The following article is one of the best analysis of why Elance failed. “Several important factors involved with their failure include: Too much competition, little service provider differentiation besides price, high service provider fees, no locality of services, ambiguous project descriptions, cheap Indians, as well as cheap Indians, and last but not least, cheap Indians. Lets start fr...

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Elance, ODesk and Guru are trying to the “eBay of Outsourcing”. The idea is great but there are fundamental flaws in this model: Most of the bidders on those sites are typically freelancers, self employed and work at home. The reliability and quality of service are highly unpredictable. Elance, ODesk and Guru are just middlemen or marketplace so they have no control about the bidders at all. ...

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