News » Online labor platforms alternative to traditional offshoring—Oxford study

Online labor platforms alternative to traditional offshoring—Oxford study

Online labor platforms alternative to traditional offshoring—Oxford study

According to Oxford University research the online labor platform, which connects freelance workers and clients around the world, is rapidly gaining popularity. The online platform is seen as an alternative to the traditional offshore outsourcing model. The research said platforms such as Upwork, Freelancer and Fiverr offer companies in rich Western countries a low-cost labor mechanism as they are able to hire workers in lower income countries without the burden of establishing offices abroad or contracting an outsourcing company. The study was published in the Journal of Management. The lead author of the study Professor Vili Lehdonvirta, said workers from emerging economies such as the Philippines, are benefitting from these networks. He added that workers will no longer have to bear a grueling commute to and from work every day. The online labor platforms use different methods to provide clients information on a worker’s skill set and productivity, including skill tests and reviews from previous clients.

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