CROWDSOURCING IN ELANCE

Since it’s opening ELANCE has envolved into the world’s leading projects-based market place and workspace, helping tens of thousands of small and medium businesses outsource their projects to service providers in a wide variety of categories.

Most of the businesses today use ELANCE to achieve more by finding great people in getting

work done in a new way .

Elance is using the “remote work system”, creating a strategy of “Crowdsourcing” for freelancers:

-To encourage them to use the workspace after the job match with the buyers

-To increase the number of the customers

To help skilled freelancers reach international markets, ELANCE use a “Crowdsourcing” platform with the three features to connect and transact business.

1 .The interview Process; Elance offers : - a chat function

- a click-to-call function allowing any buyer to call anonymously and for any provider.

- a certification tests for the providers to evaluate their level of expertise, which give buyers more of an assurance of a provider’s

skills.

2 .The payment system; Elance offers: - an escrow account where the buyers place the payment to the

providers upon completion of the project. - once a provider completes the job, there is no guarantee that the

provider will pay, however Elance also offers dispute assistance for

both buyers and providers .

3 .Tracking Project Status:

- reporting system where buyers can set milestones for providers to meet and report on

their status showing progress against milestones.

- time tracking widget that a provider can apply to a deliverable or milestone and attach files

This “crowdsourcing” has some advantages and also some disadvantages:

DISADVANTAGES ADVANTAGES

Any freelancer can offer his design which make the work not very professional.

The company doesn’t hire employees so no salaries, utilize the power of the people at cheapest price.

The way of payment from the provider to the freelancer is not always guaranty.

Very large choice of designs for the buyers.

The difficulty of controlling the designs, a provider can put a single design in many contest and if more than one buyer choose the design he wont be able to use it later because it wont be unique

Offering a workspace reachable at any time, in any place to freelancers .

No confidentiality. for example: putting your naming challenge out of outsourcing can clue in competitors to what your up to and make a possible for someone else to see your idea and run away with it

Elance gain a percentage from the freelancers when they use the workspace.

Obtaining a new innovative ideas using minimum costs.

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