These quotes are just a glimpse at the facility of digital technologies, coming from many amazing stories as people answered the subsequent question online: “how has your life changed A key message from the responses is “Internet provides a chance to find out , earn, make friends, connect with family and friends, apply for jobs easily, and shop online
So how is that the internet really changing the way we work and, especially, the way we look for and obtain a job? we glance at the case of online outsourcing.
The online work market, though still a small fraction of overall employment, is worth around $1 billion annually, up from $700 million in 2009.
The Economics of Online Outsourcing
Online outsourcing platforms provide economic benefits for both workers and employers. First, workers can access jobs with higher wages than many would be ready to access in their home countries, and that they can work flexibly from home. In fact, the results of a survey of online workers on microworkers.com conducted as a neighborhood of the planet Development Report 2016 “Digital Dividends” show that the highest two advantages of working as micro workers are: (i) ready to work from home and (ii) ready to earn extra cash besides regular jobs, with the previous being particularly important for ladies
Is online outsourcing today a very global work opportunity?
But these platforms aren’t frictionless, and remain far away from global. this is often the case for the subsequent three reasons:
1)The nature of tasks favors semi-skilled and skilled workers
Online outsourcing is merely available to those with internet access. With the planet Development Report 2016 estimating that only 3 out of 10 people globally have internet access, this already limits opportunities. However, given the rapid expansion in access, this might not be the key constraint within the future—especially for youth.
Here is where skill matter. Skills demands for online work are still high for many workers in developing countries. Tasks available today on online outsourcing platforms range from very easy tasks to complex ones. Micro work platforms offer relatively easier tasks like image tagging, text transcription, and data entry. Online freelancing platforms post more advanced tasks like graphic design, web development, and technical report writing. within the survey of microworkers.com, for instance , respondents apply mainly for the subsequent tasks:
(I) writing and translation,
(ii) sales and marketing,
(iii) administrative support
And therefore the majority of them have previous work experience in IT or services industries. Most jobs require workers to possess digital, cognitive, technical and socio-emotional skills. just about an equivalent skills as within the “offline” world.
Addressing this skills barrier requires additional training for potential workers to find out the way to better navigate the system and learn new skills. this is often the “analog” foundation for the digital economy. And technology can help during this agenda. Some platforms, like Sam source, are providing such training in developing countries. The potential of mixing access to those platforms with online learning are often large.
2)Many jobs are hard to try to online and at a distance
Online outsourcing is best and presumably to function sort of a truly global market when the task is a smaller amount complex and involves fewer local institutions and fewer communications. it’s easier to outsource online sign-up to websites, search and click on , and vote, than medium to high complexity tasks like web and software development, and customer service. Outsourcing legal services are often complicated if workers don’t know the local system , for instance
3)There remains a home advantage
As discussed above, hourly earnings of the odes users are, on the average , 14 times above minimum wages in developing countries Domestic contractors also get paid quite international contractors for an equivalent sort of work
Most of the platforms operate in English. Thus, without English skills, it’s difficult to navigate the system, communicate with the clients, and perform the work aged between 16-25 from Slovakia, mentions that he doesn’t recommend online work for his friends and family because “they don’t speak English tolerably or don’t understand what it’s all about.” fixing local platforms just like the ones in Japan, China and Thailand could mitigate this challenge, but is more efficient to try to this in sufficiently large language-based markets.