Reviewed by Anjaneyulu | Updated on Aug 01, 2021



Crowdsourcing is a procurement process in which individuals or organizations acquire products and services from abroad, relatively accessible and often rapidly changing community of internet users, including ideas and finances. It divides work between participants to achieve a collective outcome.

The term crowdsourcing itself was coined in 2006. Before the digital era, crowdsourcing existed as a form of sourcing, i.e. offline.

Understanding Crowdsourcing

Some forms of crowdsourcing, for example, in "idea competitions" or "innovation contests" offer opportunities for companies to learn outside their workers '"foundation of minds" (e.g. LEGO Ideas).

One form of crowdsourcing is tedious 'microtasks' performed in parallel by massive, paying crowds (for example, Amazon Mechanical Turk). It was also used by non-profit organizations as well as to build common items. In assessing the success of ideas in crowdsourcing contexts, account should be taken of the impact of user contact and the platform presentation.

The differences between crowdsourcing and outsourcing are important. Crowdsourcing comes from a less-focused, more general community, whereas outsourcing is contracted by a different company, which involves a combination of bottom-up and top-down processes. Using crowdsourcing benefits may include increased costs, speed, efficiency, versatility, scalability, or diversity.

Modern Methods

Currently, crowdsourcing has increasingly been moved to the Internet, which offers an especially advantageous position for crowdsourcing. As individuals appear to be more accessible in web-based projects where they are not physically monitored or scrutinized, making them more comfortable sharing.

This approach makes well-designed creative ventures because individuals are less conscious of criticism towards their work. In an online environment, more focus can be paid to a project's unique needs rather than spending too much time in contact with other people.

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