Research Papers Outsourcing S Foreign Countries

Research Papers Outsourcing S Foreign Countries-77
Figure 2: Mean Hourly Wage in o Desk (now part of Upwork) Source: Agrawal and others 2013 For employers, online outsourcing platforms enable them to find cheaper workers quickly.Especially for the startups and SMEs, the platform is beneficial as the work can be done without making long-term commitments.

Figure 2: Mean Hourly Wage in o Desk (now part of Upwork) Source: Agrawal and others 2013 For employers, online outsourcing platforms enable them to find cheaper workers quickly.Especially for the startups and SMEs, the platform is beneficial as the work can be done without making long-term commitments.

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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 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. Online outsourcing or freelancing platforms match employers (firms and individuals) and workers to perform work online.

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 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).2)Many jobs are hard to do online and at a distance Online outsourcing is most effective and most likely to function like a truly global market when the task is less complex and involves fewer local institutions and less communications.It is easier to outsource online sign-up to websites, search and click, and vote, than medium to high complexity tasks such as web and software development, and customer service.Around 45 percent of freelancers in o Desk earn most or all of their income through online work.While most workers do not work full time on the platforms, hourly earnings of the o Desk users are, on average, 14 times higher than minimum wages in developing countries (Figure 2).In many respects, online outsourcing platforms erase international borders for accessing jobs.But these platforms are not frictionless, and remain far from global.This is the “analog” foundation for the digital economy. Some platforms, such as Samasource, have been providing such training in developing countries.The potential of combining access to these platforms with online learning can be large.Online job platforms increase the pool of talent for firms and provide an opportunity to monetize skills that may not be in sufficient demand in the local economy.Other blogs (here, here, and here) have also discussed some of the opportunities and challenges of these platforms.

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