Crowdsourcing is the process of sourcing tasks or projects to a large pool of people or community, often via the Internet. It typically involves outsourcing specific jobs or functions to many individuals, rather than employing a single individual or organization to complete the task. Crowdsourcing is different from traditional outsourcing in that it usually involves more people, and often utilizes online resources such as websites and forums.
A similar term is ‘crowdfunding’, which refers to the act of raising money for a particular cause by soliciting donations from many sources, also often via the Internet. The main difference between crowdsourcing and crowdfunding is that crowdsourcing deals with tasks instead of funds. With crowdfunding, an individual or organization sets up an online platform where potential donors can donate money to help achieve their goal or project. With crowdsourcing, however, there is no monetary exchange; instead, individuals volunteer their time and skills to support a project by working on it remotely. Both these terms are used interchangeably at times but they differ significantly in terms of scope and purpose.
Crowdsourcing has become increasingly popular over the years due to its ability to crowdsource labor for complex projects in areas like data processing, software development, creative industries such as design and content creation etc., at a fraction of what it would cost if these tasks were done traditionally by individuals or organizations on payroll. Crowdsourcing has been utilized successfully by both corporate giants like Amazon and startups alike due to its cost-effectiveness as well its ability to create vast networks of workers who are motivated by recognition and rewards rather than financial compensation alone.
Crowdfunding on the other hand focuses solely on collecting financial contributions from many sources for fundraising purposes – usually for causes related to social good such as charities and awareness campaigns for global issues like climate change etc., However unlike crowdsourcing which generally does not involve any monetary exchange crowdfunding does require exchanges of physical currency through platforms such as Patreon or GoFundMe where people can donate money towards achieving certain goals or funding certain initiatives.
