“My life has totally changed. Now I am earning money from the Internet and I come to know a lot of new things. Internet is really amazing.”
- Male, from Madurai, India, Age between 16-25, intermediate diploma holder
“ I am a full time independent freelancer and my 100% earning comes from online. So definitely internet is one of the most important things in my life”
- Male, from Dhaka, Bangladesh, Age between 26-45, completed Bachelor and above
- Male, from Madurai, India, Age between 16-25, intermediate diploma holder
“ I am a full time independent freelancer and my 100% earning comes from online. So definitely internet is one of the most important things in my life”
- Male, from Dhaka, Bangladesh, Age between 26-45, completed Bachelor and above
These quotes are just a glimpse at the power of digital technologies, coming from many amazing stories as people answered the following question online: “how has your life changed (personally or professionally) after you began to use the internet?” A key message from the responses is “Internet provides an opportunity to learn, earn, make friends, connect with family and friends, apply for jobs easily, and shop online.” As discussed in the upcoming World Development Report 2016 “Digital Dividends,” the internet, and other digital technologies, are changing the way people work, entertain, interact, and find jobs across high, middle and low-income countries.
So how is the internet really changing the way we work and, especially, the way we search for and get a job? We look at the case of online outsourcing.
What is Online Outsourcing?
Online outsourcing or freelancing platforms match employers (firms and individuals) and workers to perform work online. The process of finding a job, performing the job and being paid for the job all take place online. There are two types of platforms- microwork and online freelancing, each targeting different segments of workers and employers. In 2013, at least 145 online outsourcing marketplaces or platforms were identified globally, although the true number is likely to be higher.[i] Some of these platforms are very large: 17 million registered users at Freelancer and 9.7 million at Upwork. About 10 percent of registered workers are active.[ii] According to their 2014 annual report, the United States, the United Kingdom, France, Germany, and Israel are the top five hiring countries on oDesk (now part of Upwork)—the largest online freelancing platform. The top five countries for online workers are the United States, Philippines, Russia, Bangladesh, and the United Kingdom.
The online work market, though still a tiny fraction of overall employment, is worth around $1 billion annually, up from $700 million in 2009.[iii]
Online outsourcing or freelancing platforms match employers (firms and individuals) and workers to perform work online. The process of finding a job, performing the job and being paid for the job all take place online. There are two types of platforms- microwork and online freelancing, each targeting different segments of workers and employers. In 2013, at least 145 online outsourcing marketplaces or platforms were identified globally, although the true number is likely to be higher.[i] Some of these platforms are very large: 17 million registered users at Freelancer and 9.7 million at Upwork. About 10 percent of registered workers are active.[ii] According to their 2014 annual report, the United States, the United Kingdom, France, Germany, and Israel are the top five hiring countries on oDesk (now part of Upwork)—the largest online freelancing platform. The top five countries for online workers are the United States, Philippines, Russia, Bangladesh, and the United Kingdom.
The online work market, though still a tiny fraction of overall employment, is worth around $1 billion annually, up from $700 million in 2009.[iii]
The Economics of Online Outsourcing
Online outsourcing platforms provide economic benefits for both workers and employers. First, workers can access jobs with higher wages than many would be able to access in their home countries, and they can work flexibly from home. In fact, the results of a survey of online workers on microworkers.com conducted as a part of the World Development Report 2016 “Digital Dividends” show that the top two advantages of working as microworkers are: (i) able to work from home and (ii) able to earn extra money besides regular jobs, with the former being particularly important for women (Figure 1).
Online outsourcing platforms provide economic benefits for both workers and employers. First, workers can access jobs with higher wages than many would be able to access in their home countries, and they can work flexibly from home. In fact, the results of a survey of online workers on microworkers.com conducted as a part of the World Development Report 2016 “Digital Dividends” show that the top two advantages of working as microworkers are: (i) able to work from home and (ii) able to earn extra money besides regular jobs, with the former being particularly important for women (Figure 1).
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