Suthaharan Perampalam

Traditional BPO firms provide managed services directly to their clients, hire employees and contract workers, and require workers to be centralized in the same physical location. On the other hand freelancers continuously growing in numbers providing ITO/BPO/KPO services, and can deliver faster and more flexible access to a broader pool of workers than traditional approaches, often at lower cost. As online freelancing grows, it is anticipated that it will increasingly cannibalize work currently conducted by traditional outsourcing firms. According to “The Global opportunity in online outsourcing” report published by World Bank group highlights, on optimistic scenario there will be major cannibalization of the BPO industry and it is assumed that 25% of the current BPO demand will be served through freelancers by 2025. Growing momentum of freelancing globally would have an impact on Sri Lanka’s traditional BPO industry as well, which we need to be mindful of assessing the impact.

Market Sizing of Global Online Outsourcing Industry

Posted on March 24, 2016  /  0 Comments

Online outsourcing is divided into freelancing and Microworking. According to “The Global opportunity in online outsourcing” report published by World Bank group in June 2015, the market size for online freelancing in 2016 is estimated to reach $4.4 billion, and for microworking the market is forecast to be $0.4 billion, resulting in a total online outsourcing industry-projected market of $4.8 billion.
Mr Banerjee, Ms Duflo and several others economist conducted a research to investigate whether a multifaceted graduation program can help the extreme poor establish sustainable self-employment activities and generate lasting improvements in their well-being. Multi-pronged approach is relatively expensive to implement, but the theory of change is that the combination of these activities is necessary and sufficient to obtain a persistent impact on poor. The program targets the poorest members in a village and provides a productive asset grant, training and support, life skills coaching, temporary cash consumption support, and typically access to savings accounts and health information or services. In each country, the program was adjusted to suit different contexts and cultures, while staying true to the same overall principles. Research conducted six randomized trials in Ethiopia, Ghana, Honduras, India, Pakistan, and Peru, with more than 10,000 poor household, they concluded multifaceted approach to increasing income and well-being for the ultrapoor is sustainable and cost-effective.
In terms of research techniques, Mobile and online communities continue to dominate the methodological shift, but research clients are demanding big data insights. Themes from this year’s GRIT Report highlights the impact on research industry: speed, new platforms, and the quest for insights in a sea of data. Researchers recognize the need for speed as the businesses are moving fast.  Therefore, we need to see consumers, brands, categories and markets in real-time to provide optimal guidance for competing and winning in this complex world.  As new platforms, especially in the social and mobile realms with increased ubiquity, marketers and researchers must seize new opportunities and respond to the constraints of the new media and platforms.
Freelancing provides a reliable source of income with flexibility to the self-employed, those who are not part of a large organisation or for a person unable to work full time. This also provide a platform for unemployed youths and married women with small children to make an earning and thereby increasing inclusive growth. Payoneer, a financial services business that provides online money transfer and e-commerce payment services recently conducted a study among freelancers within 180 countries. Objective was to determine the average hourly rates charged by freelancers based on several factors. Payoneer’s Survey results were collected from the responses of 23,006 freelancers worldwide through an online questionnaire during November and December 2014.