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Outsourcing, Cloud Computing and Freelancing: Do you think these three are correlated?
The Cloud enables freelancers to work anytime, anywhere... therefore, making it possible for outsourcing to grow, either locally or offshore. I've just noticed that a growth in one affects the other, and the three are mutually connected in terms of number. What are your thoughts on this?
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- Shaleen Shah
I think they are only related insofar as companies outsource work (i.e. use external contractors) who in turn base their offerings on data center technologies. It is quite possible that the external contractor develops a system that is installed internally to the business, rather than hosted outside of it.
As for the connection between freelance and outsourcing, I guess one drives the other to an extent (demand vs. supply), but given that most outsourcing projects are primarily due to cost considerations, far from simply hiring companies in the same country as the company wanting the outsourcing, they will go abroad to where it is cheaper.
Case in point: it is more beneficial for UK outsourcing companies to locate in India and re-sell back to the UK from there, than to try and compete directly in the UK, because if they were UK-based, it is unlikely they would get the work.
Thanks Robin. I love the example you mentioned here, on the connection between freelancing and outsourcing. I guess, cost is the number 1 driver these days in making a decision to freelance, outsource or utilize cloud computing tools.
Technically, Cloud Computing is very different from Outsourcing and Freelancing. All there are somewhere reducing the cost of the project but Cloud Computing has other benefits rather than just cost reduction. It has turned on many technical possibilities.
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Related Activity
Cloud Computing and Outsourcing are somewhat related. In many ways, cloud computing is a type of outsourcing (or an enabler for outsourcing within an organization). That's not to suggest that cloud computing is *only* about outsourcing, of course.
Freelancing, however, does not share a direct correlation with cloud computing, in my mind. Perhaps there is some relationship, but it seems rather tenuous to me.
A growth of freelancers is likely to indicate that organizations are doing more outsourcing, at least for some class of services. And, while the Freelancers might also be users of cloud computing services, it might have nothing to do with their work, but could be on a personal level. Or, they might not use the cloud at all.
Organizations that embrace the cloud might be more inclined to perform other types of outsourcing which involves Freelancers, but again, it's not a guarantee.
Perhaps, we'll see a growth of Freelancer activity in the cloud, which will drive organizations to use both more. :)
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