How Crowdsourcing Saves Your Internal Resources

By: Alex Chrum | Published: April 18, 2013

Traditional work models carry significant costs of doing business—from the monetary cost of in-house staffing to the cost of time, lost efficiency and lack of scalability. Crowdsourcing offers a way to minimize overarching project costs—both monetary and intangible costs.

A study by shows the increase in crowd labor as an industry, and constantly evolving technologies suited to managed crowdsourcing promise a long future between crowdsourcing and empowering enterprise growth. How can your company save your internal resources with the help of crowdsourcing?

#1: Labor cost reduction

Your enterprise incurs workforce costs for recruitment and hiring, training and supervising employees, and dealing with turnover. Crowdsourcing eliminates these costs by functioning as a pay-per-task model. With managed crowdsourcing, you rely on CrowdSource’s proven workforce and only pay for the work you task the crowd with in an on-demand environment. Extraneous costs of staffing a project or department are non-existent, and you realize higher utilization with the crowd for wage cost advantages with lower total costs across all projects.

#2: Elimination of overhead

Doing work in-house that is suited to crowdsourcing carries significant overhead costs. Those costs associated with creating a functional work environment or providing employee benefits are also eliminated. Expenses tied to providing space and utilities, paying employee-based taxes, paid time off, other employee benefits, and departmental and managerial costs tied to certain projects are at least reduced. For most traditional expenses, these costs are a non-factor in determining the cost of managed crowdsourcing.

#3: Minimal management

With projects completed in-house, employee compensation and overhead are coupled with project management costs. An in-house team working on a long-term project requires management oversight, sometimes a position specifically for the project to provide governance, general management of project costs and structure, and quality assurance. Managed crowdsourcing with the CrowdSource team reduces these project-management costs and related hassles. Quality assurance of tasks completed by crowd workers and communication is handled for you. You realize the same benefits without extending your valuable internal resources to cover the day-to-day management of projects on a larger scale.

#4: Operating efficiency

With the day-to-day completion of project tasks in the hands of the crowd with oversight and management by CrowdSource team members, you save one of your most valuable internal resources: your time. More time means focusing on the core competencies of your enterprise to maximize efficiency. This translates into a host of additional benefits that increase operating efficiency, from allowing you to be more competitive to investing the time in marketing efforts or product development.

#5: Saved opportunity cost

The scalability crowdsourcing provides also helps you eliminate the opportunity cost of doing tasks in-house. Whatever work you put in the hands of the crowd, it gets done faster than with an internal staff because of the sheer number of hyperspecialized crowd workers at your disposal. Faster completion times on projects that are mission critical let you transform the way you do business. It puts the end result to work for you faster to realize the benefits that much sooner, saving the opportunity cost of waiting longer to see positive impacts on your business.

Crowdsourcing empowers your enterprise to take the lead when it comes to your competition by saving valuable internal resources to maximize efficiency and company growth.

What are some examples of enterprises that have used crowdsourcing to power projects and tasks traditionally done in-house, and how do their successes show the potential power of crowdsourcing?


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