Difference Between Crowdsourcing and Outsourcing

Crowdsourcing is a process that involves outsourcing tasks to a distributed group of people. The difference between crowdsourcing and typical outsourcing is that a task or problem is outsourced to an undefined public rather than a specific entity, i.e. an external organisation (link).

1. What is the biggest difference between crowdsourcing and outsourcing?
2. What is an example of crowdsourcing?
3. What outsourcing means?
4. What are the benefits of crowdsourcing?

What is the biggest difference between crowdsourcing and outsourcing?

Major differences distinguish crowdsourcing from outsourcing. Crowdsourcing comes from a less-specific, more public group, whereas outsourcing is commissioned from a specific, named group, and includes a mix of bottom-up and top-down processes.

What is an example of crowdsourcing?

One of the most famous examples of a company that utilizes crowdsourcing in this way is Waze. There are many mobile-ready GPS apps available on the market, but Waze sets itself apart from competitors like Google (GOOGL) - Get Report Maps by crowdsourcing travel-specific information into its product.

What outsourcing means?

Outsourcing is a business practice in which services or job functions are farmed out to a third party.

What are the benefits of crowdsourcing?

If done correctly, crowdsourcing can have the following benefits for businesses:

• Unexpected solutions to tough problems.
• A greater diversity of thinking.
• A reduced management burden.
• More marketing buzz.
• Faster problem solving.
• A rich source of customer data.