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Freelance & Outsourcing Industry: Difference between revisions
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* Many employers consider hiring contract workers vs. permanent workers as a less expensive option that reduces their tax obligations and benefits costs and increases flexibility. | * Many employers consider hiring contract workers vs. permanent workers as a less expensive option that reduces their tax obligations and benefits costs and increases flexibility. | ||
* “If you’re a recruiting leader in 2023," says Stephen Lochhead, senior VP of global talent acquisition at Expedia Group, “and you don’t have a decent mix of contingent talent, you’ll be more risk-exposed to whatever the future brings — good and bad. You need some elasticity so you can flex up or down as needed.” | * “If you’re a recruiting leader in 2023," says Stephen Lochhead, senior VP of global talent acquisition at Expedia Group, “and you don’t have a decent mix of contingent talent, you’ll be more risk-exposed to whatever the future brings — good and bad. You need some elasticity so you can flex up or down as needed.” | ||
* 69% of recruiting pros say the macroeconomic environment is negatively impacting hiring. | * 69% of recruiting pros say the macroeconomic environment is negatively impacting hiring.<br />In January, ResumeBuilder.com surveyed 1,000 U.S. business leaders at companies with at least 50 employees to find out how many are currently “quiet hiring,” or will be soon.<ref>https://www.resumebuilder.com/1-in-5-companies-are-quiet-hiring-contractors-to-replace-laid-off-workers/</ref> | ||
In January, ResumeBuilder.com surveyed 1,000 U.S. business leaders at companies with at least 50 employees to find out how many are currently “quiet hiring,” or will be soon.<ref>https://www.resumebuilder.com/1-in-5-companies-are-quiet-hiring-contractors-to-replace-laid-off-workers/</ref> | |||
Key findings: | Key findings: | ||
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* 34% have cut salaries in the past 3 months; nearly 1 in 10 reduced ALL employees’ salaries | * 34% have cut salaries in the past 3 months; nearly 1 in 10 reduced ALL employees’ salaries | ||
=== Past Recession Behavior === | === ODesk 2008-2009 Recession === | ||
During the economic crisis of 2008, outsourcing on oDesk nearly tripled.<ref>https://www.upwork.com/press/releases/odesk-reports-on-freelance-economy-in-current-recession</ref> | |||
* U.S. buyers outsourcing to U.S providers rose. | |||
* The amount of work done in the US grew faster relative to other countries known for outsourcing(a rate of 367% from 2007 to 2008), like India and Russia, in 2008. | |||
* Higher satisfaction rates help U.S. workers remain competitive versus less expensive providers overseas. | |||
* The number of freelancers using the platform also increased. 18 months prior to the recession, there were 2.5 service providers for each buyer. During the recession, the number rose to nearly 4. | |||
* Even so, as competition for freelance tech jobs increases, wages have remained stable or even increased | |||
* The influx of skilled developers also drives hourly rates higher. | |||
* oDesk used data from over 200,000 technology buyers and providers | |||
In March 2009, oDesk surveyed 600 buyers of remote services and 350 service providers<ref>https://www.upwork.com/press/releases/odesk-report-shows-companies-will-increase-use-of-contractors-during-recession</ref>. | |||
* 41.9% said they were planning to outsource more in the recession, either because they have cut full-time staff (7.0%), or because they cannot hire full-time staff (34.9%). | |||
* 14.6% of buyers have replaced employees with oDesk providers in the last year, while 14.5% of buyers have hired an oDesk provider who would have otherwise been unemployed or a victim of the economic downturn. | |||
* Buyers cited cost savings, the ability to audit providers, and access to talent not available locally as their top three reasons to use oDesk. | |||
* Of the 350 providers surveyed, a vast majority said that there are enough jobs available on oDesk to meet their needs (73.9%), and feel that they are making fair rates (77.9%). | |||
* Majority (59.0%) said that if they weren’t providing services on oDesk, they wouldn’t be able to meet their financial obligations and 32.4% said oDesk earnings are their primary source of income. | |||
* 53.9% of buyers are employing at least some US providers, while 84.3% of providers are working for a US-based buyer. | |||
=== Outsourcing Past Recession Behavior === | |||
* Over half of the companies in the outsourcing market saw increased contract renegotiations in 2009, primarily caused by the recession<ref>https://gaprivacytech.org/journal/trends-in-outsourcing-emerging-from-the-great-recession</ref> | * Over half of the companies in the outsourcing market saw increased contract renegotiations in 2009, primarily caused by the recession<ref>https://gaprivacytech.org/journal/trends-in-outsourcing-emerging-from-the-great-recession</ref> | ||