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The “online staffing” segment didn’t exist 15 years ago, but today it generates more than $1 billion in global revenue, consists of more than 50 firms and is growing at high double-digit rates, according to a new report by Staffing Industry Analysts.
The online staffing industry is comprised of firms that bring together workers (such as independent contractors) and buyers via online platforms, and the segment really started accelerating around 2007.
Six major players account for about half the segment’s revenue. Those six players include: oDesk, Elance, freelancer.com, freelance.com, vWorker and guru.com.
“The staffing industry (businesses that effectively function as workforce intermediaries) must recognize that there is a new a new kid on the block — a new industry segment based on a highly efficient e-platform business model,” said Research Analyst Andrew Karpie. “I think this segment will continue to grow and diversify, challenging the whole industry to higher levels of innovation.”
Most of the work provided via online staffing is work that can easily be done remotely such as Web development, writing and translation. Mark-ups at the online staffing firms tend to be in the 5 percent to 10 percent range.
Corporate members of Staffing Industry Analysts can download the full report, which lists 50 online staffing firms, by clicking here.