Bob Donaldson/Post-GazetteMike Embrescia founded WorkDesq, which matches freelance developers and companies seeking project-specific Web development work. An Uptown startup company is preparing to make its move in the new on-demand economy by creating a dating service of sorts for small- and medium-size companies and the self-employed contractors hoping to pick up work from them.
WorkDesq has been fine-tuning its online platform for businesses and contractors since the company was founded in 2013 and will roll out its fee-for-service version next month, founder and CEO Mike Embrescia said. The electronic link will connect businesses and freelance Web design, Web development and software development specialists for specific projects.
"There's really a perfect storm brewing in our economy," said Mr. Embrescia, 36. "We need to be ready for that."
WorkDesq wants to be ready for an economy in which an increasing number of people work for themselves. The goal is to create a user experience that matches businesses and independent contractors through a prequalification questionnaire and through opportunities for text communication between the two parties. Videoconferencing is also planned.
The number of people working in the gig or sharing economy is expected to grow in the coming years.
Based on Internal Revenue Service data, George Mason University researchers Eli Dourado and Christopher Koopman found the number of form 1099-MISCs — which are used by people who are self-employed — rose 22 percent between 2000 and 2015, while the number of W-2 forms — which are issued for conventional employees — were off 3.5 percent. Tax accounting software company Intuit Inc. of Mountain View, Calif., estimates 7.6 million people will be working in the on-demand economy by 2020, up from 3.2 million today.
WorkDesq already has introduced two versions of its digital platform for use without charge but will begin charging clients in February. Six jobs were posted as of Monday, with more than 20 active conversations between contractors and businesses.
The cost: a one-time fee of $50 for companies looking for freelancers and a flat $30 monthly fee for independent contractors. Freelance web design and software contractors will be offered up to three introductions to employers for free.
Businesses looking for temporary help have other online options, but Mr. Embrescia believes his company is offering a better experience. His own efforts to find independent contractors for software help, for example, resulted in spam and proposals that were impossibly low-priced.
With the rollout of the pay model in February will come a redesigned Web page, Mr. Embrescia said. Also in the works are plans to add temporary gigs in accounting and other business specialties.
WorkDesq, which has five employees, has been entirely self-funded so far. In the second quarter, the company plans to raise $150,000 from outside investors.
Since founding the company, Mr. Embrescia has partnered with software consultant Justin Reese, who is the founding executive director of Uptown-based Code & Supply Co. LLC, an educational group for software developers.
Not everybody is convinced the gig economy has arrived. Wharton School management professor Peter Cappelli said the number of people working as independent contractors is "no doubt overblown."
"There's no evidence of a big shift in that direction," Mr. Cappelli said. "The number really hasn't changed much over time."
Accounting practices at most businesses make it easier to hire temporary employees rather than making a permanent hire, he said. The number of people working temporary assignments or part time usually decreases when the economy picks up. That hasn't happened in recent years.
But James Kunkel, executive director of the Saint Vincent College Small Business Development Center in Latrobe, said technology is making it easier for businesses to connect with people for short-term assignments, increasing the number of self-employed.
In essence, the new gig economy workers don't differ much from those who work in old economy industries such as construction, where self-employed plumbers, carpenters and others often work on the same project.
"This is just a continuation of the benefits of technology, which has really leveled the playing field between large and small companies," Mr. Kunkel said.
Kris B. Mamula: kmamula@post-gazette.com, 412-263-1699
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