The thing that has potentially changed (if they can really pull it off) is the ability to get a reliable quote for any particular project in a few minutes. Any technical manager can duplicate the process of building out a project plan and lining up the cheap resources to get it done (and recruiting from schools or whatever), but being able to scope a project reliably, let alone estimate its cost, basically on the fly is a real challenge. If they've actually solved that, then this is awesome. If not, then it's probably just the same as paying someone to use ODesk (or Upwork or whatever they call it now) for you.
If they can do that, then they have found a magic bullet for one of the biggest problems in software development. I have a suspicion that's the real problem they're trying to solve, so they're "doing things that don't scale" to try to engineer a platform that solves for that problem. That's the only way VCs would throw money at a business model like this.
I wish them luck, but I just think there are too many variables that getting a large enough sample size would bankrupt them before they approach a workable solution.
Presumably, Gigster has already curated the top resources into a brand you can trust for the projects that they specialize in (and which you want done).
So does Infosys, Tata, Wipro, IBM, Cognizant, etc. They all have rapid prototyping frameworks for mobile/web apps, and can churn out something functional in under a week. This is a commodity product already offered by a number of scaled players. Their chances of breakout success are zero.
Their libraries are more geared toward big startups needing a major player, this service seems more inclined to garage dreamers, big difference in scope can make huge impact
I just can't see garage dreamers plunking down that kind of cash without guarantees. Invariably people will try to get out of paying for whatever reason (chargebacks, non-payment, etc) and at these dollar amounts and margins it doesn't make a lot of sense to try to collect. IMO the biggest problem in this end of the market is keeping your AR above water.
