oDesk is the marketplace for online workteams with the best business model for both buyers and providers For buyers: Guaranteed work Every hour billed is an hour worked For providers: Guaranteed payment Every hour worked is an hour paid Background 24 Employees, 43 remote oDesk consultants HQ in Menlo Park, CA Funded by Benchmark, Sigma, Globespan, & DAG raised $29MM to date ($16MM in the bank) Started in 2004 Where are we today? Over 200,000 tested and rated knowledge workers representing hundreds of technical disciplines & skills Both individual freelancers and development companies from 150+ countries Buyers post both Fixed Price Jobs and Time-Based assignments Buyers pay by the successful job or for verified hours worked Avg. time to hire is < 4 days; Avg. # candidates per job is > 18 Over $60MM in gross services delivered What Is oDesk?

oDesk is the marketplace for online workteams with the best business model for both buyers and providers

For buyers: Guaranteed work

Every hour billed is an hour worked

For providers: Guaranteed payment

Every hour worked is an hour paid

Background

24 Employees, 43 remote oDesk consultants

HQ in Menlo Park, CA

Funded by Benchmark, Sigma, Globespan, & DAG raised $29MM to date ($16MM in the bank)

Started in 2004

Where are we today?

Over 200,000 tested and rated knowledge workers representing hundreds of technical disciplines & skills

Both individual freelancers and development companies from 150+ countries

Buyers post both Fixed Price Jobs and Time-Based assignments

Buyers pay by the successful job or for verified hours worked

Avg. time to hire is < 4 days; Avg. # candidates per job is > 18

Doing more with less Smaller teams getting more done in less time with less money Development to infrastructure demanding more efficiency across the board Using modern frameworks, automation, sane capacity planning, and solid analytics to do more with less. Way more Objectives

Doing more with less

Smaller teams getting more done in less time with less money

Development to infrastructure demanding more efficiency across the board

Using modern frameworks, automation, sane capacity planning, and solid analytics to do more with less. Way more

Tools

Cost of nearly all of the software development tools we use at oDesk “ Free or better”

Cost of nearly all of the software development tools

we use at oDesk

Annual cost of Google Apps

Process

Hierarchy Friction Bureaucracy Inflexibility IT-driven technology / Lack of user control Top down Centralized Teams are in one building / one time zone Silos and boundaries Need to know Information systems are structured and dictated Taxonomies Overly complex Closed/ proprietary standards Scheduled Long time-to-market cycles What is different today? Flat Organization Ease of Organization Flow Agility Flexibility User-driven technology Bottom up Distributed Teams are global Fuzzy boundaries, open borders Transparency Information systems are emergent Folksonomies Simple Open On Demand Short time-to-market cycles Enterprise 1.0 Start-up 2.0

Hierarchy

Friction

Bureaucracy

Inflexibility

IT-driven technology / Lack of user control

Top down

Centralized

Teams are in one building / one time zone

Silos and boundaries

Need to know

Information systems are structured and dictated

Taxonomies

Overly complex

Closed/ proprietary standards

Scheduled

Long time-to-market cycles

Flat Organization

Ease of Organization Flow

Agility

Flexibility

User-driven technology

Bottom up

Distributed

Teams are global

Fuzzy boundaries, open borders

Transparency

Information systems are emergent

Folksonomies

Simple

Open

On Demand

Short time-to-market cycles

Cost to acquire an oDesk buyer in 2006

Harvest demand before creating demand Search – SEO and SEM SMM (blogging, Twitter, Facebook) Make your product easy to buy Leverage your customers/users to get the word out Share whenever you can - e.g., oConomy, blog, speak at events ;-) Cost to acquire an oDesk buyer today … … and the volume is up 7X

Harvest demand before creating demand

Search – SEO and SEM

SMM (blogging, Twitter, Facebook)

Make your product easy to buy

Leverage your customers/users to get the word out

Share whenever you can - e.g., oConomy, blog, speak at events ;-)

People

Hourly cost of Bay Area-based CSR

Hourly cost of Bay Area-based CSR

Hourly cost of Philippines-based CSR

Annual all-in cost of oDesk’s 43 FTE remote team See http://www.odesk.com/w/case_study_odesk

Annual all-in cost of oDesk’s 43 FTE remote team

Hire the right people the right way Right skills? Employees vs. contractors? Full-time vs. part-time? Local vs. remote?

Right skills?

Employees vs. contractors?

Full-time vs. part-time?

Local vs. remote?

“ oDesk is a great way to make it feel like an employee who is across an ocean is working inside your local office” - oDesk Buyer Guaranteed work; Guaranteed payment

Average Hourly Rates by Job Category Sys Admins Developers Designers Consultants ( blue ) Proj. Mgrs ( green ) QA Testers Tech Writers Data Entry Pros

Average Hourly Rates (US) Sys Admins Developers Designers Consultants Proj. Mgrs QA Testers Tech Writers Data Entry Pros

Opportunity cost of doing the wrong things Test and learn vs. boil the ocean Ruthlessly cut what’s not working Leverage the “extended enterprise”

Opportunity cost of doing the wrong things

Test and learn vs. boil the ocean

Ruthlessly cut what’s not working

Leverage the “extended enterprise”

Questions - [email_address] Acknowledgement Slides inspired by Guy Kawasaki See https:// url.odesk.com/~klszu

Questions - [email_address]

Acknowledgement

Slides inspired by Guy Kawasaki

See https:// url.odesk.com/~klszu