Freelancing industry growth and some successful models in different countries.

1. Freelancing Industry growth and some successful
models in different countries
Hany Saad Mostafa
Senior Teaching assistant and lecturer
Information Technology institute (ITI)
hghiett@iti.gov.eg

2. Freelancing successful models for different
countries.

3. Freelancing successful models for different countries
“Freelancing is the new normal -- and we have the numbers to prove it.”
By Sara Horowitz, Founder and Executive Director of Freelancers Union and Fabio Rosati, CEO Elance-oDesk.

4. Freelancing successful models for different countries (Cont.)

5. Freelancing successful models for different countries (Cont.)
• There are more than 53 million freelancers in the United States (in 2014).
• There are more than 1.4 million freelancers in the UK (in 2014).
• On the other hand, all freelancing platforms have a substantial percentage
of Indian freelancers.
• India, the United States, the United Kingdom, Philippines, Pakistan and
Ukraine, are the countries with the most freelancers in the world.

6. Freelancing successful models for different
countries: USA
• A 2014 Forbes article highlighted that there
were more than 53 million freelancers in the
United States alone (That’s 34% of the entire
workforce). The study reveals a number of
interesting findings:
• More than 1 in 3 American workers are now
freelancing.
• Freelancers are seeing more demand for
their work — Twice as many freelancers have
seen an increase in demand in the past year as
have seen a decrease (32% experienced an
increase versus 15% who have seen a decrease).
• The 53 million Americans who freelance are
contributing more than $715 billion in
freelance earnings to the national
economy.
• Independent contractors make up the largest
chunk of the freelance workforce.

7. Freelancing successful models for different
countries: USA (Cont.)

8. Freelancing successful models for different
countries: India
• India has the second highest number of
freelance professionals (about 15M, and about
25% of the entire workforce), standing next
only to the US.
• Freelancing Industry in India contributing
more than $400 billion to the national
economy.
• These 15M Indian freelancers take up a
whopping 40% of total freelance jobs
offered worldwide.

9. Freelancing successful models for different
countries: India (Cont.)
• India is competing in the freelancing world, not only as individual
contractors; but as big freelancing firms (software outsourcing
companies) that host a big number of freelancers with different and
various skills and specialists and offer to provide any number of developers
for the client with high facilities of high internet connection, voice and
video calls and coordination staff to follow up with customers and
guarantee the best service and satisfaction for them.

10. Freelancing successful models for different
countries: India (Cont.)
• Sample Email promotion for an Indian outsourcing company( Shows
the facilities and services they offer for clients):

11. Freelancing successful models for different
countries: India (Cont.)
• Most important factors for successful Indian Model in freelancing:
• The foundations of India’s IT revolution were laid long ago, when leading
Indian scientists established research institutes that became center for
the development of computer science and technology.
• Obvious huge population with over 1.5M professionals graduating out
of the schools every year: India is undoubtedly the largest producer of
skilled professionals in the world and ready to fuel the burst in demand side of
this exponentially increasing freelance industry.
• Software industry support by the Indian government.
• American firms’ eager recruitment of cheap and plentiful programming
labor, and started to stablish development houses in India.
• Improvement in Internet Penetration and Quality: India has the second
highest number of internet users (375M) across the globe.
• Women & Retired Professionals coming ahead: Skilled women and retired
professionals offer a large untapped pool of potential freelance professionals.
• The low cost of living in India: which makes Indian professionals offer
unbeatable prices, to levels that would make it really hard for a person in
Germany or Australia – for example- make ends meet with freelancing.

12. Freelancing successful models for different
countries: India (Cont.)
• Most important factors for successful Indian Model in freelancing:
• Fast growing Startup Ecosystem in India: India has the fastest growing
startup ecosystem and the third highest number of technology driven startups
worldwide, trailing behind only the US and the UK. The Indian government
recently launched several initiatives under Startup India to boost growth and
simplify the requirements for doing business.

13. Freelancing successful models for different
countries: India (Cont.)
• More about Indian startups ecosystem, and its direct impact in
freelancing industry growth:
• Startups from India and abroad have the potential to quadruple the
freelance job opportunities year over year as startups are proactively using
freelancers and consultants in every possible way.
• It’s not that just Indian startups are using Indian freelancers on contracts or as
consultants, more than 50% of the startups in the US are availing services of
Indian freelancers directly or indirectly. Startups in the US prefer to hire
Indian freelancers primarily to cut costs while still maintaining the quality of
work.
• It’s a win-win situation for both the parties as the Indian freelancer generally
gets paid more than what he could be earning while working full-time in a
company in India, whereas the Startup in the US ends up paying far less than
what it could have paid to a full-time employee in the US.

14. Freelancing successful models for different
countries: Pakistan
• In 2014, Odesk (Currently Upwork) ranked Pakistan at number 4 in the list of
most earning countries in the world.
• According to the same report, Pakistan was among the countries that saw a 30%
increase in freelance income in 2014 than 2013.
• Pakistan has a very similar profile as India, with a large population, low cost of
living and big number of IT professionals.
• Off shoring and outsourcing to Pakistan is also becoming popular because of the
availability of highly trained and professional workers in almost every field.
• More than 10,000 IT graduates enter Pakistan’s market annually.
• According to a report prepared by
freelancer.com, self-employed Pakistanis
surged from 33.3% to 39.9% between 2009
and 2012.
• The report attributes this surge in subscriptions
to the rise in internet use in Pakistan, which
saw double-digit growth in the past five years.
• The country has witnessed 41% growth in the
IT export in the year 2014-15.

15. Freelancing successful models for different
countries: Pakistan (Cont.)
• Pakistan is considered as one of the top two outsourcing destinations in terms
of growth, value for money and customer feedback.
• According to a survey, Philippines experienced 789% growth in its outsourcing
business while Pakistan was second on the list with 328% growth.
• The qualities of projects provided by the Pakistani freelancers are in line with top
freelancer countries around the world.
• The rapidly growing freelance economy can play a dramatic role in achievement
of development and economic goals.

16. Freelancing successful models for different
countries: Pakistan (Cont.)
• Most important factors for Pakistan’s successful Model in
freelancing :
• The availability of highly trained and professional workers in almost
every field.
• Geographical location of the country makes it easy for both sides of the
hemisphere to avail services during their regular off hours.
• Pakistan is relatively cheaper to live in than other major freelancing
countries.
• Most graduates in the country take up freelancing earlier in their career.
• The country has the availability of all kinds of hardware, software and other
resources necessary for the completion of job.
• English is the second language of the people of Pakistan but is widely
spoken and understood in the country.
• the government of Pakistan is offering many incentives to investors in IT
sector including zero taxes on exports, and the 7-year tax holiday for
venture capital funds.

17. Freelancing successful models for different
countries: Ukraine
• In 2014, Elance(Currently upwork) ranked
Ukraine at number 3 in the list of most earning
countries in the world.
• Ukraine lead the Eastern European freelancing
market, and has become oDesk’s (Currently
Upwork) top European freelancing country
during the second quarter of 2013, and
considered to be the new “software hub” of
Europe.
• The incentives for such a high growth have been
the relatively cheap but extremely qualified
workforce.
• Most of the developers work as independent
contractors and therefore neither the company
nor the workers are paying high taxes.
• Moreover, there are some reforms in progress to
reduce taxation for the IT industry that would
make it even more attractive for investment.

18. Freelancing successful models for different
countries: Ukraine (Cont.)
• Major reasons to the IT Outsourcing growth in Ukraine:
• The costs of outsourcing the IT business or hiring a software development specialist is
still twice lower than in the EU or the USA.
• Ukraine is the 5th biggest and most rapidly developing world’s market for IT
outsourcing services, with more than 2.5 billion USD revenues per year (and growing by
35% annually).
• Ukraine has over 4000 IT companies, with over 100k software/hardware development
and IT consulting specialists.
• More than 20 major IT educational institutions and centers that give BA, MSc and PhD
diplomas to more than 30k specialists annually.

19. Thanks…
20years
Hany Saad.