oDesk: Changing how the world works.

Business strategy of oDesk (best described in the case) as “remote employment”, a unique employment model that combines aspects of the more traditional models of local employment, local staffing forms and traditional outsourcing.

Three strategies to choose:

1) Increase oDesk’s target market from small-medium businesses to large firms 2) Expand the expertise and skills of its contractor base in order to meet a wider range of employer needs 3) Develop oDesk’s global capabilities in order to move from primarily domestic-offshore outsourcing relationships, connecting U.S. businesses with international contractors, to offshore-offshore relationships, connecting global businesses with global contractors.

Which option would make oDesk most successful in their market?

Strengths | Weaknesses | * The company is cost-conscious * The company is very inventive and keep to achieve their objectives * oDesk offers additional services than their competitors + oDesk focuses on time-based contracts ( see definition in the case ) * oDesk policy is to provide only factual information on its Contractors. * oDesk online platform include payment functionality as well as move towards the worker classification and relates tax services. * oDesk is expanding beyond the area of computer programming, to include technical writing, design, data entry and other related areas. * oDesk is different in the ways of working., e.g. chat capabilities, online payment platform, which offers user-friendly option for Employer to pay Contractors, best web-site. * WOM, word of mouth advertising, which gives a strong network, biggest asset of the company. * Great reviews/compliments from the contractors. * A very positive financial perspective, 2009- $ 60 mln, 2010- $ 117 mln. | * Lack of local talent * Harder to come up with the programs that are going to be meaningful and make a difference ( Brain Goler, VP marketing ) * The company is not profitable yet. * Most oDesk relationships are short-term * The lacks of face-to face communication. * How big is the commitment? * The question of trust. * Certain amount of risk, hiring through internet. * Coaching and feedback are very challenging to replicate in a virtual ream environment. | Opportunities | Threats | * Challenging economics conditions, globalization, an increasing dependency o the Internet, Generation Y preferences for flexible and challenging work. * Unemployed individuals who are looking for work through contract or part-time opportunities * A market of talented employees that is deeper and less expensive * Off-shore locations with more talented employees * Internet, that enables collaboration, communication, access to information and payment for services to create and facilitate new business. * Generation Y, which if flexible in work hours and which demand challenging work. | * Talent issues limit productivity, efficiency, growth, speed to market, quality and customer relationships. * Competitors, e.g. guru.com, freelancer.com, renAcoder, which focus on matching Contractors with businesses looking to hire + they focus on fixed-price contracts ( see definition in the handout case ) * Staffing firms’ competitors, e.g. Manpower, Adecco, Robert Half, which compete for larger business clients. They sent individuals to companies onsite locations, they operate offices in different geographies with each office servicing only the talent in the local area, they are responsible for housing their own stuff and many recommended and vouched for their Contractors. * Traditional outsourcing agencies competitors, such as Tata, Wipro and Infosys + thousands of small outsourcing companies. * PEOs ( professional employer ogranizeions ) Trinet, ADP, Administaff, that provides that provides their business clients with traditional HR functions, incl. payroll, worker classification and associated tax services and other administrative activities. |