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Everest Group Study Finds Enterprise Crowdsourcing Delivers Up To 70 Percent Cost Advantage Compared To Traditional BPO Outsourcing

Stocks in this article: LIOX

DALLAS and WALTHAM, Mass., Dec. 6, 2011 /PRNewswire/ --  Everest Group and Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced the results of a study, "Every Crowd Has a Silver Lining." The study, which was conducted by Everest Group in collaboration with Lionbridge, revealed that enterprise crowdsourcing is moving up the value chain for an increasing number of organizations due to significant cost advantages, greater flexibility and faster access to a larger pool of globally distributed qualified resources compared to traditional business process outsourcing (BPO) and contingent labor models. 

Specific findings of the study can be found here and include:

  • Large corporations are adopting crowdsourcing as a model to support new areas such as content localization, translation to replace traditional BPO and contingent labor staffing models
  • Crowdsourcing offers significant economic advantages – up to 70 percent savings – compared to a similar outsourced model in both onshore and offshore service geographies
  • Given the "on-demand" nature of crowdsourcing and the ability to access qualified, globally distributed talent more quickly, employers enjoy compelling wage cost advantages, higher utilization and lower total costs of recruitment, training, supervision and turnover.  
  • Mature enterprise crowdsourcing benefits from a third-party intermediary that provides governance, quality assurance and contractor management infrastructure

The study also cited companies that are leveraging crowdsourcing for as much as 50 percent of their product-related projects, such as packaging, design, marketing, research, testing, engineering and technology.

"We are witnessing a second fundamental inflection point for crowdsourcing where large corporations in a post-recession era are increasingly using global professional crowdsourcing services in new application areas, often as a cost-effective alternative to traditional BPO," said Sarthak Brahma, Practice Director, Pricing Assurance, Everest Group. "Our study finds that crowdsourcing utilization has evolved from small- to medium-sized businesses to an increasingly accepted business practice for large corporations. As cost advantages are progressively augmented by greater accountability, quality assurance and timeliness assurances, the 'on-demand' talent model will continue to gain a greater foothold."

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