Online Talent Marketplaces – LandscapeAnalysisMarch 2013This 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.
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2Talent Neuron can help in selecting the right location by providing data, analytics and insights on Locations,Talent, Cost, Peer Group Footprint & TrendsLocation Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionPeer and TalentInsightsUnderstand the capability of each potentiallocation and make data driven decisions onsetup and expansionEcosystem Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionSource: Talent Neuron Website
CAPABILITIESTalent Neuron has assisted over 100 companies in their global location analysis and site selectionprocessEcosystem Insights Forecasts Industry/DomainWage InflationTrendsCompany TrackerMarket TrackerSkill Wizard Market InsightsTalent Neuron KEYFOCUS IS ON THETECHNOLOGYINDUSTRY. OVER80% CLIENTS ARE INTHE PRODUCTENGINEERINGDOMAIN.ConsultingProprietaryData SourcesNetworkReportsWeb CrawlingExpert InsightsAnalyticsSurveys500+ GLOBALCITIESCOVEREDSource: Talent Neuron6 DOMAINS35 FUNCTIONs150+ SKILL SETS
PROPOSED APPROACH – Data Gathering and Analysis through BIG DataTalent Neuron will use data driven Big data principles (for large data analysis) which will providecomprehensive insights and transparency on the trends, current realities and opportunities in any locations100+ Job sites3,000+ CompanyCareer SitesUniversitiesSocial Media/Public ProfilesHadoopEngine(Big DataApproach)=Over 12,000Unique Dataelements for eachcityPatent DatabasesPublication/JournalDatabasesTechnologyContributor listsCommunity SitesConnectors (API / Screen Scraping)SkillAvailabilityLocationInsightsCompensationand CostTrendsPeerCompanyFootprintSource: Talent Neuron Website* Details not disclosed by the companySource: Talent Neuron Research and Analysis
5Talent Neuron has two module Talent Intelligence and Talent Analytics. Our dataspectrum covers 500 cities, 9 Domains and 400+ skill sets520+ Cities~12,000 Unique DataPoints Per City9 Domains &400+ Skills~7,500 Companies &22 Million ProfilesModule 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
6Talent Neuron, gathers data from multiple sourcesData Mining from ConnectorsJob SitesCompanyCareer SitesSocial Media/Public ProfilesPatentDatabasesCommunitySitesTechnologyContributor ListUniversitiesPublication/JournalDatabasesSurvey Data fromCompaniesData from Govt./Industry BodiesData from LocalRecruitmentCompaniesData on City levelsuitability &EcosystemCorrelated dataon Talent,Cost, Peer companiesZinnov PrimaryResearch & InterviewsNews Articles & PublicData – Crawling Engine
Talent Neuron estimates that the total number of freelancers registered in the online talenthub 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, CitiGroup, 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 abetter relationship with freelancers than agencies who have multiple contact points Women population constitute less than 50 percent of the traditional workforce, howevermore than 55 percent of the freelancers are women. Moreover, 2012 witnessed more than100 percent growth in the women freelancer population indicating that increasingly womenare adopting online jobs for a better work-life balance. Talent Neuron estimates that 40-45 percent of the online talent pool is present in theUnited States, while around 12-15 percent is present in IndiaExecutive SummaryThe online talent marketplace is set to grow at an unprecedented pace with increasing computing power
8ZinnovTrendsComprehensive list of 30 globalonline talent marketplaces Deep diveList of Online Talent Marketplaces1. eLance2. Guru3. oDesk4. Freelancer5. iFreelance6. The Freelance Nation7. Virtual Vocations8. Freelancer Jobs Network9. FreelanceJobs.org10. Design Crowd11. PowerLance12. Bidfreelancer13. ScriptLance14. vWorker15. Freelance Work16. Writerlance17. Sunoasis18. ProjectSpring19. Onlinejobs.ph20. Freelancerchina21. FreelanceCN22. Freelanza23. FreelanceIndia24. PayPerHour25. Freelancers.net26. Freelance UK27. ShortGig28. Freelance-Seattle29. AgentSolo30. Freelance.comUser BaseJob FunctionMaturityBilling ModelsSkill DemandGeographicLocationsMethodologyTalent Neuron analyzed over 30 global talent marketplaces to analyze the trends in online job outsourcing
9Zinnov12710Global Vertical Specific Country SpecificOnline Talent Hub Companies Tracked• The online talent market is expected tobe around USD 2.5 billion by the end of2012 with Elance, Guru and oDeskleading the online job market• In the recent years quite a few verticalspecific online talent hub companieshave been set up such as ScriptLance,vWorker and Writerlance• Online talent hub companies inemerging countries like India and Chinahave local freelancers who provideservices at a competitive price thanfreelancers in developed countriesSource: oDesk website and Talent NeuronLaw of the LandOnline talent hub companies offer global services in various domains for their clients. However, somecompanies offer niche skill sets only while some have registered talent from specific countries/regions
10ZinnovGlobal Availability of Online TalentUS has the largest number of registered freelancers followed by Canada. Emerging countries like India andChina are also witnessing a healthy growth in the online talent availability.Source: Economagic website and Talent NeuronFreelancers working in the Technologydomain in India are increasingly beingpreferred by the leading Global 2000clientsIn the recent years, averagecompensation for freelancers inPhilippines has dropped significantly,specially for software jobsUnited States has asignificant number ofonline talent inCreative andTechnology domains.In 2010, temporaryjobs (which includefreelancers andcontractors)constituted over 60percent of the totalincrement in privatesector jobs in UnitedStatesCanada has a developed community of onlinetalent in the Editing domain.
11ZinnovSource: Zinnov – ‘Talent Neuron’MarketingTechnologyLegalMultimediaEditingManufacturingLaggards Rapidly Growing MatureJobs such as manufacturing design, circuit design,architecture and civil engineering are expected to bein demand in the Manufacturing domainToday most of the online freelancejobs is done in the Technologydomain. In the last 6 months PHPskill set in the Technology domainhad the maximum number of jobsposted onlineOnline Talent Marketplace - Maturity of FunctionsLOWHIGHGrowthRateAccounting &ManagementAdministrationMultimedia and Editing domainjobs include web design,animation, content writing, blogs,business writing and regionallanguage translationGlobal 2000companies areincreasinglyleveraging theonline talentmarketplace forAccounting andLegal domainservicesMaturity of Online Talent Marketplace by Job FunctionsOnline talent marketplace jobs are rapidly growing across various domains like Administration, Marketingand Multimedia apart from traditional Editing and Technology domain jobsSource: Talent Neuron
12ZinnovTechnology Multimedia Editing MarketingShell Scripting Dreamweaver Speech Writing SEMCOBOL Web Design Word Processing Internet marketingPeopleSoft Graphic Design Language Translation Marketing StrategySAS Business Analytics Photoshop Content WritingGoogle WebmasterCentral & AdWordsWi-Fi Illustrator Report Writing Social MediaCaspio Microsoft Visio Word Perfect Google+Firewall Framemaker Poetry MailChimpFTP Corel Ventura Spelling Affiliate MarketingCodesign Quark Express Journalistic WritingCOM Sony Vegas Feature WritingSource: eLance, oDesk websiyes and‘Talent Neuron’Skills in DemandTechnology domain jobs like Shell Scripting and COBOL witnessed phenomenal growth in demand in 2011and the demand for similar jobs are expected to grow in 2012Source: eLance, oDesk websiyes‘Talent Neuron’
13ZinnovFixed PriceRetainer45%55%60%4%8%10%Hourly RatesRevenue Share25%35%50%0%2%5%• Getting the pricing right for fixed priced projects isa difficult task• It is generally preferred for short projects andfreelancers do not prefer to commit for fixed pricedprojects which may run over 6 months• Hourly rates are preferred by freelancers as theycan charge for the total number of hours they workfor• Clients generally do not prefer hourly rates as thereis higher cost calculation risk• Retainer options are mostly opted by freelancersworking in the Legal and Accounting domains• Retainers help in decreasing month to monthaccountability which is preferably refrained by thefreelancers and the clients• Revenue share model is not readily adopted by theOnline Talent marketplace due to project failureconcerns• Clients refrain from revenue sharing as it may hittheir profit marginsMinimum Median MaximumSource: Freelance Industry Report 2011 and Talent NeuronEngagement Model TypesFixed price engagement model is typically preferred in the global online talent marketplace
14ZinnovOutsourcing of niche work willincreaseAdoption by large/mediumsize enterprisesGrowth in virtual workforceDiversity of supply base Compared to earlier, more complex skills are being outsourced such as Search EngineOptimization, 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 hubcompanies Adoption of online marketplaces among medium/large scale enterprises is starting tohappen E.g. Global 2000 companies There will be a clear shift in user base of companies (Currently heavily skewed towardssmall and medium size companies) Companies have been increasingly hiring freelancers. Talent Neuron estimates around10 - 15 percent of the total workforce will be hired from online talent hubs in thecoming years Studies have indicated that there is more participation by the women in the onlinetalent marketplace than the traditional workplace In 2013, Talent Neuron expects significant growth in women freelancers Companies like Shelancers are being established which are focused on the femaleonline talentSummaryABCDSource: Talent NeuronOnline Talent MarketplaceKey future trends
For Detailed information on Location, Talent, Cost, Risks, UniversityInformation contact email@example.comTalentNeuronGlobalLocationProfilesGlobalTalentInsightsGlobalCost &SalaryInsightsUniversityOutlookPeerCompaniesMonitorRole ViewJobEngineerTalent Neuron PlatformTalent Neuron Platform provides granular data for over 500 cities in 83 countries. It tracks over 12,000 unique dataparameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities,Salary and Cost etc.Source: Talent Neuron Website