Understanding freelancing market trends and leveraging them is the difference between growth and stagnation for many Web Services companies like Gyrix. However due to lack of awareness, skills or inclination many companies miss to analyze the trends.
As described in the previous article, many of these offshore companies rely on Freelancing portals to fetch projects. Based on our discussions with peers in this industry, we see quite a few companies struggling to occupy their teams and utilizing the available skills. To help them do a better job, we are sharing our Data-based insights after analyzing these freelancing websites.
For any market research report it is important to state the objectives, methodology and limitations. So here we go
- Identify market trends across various factors like Geography, Opportunities, Skills
- Search for behavior pattern of clients on freelancing portals
- Identify suitability of freelancing portals for small and mid size IT Outsourcing companies
- Answer questions like – Are Freelancing portals suitable to achieve growth for the IT Outsourcing companies.
- Sample size: 14,700 projects across freelancing portal in Web Development category
- Duration: The data was captured across a month in 2nd half of 2016.
- Process: Data was manually cleaned and fed to analytics tools. Standard analytic processes were used to unearth trends.
- As the data was fetched only across a month, factors like holidays and seasonal periods may have some impact on it
- Human error in the results should be assumed to be around 2 to 3 %
We shall divide the freelancing market trends in 3 sections:
Today, we’ll cover the Geographical aspect of freelancing market trends:
- Which continents and countries are leading in posting freelancing projects ?
- What is the market share of different countries ?
- What is the inclination of different countries towards different project types ?
- Which countries can a company realistically target ?
- Clients of which country are more likely to award projects than others ?
Let us start with the simplest: Which continent and countries have the highest number of projects ?
Absolutely no points for guessing
North America tops the chart with almost 50% of the projects. Europe is a distant second closely followed by Asia. Australia being the single continent-country stands at fourth position
Coming on to the countries.
We will take points away if you name any other country than the USA to top the chart.
Top 10 countries for Projects under Web Development Category
USA alone contributes to 40% of all the Web Development projects. Followed by UK as a distant second. Surprisingly India stands a very close 3rd. This might indicate that second and third level of outsourcing is pretty much in vogue here. Australia comes at 4th position, followed by Canada.
After this comes the division of projects in Fixed Price and TnM (Time and Material).
There is clear inclination (though not a tilt) towards Fixed Price projects across all the countries.
Categorization of Project in FP and TnM for Top 10 countries
TnM projects constitute around 47% of the total projects in USA and Australia. Whereas they stand at 45% and 39% for Canada and UK respectively. For India the percentage is 29%.
Coming to the final and most important Chart.
Clients of which countries are likely to award projects than others
Of all the projects listed Globally under Web Development Category, only 45% projects have a realistic chance of being awarded. So the next time you find a project that is just perfect for you, that has the ideal budget or hourly rate, that has the client with best rating and feedback… pause for few seconds and consider this…
Before your company gets into competition with other awesome freelancers on the platform, 55% chances are that the proposal will be wasted because of the CLIENT. The client’s priorities / mood / inclination / preferences are the biggest threat to your project conversion matrix.
Still there are few countries who do better than others as shown here
Realistic chance of awarding Project – Globally and across Top 5 Countries
Australia tops the chart with an above par conversion chances. It indicates that clients from Australia, though lesser in number are more serious than other countries in awarding projects.
*Wink wink* You now know, more than 2/3rd clients from which country are wasting your time. Beware !
And that’s it for today !
We hope a better understanding of these freelancing market trends will benefit your company. Leave your comments and feedback here for any improvements in presenting the results. Share your request for specific information, we shall try our best to unearth it from the available data.
Next up “Freelancing Market Trends – Money”.
Stay Tuned !
- The analysis was done based on the limited set of data available from freelancing websites, hence it neither claims to be 100% accurate nor is a reflection of the entire freelancing market
- The outcomes are shared here for informational purpose only and no liability is borne by Gyrix or any of its members, for decisions made based on the analysis
- Readers are expected to treat this as good faith information sharing only and should use their judgement before making decisions of any kind
Special thanks to Shreyas Padhye for co-authoring this article.