Hiring Contractors via the Web

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Hiring on the Web can be risky. You'll be dealing with strangers -- and, working with them from a distance, you won't have the benefit of encounters to build trust and communicate face-to-face. Despite these risks, Web hiring holds considerable benefits.

You can save money.
You might be able to find someone who will work for a fee lower than the going rate in your geographical area, for example. However, the equalizing effect of the Internet makes this increasingly less likely. Or you can hire someone from another country with an advantageous currency exchange rate. For example, if your company is U.S.-based, a Canada-based contractor could be a good deal.

You can gain access to specialized skills that might not be available to you locally.
And, there are now a number of Web sites that offer a highly competitive tendering process to buyers of services. These freelance work exchanges -- for example, freelance.com or Ants.com -- enable you, the buyer, to post your project and obtain bids on pricing from service providers from all over the country or the world. Conducting a tendering process of this kind offline would require much more time and effort than you'd want to spend.Online industry-specific directories or databases can also help you find the perfect contractor for the job.

Before diving in headfirst and hiring your next contractor via the Web, however, you need to be aware of all the practical details. First, is the project suitable for outsourcing? Second, can it be done effectively from a distance? Once you've answered these questions, you'll then want to find and evaluate a freelancer, negotiate a contract, and make payment arrangements -- including across international borders, if necessary. Read on for fuller considerations of these issues.

In or Out?

As a general rule, the projects you outsource should be either specialized or one-time. Developing a database or e-commerce back end for your Web site, for example, requires specialized programming knowledge. Hiring an expert contractor can be far more cost-effective than using in-house staff with a learning curve. Similarly, one-time projects such as designing a graphic illustration or creating a design template for a Web site don't require maintenance and work well for outsourcing.Other suitable projects include illustration, writing, copy editing, and back-end software development and programming. Note that these projects don't require an in-depth knowledge of your business.

In contrast, core business decisions should be kept in-house. While a freelance consultant might help you formulate your business plan, you should never rely wholly on an outsider for such a crucial job. Similarly, ongoing tasks, such as Web site maintenance, are better done either in-house or through the use of automated programs.For further guidance, see Should You Outsource Web Design? On useit.com's Web site. While this article focuses primarily on Web design, the basic principles apply to other outsourcing as well.

Consider the Distance

Can the project be done in the absence of face-to-face communication? If you're looking for a consultant for your business plan and marketing strategy, for example, you'd be better off with someone close to home. Complex consulting work is done best in person. Or if you need detailed specifications in order to proceed with the project, you'll be better off with local talent.

Simple, standard projects are safest for distance contracting. Determining exactly what you want and how long the task will take can be done with minimum interaction.

Finding Mr. or Ms. Right

Once you've estimated your project's cost and how long it will take, you're ready to find your freelancer. Using a freelance work exchange, you post a detailed project description and estimated fee, and call for bids from service providers. Examples of such exchanges include smarterwork.com, which caters to several languages and screens all contractors; NewMediary.com, which specializes in small projects; rfpMarket.com, the first horizontal B2B referral engine; ework exchange; Ants.com; Guru.com; FreeAgent.com; eLance; ICplanet; and eWanted.

Or if you want to try a professional directory or database, you'll search for a professional whom you then contact directly. Examples include ProSavvy, a screened directory of consultants in many fields; idac.com, a directory of consulting firms, indexed by expertise, key personnel, and names; Experts.com, a directory of experts in more than 900 categories, including consultants, engineers, physicians, professors, scientists, and more; Writerfind, a writers' directory, New Zealand-based but international in scope; ALMAL, for finding translators; RentAGeek, for computer consultants; and NuAspect.com, for computer programmers and software developers.

The primary advantage of using a freelance work exchange is your potential cost savings, courtesy of the competitive bidding process. To get the most out of the bidding process, you need to be highly detailed in your project requirements. This enables sellers to evaluate your project and place accurate bids.

A disadvantage of exchanges is the lack of opportunity to discuss your project and its requirements with prospective freelancers prior to posting. For this reason, freelance work exchanges are best used for clearly defined tasks. If your needs are complex, or require preliminary communication, you'll be better off approaching your freelancer directly.

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