Online labour platforms offer growing alternative to traditional offshoring

Online labour platforms that connect freelance workers and clients around the world are emerging as an alternative to traditional offshoring, according to new Oxford University research. Workers from emerging economies in particular are benefitting from these networks according to the study conducted by researchers at the Oxford Internet Institute. The findings, published in the Journal of Management reveal that platforms such as Upwork, Freelancer and Fiverr offer companies in rich Western countries a simple and cheap mechanism to hire knowledge workers in lower income countries, without the burden of setting up offices abroad or contracting with an outsourcing company. 'Many knowledge workers in emerging economies are benefitting from this arrangement,' says Professor Vili Lehdonvirta, the lead author of the study. 'Knowledge workers who previously worked at outsourcing companies in countries like the Philippines, for example, can now work directly for Western clients through these online platforms. Workers can earn more this way, and avoid gruelling commutes. However, their income and work hours can be less predictable.'  Online labour platforms use a variety of ways to provide clients information on worker skill set and productivity, such as skill tests and reviews from previous clients.