Big Brother for freelance slackers

Among dozens of freelance-for-hire websites, oDesk.com has carved out a fast-expanding and controversial niche by allowing employers not only to contract long-distance temporary workers but also to remotely monitor them on the job.

Uploaded onto their freelancers' computers, oDesk's proprietary work-management software records random screenshots, keystrokes, mouse moves, even webcam images – and then sends these electronic tattletales back to contractors.

Of course, 9-to-5ers also suffer through digital hall-monitoring such as security swipe cards, blocked Web domains, and bosses who BlackBerry or Twitter them nearly to death. But critics of online outsourcing say that oDesk crosses a line by taking the industry's already Dickensian pay rates (which can dive below North American minimum wages) and adding Orwellian surveillance to freelancers' home offices. (One U.S. blogger called it “eSlavery 2.0.”) Yet some users say the service has transformed the way they work – and live – for the better.

Gary Swart, chief executive officer of oDesk, admitted that his service isn't suited to every personality and that the website works best for long-term, open-ended, hourly waged assignments. He also said that freelancers can control the level of online scrutiny. The live webcam is optional. Payment for offline hours can be negotiated. Screen shots are also revealed to computer users, so freelancers know when they have been busted and can pre-emptively delete billable hours they actually spent on YouTube.

According to Mr. Swart, that “real-time visibility” builds trust, prevents disputes and creates a collaborative work environment. “It's like I'm sitting in the cube next to you,” he said. “I don't mind if you want to look over my shoulder. That might save us time and energy.”

The biggest complaint about auction-style outsourcing sites is how low-balling newbies can drive down pay rates. (On oDesk, average hourly wages range from nearly $30 for a VoIP software designer to $3.10 for data entry.) Ms. Culley doesn't disagree.

To win her first bid, she agreed to blog for 50 cents for each 1,000-word post. (Cue the sound of freelance writers choking on their Kraft Dinner.) More recently, she dropped her preferred pay rate, which had climbed to $15 an hour, by $2 to stay competitive. Still, her enthusiasm remains unfazed.