With the support of International Development Research Center (IDRC) of Canada, LIRNEasia in partnership with Indian Council for Research on International Economic Relations (ICRIER) and Vihara Innovation Network studied Online Freelancing: Challenges, Opportunities and Impact in India. The dissemination workshop of the findings of this research was held on 27th of December 2017 at the India Habitat Centre, India. Government and private sector officials of skill development and employment generation organizations participated at this workshop. Dr. K.
It seems everyone is talking about digital platforms and digital labor. This is not surprising, given the amount of news Uber alone is creating in many countries, including the ones LIRNEasia works in. Everyone is worried about the impacts on labor and working conditions, while some are optimistic about the welfare effects created, especially for consumers who now have more choice and often cheaper rides. Last year we completed the Sri Lanka part of a project looking at a specific type of platform-enabled economic activity that completes a transition with the buyer and seller never meeting – that of on online freelancing and microwork. We are now looking at the same phenomena in India, and will soon start the same research in Myanmar.
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.
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.