From Wikipedia, the free encyclopedia

Crowdsourcing is a sourcing model in which individuals or organizations obtain goods and services, including ideas and finances, from a large, relatively open and often rapidly-evolving group of internet users; it divides work between participants to achieve a cumulative result. The word crowdsourcing itself is a portmanteau of crowd and outsourcing, and was coined in 2005. As a mode of sourcing, crowdsourcing existed prior to the digital age (i.e. "offline").
 
There are major differences between crowdsourcing and outsourcing. Crowdsourcing comes from a less-specific, more public group, whereas outsourcing is commissioned from a specific, named group, and includes a mix of bottom-up and top-down processes. Advantages of using crowdsourcing may include improved costs, speed, quality, flexibility, scalability, or diversity.

Some forms of crowdsourcing, such as in "idea competitions" or "innovation contests" provide ways for organizations to learn beyond the "base of minds" provided by their employees (e.g. LEGO Ideas). Tedious "microtasks" performed in parallel by large, paid crowds (e.g. Amazon Mechanical Turk) are another form of crowdsourcing. It has also been used by not-for-profit organizations and to create common goods (e.g. Wikipedia). The effect of user communication and the platform presentation should be taken into account when evaluating the performance of ideas in crowdsourcing contexts.

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