The Online Work Revolution: How Businesses Are Reaping the Rewards

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Businesses searching for the best talent or the ability scale their operations need no longer be constrained by location, talent availability, or even the traditional 9 to 5 workdayif the work can be done on a computer, you can quickly build a team and get the work done through an online workplace. This white paper clarifies everything you need to know about the rise of online work, from its benefits to best practices and how to effectively incorporate it into your business. The online work revolution white paper covers: - An overview of the online work movement - How businesses benefit from online work - How to implement online work - A snapshot of how businesses can best reap the rewards of online work - Types of work best suited to online work

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<ul><li><p>The Online Work RevolutionAnd how businesses are reaping the rewards</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved.2</p><p>The Rise of Online Work</p><p>The ability to easily hire and manage an Internet-based workforce has become an enterprise game </p><p>JOHUNLY)`L_[LUKPUN[VSHYNLYJVTWHUPLZ[OLL_PIPSP[`HSTVZ[L_JS\ZP]LS`HZZVJPH[LK^P[OHSLHU</p><p>Z[HY[\WZ[Y\J[\YLVUSPUL^VYRHSSV^ZI\ZPULZZLZ[VZJHSLX\PJRS`HUKYLZWVUK[VJVTWL[P[P]L</p><p>JOHSSLUNLZVUHKPTL-\LSLKI`[OLNYV^[OVMHOPNOS`LK\JH[LKNSVIHS^VYRMVYJLHUK[OLYHWPK</p><p>L_WHUZPVUVMIYVHKIHUK0U[LYUL[[OLVUSPUL^VYRWSHJLVMMLYZHUL^^H`[VNL[^VYRKVULVUL</p><p>[OH[HSSV^ZI\ZPULZZLZ[VL_WHUKVWLYH[PVUZ\UML[[LYLKI`[OLOPNOJVZ[HUKZSV^WHJLHZZVJPH[LK</p><p>^P[O[YHKP[PVUHSLTWSV`TLU[Z[HMUNHUKV\[ZV\YJPUNZLY]PJLZ.</p><p>Executive Summary</p><p>Telecommuting</p><p>Online Work </p><p>Outsourcing/Offshoring</p><p>1985 1995 2005 2015 </p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved. 3</p><p>PART ONE </p><p>What is online work?The evolution of the online workplace, reasons for its rapid adoption, and </p><p>why its rise represents a revolution in the future of work.</p><p>PART TWO </p><p>How businesses benefit from online work/V^VUSPUL^VYRPZ\ZLK[VZJHSL[LHTZX\PJRS `HJJLZZOHYK[VUKZRPSSZ</p><p>extend capabilities, and increase productivity while reducing costs.</p><p>PART THREE </p><p>How to implement online workBest practices for transitioning to online work, including how to evaluate and </p><p>implement the management model that works for your business.</p><p>PART FOUR </p><p>The takeawayA snapshot of how the enterprise sector has, and continues to, reap the </p><p>ILUL[ZVM[OLNYV^[OVMVUSPUL^VYR</p><p>APPENDIX </p><p>Types of work best suited to online workA catalog of the types of work being done online, from writing and design </p><p>to data services and software development.</p><p>Table of Contents</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved.4</p><p>6USPUL^VYRPZHU`^VYRWLYMVYTLKHUKKLSP]LYLKI`MYLLSHUJLYZVYLTWSV`LLZ^OV^VYRPUHKPMMLYLU[SVJH[PVUMYVT`V\HUK^P[O^OVT`V\YHYLS`VYUL]LYTLL[PUWLYZVU;OPZ[`WLVM^VYRPZ[`WPJHSS`HJJVTWSPZOLK[OYV\NOHUVUSPUL^VYRWSHJL[OL[LJOUPJHSWSH[MVYTI`^OPJOI\ZPULZZLZJHUOPYLTHUHNLHUKWH`HJVU[PUNLU[L_[LUKLKVYM\SS[PTLYLTV[L[LHT</p><p>6USPUL^VYRLUHISLZ\Z[V[YHUZJLUK[OLIHYYPLYZVMNLVNYHWO `4HUHNLYZUV^OH]LHJJLZZ[VH]HZ[[HSLU[WVVSVMZRPSSLKMYLLSHUJLYZHSSV^PUN[OLPYI\ZPULZZLZ[VOPYL[OLILZ[HUKIYPNO[LZ[talent anywhere in the world.</p><p>Then and NowFirst there were telecommuting and temp agencies. Then came outsourcing and the growth of an online services sector. Now, widespread, global internet access has powered the next major development in the future of workthe rise of the online workplace.</p><p>&gt;OPSLP[ZUV[UL^Z[OH[[OL^VYSKPZTVYLJVUULJ[LK[OLKYHTH[PJPUJYLHZLPUHMMVYKHISL_LKIYVHKIHUKZLY]PJLZis a key factor in the growing viability of online work. Widespread access to a more robust Internet has fueled the expansion of both the amount and types of work being completed online.</p><p>Part One: What is Online Work?</p><p>Fixed-Broadband prices drop by 82% between 2008 and 2012</p><p>SOURCE: ITU World Telecommunications /CT Indicators database NOTE: Simple averages + preliminary results. </p><p>Fixe</p><p>d-br</p><p>oadb</p><p>and </p><p>sub-</p><p>bask</p><p>et a</p><p>s %</p><p> of G</p><p>NI p</p><p>.c </p><p>DEVELOPING COUNTRIES</p><p>WORLD </p><p>DEVELOPED COUNTRIES</p><p>120</p><p>100</p><p>80</p><p>60</p><p>2.5 2.0 1.7 1.7 1.7</p><p>21.5</p><p>30.1</p><p>40.3</p><p>28.5</p><p>41.8</p><p>59.7</p><p>59.4</p><p>85.1</p><p>164.6115.1</p><p>40</p><p>20</p><p>0</p><p>2008 2009 2010 2011 2012</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved. 5</p><p>But widespread access to a reliable and fast Internet connection is by no means the only driver of online work growth. A variety of factors have led to the rapid evolution and adoption of the virtual workplace:</p><p>1. A more highly educated global populationA company is still only as good as the quality of its workerswhich is why the emergence of a more educated and highly skilled global workforce has been a vital component of the rise of online work. According to UNESCO Institute for Statistics data, [OLU\TILYVMYLWVY[LKWVZ[ZLJVUKHY`ZJPLUJLdegree graduates per year worldwide increased 25% between 2006 and 2009.</p><p>0UHZ[\K`JVUK\J[LKI`PUKLWLUKLU[YLZLHYJOYTGenesis Research Associates95% of businesses that have hired online agreed that, in the future, getting hired will be more dependent on having the right skills than on location.1</p><p>2. An explosion of online collaboration tools;OLNYV^PUNYHURZVMMYLLVYSV^JVZ[VUSPUL[VVSZhas made virtual collaboration easier than ever. These tools include Skype, Dropbox, Google Drive, and Github, to name just a few.</p><p>3. A startup economy and the rise of the talent warsStartups have created 40 million American jobs in the last three decades. This explosion in LU[YLWYLUL\YZOPWOHZSLK[VLYJLJVTWL[P[PVUMVY top talent, often leaving innovators scrambling to hire the skills they need to get their product to </p><p>market. Online work is a lifeline for nascent startups, providing them with a chance to compete using a OPNOS`ZRPSSLKHUKJVZ[TVKLYH[LNSVIHS^VYRMVYJL</p><p>Even larger businesses are feeling the pinch of skills scarcity. In fact, 66% of multinational companies say talent shortages are likely to affect their bottom line in the next 5 years. 2 By tapping into an online ^VYRMVYJLLU[LYWYPZLSL]LSJVTWHUPLZJHUH\NTLU[L_PZ[PUN[LHTZ^P[OOHYK[VUKZRPSSZ</p><p>4. A shi! towards specialized skillsRelatively homogenized skill sets based around the industrial age manufacturing model have given way to the information ages demand for highly specialized skills.</p><p>This shift is clearly illustrated by a recent U.S. Census Bureau study which found that routine occupations (those characterized by following L_WSPJP[PUZ[Y\J[PVUZHUK^LSSKLULKY\SLZOH]Ldeclined by 20% since 1975, while nonroutine VJJ\WH[PVUZ[OVZLJHSSPUNMVYJYLH[P]P[ `L_PIPSP[ `HUKWYVISLTZVS]PUNHIPSP[PLZOH]LYPZLUPU[OLsame period of time. </p><p>The Rise of Nonroutine Occupations</p><p>2010 2015</p><p>SPECIALIZED ROLES ARE ON THE RISE</p><p>1975</p><p>60%</p><p>55%</p><p>50%</p><p>45%</p><p>2000 20051980 1990 19951985</p><p>40%</p><p>Nonroutine OccupationsRoutine Occupations</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved.6</p><p>oDesk Job Openings by Skill Required </p><p>(UKUV^[OH[VUSPUL^VYRWSHJLZL_PZ[[OLYLPZTVYLVWWVY[\UP[`[OHUL]LYMVYI\ZPULZZLZ[VUKspecialists to meet even the most obscure need. oDesks job post data for a single month, for L_HTWSLKLTVUZ[YH[LZ[OLSVUN[HPSKLTHUKMVYZWLJPHSPaLKZRPSSZ</p><p>oDesk Job Openings by Skill Required </p><p>SOURCE: oDesk database. All data represents skills listed in jobs posted during the month of May 2013, HUK[OLYLMVYLZOV^ZVULTVU[OZ^VY[OVMZRPSSZVUV+LZRV\[VM[OLHSTVZ[ZRPSSZSPZ[LKV]LY Size and color of each skill dot indicates the number of job openings that skill was listed in. </p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved. 7</p><p>Work Being Done Today;OL[`WLZVM^VYRILPUNKVULVUSPULY\U[OLNHT\[MYVTZ[HMUNJ\Z[VTLYZ\WWVY[JLU[LYZ[VLUOHUJPUNL_PZ[PUNVUZP[LLUNPULLYPUN[LHTZ^P[OYLTV[LKL]LSVWTLU[[HSLU[,U[LYWYPZLZLY]PJLZNLULYHSS`MHSSPU[V[OLZLwork verticals:</p><p>-VYHTVYLPUKLW[OIYLHRKV^UVM[OLZL^VYR]LY[PJHSZHUKOV^I\ZPULZZLZHYL\ZPUNVUSPUL[LHTZ[VI\PSKV\[their capabilities, see the Appendix on page 13.</p><p>Looking AheadThe rising tide of the online work movement continues to swell, bolstered by the rapid adoption of both businesses and freelancers. </p><p>&gt;P[OPU`LHYZYLZLHYJOZOV^Z[OH[[OLTHQVYP[`VMI\ZPULZZLZ^PSSOH]LISLUKLK[LHTZVMVUSPULHUKVUWYLTPZLworkers.3 And the numbers support this prediction, with the online work market on track to reach $2 billion by 2014 after growing 67% in 2012.4 On oDesk alone, more than $1 billion worth of work has been accomplished since its inception in 2005. </p><p>It has also been estimated that the worlds mobile worker population will reach 1.3 billion by 2014representing 37.2% of the total workforceand the Millennial generation is leading the charge. Millennials are quick to embrace [OLL_PIPSP[`VM[OLMYLLSHUJLSPMLZ[`SL^P[OYLWVY[PUN[OH[[OL`^HU[[VX\P[[OLPYM\SS[PTLQVIZ[VILLU[PYLS`independent, and 62% saying theyll quit within 2 years.5</p><p>CONTENT WRITINGTo create SEO copy, blog articles, product descriptions, FAQs, etc.</p><p>SOFTWARE DEVELOPEMENTTo rapidly prototype, address project backlogs, add to teams existing skills, etc.</p><p>CONTENT MODERATIONTo moderate content and online conversations</p><p>CUSTOMER SUPPORTTo provide customers with 24/7 service</p><p>DATA SERVICESTo research, collect, structure, and organize information</p><p>LOCALIZATION &amp; TRANSLATION;V\LU[S`SVJHSPaLHUKVY translate content</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved.8</p><p>Part Two: How Businesses Benefit From Online Work</p><p>6USPUL^VYRL_[LUKZ[V[OLLU[LYWYPZLZLJ[VY[OLRPUKVMMSL_PIPSP[`HSTVZ[L_JS\ZP]LS`HZZVJPH[LK^P[OHSLHUZ[HY[\WZ[Y\J[\YL;OLYLZ\S[ PZ[OH[ SHYNLYVYNHUPaH[PVUZJHUUV^YLZWVUK^P[OHZTHY[LYHUKTVYLUPTISLHWWYVHJO[VK`UHTPJI\ZPULZZJOHSSLUNLZ</p><p>(UK[OLUL^ZPZZWYLHKPUNHYLJLU[:[HMMPUN0UK\Z[Y`(UHS`Z[ZI\`LYZ\Y]L`YL]LHSLK[OH[VMSHYNLZJHSLZ[HMMPUNTHUHNLYZ^LYLH^HYLVMOPYPUNVUSPUL\WMYVTPU6USPUL^VYRPZILJVTPUNHUV[ZVZLJYL[^LHWVUMVYZTHY[I\ZPULZZLZ^HU[PUN[VTV]LMHZ[LYSV^LYVWLYH[PVUHSJVZ[ZHUKL_WHUKPU[VUL^THYRL[Z</p><p>Access unlimited talentIn an online workplace, talent knows no boundaries. Businesses are no longer tied to a locally based workforce, but have access to the best people for the job...regardless of nationality or location. -YLLSHUJLYZ^P[OOHYK[VUKZRPSSZ[OLZ\WLYZ[HY PHP programmer in Russia or the SEO expert in Norway, for examplecan now be found, hired, and managed by companies located a world away. </p><p>Real-World Implementation: A successful tech startup in Silicon Valley staffs one-third of its team across all areas of the businessfrom customer support and marketing to development and QAwith the best remote talent available abroad and in the US, leading to a lean and thriving business model fueled by a blended workforce.</p><p>Scale quickly and responsivelyBecause online work facilitates ongoing work YLSH[PVUZOPWZ^P[OV\[[OLI\YKLUVMM\SS[PTLJVU[YHJ[Zcompanies are able to ramp up and down quickly to HKKYLZZZLHZVUHSP[`HUK\J[\H[PUNKLTHUK</p><p>Real-World Implementation: A major travel site engaged an on-demand team of subject matter experts, maintaining quality while scaling SEO content development up and down as demand and seasonality dictated.</p><p>Cost 4VKLYH[L High</p><p>Advantages of the Online Workplace</p><p>Access to Talent</p><p>Scalability</p><p>Limitless</p><p>8\PJR</p><p>Limited</p><p>:SV^</p><p>Productivity </p><p>Flexibility</p><p>Cost</p><p>High Low</p><p>Online Hiring Model Traditional Hiring Model</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved. 9</p><p>Boost productivity.SVIHSS`KPZ[YPI\[LK[LHTZJHU[\YUHUOV\Y^VYRKH`into a 24/7 operation. When thoughtfully managed, working across time zones allows managers to assign work at night and wake up to a completed project.</p><p>Real-World Implementation: AOLs CTO doubled the development teams productive work hours by enabling their engineers to hire freelancers so that work could continue after they left the office. </p><p>Reduce overhead and costsThere are very few facilities expenditures in an online workplace. No rent, no utilities, no operational costs outside of an Internet connection and, most likely, a proper coffee maker. Costs further decline when you consider access to regionally appropriate wages across the United States and elsewhere.</p><p>Real-World Implementation: A leading search engine company overcame space limitations and rising wages in their metropolitan offshore location by hiring competitively priced online talent, allowing them to grow without the restrictions of local infrastructure.</p><p>Address backlogged projectsTapping freelance talent to address a backlog of internal tasks ensures that your core team can focus VUOPNOWYPVYP[ `YL]LU\LNLULYH[PUNWYVQLJ[Z@V\Yfreelance team can take care of smaller tasks, like WYV[V[`WPUNKH[HH\KP[PUNHUKJVU[LU[JSLHU\W</p><p>Real-World Implementation:A leading Silicon Valley technology firm has a distributed bench of software developers to prototype and test new products so its existing team can focus on customer-facing projects.</p><p>Focus on core competencies(JJLZZ[VHUVUKLTHUK^VYRMVYJLNP]LZ[LHTZ[OLVWWVY[\UP[`[VKLSLNH[LIHZPJSV^LYZRPSSLK^VYR[VHJHWHISLMYLLSHUJLY;OPZHSSV^ZOPNO^HNL[HSLU[[Vfocus on the highly impactful work they were hired for PU[OLYZ[WSHJL</p><p>Real-world Implementation: One of the worlds best-known personal computer brands worked with on-demand talent to turn its slides into beautiful presentations.</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved.10</p><p>Part Three: How to Implement Online Work</p><p>(ZTVYLI\ZPULZZLZKPZJV]LY[OLVWWVY[\UP[PLZHUKILULMP[ZVMVUSPUL^VYR[OLHKVW[PVUVMISLUKLK[LHTZVMYLTV[LHUKVUZP[L^VYRLYZ^PSSJVU[PU\L[VYPZL(UKPUVYKLY[VZ\JJLZZM\SS`PU[LNYH[LHUVUSPUL^VYRMVYJLPU[VHJVTWHU`ZL_PZ[PUNZ[Y\J[\YL^LYLJVTTLUK[HRPUN[OLfollowing factors into consideration.</p><p>1. Choose the best management structure for your business ;OLPUOLYLU[L_PIPSP[`VMVUSPUL^VYRSLUKZP[ZLSM[VH^PKL]HYPL[`VMTHUHNLTLU[[LJOUPX\LZ!</p><p> Distributed Team 1:1 ManagementManagers hire, manage, and work directly with their own freelancer(s). This structure gives a single manager the ability to improve productivity and focus on core projects by KLSLNH[PUN[HZRZ[VX\HSPLKMYLLSHUJLYZ)`HZZLTISPUNHMYLLSHUJL[LHTSVJH[LKHJYVZZT\S[PWSL[PTLaVULZ[OLTHUHNLYJHUJYLH[LHOV\YWYVK\J[P]P[`J`JSL^P[O^VYRILPUNKVULJVU[PU\V\ZS`^OPSLOLVYZOLPZoff the clock.</p><p> Centralized Team ManagementOne managereither on-site or onlineguides an online team.;OPZZ[Y\J[\YL^VYRZ^LSSMVYI\ZPULZZLZZLLRPUN[VI\PSKV\[SHYNLY[LHTZMVYZWLJPJM\UJ[PVUZSPRLZ\WWVY[VYJVU[LU[JYLH[PVU^OVZLWYLZLUJLPUHWO`ZPJHSVMJL^V\SKILJ\TILYZVTLJVZ[S`VY\UULJLZZHY `</p><p> Managed ServicesHire a company to staff and manage your online team. In direct contrast to the traditional outsourcing model, which relies on an anonymous workforce with little [YHUZWHYLUJ`PU[V[OL[LHTZTHRL\WVYWYVK\J[P]P[ `[OPZZ[Y\J[\YL[HRLZHK]HU[HNLVMHSHYNLZJHSLVUSPULworkforce, while maintaining visibility into who is doing the work. Typically businesses will be provided with an experienced engagement manager to hire the team and manage operations. </p><p>2. Choose the right work structure for optimal efficiency6USPUL^VYRVMMLYZZL]LYHS^H`Z[VZ[Y\J[\YL`V\YWYVQLJ[PUVYKLY[VKLSP]LYTH_PT\TLMJPLUJ`!</p><p> ;PTL[YHJRLKOV\YS`^VYR!7H`VUS`MVYOV\YZPU^OPJO^VYRPZKVUL</p><p> ;HZRIHZLK^VYR!7H`VUS`WLYWPLJLVM^VYRVY[HZRHJJVTWSPZOLK</p><p> 7YVQLJ[IHZLK^VYR!7H`HJJVYKPUN[VLZ[HISPZOLKTPSLZ[VULZHZHWYVQLJ[WYVNYLZZLZ</p></li><li><p>Copyright 2014, oDesk Corp. All rights reserved. 11</p><p>3. Set your team up for success1\Z[HZ^P[O[OL[YHKP[PVUHSVMJLIHZLKTVKLSOPYPUN^PZLS`HUKTHUHNPUNWYVHJ[P]LS`PZ`V\YILZ[IL[MVYcreating a successful online team:</p><p> Hire the Right People(WWS`HZT\JOYPNVY[V`V\YVUSPULOPYPUNWYVJLZZHZ`V\^V\SK[V`V\YVMPULOPYPUN+LWLUKPUNVU`V\YTHUHNLTLU[Z[Y\J[\YL`V\JHUOHUKWPJR`V\YV^UOPYLZVY^VYR^P[OHUVUSPULYLJY\P[LY[VUK[OLYPNO[WLVWSL;OVZLOPYPUNMVYSHYNLY[LHTZ^PSSUK[OH[^VYRPUN^P[OVUSPULZ[HMUNZWLJPHSPZ[ZZ\JOHZV+LZRRecruiting Services helps them quickly put the right team in place.</p><p>Managers more actively involved in the hiring process will want to select applicants by reviewing their online WYVSLMLLKIHJRJLY[PJH[PVUZHUKWVY[MVSPV[VL]HS\H[L[OLPYSL]LSVML_WLY[PZL0U[LY]PL^[VWJHUKPKH[LZHUKHZZPNUZOVY[[LYT[LZ[WYVQLJ[Z[VHZZLZZ^VYRX\HSP[ `</p><p> Start with Short-Term Contracts/PYPUNMVYHZOVY[[LYTJVU[YHJ[SL[Z`V\]LYPM`YZ[OHUK^OL[OLYHMYLLSHUJLYZWLYMVYTHUJLHUKWLYZVUHSP[`TLZO^LSS^P[O`V\Y[LHT^P[OV\[[OLJVTTP[TLU[HUKJVZ[VMHSVUNLY[LYT^VYRHYYHUNLTLU[4HUHNLYZwill often mix and match their freelancers until they hit on the perfect arrangement of skills and work Z[HUKHYKZTHUHNPUN[OLPYI\KNL[ZVUHWYVQLJ[[VWYVQLJ[IHZPZHSVUN[OL^H `</p><p> Active...</p></li></ul>

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