Crowdsourcing vs. Outsourcing

Crowdsourcingnoun

(neologism) The delegation of a task to a large diffuse group in order to introduce new or more developed skill sets and improve efficiency. There is usually no substantial monetary compensation involved.

Crowdsourcing

Crowdsourcing is a sourcing model in which individuals or organizations obtain goods or services, including ideas, voting, micro-tasks and finances, from a large, relatively open and often rapidly evolving group of participants. As of 2021, crowdsourcing typically involves using the internet to attract and divide work between participants to achieve a cumulative result.

Outsourcingnoun

The transfer of a business function to an external service provider.

Outsourcing

Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally and sometimes involves transferring employees and assets from one firm to another. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981.