oConomy
January 16, 2009

Today we’re going to have some fun with numbers by trying to calculate “value for money” between countries in hiring contractors to your workteam. The following table summarizes oDesk’s average hourly rates and feedback scores in each of our top 7 provider countries.

 United States Pakistan Ukraine Canada Russia Philippines India Avg Hourly Rate-Overall \$18.32 \$11.13 \$15.96 \$19.60 \$16.86 \$6.33 \$12.52 Avg Hourly Rate-Developers* \$29.99 \$10.30 \$16.61 \$21.49 \$17.60 \$11.27 \$13.25 Avg Hourly Rate-Data Entry* \$7.91 \$3.07 \$5.38 \$10.90 \$15.86 \$3.15 \$2.81 Avg Feedback Score 4.4 4.36 4.36 4.32 4.31 4.3 4.01

*We’ve only broken out the rates for software development and data entry; there are many other categories of work on oDesk that aren’t listed here.

Looking at this data, it’s obvious that there is much greater variance in average hourly rates (\$6.33 to \$19.60) than feedback scores (4.01 to 4.40). We therefore scale the numbers to percentiles to compare between countries. We then do a quick-and-dirty calculation, averaging the percentiles, and finally rank the countries to determine their relative “value for money.”

 Average Feedback Percentile Average Rate Percentile “Value for money” (avg AFP, ARP) “Value for money” ranking “Value for money” ranking-Developers “Value for money” ranking-Data Entry Philippines 74 100 87 1 2 2 Pakistan 90 64 77 2 1 1 Ukraine 90 27 59 3 3 3 United States 100 10 55 4 6 4 Russia 77 21 49 5 4 7 Canada 79 0 40 6 5 5 India 0 53 27 7 7 6

The results … the Philippines and Pakistan rank the highest in this admittedly simplistic analysis, which must be taken with a grain of salt. There are many factors to be taken into consideration when hiring contractors to your workteams. But, in the meantime, congratulations to providers in these two countries for topping the list! Fans of outsourcing to the Philippines and Pakistan will also be glad to know that they were also the fastest growing countries on oDesk, by hours worked, from 2007-2008.

 2007-2008 Growth Rank Philippines 789% 1 Pakistan 328% 2 United States 260% 3 Canada 121% 4 India 113% 5 Ukraine 77% 6 Russia 43% 7

If you had fun with this analysis (we did), and want to do more, visit the oConomy, which is a goldmine of interesting statistics on outsourcing. For example, take a look at our Outsourcing to Philippines and Outsourcing to Pakistan pages for more complete stats on these countries. 2008 outsourcing summary stats can also be found in our recently created Philippines and Pakistan slideshare presentations.< –>