Online Talent Marketplaces Landscape Analysis

March 2013

This report is solely for the use of Talent Neuron clients and Talent Neuron Subscribers. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Talent Neuron.

Talent Neuron Copyright and Disclaimer

Copyright
The material in this report is copyrighted. No part of this report prepared by Talent Neuron can be reproduced either on paper or electronic media without permission in writing from Talent Neuron. Request for permission to reproduce any part of the report may be sent to info@talentneuron.com. Customers are welcome to use an unlimited number of copies of the materials contained within this report. Furthermore, customers may copy any graphic herein for their own internal purpose. Talent Neuron requests only that members retain the source name/logo mark on all pages produced. Please contact our Talent Neuron account manager at +1-408-716-8432 for any help we may provide. The report herein is the property of Talent Neuron (A Zinnov LLC Company). Beyond the membership, no copyrighted materials of Talent Neuron may be reproduced without prior approval.

Disclaimer
All the information contained in this report is obtained through proprietary technology aggregation algorithms, human experts, network of domain experts, discussions with industry leaders, public and confidential information sources believed to be reliable. Talent Neuron makes no representations or warranties regarding the errors, omissions or completeness of any information contained herein and shall have no liability for the same. The report is provided solely for informational and marketing purposes and opinions must not be construed as advice, recommendations or endorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions with respect to the information provided.

Talent Neuron can help in selecting the right location by providing data, analytics and insights on Locations, Talent, Cost, Peer Group Footprint & Trends

Location Analysis

Understand the capability of each potential location and make data driven decisions on setup and expansion

Peer and Talent Insights

Understand the capability of each potential location and make data driven decisions on setup and expansion

Ecosystem Analysis

Understand the capability of each potential location and make data driven decisions on setup and expansion
2

Source: Talent Neuron Website

CAPABILITIES
Talent Neuron has assisted over 100 companies in their global location analysis and site selection process
Ecosystem Insights Skill Wizard Forecasts Market Insights Industry/Domain Market Tracker Wage Inflation Trends Company Tracker

Proprietary Data Sources

Web Crawling Surveys

Expert Insights

Reports

Talent Neuron KEY FOCUS IS ON THE TECHNOLOGY INDUSTRY. OVER 80% CLIENTS ARE IN THE PRODUCT ENGINEERING DOMAIN. 500+ GLOBAL CITIES COVERED

Consulting

Network

Analytics

6 DOMAINS 35 FUNCTIONs 150+ SKILL SETS

Source: Talent Neuron

PROPOSED APPROACH Data Gathering and Analysis through BIG Data

Talent Neuron will use data driven Big data principles (for large data analysis) which will provide comprehensive insights and transparency on the trends, current realities and opportunities in any locations

Connectors (API / Screen Scraping)

100+ Job sites

Patent Databases Publication/ Journal Databases Technology Contributor lists

3,000+ Company Career Sites

Universities

Hadoop Engine (Big Data Approach)

Over 12,000 Unique Data elements for each city

Social Media/ Public Profiles

Community Sites

Skill Availability

Location Insights

Compensation and Cost Trends

Peer Company Footprint

* Details not disclosed by the company Talent Neuron Website Source:Source: Talent Neuron Research and Analysis

Talent Neuron has two module Talent Intelligence and Talent Analytics. Our data spectrum covers 500 cities, 9 Domains and 400+ skill sets

520+ Cities

~12,000 Unique Data Points Per City

9 Domains & 400+ Skills

~7,500 Companies & 22 Million Profiles

Module 1: Talent Intelligence

Module 2: Talent Analytics

Location Profiles Talent Pool (Installed and Fresh) Salary and Cost University Peer Companies Monitor Role Views Job Engine Top Brains Public People Profiles

HR Data Consolidation Peer Benchmarking Decision Support Analytics Workforce Planning Skill Circles Hypotheses Validation

Talent Neuron, gathers data from multiple sources

Data Mining from Connectors

Job Sites
Company Career Sites
Social Media/ Public Profiles

Universities Publication/ Journal Databases

Patent Databases
Community Sites
Technology Contributor List

News Articles & Public Data Crawling Engine

Correlated data on Talent, Cost, Peer companies Data on City level suitability & Ecosystem Data from Local Recruitment Companies

Zinnov Primary Research & Interviews

Survey Data from Companies

Data from Govt./ Industry Bodies

Executive Summary
The online talent marketplace is set to grow at an unprecedented pace with increasing computing power Talent Neuron estimates that the total number of freelancers registered in the online talent hub companies is around 5 to 6.5 million till date

Some of the Fortune 500 companies using the online talent services include Google, HP, Microsoft, AOL, P&G, Texas Instruments, Oracle, Dell, Accenture, Travelocity, NBC, Citi Group, American Red Cross etc.
The major reasons for the adoption of online talent by the companies are: To save costs on overheads and other employee benefits To get access to niche skill set expertise without geographic limitations For flexible scalability Freelancers are less likely to miss deadlines than employees As freelancers are always directly in touch with the clients, the clients can build a better relationship with freelancers than agencies who have multiple contact points Women population constitute less than 50 percent of the traditional workforce, however more than 55 percent of the freelancers are women. Moreover, 2012 witnessed more than 100 percent growth in the women freelancer population indicating that increasingly women are adopting online jobs for a better work-life balance. Talent Neuron estimates that 40-45 percent of the online talent pool is present in the United States, while around 12-15 percent is present in India

Methodology
Talent Neuron analyzed over 30 global talent marketplaces to analyze the trends in online job outsourcing

Comprehensive list of 30 global online talent marketplaces

Deep dive

Trends

List of Online Talent Marketplaces

1. eLance 2. Guru 3. oDesk 4. Freelancer 5. iFreelance 6. The Freelance Nation 7. Virtual Vocations 11. PowerLance 12. Bidfreelancer 13. ScriptLance 14. vWorker 15. Freelance Work 16. Writerlance 17. Sunoasis 21. FreelanceCN 22. Freelanza 23. FreelanceIndia 24. PayPerHour 25. Freelancers.net 26. Freelance UK 27. ShortGig 28. Freelance-Seattle 29. AgentSolo 30. Freelance.com Geographic Locations Skill Demand Job Function Maturity Billing Models User Base

8. Freelancer Jobs Network 18. ProjectSpring 9. FreelanceJobs.org 10. Design Crowd 19. Onlinejobs.ph 20. Freelancerchina

Zinnov

Law of the Land

Online talent hub companies offer global services in various domains for their clients. However, some companies offer niche skill sets only while some have registered talent from specific countries/regions
The online talent market is expected to
be around USD 2.5 billion by the end of 2012 with Elance, Guru and oDesk leading the online job market 10 In the recent years quite a few vertical 7 specific online talent hub companies have been set up such as ScriptLance,

Online Talent Hub Companies Tracked

12

vWorker and Writerlance

Online Global Vertical Specific Country Specific

talent

hub

companies

in

emerging countries like India and China

have local freelancers who provide

services at a competitive price than freelancers in developed countries

Source: oDesk website and Talent Neuron

Zinnov

Global Availability of Online Talent

US has the largest number of registered freelancers followed by Canada. Emerging countries like India and China are also witnessing a healthy growth in the online talent availability.

Canada has a developed community of online talent in the Editing domain.

Freelancers working in the Technology domain in India are increasingly being preferred by the leading Global 2000 clients United States has a significant number of online talent in Creative and Technology domains. In 2010, temporary jobs (which include freelancers and contractors) constituted over 60 percent of the total increment in private sector jobs in United States

In the recent years, average compensation for freelancers in Philippines has dropped significantly, specially for software jobs

Source: Economagic website and Talent Neuron

Zinnov

10

Maturity of Online Talent Marketplace by Job Functions

Online talent marketplace jobs are rapidly growing across various domains like Administration, Marketing and Multimedia apart from traditional Editing and Technology domain jobs
Online Talent Marketplace - Maturity of Functions

HIGH

Multimedia and Editing domain jobs include web design, animation, content writing, blogs, business writing and regional language translation Global 2000 companies are increasingly leveraging the online talent marketplace for Accounting and Legal domain services

Technology

Editing
Today most of the online freelance jobs is done in the Technology domain. In the last 6 months PHP skill set in the Technology domain had the maximum number of jobs posted online

Growth Rate

Multimedia

Administration Marketing
Jobs such as manufacturing design, circuit design, architecture and civil engineering are expected to be in demand in the Manufacturing domain

Accounting & Management Legal Manufacturing

LOW Laggards Rapidly Growing Mature

Source: Zinnov Talent Neuron Source: Talent Neuron

Zinnov

11

Skills in Demand
Technology domain jobs like Shell Scripting and COBOL witnessed phenomenal growth in demand in 2011 and the demand for similar jobs are expected to grow in 2012
Technology Multimedia Editing Marketing

Shell Scripting COBOL PeopleSoft

Dreamweaver Web Design Graphic Design

Speech Writing Word Processing Language Translation

SEM Internet marketing Marketing Strategy Google Webmaster Central & AdWords Social Media Google+ MailChimp Affiliate Marketing

SAS Business Analytics

Wi-Fi Caspio Firewall FTP Codesign COM

Photoshop
Illustrator Microsoft Visio Framemaker Corel Ventura Quark Express Sony Vegas

Content Writing
Report Writing Word Perfect Poetry Spelling Journalistic Writing Feature Writing

Source: eLance, oDesk websiyesTalent websiyes andTalent Neuron Neuron

Zinnov

12

Engagement Model Types

Fixed price engagement model is typically preferred in the global online talent marketplace

Fixed Price

Hourly Rates 45% 55%

60% 25% 35% 50%

Getting the pricing right for fixed priced projects is a difficult task It is generally preferred for short projects and freelancers do not prefer to commit for fixed priced projects which may run over 6 months

Hourly rates are preferred by freelancers as they can charge for the total number of hours they work for Clients generally do not prefer hourly rates as there is higher cost calculation risk

Retainer 4% 8%

Revenue Share

10%

0%

2%

5%

Retainer options are mostly opted by freelancers working in the Legal and Accounting domains Retainers help in decreasing month to month accountability which is preferably refrained by the freelancers and the clients
Minimum
Source: Freelance Industry Report 2011 and Talent Neuron

Revenue share model is not readily adopted by the Online Talent marketplace due to project failure concerns

Clients refrain from revenue sharing as it may hit their profit margins
Median Maximum
Zinnov

13

Online Talent Marketplace

Key future trends

A
Outsourcing of niche work will increase

Compared to earlier, more complex skills are being outsourced such as Search Engine Optimization, Mobile Application Development, Legal, Accounting , Management, Manufacturing etc.

Today most of the companies hire freelancers for cost savings and flexible scalability. However, niche and specialized skill sets will be driving the market for online talent hub companies
Adoption of online marketplaces among medium/large scale enterprises is starting to happen E.g. Global 2000 companies There will be a clear shift in user base of companies (Currently heavily skewed towards small and medium size companies)

B
Adoption by large/medium size enterprises

Summary

C
Growth in virtual workforce

Companies have been increasingly hiring freelancers. Talent Neuron estimates around 10 - 15 percent of the total workforce will be hired from online talent hubs in the coming years Studies have indicated that there is more participation by the women in the online talent marketplace than the traditional workplace

D
Diversity of supply base

In 2013, Talent Neuron expects significant growth in women freelancers Companies like Shelancers are being established which are focused on the female online talent

Source: Talent Neuron

Zinnov

14

Talent Neuron Platform

Talent Neuron Platform provides granular data for over 500 cities in 83 countries. It tracks over 12,000 unique data parameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities, Salary and Cost etc.
Global Location Profiles Job Engineer Global Talent Insights

Role View

Talent Neuron

Global Cost & Salary Insights

Monitor

University Outlook Peer Companies

For Detailed information on Location, Talent, Cost, Risks, University Information contact info@talentneuron.com
Source: Talent Neuron Website

4701 Patrick Henry Dr. Building 7 Santa Clara CA 95054 Phone: +1-408-716-8432 21, Waterway Ave, Suite 300 The Woodlands TX 77380 Phone: +1-281-362-2773 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore 560095 Phone: +91-80-41127925/6 First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100

THANK YOU

info@talentneuron.com www.talentneuron.com

@talentneuron