For someone who is living in these countries and whose currency exchange rates are far way below the average, for them it is like a little nugget, be it of gold or silver.
To put it into perspective and taking the example of US and India, 1 USD = 57 or 60 INR. If you want to take that in absolute terms think in the opposite, 1 INR = 57 USD. For 1 USD you are being paid 57 or 60 Indian Rupees. People here, in India, generally get roughly about 1,500 to 1,800 an hour.
Putting it through currency conversion, it would be roughly $27.88 (1500 INR) or $33.46 (1800 INR), if you’re the lucky ones or big companies who have been able to get a direct client from US/UK/NZ or any other European or developed country.
From a company’s perspective, if you generally employ about 10 people and on average they are able to produce 5 hours of work every day (Mon-Sat, generally speaking) and taking an average month to be 30 days. Now, deducting 5 Sundays, it would leave us with 25 days. So, the total production for the month would be 25 x 5 = 125 hours.
Average income for various rates:
1. 125 x $27.88 = $3,485/month x 53 INR = 1,84,705 INR/month
2. 125 x $33.46 = $4,183/month x 53 INR = 2,21,699 INR/month
The company would be generally paying around 1,25,000-1,50,000 per month to all the 10 employees combined altogether.
It definitely varies with each country’s currency exchange rates as compared to India’s rates for that particular day.
Now, if you were working somewhere and/or there was a middleman/vendor involved, you would be getting anything from 800 ($14.87) to 1,000 ($18.59) INR, this is for home-based employees, freelancers, and sub-contractors (all the bad/distorted audio goes to these people most of the time).
When people go to these bidding sites and they try and bid for a project, they try to make the most of it. By bidding, on average, lesser than the next guy/gal in line and most probably it would not go less than $10-15 per hour. That’s why you see most of the clients putting up jobs for that range on there, though there will be people or clients who put/post jobs for less than this.
The intermediary would be receiving it from the client anywhere from $15-33 per hour and would be subletting/subcontracting it out to other people for lower rates.
It depends on the actual client also giving out jobs directly to people on these sites, but I have yet to see an actual client. I may have, but might not have recognized it with all these low rates and bidding going on there.
For people in India or other countries where there is a huge currency rate gap, it provides an opportunity for people to just make it out and to try and get above all the job mongering going on.
It’s like the glitter of gold/silver from afar.
Just my two cents in this ever-growing pot of thoughts.
[NOTE: The article "Is it worth bidding on projects in online freelance work-sites for Indians?" first appeared on the Transcription, Online Presence, Articles, eBooks, and What Not... blog.]
[Follow: Devesh Prabhu is an avid blogger and blogs on many topics. He has been associated with the blogosphere for the past 8/9 years. You can follow Devesh Prabhu on social media through the buttons provided on the blog.]
[DISCLAIMER: All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.]