Background [edit]

Inspired by a 1998 Harvard Business Review article titled "The Dawn of the E-Lance Economy", the founders of Elance saw a need for technology capable of supporting virtual work and the first version of the site was launched in 1999. Two years later Elance introduced a vendor management system (VMS) [4] for contractors and third-party services used by large enterprises. In 2006 Elance sold its enterprise software division and began the development of its current web-based platform for online, contingent work. As of February 2013, Elance is used by approximately 500,000 businesses and 2 million registered [5][6] freelance professionals, who have collectively earned nearly $700 million to date. Other sites that provide similar services are Guru, Freelancer, oDesk.
[3]

Elance [edit]
Clients [edit]
Businesses can use the Elance website to post jobs, search for freelance Professionals, and solicit proposals. They can evaluate the contractors applying for the job by reviewing qualifications, work history, ratings, portfolios, and skill test scores. Once a contractor is selected, the project communications and files can be exchanged through the Elance system. The contractor is paid by the client through Elance's [7] system, which deducts a percentage of the fee as a "commission." For hourly-rate jobs, timesheets are [8] automatically generated, and Elance's optional Work View tool provides an official record of work completed. For project-based jobs, Statement of work or milestones are defined to indicate progress toward completion, and funds held in escrow by Elance ensure payment upon completion of the [9] milestone. When a contractor quotes an hourly rate or a fixed price to a client, Elance automatically [10] includes a service fee of 8.75%, and after Elance bills the client and receives payment for the work, the [11] fee is deducted and the balance is transferred to the contractor's account.

Freelancers [edit]
Freelancers can search Elance website for freelance jobs, and can research clients' buying history on the system. Each freelancer can post a profile displaying past jobs and feedback, a portfolio, and specific skill [12] and educational-background information that can be verified by a potential client. Registered free users can submit up to 40 proposals each month for free; paid membership plans allow submission of additional proposals. Payment for services performed is guaranteed, if work is done using all elements of the Elance [13][14] system. A 2012 survey of freelancers conducted by Elance indicated that freelancing was the "sole source of [15] income" for 48% of respondents, and that 69% had at least a bachelor's degree. The Elance Trends section shows freelancers available by skill and location Trends.

Skills [edit]
Information technology jobs such as web and mobile programming and development account for the majority of earnings on Elance (59%), followed by creative jobs (24%), marketing (7%), and operations [16] [17] (7%). Also popular are jobs for writers and graphic designers. Elance maintains a current list of their overall top 100 in-demand skills, and in 2011, the most in-demand skills

were PHP programming, WordPress programming, article writing, graphic design, [18] and HTML programming. Specific data, including global job growth numbers and earnings on the most [19] in-demand skills, is made available on Elance's website.

Awards and recognition [edit]

Elance has been cited as an example of the emerging paradigm of informal workplace communication, [20] employing social media tools and cloud-based applications to drive productivity. Elance also caters to the increasingly liquid labor market by facilitating direct contact between contractors with specific skillsets [21] and clients with specific needs. This reduces search friction and benefits the economy as a whole. As enterprises increasingly look to hire project-based personnel in lieu of traditional full-time [22] staff, freelance marketplaces like Elance are gaining popularity. Business owners support the trend because it lowers their payroll expenditures, and workers support it because working for multiple clients [23] results in increased job security. Project-based hiring also allows small businesses access to highly [24] skilled workers at a significantly lower cost as compared to hiring full-time staff. In 2009, Elance was selected as one of CNET's Webware 100, an award recognizing products and [25] services that embody Web 2.0 ideals of collaboration and cloud computing.

See also [edit]

Freelance marketplace Outsourcing Contingent workforce

References [edit]
1. 2. ^ "Elance.com Site Info". Alexa Internet. Retrieved 2013-02-01. ^ Needleman, Sarah E. (June 21, 2010). "Managing at a Distance: New websites help managers at small companies keep closer track of their freelancers' work". The Wall Street Journal Online. 3. ^ Thomas W. Malone; Robert J. Laubacher. "The Dawn of the E-Lance Economy". Harvard Business Review. 4. 5. 6. 7. 8. 9. ^ "5 Things to Know Before Becoming an Elance Provider". businesspundit.com. ^ "2011: Online Employment Review". ^ "Elance to give $1m to Startup America Partnership". ^ Rafe Needleman. "Elance updates tools for hiring, managing contract labor". CNet. ^ "Work View Tool". ^ "How to Manage Your Clients".

10. ^ "How Does Elance Work and How Much Does It Cost?". 11. ^ "What It Costs". Elance. 12. ^ "Your Online Profile & Portfolio".

13. ^ "Ask an Expert: Freelancing is easier than ever because of technology, attitudes". USAToday.com. 14. ^ "Guaranteed Payment". 15. ^ "The State of the Freelance Market". 16. ^ "Elance Online Employment Report". 17. ^ "Elance Index: Online Contract Work Shows Growth". ReadWriteWeb.com. 18. ^ "Overall Skill Trends". 19. ^ "Overall Skill Trends". Elance. 20. ^ Quentin Hardy (7 January 2012). "A Prophet for a New Workplace". The New York Times. Retrieved 11 January 2012. 21. ^ Damien Hoffman (11 October 2010). "Should ODesk, Elance, and Solvate Have Won the Nobel Prize in Economics?". The Huffington Post. Retrieved 30 January 2012. 22. ^ Carolyn Hughes (13 December 2011). "4 tips for small business hiring". The Washington Post. Retrieved 11 January 2012. 23. ^ Paul Davidson (13 October 2010). "Freelance workers reshape companies and jobs". USA Today. Retrieved 11 January 2012. 24. ^ "Small Business Vendor Award Nominees". 25. ^ "Webware 100 winner: Elance".