Practitioners know that crowdsourcing and open innovation have long surpassed their ‘trend’ or ‘fad’ status. A new study has revealed that enterprising crowdsourcing is being relied upon even more heavily now by an ever increasing number of organisations.
The reasons? Impressive cost advantage and swifter access to larger pool of global resources when compared to traditional outsourcing models.
The study, called “Every Crowd Has a Silver Lining” was carried out by the Everest Group and Lionbridge Technologies, Inc. “Our study finds that crowdsourcing utilization has evolved from small- to medium-sized businesses to an increasingly accepted business practice for large corporations,” said Sarthak Brahma, Practice Director, Pricing Assurance, Everest Group.
The findings included:
“Crowdsourcing offers up to 70 percent savings compared to a similar outsourced model in onshore and offshore service geographies.”
“Given the ‘on-demand’ nature of crowdsourcing and the ability to access qualified, globally distributed talent more quickly, employers enjoy compelling wage cost advantages, higher utilization and lower total costs of recruitment, training, supervision and turnover.”
“Mature enterprise crowdsourcing benefits from a third-party intermediary that provides governance, quality assurance and contractor management infrastructure.”
You can read more about the findings here.
No Time to Take the Foot off the Gas
Although companies are relying on them more, solution providers cannot rest on their laurels. The study concluded that for greater acceptance of crowdsourcing models, they must offer something more than just cost advantages, citing areas such as service level management and protection of intellectual property.