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The History of Outsourcing

It is important to dig out the history while moving forward on a path, the study will certainly bring up some valuable insights which may drive us to take decisions in the future.

We all know outsourcing started with IT business, it took off in the 90s when companies started focusing on cost saving measures. The outsourcing business started on the following grounds

Can also be called as Advantages

  • Lack of specialized team to perform certain task meaning no internal competency
  • Avail Cost benefits in the form of cheap labor


  • Accept what the vendor provides you, is there a way to validate if the deliverables have passed certain quality check. The answer is no.

Crowd Sourcing- Looking back into the past again

Crowd + Outsourcing became crowd sourcing

  • Crowd sourcing is fairly a new concept but it existed since 1714 when British government offered £20,000 to solve The Longitude Problem and John Harrison the son of a Carpenter solved it by creating a accurate timepiece can used to determine longitude
  • In 1936 Toyota held a Logo Contest, They received 27,000 entries and the winning logo was the three Japanese katakana letters for "Toyoda" in a circle, which was later modified by Risaburo Toyoda to "Toyota".
  • The Sydney opera house is the result of a contest floated by Joseph Cahill, 233 entries were received from 32 countries around the world.
  • Between 2000 to 2006 wikipedia & Youtube got formed.
  • In 2006 Jeff Howe coins the term crowdsourcing in Wired Magazine article in June 2006.

Collaboration is the key to success

From Individual contributor to Team Contributor - Earlier in the late 90s in a typical web development company we used to have as the whole & soul he is the person seen taking requirements, further analyzing them and creating visual mockups and then converting the mockups into HTMLs, also he/she used to be SPOC for any issues relating to the website.

But things changed and the IT industry started believing that a collaborative effort is the key to success, rather putting the responsibility on ones shoulder and make him slog for 10-12 hours a day it is better to have specialized teams to do a particular set of activity. These specialized teams started working on there piece but while passing the ball to the next team they gave some guidance on certain things, and this cycle continued for a period of time

Going little further in the process these teams realized that instead of going waterfall lets adopt an iterative model and allow involvement of the entire team in the discovery phase of a project, these resulted in lot of ideas flowed across the table, and team started learning each others language & jargons. Today 99% the software products are the results of a collaborative effort put together by a group a engineers from different domains.

What motivates people to be a part of the Crowd sourcing projects

As mentioned by Prof Karim Lakhani Crowd existed for centuries, people have contributed ideas to projects in everything from architecture to agriculture and crowd in the form of contest & communities have been used to solve major problems & technological advancement, but What’s different today is the Internet’s ability to connect communities of people, whether they’re coders, designers, researchers, or gamers, and direct their energies toward problems in a concerted way.

Prof Karim lakhani also mentioned crowdsourcing is viable model today because of the massive excess mental capacity can be called as Cognitive surplus, He saw people travelling by train after hard work still have the capacity to solve puzzles & sudokos meaning they still have the mental capacity to utilise their brains and solve puzzles

However the crowd sourcing platform is yet to mature and there are problems which

fairly lower wagese, compared to the price for hiring a dedicated professional.

Variants of Crowd sourcing

Some of the problems Noticed

I recently started working as a worker in There are some prevalent problems I have noticed which are listed below

  • Low wage
  • There are certain task which has a dependency, for E.g. Find any video-game related forum that is below 600.000 ranking on
  • Dead links, There was a task to signup and a URL was given. The URL had some error showing missing database connection
  • There was a task where there were certain pre requisites

To do this task, you need to have a twitter account that meets the following requirements:�- is tied to (free signup) and has a Klout score of at least 30�- at least 200 followers�- your follower count needs to be at least double your following count (meaning - if you are following 150 users, you need to have at least 150*2 =300 followers)�- not more than 30 retweets per month have been posted on our behalf�- the majority of the 20 most recent tweets are in English�- at least 8 out of 20 most recent tweets have no links, are NOT retweets, and sound natural and interesting

Crowd sourcing in Indian Context

Did you ponder over the origin of the new Rupee symbol? The New rupee symbol was the output of a common man through crowdsourcing. Capturing people from different walks of life singing in the spirit of ‘Hum Me Hai Hero’ to writing your Hyundai i10 story and getting selected to star in the TVC alongside Shahrukh Khan, crowdsourcing helps in gaining deeper understanding of the customers. It helps in effectively communicating with the users and also allows them to actively participate in the creativity and strategising aspects for the brand. - See more at: