Major trends research notes: The Cambrian Explosion was an inflection point in biological experimentation, innovation and diversification. The Cambrian Cloud is a metaphor that seeks to capture a similar transformative period of rapid experimentation and innovation. The Cambrian Cloud is a low friction, emergent social space in which innovation, collaboration, science, entrepreneurship, complexity, non-linear systems, resources and the diffusion of opportunities all intersect.

1. 2012 Inflection Point Report
Ten Converging Global Trends impacting the social space of
ideation, collaboration and innovation
Trend Two:
Outsourced Labor
Contact: Chris Jones
Chris@omnipresentmedia.com)
Copyright 2012 The Cambrian Cloud 1

2. 2012 Inflection Point Report
About
The 2012 Inflection Point Report seeks to identify emerging macro trends
and report on their impact in the areas of ideation, collaboration and
innovation.
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3. “The Information and Communication
Technology Industry is in the midst of a
"once every 20–25 years" shift to a new
technology platform for growth and
innovation — we call it the third platform
— built on mobile devices and apps, cloud
services, mobile broadband networks, big
data analytics, and social technologies”
~Frank Gens, Chief Analyst IDC
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4. “This Great Inflection”
“We’re at the start of a nonlinear move in innovation
thanks to the hyper connecting of the world —
through social media, mobile/wireless devices and
cloud computing — which is putting cheap
innovation devices into the hands of so many more
people, enabling them to collaborate on invention in
so many new ways.”
~Tom Friedman, New York Times Columnist
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5. Inflection Point
“An inflection point occurs where the old strategic
picture dissolves and gives way to the new“.
~Andy Grove, Former CEO Intel
Inflection Point
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~Source: Only The Paranoid Survive, Andy Grove 1996

6. Convergence of 10 Major Trends
All Location Independent
Innovation Ecosystem
Innovation Ecosystem
• Labor markets are changing
• Rise of a global contingent labor force
CrowdSourced
• Elance, oDesk, Guru, Freelancer
Labor
• New Digital Entrepreneurs
• International opportunity seekers
6
Copyright 2012 The Cambrian Cloud

7. The Labor Market Is Changing
Global labor markets are adjusting to reflect the opportunities
afforded through online employment.
• Online employment is location independent, enabling more efficient
matching between opportunities and talent, including a growing reliance
on talent sourced from emerging economies
• Companies favoring flexible cost structure. Companies are moving
away from traditional, high fixed labor cost structures in favor of a
lighter and more flexible cost framework afforded by contingent
and outsource employment.
• Global employees are mobile and flexible. A growing number of
global employees are reflective of emerging trends and tend to be
mobile , enjoy flexible work routines as well as more frequent job
changes.
• Online job markets facilitate part-time work. On demand work
makes it easier for part-time and side employment opportunities
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8. 2011 CIO IT Insight Survey
Companies increasingly emphasize flexible labor practices
• 45% expect to increase their outsourcing
spend in 2012
• 76% use “flex work” options- such as
contractual employees, temps and
offshore talent- to account for up to one
quarter of their entire staff
• 84% are looking to increase or maintain
their current user of “flex” labor
• Nearly one third will spend up to 25%
of their entire IT budget this year on
outsourced activity
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9. The Outsource Labor Market
“We estimate that 160
Freelance labor will exceed $1 billion in 2012 million jobs, or about 11
percent of the projected
1.46 billion service jobs
worldwide, could in theory
be carried out remotely,
barring any constraints on
Supply.”
~Source: McKinsey Global Institute Report:
The Emerging Global Labor Market
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10. oDesk CEO Gary Swart
expects the market for online
work to exceed $1 Billion by the
end of this year
Over 600,000 Billable Hours per Week
Month of March 2012
March 1, 2012-March 31, 2012 • Revenue has grown by 100 % each year
Contractors Earned $28,537,099.00 since 2007
Average Job Size $4,176.00 • Over 600,000 Billable Hours per Week
Jobs Posted 149,768
Hours Worked 2,806,774 • Contractors earning more than $300
million a year
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~Source: oDesk Blog, March 31 2012

11. oDesk enables both employers and contractors of technical, business
and creative services to build successful work relationships across the
globe. This is possible due to a “pay by the hour” service model which
guarantees payment to contractors and allows employers to verify work
as it happens. Employers can hire, manage and pay contractors around
the world similarly to those working in the same office.
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12. “We have reached a tipping
point”
“Our first quarter this year will
be the fastest growth we’ve had
in our company’s history.”
Elance CEO Fabio Rosati ~source: Mashable Graph Period August 2011-February 2012 source: eLance
March 2012
2012 Q1 Report
Elance and oDesk’s customers include well-known
Contractor Earnings $43,000,000.00
Jobs Posted 193,000 companies such as Google, Microsoft, Dell, Cisco, HP
New Contractors 180,000 and AOL.
Annual Platform Spend $173,000,000.00 Copyright 2012 The Cambrian Cloud 12
source: eLance

13. Matt Barrie, CEO Freelancer.com
“We have over 400 Freelancer Project Traffic Graph: Red Project Request Green Project Fulfillment
categories and can service the
Besides organic growth, Freelancer.com aggressively accretive growth through
needs of just about anything you
acquisition. CEO Matt Barrie describes Freelancer.com as an Ebay for services with a
can think of! I posted a job for
focus on low cost fulfillment. 90 % of the site’s contract workers are from India
a lion tamer as a joke one time
and managed to find a guy who
To Date:
worked in a circus and someone • 3.2 million users and 1.5 million jobs posted on Freelancer.com.
that worked in a zoo bidding on it! • Over 1 million projects have been completed on the site.
There really is no limit to what
you can get done.” It costs $5 to post a project listing, which is refunded when the employer chooses a
~Source: 2011 interview freelancer. Freelancer.com takes 10 per cent of the freelancer’s fee, or $5, whichever is
iTechReport.com.au
higher.
~Source: Freelancer
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14. Freelancing Means More Than Developing Web
Pages For The BBC & Smartphone Apps
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Source:

15. Global Sourcing Disrupts Industries
Global sourcing for talent is becoming more mainstream and is broadening from traditional
technology jobs to include more diverse industries, such as engineering.
“Engineering Services Outsourcing (ESO)
is a rapidly evolving economy.
Global spending for engineering
services is $750 billion per year, an
amount nearly equal to India’s
entire gross domestic product. By
2020, the worldwide spend on
engineering services is expected to
increase to more than $1 trillion.
Of the $750 Billion spent today,
only $10-15 billion is currently
being offshored-a tiny fraction of
the total. “
~Source: Booz Allen Hamilton: Globalization of
Engineering Services
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16. The Future of Online Work
1 in 3 people will be hired online
by 2020.
1 in 2 businesses will have online
teams by 2020.
Global professional guilds will
emerge online. The increased
adoption of social technologies
will foster a new level of
community building within the
online workforce.
predicts there will be three industry trends Guilds will begin to form online
that will shape the future of online work: around similar career interests,
industries, and skill sets, mirroring
traditional associations or
networking groups.
Professionals will tap these new
social organizations to improve
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work practices and standards.16
~Source Elance March 27, 2012

17. Freelancers Are A Fluid Talent Pool
22% of freelancers say
finding clients is a top
challenge ~Source: 2011 Freelance
Industry Report
Most freelancers report
having either experimented
on a number of freelancing
websites or actively maintain
multiple accounts on a
number of freelance
platforms
~Source: 2011 Freelance Industry Report
The labor pool is dynamic,
uses the Internet and word of
mouth to cast a broad net to
connect with opportunities
and goes where opportunities
are available
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18. The Rise of Global Entrepreneurs
The freelance / contingent
talent market represents a
growing pool of workers who
exhibit entrepreneurial-like
characteristics and embody
its culture. Flexible time
schedules permit the
pursuit of more jobs or
alternative opportunities.
Collectively, freelancers seek
opportunity and novelty and
have marketable skills that
lend themselves to the new,
digital economy. In short,
they are new digital
entrepreneurs in an
emerging global economy.
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19. The Cambrian Cloud
Inflection Points
Freelance / Offshoring
• Millions in developed and emerging economies are finding employment
opportunities online
• Companies are seeking a lighter, more flexible labor structure
• The freelance market is approaching a tipping point and will exceed $1 billion in
market transactions in 2012
• A growing, deepening and diversifying pool of opportunities and talent
• The online employment marketplaces enable individuals to supplement their
income or work on a contingency basis
• 160 million jobs (11%) of the estimated 1.46 billion service jobs could theoretically
be carried out remotely
• The global contingent labor market embodies entrepreneurial ethos and culture
and is growing a global talent pool acclimated to opportunity discovery, remote
work and an awareness of available online tools and resources.
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