What distinguishes crowdsourcing from traditional outsourcing?

The defining characteristic that sets crowdsourcing apart from traditional outsourcing is the employment of a large community. Crowdsourcing leverages the collective intelligence, creativity, and skills of a broad group of individuals, often drawn from diverse backgrounds and expertise, to gather ideas, solve problems, or generate content. This method engages numerous contributors, typically on a more informal or voluntary basis, rather than relying on a set number of contracted professionals as seen in traditional outsourcing.

In contrast, traditional outsourcing usually involves a formal agreement between a business and external agencies or service providers that possess specific skill sets intended to fulfill project requirements. This approach tends to involve a smaller number of individuals and emphasizes long-term relationships and contracts to deliver consistent services.

Crowdsourcing capitalizes on the diversity and volume of input from many contributors, often accelerating innovation and creativity while reducing costs, which is a significant departure from the more structured and often limited scope of traditional outsourcing agreements.