Just as distributed computing projects like UC Berkeleyâ€™s SETI@home have tapped the unused processing power of millions of individual computers, so distributed labor networks are using the Internet to exploit the spare processing power of millions of human brains. The open source software movement proved that a network of passionate, geeky volunteers could write code just as well as the highly paid developers at Microsoft or Sun Microsystems. Wikipedia showed that the model could be used to create a sprawling and surprisingly comprehensive online encyclopedia. And companies like eBay and MySpace have built profitable businesses that couldnâ€™t exist without the contributions of users.
All these companies grew up in the Internet age and were designed to take advantage of the networked world. But now the productive potential of millions of plugged-in enthusiasts is attracting the attention of old-line businesses, too. For the last decade or so, companies have been looking overseas, to India or China, for cheap labor. But now it doesnâ€™t matter where the laborers are â€“ they might be down the block, they might be in Indonesia â€“ as long as they are connected to the network.
Technological advances in everything from product design software to digital video cameras are breaking down the cost barriers that once separated amateurs from professionals. Hobbyists, part-timers, and dabblers suddenly have a market for their efforts, as smart companies in industries as disparate as pharmaceuticals and television discover ways to tap the latent talent of the crowd. The labor isnâ€™t always free, but it costs a lot less than paying traditional employees. Itâ€™s not outsourcing; itâ€™s crowdsourcing.