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I am looking for a summary of large companies who are starting to use Freelance platforms (Upwork, Topal, Workmarket, ect) to outsource IT, marketing, sales, engineering, design, and other functions. I would like to understand the platforms they are using, how they are using them and trends showing if businesses plan to start broader pilots and use of these platforms in the coming years
Hello! Thanks for your question about large companies using freelance platforms to outsource IT, marketing, sales, engineering, design, and other functions. I have provided five case studies of large companies using FMS platforms. The sources that were most useful for me were Freelance Management Software, 10 Companies That Are Innovating How They Are Innovate, and A Look at Some Major Companies Hiring Freelancers in 2016. The short version is that FMS platforms are becoming more popular with the advent of more flexible work-life balance, new technology, and a shifting business landscape. Below you will find a deep dive of my findings.
BACKGROUND
With freelance management software (FMS), businesses can leverage the collective intelligence of online communities to quickly solve problems and complete large-scale projects at a fraction of the cost of traditional hiring. FMS creates virtual work-spaces that facilitate collaboration by allowing workers to productively contribute without being physically close. Freelancing is becoming more popular due to technology, demographics, a shifting business landscape, and shifting worker preferences. People are more interested in having flexible jobs with more control than regular full-time jobs. They want job satisfaction and great work-life balance. Businesses are also shifting to have outside project work done more often.
Freelancers can be divided into five different categories: independent contractors who work on a project-by-project basis, moonlighters who have full-time jobs and do freelance work on the side, diversified workers who have part-time jobs and fill the rest of the work week with freelance work, temporary workers, and freelance business owners. Independent contractors consist of 40% or 21.1 million of total freelancers with moonlighters following after with 27% or 14.3 million, while diversified workers equal 18% or 9.3 million, temporary workers equal 10% or 5.5 million, and freelance business owners consist of only 5% or 2.8 million of the total 53 million freelancers. The freelance economy is large and growing with estimations of freelancers representing over 30% of the current labor force expected to grow 5% to 7% through 2020. Currently, businesses do seem to plan to use more of freelance platforms in the future. A study conducted by the Freelancers Union and Upwork revealed that 83% percent of companies plan to increase their use of flexible workforce over the next three years.
CASE STUDIES OF COMPANIES USING FMS
PRICEWATERHOUSECOOPERS (PWC)
PricewaterhouseCoopers (PwC) is one of the Big Four accounting firms and is number 53 on Fortune’s 2016 Best Companies to Work For list. PwC’s freelance platform is called “Talent Exchange” and is available in the United States only. They launched their platform on February 8, 2016 where freelance workers can upload their resumes and apply to work on projects for PwC clients. Then, PwC invited qualified people to work on specific projects where freelancers can bid on the job by submitting their per-hour rate before PwC chooses which person best fits. Talent Exchange has the person applying tell the platform about themselves before matching the person with the best fits according to their profile and giving them options to work on with the opportunity to update the profile at any time. The company expects freelancers to eventually make up 10% of the firm’s consulting workforce (currently at 13,000 in number) in the United States.
NASA
NASA Tournament Lab and Freelancer have teamed up in order to help crowdsource solutions to the problems being faced by astronauts in space exploration. This partnership started in 2015 and spans solutions from 3D tools for robotic astronauts to smartwatch mobile applications for time tracking and important station updates. Designing a robotic arm for the Astrobee (the next generation of free flying robots on the International Space Station) is the next challenge.
Freelancer is an online platform for freelancers with over 16 million registered users that have experts in every technical, professional, and creative field waiting to fill requests (that can be at a fixed price or an hourly rate) for projects. Freelancer is encrypted to protect your privacy and has methods to keep you updated on your project and how it is going. NASA posts projects or competitions called challenges for cash prizes that a percentage of is taken for Freelancer who facilitates the transfer of the intellectual property but that the rest of goes straight to the person who fills the job. They do require a royalty-free license to use the submission at a minimum.
ENEL
Enel is outsourcing projects to InnoCentive, a comprehensive suite of externally and internally-focused programs that provide the methodology, technology, expert support, and problem-solving network for you to crowdsource solutions to important problems. Enel is currently challenging InnoCentive workers to provide answers for Anti/de-icing solutions for distribution networks, portable communications systems for tunnels/confined spaces, replacing a coagulant for water treatment, localizing robots in deep, underground, expansive tunnel networks, maximizing sunlight reflection of the ground surface in solar plants, and methods to cool down battery storage containers.
GOOGLE
Google uses Google Glass to crowdsource internet connection and uses a social game “Swarm!” to have users solve real-world problems or carry out real-world tasks to get rewarded. Open Garden has successfully installed its networking software, which allows you to crowdsource your connection by forming ad hoc mesh networks with other Open Garden devices, for Glass.
UNILEVER
Unilever’s Open Innovation platform works with outside partners for solutions. Unilever started working with outside partners in 2009 and has increased its adoption of external ideas from 25% to 60% since then. Researchers Marion Poetz and Martin Schreier say that “user ideas clearly score higher on average in terms of novelty and customer benefit, and somewhat lower in terms of feasibility.” Open Innovation considers partnerships with established suppliers, start-ups, academics, designers, individual inventors, and anyone with a practical innovation that can help them meet their challenged. They are currently looking for solutions in intelligent packaging, superior functionality, new and novel freezing and cooling techniques, and more.
OTHER FMS PLATFORMS USED BY LARGE COMPANIES
ONESPACE
OneSpace is a virtual workforce platform that brings together enterprises and freelancers. It is a great place to connect with large companies seeking outsourced talent. The company has a talent network of over 500,000 freelancers and has facilitated over 120 million assignments for clients like eBay, Facebook, Hallmark, Orbitz, Overstock, Sears, and Staples. OneSpace is set apart from other competitors (like UpWork and Freelancer) by the way that the platform works: The prospective freelancers are required to take tests to profile their skill set before seeing the work that is available on the platform.
FLEXJOBS
FlexJobs reports that companies on the lookout for contingent workers include Facebook, BBC Worldwide, Razorfish, VMware, IBM, and CompuCom. FlexJobs hand-screens every job and company to make sure that there a legitimate, professional jobs with flexible work options where satisfaction is guaranteed or you can ask for a refund. BBC Worldwide uses the freelance platform FlexJobs with current job postings including content producer, researcher, commissioning coordination, production manager, personal assistant, application administrator, translator, lead creative, human resources project coordination, and more.
CONCLUSION
To wrap it up, the rapidly shifting technology, worker preferences, and business landscapes has led to the increased popularity of FMS platforms, which seems like it will only increase in popularity as time goes by. Thanks for using Wonder! Let us know if we can help with anything else!