We often mistake these two workforce as equivalent. Crowdsourcing and outsourcing offer the same important service to businesses: taking over baseline work that you would otherwise have to do in-house. However, there are major differences between the two that need to be realized before you move forward with either option.
Outsourcing allocates work to a defined organizational entity whereas Crowdsourcing allocates work to an unorganized collection of individuals. Here are other major differences between them:
- Best used for tasks that require a level of subjectivity and decision making like customer service. It works better for data security and when jobs involve nuances and qualitative answers.
- You pay for hours of human labor regardless of outcome.
- Outsourcing companies ensure higher quality. Outsourcers are able to oversee the work being done, and assure quality internally.
- Outsourcing involves a captive audience and therefore, changes can be communicated faster. Outsourced vendors can train their workers on a face-to-face basis. Eventually these workers can become experts in a specific type of task and can be trusted to perform the work without supervision. In addition, because many of the workers are employees of the vendor and work in a closed physical environment, the vendor can sign an NDA for data security.