Crowdsourcing: The Next Labor Revolution?

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Could the power of the crowd soon rival corporations’ ability to organize labor? Jeff Howe, author of Crowdsourcing and writer for WIRED magazine, says it is possible. Howe is speaking at today’s BRITE conference. (Read Howe’s blog; see Public Offering’s live Twitter feed of the BRITE conference.)

The practice of crowdsourcing is simple: an organically-formed community of people use their spare cycles to produce content or solve tasks. “Whether or not [crowdsourcing] will be a model of economic production that occupies space like outsourcing or a long-term permanent alternative to traditional methods of labor acquisition remains to be seen,” Howe said in a recent interview. “I hypothesize we will see the community begin to rival the corporation as a way of organizing labor.”

If the phenomenon is poised to become a serious segment of economic production in the near future, how broadly can the trend be applied?

Already, crowdsourcing has migrated from areas such as open source software to graphic design and stock photography to spot news. One collaborative project referred to as the Eco Team translates the Economist into Chinese each week. Crowdsourcing’s tentacles have also reached into the world of finance through peer-to-peer lenders such as Prosper.com.

The trickiest application, however, is in its use of monitoring — new projects are harnessing the crowd by acting as a kind of universal Big Brother. On the bright side, new efforts such as the Herdict Web project usher in a new type of group-generated transparency to the flow of information. However, the application of crowdsourcing gets decidedly more complicated when it ventures into such areas as patrolling borders (see the Texas Border Sheriff’s Coalition).

As the applications continue to play out in multiple arenas, there remains a constant: the potential labor pool is ever increasing.

“One thing that is safe to say is that the economic downturn is adding fuel to the fire because crowdsourcing tends to be cheaper and more affordable than [traditional] hiring,” Howe said. “Crowdsourcing is based on people’s spare cycles, and as spare cycles increase, the size of labor force as measured in labor hours will increase.”

Photo credit: James Cridland



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