ODesk
Encyclopedia
oDesk is a company with a global job marketplace
Marketplace
A marketplace is the space, actual, virtual or metaphorical, in which a market operates. The term is also used in a trademark law context to denote the actual consumer environment, ie. the 'real world' in which products and services are provided and consumed.-Marketplaces and street markets:A...

 and a series of tools targeted at businesses that intend to hire and manage remote workers. Based in Redwood City, CA
Redwood City, California
Redwood City is a California charter city located on the San Francisco Peninsula in Northern California, approximately 27 miles south of San Francisco, and 24 miles north of San Jose. Redwood City's history spans from its earliest inhabitation by the Ohlone people, to its tradition as a port for...

, oDesk was founded in 2003 by Greek
Greeks
The Greeks, also known as the Hellenes , are a nation and ethnic group native to Greece, Cyprus and neighboring regions. They also form a significant diaspora, with Greek communities established around the world....

 entrepreneurs Odysseas Tsatalos and Stratis Karamanlakis.

Background

Outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

, 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
ELance
Elance is a global Internet platform for online employment, where businesses hire independent freelance professionals with online collaboration tools to help manage remote teams and projects online. Utilizing the platform, businesses can connect with and hire remote workers with skills such as...

, Freelancer
Freelancer.com
Formerly known as GetAFreelancer.com, the company was founded in 2004 by Plendo Sweden, headed up by Magnus Tibell of Swedish web solutions company Innovate It. GetAFreelancer.com was bought on the 7th May 2009 by the Australian company Ignition Networks...

, Guru
Guru.com
Guru.com is a freelance marketplace. It allows companies to find freelance workers for commissioned work. Founded in 1998 in Pittsburgh as eMoonlighter.com and still headquartered there, it is one of the tech firms to survive the dot-com bubble of the late 1990s...

  and vWorker
VWorker
vWorker is an online portal and virtual employment agency that enables companies to outsource projects and independent contractors to find work. Together with Elance, Freelancer, Guru, oDesk and Scriptlance it is one of the largest global freelance marketplaces of its kind.vWorker is owned by...

 (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. oDesk charges 10% but does not charge a membership fee.

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 (“contractors”) may create profiles and bid on jobs, also for free. 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.

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. 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.

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
Benchmark Capital
Benchmark Capital is a venture capital firm responsible for the early stage funding of some very successful startups. In 1997, the firm invested $6.7 million in eBay, which became worth more than $5 billion by the spring of 1999. Other high-profile investments include Ariba, Juniper Networks, Red...

 and included the previous two investors.
The third round was raised in May 2008, led by DAG Ventures
DAG Ventures
DAG Ventures is an American venture capital firm based in Palo Alto, California. It is known as a "coattail" fund for co-investing in later-stage private financing rounds alongside more prominent top-tier venture funds such as Kleiner Perkins, Sequoia Capital, Benchmark Capital, and Accel Venture...

 and included the previous three investors. The venture investors on oDesk's board include Greg Gretsch, Venky Ganesan, and Kevin Harvey
Kevin Harvey
Kevin Harvey is a Canadian professional ice hockey player who is currently playing for the Rapid City Rush in the Central Hockey League . He was selected by the Calgary Flames in the 9th round of the 2003 NHL Entry Draft.-External links:...

.

Innovation

The company's oDesk team software increases transparency and allows a buyer 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.”

Awards

  • SAMCEDA Innovation & Entrepreneurship Awards - 2011 Fastest Growing Innovator Award of Excellence
  • 2011 AlwaysOn OnDemand 100
  • oDesk ranked #286 on the 2010 Inc. 500, and #110 in 2009
  • Silicon Valley Business Journal Fastest Growing Private Company List (2010)
  • San Francisco Business Times Fastest Growing Companies List (2010)
  • TechCrunch50 DemoPit Winner (2010)
  • Silicon Valley Business Journal Emerging Technology Award (2009)
  • Silicon Valley Business Journal Fastest Growing Private Company List (2009)
  • International Association of Outsourcing Professionals 2009 Global Outsourcing 100 Rising Star
  • Deloitte Technology Fast 500
  • Finalist in PC Magazine
    PC Magazine
    PC Magazine is a computer magazine published by Ziff Davis Publishing Holdings Inc. A print edition was published from 1982 to January 2009...

    ’s 2006 Small Business Awards
  • oDesk is named Rising Star in Deloitte's Technology Fast 500 Program.
  • Finalist for the "Red Herring
    Red herring
    A red herring is a deliberate attempt to divert attention.Red herring may refer to:* Red herring , the informal fallacy of presenting an argument that may in itself be valid, but does not address the issue in question....

    100 Global" Awards 2007 and 2009.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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