oDesk.com

oDesk is a company with a global job marketplace and a series of tools targeted at businesses that intend to hire and manage remote workers. Based in Menlo Park, CA, oDesk was founded in 2003 by Greek students Odysseas Tsatalos and Stratis Karamanlakis.

Background

Outsourcing, the trend of contracting out jobs, often to lower-cost regions where labor may more cheaply be employed, has prompted the creation of various online services designed to create a marketplace in which freelance workers and potential employers can connect. oDesk is one among a number of companies, including Elance, Freelancer, Guru and vWorker (formerly Rent A Coder), that create marketplaces in which employers and freelancers can contact one another. These sites often manage the payments, and make money by charging membership fees and/or take a cut of the payment. The cuts can range from 4 percent to 15 percent.

Description

oDesk allows employers (“buyers”) to create online workteams coordinated and paid through the company's proprietary software and website. The name is a short version of "no desk" in reference to the company's intent to enable anyone to work anywhere, anytime. Prospective employers can post jobs for free, and freelance workers (“providers”) may create profiles and bid on jobs, also for free. The company puts potential providers through “a rigorous screening.” The company collects 10 percent of the payment. 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 employers to see a provider's progress while he or she is billing time. This aspect of the company's business model has drawn criticism.[by whom?]

The company describes itself as a staffing marketplace and management platform. As of Jan. 10, 2009, the company reports that nearly 37,000 of its 170,000 providers are in the United States[citation needed]. The company's site is entirely in English, and all transactions are made in U.S. dollars. The site does not post statistics regarding locations of buyer companies, but a comment posted by an oDesk employee noted that the majority are U.S.-based. In December 2009, the company's self-reported tally of services paid through its site had passed $113 million.[citation needed]

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 three rounds of financing. The first was by Globespan Capital and Sigma Partners. The second round was raised in September 2006, led by Benchmark Capital and included the previous two investors. The third round was raised in May 2008, led by DAG Ventures and included the previous three investors. The venture investors on oDesk's board include Greg Gretsch, Venky Ganesan, and Kevin Harvey.

Website : www.odesk.com