A derivative of teamwork that is a way to achieve goals through many people’s ideas and contributions.

Crowdsourcing may be understood as a massive outsourcing process. This phenomenon occurs when a company outsources tasks that used to be done by an employee or a contractor, to a large group of people through an open call.

The first to use this term was Jeff Howe, a journalist from Wired magazine, who in June 2006 defined it as an open call to an indeterminate group of people, through which those who are most capable of performing the demanded tasks, solve problems and contribute with original and relevant ideas, are chosen.

Prior to the concept’s definition, this work mode was used to develop open source software, which enabled users with programming knowledge to make improvements or personalize the system. Linux, the operating system created by Linus Torvalds in 1994, was a paradigmatic case.

 
Journalist Henk van Ess  said that “Crowdsourcing consists on channelling the experts desires into solving a problem and freely sharing the answer with everybody.”
It is now obvious that technology has played a key role in developing this concept. Massive collaboration is driven through technology. Wikipedia or YouTube are clear examples of what crowdsourcing may produce.

The main difference between crowdsourcing and outsourcing is that, while outsourcing implicates hiring a specific external agent, crowdsourcing consists on outsourcing something to an undefined public.
Currently, many large companies use this method and in several cases it has led to a significant reduction of costs for their R+D departments.

Companies such as Lilly, Procter & Gamble, Ciba, Boeing and Nestle Purin have dabble in projects of this type with great success.
The toys firm, Lego, invited people to create its new generation of robotic products; Sony, MasterCard, Converse and Chevrolet have based communication campaigns on announcements made by the public through their Internet webpages.
Among the benefits of crowdsourcing, the following may be mentioned:
•    Problems may be examined at a low cost and, frequently, very quickly.
•    Payment depends on results.
•    The organization is nourished by a large doses of external talent

•    Direct information regarding clients or consumers desires are obtained
•    Commitment develops through collaboration
Among the disadvantages, the following may be quoted:
•    Unconsidered costs to lead a project to a satisfactory conclusion.

•    Small amount of participants, lower work quality, lack of interest in the project.
•    There are not always written contracts, confidentiality agreements or some sort of agreement with the employees.

In Latin America there are experiences in interesting platforms. Millennials seem to flow in this kind of environments. It shall exciting to follow this work mode closely.