2012-01-12. 
  42. ↑ http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/TMT_us_tmt/us_tmt_2010%20Technology%20Fast%20500%20Winners%20Brochure_191010.pdf
  43. ↑ Finalists for the "Red Herring 100 Global" Awards 2007
  44. ↑ 2007 Technology Fast 500
  45. ↑ Quain, John (September 27, 2006). "Small Business Awards by PC Magazine: Outsourcing Finalists". PC Magazine. 

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