Outsourcing your work as fixed price jobs or paying for hourly jobs on Odesk is highly dependent on the nature of your project.
There are advantages and disadvantages of outsourcing both types of work that you need to be aware of.
Advantages of outsourcing as an hourly job:
- Hourly paid jobs are well-regarded from your providers due to the secure payment system from oDesk.
- The hourly paid jobs are manageable for the employer since your provider logged hours by using the oDesk team room and you can review their work diaries on a regular basis.
- Many providers apply for hourly jobs online because they need a sustainable income they can count on. It takes time to hunt after numerous fixed price assignments – even if sometimes they can be more profitable.
Disadvantages an hourly wage jobs:
It is sometimes difficult to estimate the hourly wages for jobs done online if you are only habituated to “normal” offline work.
In my personal experience, proposing wages between 1 and 4$/hour will result in finding an appropriate provider for your project.
It also depends on the skillset needed and your budget. Of course, you need to have the right tactics for your hiring process, too.
Advantages of a fixed price projects:
- In fixed-price jobs you don’t really have to overview your provider regularly and you don’t need to really check on what they are doing.
They can surf internet of chat on Facebook as long as they want to, until and unless they deliver the required work by the deadline and after receiving the work you can review their work and then you can release the payment.
- In general, fixed time jobs will cost you less money as an employer: If you ask “I want this result for $50” the provider may be spending much more time than you paid him hourly for the same job.
Disadvantages of outsourcing as a fixed price project:
If the work is not satisfactory you will need to discuss how this will work out beforehand. So some providers agree to work for free until your satisfaction, otherwise they can say that I will not work on this anymore and you can give me bad feedback and just pay me what we decided and I am finished with your project.
It is a weakness of Odesk’s system that it does not guarantee payments on fixed price jobs.
In my personal opinion I see that I was less successful in hiring people on fixed time jobs than if you post hourly jobs.
Providers like hourly paid jobs much more. They are guaranteed to be paid.
Hourly made money is there in their pockets. However, if you make a big project over $100 and you cancel it for whatever reason – then the provider ends up with nothing! So that is why providers don’t prefer it.
Note that there are also exceptions. From time to time, you’ll find providers specialized on fixed-price jobs that are not all small and easy to do.
You’ll have to use your own judgment to find out if the provider is the right person for you.
You’ll have two power tools at your fingertips:
- The interview during the hiring process.
- The feedback information and portfolios from past jobs.