Crowdsourcing is about getting work done through a virtual community of online suppliers. One recent example is the South Korean electronics firm LG which teamed up with the crowdsourcing company CrowdSPRING in Chicago to develop the "phone of the future," explains Prof. Evgeny Káganer of IESE's Department of Information Systems.
An attractive hiring option for both large and small firms, crowdsourcing allows companies to complete projects quickly at lower cost, Prof. Káganer explains. As crowdsourcing enters the mainstream of business, intermediary companies are emerging to remove many of the obstacles that slowed the growth of this trend, while also offering management services such as prescreening, worker monitoring and quality assurance. These online intermediaries are taking advantage of the virtual labor pool and using approaches that differ from traditional outsourcing suppliers.