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The future of cloud-based workforce: models of crowdsourcing

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The future of crowdsourcing

cloud-based

workforce:

models

of

December 14th, 2010 11:17 am PT

Human-based create a fundamental

µclouds¶, shift in the

also work

called labor or employment

crowdsourcing,

environment. This emerging service sector leverages collaboration in business, enabled by
The future of work - Net:Work 2010 in San Francisco Photo: Michal Lenchner

high-speed

Internet

access

and

wireless

technologies. Several recent reports have illustrated a positive environmental impact of these online service platforms through reductions of carbon footprint at the organization (client) level and also by individuals (freelancers/contractors). To read more about the trends in the evolving work environment, click on Reshaping the organization: the future work environment. Crowdsourcing focuses on online, contract-type employment and attracts independent consultants, temporary workers, part-timers, and also professionals who are looking for an extra income. According to the Freelancers Union 30 percent of the U.S. job market consists of independent and self-employed workers. There are a number of employment crowdsourcing models. Elance is an online job marketplace for businesses and providers, and functions as an

outsourcing company that engages programmers, designers, writers, translators, marketers, researchers, and administrative contractors with prospective clients for online work. A new report by Elance noted that their freelancers earned over $100 million in 2010, which equates to about 5 million hours of off-site contract work or about 2,500 full time equivalents. Per Elance these figures translate into $3 million savings a year in real estate, reduction of 2.8 million vehicle miles and 138 thousand gallons of gas, and lowering 1,300 tons of greenhouse gases. The matching process with the right provider is up to the client, although Elance posts profile information about the contractors/freelancers, such as their skill level, location, customer feedback, and hourly rate. The communication between the client and the provider is interactive: when a customer posts a project or a required task, Elance's registered freelancers from around the world send in their bids. Another online employment service is oDesk, which has a similar model to Elance. According to oDesk, employers spent more than $ 115 million on online engagements in 2010, with a greater demand for Android development, iPhone, and Facebook. oDesk also reported that the contractor hot spots for 2010 were the Philippines, India and the U.S. uTest, an on-demand software testing community, offers a different model. The company focuses on software testing, carefully screens its contractors and provides a precise match to meet each client¶s requirements, per project. With registered professional testers, uTest offers several types of testing services: functionality, usability, load and performance, and covers several applications: web, mobile, gaming, and desktop. uTest has an

impressive list of customers, from Google, Microsoft, AOL, JCrew, Walmart, Intuit, and BBC, to smaller start-ups. Software testing has become an increasingly complex and expensive process. Per uTest, customers may be looking to improve the testing quality, lower the time-to-market, get a better control of the costs associated with testing, or all of these. uTest offers an On-Demand model, which focuses on the exact number of testing cycles the project requires, and sets the price accordingly, This way, customers do not pay for unspecified testing services. Additional services that uTest offers to companies with highly predictable release schedules are a monthly, quarterly or annual subscription plans. In their extensive web site, uTest provides several case studies across several industries and of various test applications. ((http://www.utest.com/who-uses-us/utest-case-studies )) Clearly, employment crowdsourcing is a fast-growing segment of the marketplace. Experts predict that more and more businesses will integrate online independent workers into their staffing models. At the same time, more professionals and freelancers will choose to work online instead of on-site and full-time with a single employer. Crowdsourcing service providers estimate that in 2011 the online contract work will double itself over 2010. This has a potential to hurt local full-time employment, as well as local independent consultants and the selfemoloyed. In addition, cloud-based service providers estimate that hiring of online professionals by non U.S. companies will grow significantly, where the U.S. business spending in this area will represent about 65% of the total transactions spent on online work.

Summary Discusses the future of crowdsourcing of service providers and it also gives some of the best employment crowdsourcing models.

Description Crowdsourcing service providers estimate that in 2011 the online contract work will double itself over 2010. This has a potential to hurt local full-time employment, as well as local independent consultants and the self-emoloyed. In addition, cloud-based service providers estimate that hiring of online professionals by non U.S. companies will grow significantly, where the U.S. business spending in this area will represent about 65% of the total transactions spent on online work.

Tags: Crowdsourcing, Elance, employment, freelancers, oDesk, service providers, uTest

Posted by Vince Cooper

Dec 15, 2010 01:28 am GMT Viewed 2996 times

Author: Michal Lenchner Source

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