oDesk Report Shows Companies Will Increase Use Of Outsourcing During Recession

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oDesk survey shows companies increase use of outsourcing and homeshoring while freelance providers find profitable alternative to full-time employment

oDesk data shows companies plan to increase use of contractors during 2009 recession

is on track to explode.

In a survey of 600 buyers of remote services and 350 service providers, oDesk found that companies already using its platform to hire, manage, and pay remote contractors plan to increase their usage in the current recession. At the same time, service providers say oDesk is a viable way to make a living as an alternative to full-time employment. The survey follows the company's recent reports on the freelance economy and homeshoring.

See full story here:
http://www.odesk.com/blog/2009/03/companies-turn-to-contractors-during-recession/

Of the 600 buyers surveyed, 41.9% are planning to outsource more in the recession, either because they have cut full-time staff (7.0%), or because they cannot hire full-time staff (34.9%). Furthermore, 14.6% of buyers have replaced employees with oDesk providers in the last year, while 14.5% of buyers have hired an oDesk provider who would have otherwise been unemployed or a victim of the economic downturn. Buyers cited cost savings, the ability to audit providers, and access to talent not available locally as their top three reasons to use oDesk.

Of the 350 providers surveyed, a vast majority said that there are enough jobs available on oDesk to meet their needs (73.9%), and feel that they are making fair rates (77.9%). In fact, a majority (59.0%) said that if they weren't providing services on oDesk, they wouldn't be able to meet their financial obligations and 32.4% said oDesk earnings are their primary source of income. Overall, oDesk providers use oDesk because of its flexibility to live and work anywhere, guaranteed payment for hourly work, and the ability to set one's own hourly rate.

The data also show US-based companies increasingly selecting US-based providers, in a growing homeshoring trend. 53.9% of buyers are employing at least some US providers, while 84.3% of providers are working for a US-based buyer.  
 
About oDesk
oDesk (http://www.oDesk.com) is the leading marketplace for online workteams with the best model for both buyers and providers:

For buyers: guaranteed work -- every hour billed is an hour worked. Screen captures of each provider's desktop taken at random intervals enable buyers to audit the hours and work completed so they have confidence every hour billed by a remote team member is an hour worked. This capability also enables the buyer to collaborate more closely and re-direct the provider if necessary, much like you do when you manage by walking around.

For providers: guaranteed payment -- every hour worked is an hour paid without the hassle of invoicing or slow-paying clients making oDesk the preferred marketplace for 125,000+ professional contractors including software engineers, web developers, graphic designers, writers, researchers, admins, and customer service agents.

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Elizabeth Gordon
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