Unleashing the Entrepreneurial Spirit

While on business travel, I was riding the Metro subway in Washington, DC and got off at the end of the line. The location was in a depressed area with little there for the commuter. As I waited for my ride, I saw two young boys carrying a huge box of M&Ms in hopes of selling to weary commuters. I found it amusing that these young men were catering to this market. I wondered how these inexperienced children could be so successful in business. Many individuals are not.

Our grandmothers told us to find a good government job with benefits, and we would then live happily ever after.  We found that wasn’t true.  In fact, companies are outsourcing functions like employees are disposal goods. In fact, Charles Handy, author of the Age of Paradox, predicts that we are witnessing the end of the full-time employee. In this discussion, we will focus on the freelance industry and how it contributes to the growing outsourcing market.

With a weak job growth, many U.S. jobs will continue to be outsourced globally or automated through technology. In fact, the government estimates that an additional 1.2 manufacturing jobs will disappear by 2018. In this economic downturn, many people are unleashing their ‘Entrepreneurial Spirit rather than depend of others.’  According to the Bureau of Labor Statistics (BLS) data, the number of self-employed Americans rose to 8.9 million in December 2009, up from 8.7 million a year earlier. 

Yet, this venture is not just for the young.  Individuals 55 to 64 represented the second-largest jump in their own businesses (just behind 35- to 44- years old) from 2008 to 2009, according to Ewing Marion Kauffman Foundation.  People with talent are finding they can find work anywhere, including abroad. Websites like Elance.com turn local artists to global competitors. However, columnist Nancy Cook notes, “These sites may transform freelancers into mini-nationals, but they certainly don’t offer the wages, benefits, or perks typically associated with global blue-chip companies.” The following list represents the leading freelance websites for employment:

(1)           Elance.com

(2)           oDesk.com

(3)           Guru.com

(4)           PeoplePerHour.com

(5)           Rent A Coder.com

(6)           Demand Studios.com

(7)           Donanza.com

(8)           Sologig.com

(9)           Freelancer.com

(10)        iFreelance.com

(11)       Guru.com

(12)      Gofreelance.com

(13)      Allfreelancework.com

(14)      Worldwideworkathome.com

 Most entrepreneurs are internally driven. According to BLS, the number of employees voluntarily quitting their jobs (February 2010) surpassed the number being fired or discharged for the first time since October 2008. Many people are unsatisfied with their work situations.  In a Right Management poll, 60% of workers planned to leave their jobs when the market got better. 

Gam’s Barbershop is more than a haircut establishment in Knoxville, Tennessee. It is an experience. Men debate. Fans might see a UT athlete or even Coach Pearl there. However, this successful vision came from one person. Despite growing up in a single parent home and fighting numerous youth temptations, Gary Gamble wanted more. Gam explains, “I always wanted to own my own business. I went to barbershop school with my friend. My friend later quit school. I kept on going. I wanted to do something with my life.” He did. In 1993, Gam’s Barbershop was opened. However, it wasn’t easy. Gam says, “I just try to be determined and never give up.”


Some people just stumble on a niche. Owners Charles and Gwen Chandlers took a hobby and grew it into a business. Chandler’s Deli, known for its Southern cooking and great service, is located in the heart of an urban area. While many restaurants have failed in the area, this restaurant still stands.

Charles notes, “I think we have been successful for three reasons. They are God, determination between my wife and me, and our personal assets. God just wanted us to have it [this deli].” Currently, the couple is working with the University of Tennessee Agricultural Department to locate a distributor for their new spices. 

With the economic crisis still ahead, organizations are outsourcing more of their routine functions. Additionally, today’s workers cannot depend on their current employer to take care of their indefinitely. Therefore, being a freelance worker can provide a great alternative.

Yet, entrepreneurship isn’t for everyone. Furthermore, there is a continual demand for better services at lower prices by organizations. Therefore, many workers will become independent contractors. Yet, our nation needs to continue its economic development campaign. 

How will freelancers contribute to the outsourcing market?  What operational systems will need to be infused into traditional organizations so that they can use them?

© 2010 by Daryl D. Green


[1] “More workers start to quit” by Joe Light

36 thoughts on “Unleashing the Entrepreneurial Spirit

  1. While not for everyone, I believe freelancing will become a staple of the next generation of workers. Traditional freelance areas such as writing, advertising, etc. are being joined by “new age” freelance work in computer programming, project management, blogging and many other fields.

    Freelancing offers some great advantages to both workers and outsourcing companies alike. For workers, a variety of tasks, projects, companies and assignments can keep them invigorated and fresh. Allowing themselves to pick and choose jobs at their own discretion may help to provide better job satisfaction. The drawback, of course, being the uncertainty of income streams when not working for someone else full time.

    For companies, freelancing can help bring fresh ideas and perspective from outside sources. Particularly of interest is the fact that many projects require a core competency not housed in the company, but may be only needed for a short time. Companies can seek the help of freelancers, while not tying themselves long term to employees, and incurring the cost of insurance, retirements, etc.

    • The way the economic is going freelancing might be the direction of surviving for many people. Now days there are many jobs which are not secure, so if you are working for your self you might be able to decrease the number of employment rate. It might create better job satisfaction because you choose to do it. Most of my freelancing has involved working from home. Occasionally, particularly if working for an agency, He will go to their office in which case having your own laptop to take is often essential. We know that working from home could be difficult, that it’s hard to keep work and home life separate. It is just being disciplined and organized. But no, it really can be difficult, particularly if you like to spend some of your free time doing something similar to work. Anyway freelancing is good for the economic and helps people to do a better job in the company

    • The best freelancers know how to drive buyers’ attention and get more projects and make money. The work space of a freelancer does not have to assume a “formal” look, especially for freelancers who enjoy the creative edge. Freelancers should feel free to decorate their offices with themes or ideas that motivate them the most. Since freelancers do not report to a boss in the traditional sense, freelancers should take advantage of customizing their work space to best meet their needs of the freelancing morale. After all, freelancers themselves are the ones who need to boost their own morale, as the traditional boss does not exist to address their concerns about their jobs.
      In fact, to take the concept of play further, freelancers can incorporate their creativity in their documents, such as presentations, fee schedules and even invoices. This may sound risky, especially when dealing with clients, but an upbeat, creative service provider may be better welcomed than a demotivated and bland freelancer who simply lacks the freelancing drive.
      Reference: freelanceswitch.com/category/the-business-of-freelancing

  2. Freelancing has become a vital part of today’s community and times. While outsourcing is the biggest thing since sliced bread these days, and while many people are even accepting jobs over seas in order to make ends meet, we are beginning to notice the importance of becoming freelancers in our own communities. Work can be boring and if pushing papers is what we must do for eternity in order to keep our benefits, then we must begin to employ ourselves anywhere we can in order to keep the work place interesting. Other good points arise in the matter, that while some people prefer to run their own business, it usually comes with a much happier choice than sticking to a job for its benefits.(1) Why should we listen to our grandparents if the government itself is sending our jobs over seas in order to save money. Should we not be responsible ourselves and make sure we are happiest in our life, by making sure what we contribute is from our true selves versus what we have been scripted to put out there.



  3. With the current economy and the high rate of unemployment both outsourcing and freelancing will continue to rise. Last year the amount of outsourcing on oDesk nearly tripled, there has also been a rise homesureing (which is where US buyers outsource to US providers). The power of the internet has really advanced the growth of the freelance sector, in such areas as software development, website design, advertising, law, accounts and others. The work is usually short term, and most of it is outsourced to freelancers in India. By Outsourcing to other countries, companies gain considerable cost savings compared to doing it at home, while obtaining work from freelancers with the same and sometimes even more than those in the US. Over the past three years western countries have increased their freelance outsourcing by 22%. With freelancing having such an optimistic future it will undoubtedly increase the number and types of jobs being outsourced.

    • Outsourcing has been a major factor in the decline of many US businesses. Everyone has heard how this company or that company layed off large numbers of employees to higher lower wage workers in other countries. But I think that now this has finally started to impact those companies negatively. Many groups think that it isn’t right for US companies to end US jobs to provide them overseas. Looking at the oDesk site, it says that more advanced jobs, such as technical support and development have begun an upward trend in the US.
      I think the main reason for this is that many companies are finding a higher quality of work within the US. Freelancers give them an option to get the work done, by trained professionals, without having the negative PR of going overseas. One example is Hyndai. They have built a huge, eco-friendly plant in Alabama. This plant has over 2,700 employees. I think they have seen a positive response. (And this is an example of a foreign company moving closer to their customers in order to better relate to customers. Just as we discuss in class.) I think that, in fact, we are seeing the end of the large overseas
      outsourcing. Especially with the growing trend of Freelance opportunities.



  4. Freelancers will make the outsourcing market grow, which gives companies more opportunities to outsource work. And it starts with supply and demand. With the increase in outsourcing and poor economy, many find it is safer to depend on themselves than to keep their well-being in the hands of a company that makes decisions that benefit shareholders before stakeholders. And with companies continuously looking for new and innovative ideas, the demand and supply for freelancers and outsourcing grows. But I believe if companies sought these innovative ideas more “in-house”, then the unemployment rates would remain healthy. And there are benefits to looking “in-house”. Google, for example, allows workers to use 20% of their work time to work on their own ideas. This approach has paid off tremendously for Google, and it is constantly rated in the top of Fortunes 100 Best Companies To Work For (# 4 in 2010).


  5. In the last few years, the global economy has noticed a tremendous growth of the outsourcing jobs. Many new companies have been formed for processing the jobs of some other companies. Outsourcing jobs have changed the economic scenario of many nations. There are multiple reasons for the tremendous growth of the outsourcing sector.

    There are three main operations management applications that make freelancers and outsourcing a popular choice. The first is cost reduction; some companies do not have the resources available to appoint trained staff for all jobs needed. By using a freelancer, those companies can give the work that they are unable to do to a freelancer who takes on the responsibility usually at a lower rate than what it would cost the company if they employed someone from within. The second application is trained labor. Many start- up companies or smaller businesses are unable to recruit or employ departments of trained labor to get work conducted. Through freelance or outsourcing, whole department functions such as customer service, can be given to freelancers that specialize in that area. The third operations area applicable to freelancing is work on time. When a project is outsourced or freelanced, it is responsibility of the freelancer to finish the project on time, if not, the company may forfeit pay.

    With the ever growing global market place, freelancing is a vital tool to employ, and is clearly gaining popularity.
    Reference: http://business.ezinemark.com/freelance-project-management-and-outsourcing-advantages-3185fee4c4b.html

  6. The technology surge of the last decade changed the interface of traditional business and cutting cost is a strategic necessity not only to remain competitive but for mere survival. The rising employee expense poses an additional threat to traditional business coupled with the rising healthcare costs. What better way to alleviate this problem than through outsourcing assistance in areas where the company can continue seamless operations while protecting their core competencies. Freelancers consist of a wide pool of talented individuals that benefit the company at a reduced cost. Endorsed by the New York Times and The Wall Street Journal, Elance.com is a website that lists freelancers in a variety of areas and collectively they report earnings for services offered in access of $315 million this year. This is a highly profitable area for individuals; however, businesses need the appropriate infrastructure to support their existence including an accessible database from remote locations as well as access to technical assistance in the event of technology problems or failure. Clear expectations must also be set through the aid of contracts that include all pertinent information as to what job they will be performing for the company as well as what performance metrics will be used and their compensation.

  7. Freelancing will encourage outsourcing competitions in a good way, so that the quality of outsourcing service will be enhanced and increasing service subscriber’s expectation, at the same time service cost will be decreased due to price competition. As a result of that, efficiency in the company will be increased and effectiveness as well because low cost and more outcome. However, it might stimulate unnecessary price competition in the market so that freelancer service is not properly appreciated for the service. In the end, company would be faced to in adverse selection situation. Sometime, it could cause big damage in a company. Also company could not avoid a moral hazard problem if it was not selected without serious consideration. Thus, operational outsourcing risk management could prevent this issue directly and TQM implementation would be possibly able to prescreening outsourcing service or freelancer qualification. Risks of outsourcing stressed out the importance of analysis and evaluation of outsourcing service provider from the security aspect for company.

    Click to access GetBlob.aspx

  8. More and more American companies are outsourcing part of their operations because it simply gets the job done. According to a survey enacted by the Human Capital Institute, outsourcing has grown from a mere 6 percent to 27 percent since the 1990 – and it doesn’t appear to be slowing down. Evidently, outsourcing is no longer a luxury of large corporations. Small businesses have implemented outsourcing because it saves them the burdens of overhead. Outsourcing can expand a business’ talent pool, attrack workers with flexible schedules, and rapidly adjust to changes in demand.

    While outsourcing can posses negative attributes because a business’ functions and corporate memory reside in the hands of outsiders, the sense of freedom and flexibility is enough to salvage any possible side effects. In the words of Katie Ratkiewicz (HCI), “Outsourcing is no longer considered a temporary fix to a short-term need, but instead, it’s being redefined as a permanent fixture in organizational makeup.” It would appear that the freelance nation is here to stay.



  9. As businesses race ahead in search of increased profits and larger markets, their requirement to hire individuals with minimal training & management costs increases as well. As a result the freelance experts are a great way for majority of multinationals in the 21st century where people talent and not geography is the limiting factor. The increases in freelance employees’ momentum businesses everywhere are recognizing the benefits of this democratic way of working. This increase in trend is seen due to businesses experiencing better value for their dollar when they hire freelancers because of the ability to choose from an almost unlimited pool of skill sets for each specific project. Overall as a result of businesses increasing profits and being empowered by the ability to select from an unlimited number of skill sets, the outsourcing market for freelancers can only have a brighter and better future.


  10. The growing outsourcing market provides such a great opportunity for freelancers from their home offices to find great jobs worldwide! Wow, there are so many outsourcing jobs from data entry, website designers, and to wedding planners posted online for freelancers globally. These jobs are updated hourly or every minute and auctioned by freelancers like eBay purchases. How can traditional organizations utilize them? It will be beneficial for organization to hire to do such outsourced skilled jobs as making company brochures, web designs, even planning a conference. However, if the jobs are involved with some technical, confidential materials, I am not certain how much organizations can extend the responsibilities outside. (1) Hailey argues that outsourcing could backfire if the vendor trades the confidential information of the client with the competitors for its own benefit. Designs, algorithms, information, or data lost could cost the client a lot in terms of lost profits due to others gaining undue advantage to their research. He also points out that the knowledge of the product or service managed by the vendor could be valuable and often the client is clueless once the vendor leaves. I agree with him by my own experience, software programming jobs are often outsourced. There are usually two challenges. First, the scope and user’s needs are hard to explain unless the programmers are well exposed to the company’s functions. Secondly software is hard to maintain and troubleshoot after the programmer completes the projects and leaves. The organization needs a well established contract to maintain confidentiality and aftercare service.
    (1) http://ezinearticles.com/?Outsourcing-Problems-Could-Lead-to-Disasters&id=3873978

  11. Why are so many individuals beginning to freelance? I think it is because they are tired of helping companies, businesses, and individuals get rich. Every American wants a piece of the success pie. They are beginning to ask themselves, “Why not me?” I am smart, have good ideas, and want to make all the money for myself and family. It has truly became a “Dog eat Dog,” world. According to Trends Update, when companies tighten their belts during an economic downturn, then the first asses to be cut are their employees. Because of full time employment is now a roller coaster, many companies our outsourcing the task to freelancers. It saves on benefit cost, less paperwork, no employment taxes, and they get what they need at a fracture of the cost of a full-time, with full benefit employees. Freelancing will continue to increase as the larger companies realize how important they could be to positively increasing their bottom line.


    Trends Update. 2010 Retrieved on November 11, 2010 from the internet at http://www.trendsupdates.com/ression-of-the-issue.

  12. With a person’s social capital having such a large role on their decision to be an entrepreneur,(Moog 2009) the social media available to everyone today will make it easier for a person’s social capital to be global, allowing outsourcing relatively simple.

    Freelancers are essentially a self motivated, purpose driven individual that has found their niche in the world and wants the world to utilize them for it. They can provide a competitive resource for managers to pull from. Freelancers could fill what might be a part time project need that is undesirable to fill within the firm. They might also present an opportunity for a firm to step into unchartered territories using someone outside to invigorate their business with their enthusiasm.

    For an operation to be able to use a freelance engineer, architect, accountant, etc. they must be able to compartmentalize the task that they want to outsource. The freelancer therefore must offer a service that can easily be broken off and separated from its place in the operation without putting the overall finished product at risk.

    Moog, P., & Backes-Gellner, U. (2009). Social Capital and the Willingness to Become Self-Employed. International Studies of Management & Organization, 39(2), 33-64.

      • Social capital can be thought of as the framework that supports the process of learning through interaction, and requires the formation of networking paths that are both horizontal (across agencies and sectors) and vertical (agencies to communities to individuals). Social capital is much like a collaborative capital. Such as ‘ki work’ that has developed a platform that enables individuals to form virtual companies that can provide services to any business anywhere in the world that in some categories can actually be cheaper than offshore labour because it can be provided on-demand.

        Charles Handy and John Malone were right after all in that where in the past an organisation was like a castle, it will become more like a condominium: “an association of temporary residents gathered together for their mutual convenience”.  This may take a generation to play out and the transition will be painful but the net benefits to individuals and society in the long term are far greater than those provided by traditional modes of employment. Seems pretty crazy to me.


  13. According to Dan Pink freelance workers will have a positive impact on US economy and the global economy. Companies will gain from freelance workers by not paying social security or medicare taxes. By not wasting money on these taxes, firms can reinvest that money towards getting a more experienced individual (1). Using employees with more experience will allow the firm to receive a better product than they could afford if the firm had to keep the employee on the payroll.
    Another positive attribute of the freelance worker is that companies will have greater flexibility when planning for projects, the types of projects, and how long to employ the freelancer. This type of flexibility is allows for businesses to wait until the perfect to take on projects when cash flow is ideal, economy surges, or capital is cheap.
    Freelancers are overall positive in all facets of business.


  14. I agree with Dr. Green in that outsourcing market will continue to grow, being fueled by freelancers. I’ve witnessed the move towards outsourcing in several of the small businesses I have worked for in the past. Everything from accounting, payroll, and inventory management was hired-out to be performed by third party companies. Through the use of these outside agencies, my managers were better able to focus on the core competencies of the company, and dedicate more time and money towards training new and existing employees to be more effective at their jobs.

    Entrepreneurship has always gone hand-in-hand with the American dream. Yet, in the age of technology, how can you be sure the freelancer you hire online will perform quality work? In-house employees are directly accountable to managers, but how does quality assurance work in the virtual world? In an article by Steve Harmision written for freelancer.com, he describes a system where buyers and sellers review each other similarly to EBay or Amazon. Companies will bid more on these websites for experienced and qualified freelancers online. Despite the risks, hiring freelance work should continue to grow as a cost effective solution for many companies despite the risks.

    Harmision, S. (2010, September 23). Freelance marketplace: wonderful place to get outsourcing resources. Articlebase.com. Retrieved November 15, 2010, from http://www.articlesbase.com/outsourcing-articles/freelance-marketplace-wonderful-place-to-get-outsourcing-resources-3327288.html

  15. With freelance, the entrepreneurial instincts and creative talent are both important. The ideal way to get work is through contacts. Recruiters are sometimes good sources, but the freelancer must be aggressive. There are opportunities to have great work produced in freelancing, primarily with small, highly creative shops. The tradeoff is that the small shops cannot pay as well as a large agency. A successful freelancer must be self motivated, but even the most self-motivated creative may find the constant hustle for work frustrating. According to Nancy Cook, “Amid the ongoing recession, American freelancers are finding more and more work abroad. Executives at Web sites that find workers for contract projects-including Sologig, Elance, oDesk, and People Per Hour-say corporations from the U.K., Australia, China, and India are turning more often to the U.S. market for employees. International companies are looking for people with strong English skills to help with writing, editing, marketing, and information-technology projects.” With the technological age, the new work force must stay on the cutting edge such as informational technology upgrade on their computer systems to be successful.

    Nancy Cook. (2010, May). Where the Jobs Are. Newsweek, 155(22), Retrieved November 16, 2010, from ABI/INFORM Global. (Document ID: 2034861561).

  16. As I am a freelance Accountant in addition to my 8:00am-5:00pm Senior Accountant position for TeamHealth, Inc., I know all too well the hardships that come with freelance work. Even though I have found that it has been a great addition to my income status, I also realize that I have “taken” a couple of people’s jobs in the process. Basically, when it comes down to it, the ethics are in a gray area, at best.

    I only do local work, so I have not been outsourced yet, but I can already see how it would benefit some of my clients to continue looking for other outlets for their bookkeeping needs. As Dr. Green said, “there is a continual demand for better services at lower prices for organizations.” When it comes down to it, the best way for an entrepreneur to continue and thrive in this type of economy is to simply do good work, efficiently and effectively. One slip and I can be replaced at the drop of a hat – that simple notion is what drives my spirit and dedicates me to my work.

    Watson, Greg. Entrepreneurship, Education, and Ethics!. Retrieved from http://www.gregwatson.com

  17. Freelancers have made the outsourcing market more dynamic. During tough economic times, companies strive to be the best and most productive in their particular industries. Companies have to completely focus on what they do best to be the best and forefront in consumers’ minds; therefore, they may not be as focused on other operational functions of the company. As stated in Vora’s article, “Most companies are evaluating alternative operating models like outsourcing for activities that are not considered as core to their business” (Vora, 2010). Taking the initiative to outsource freelancers can be extremely beneficial and valuable to a company in need. I am currently working for a firm which is an excellent example of an outsourced operation. We provide professional and effective public relations for our client companies. Financial operations are also great examples of a company need. The WNS Annual CFO survey showed that many respondents “planned to enhance the scope of their outsourcing engagement in the coming year” (Vora, 2010). Outsourcing is becoming an effective business decision for many companies and provides opportunities to professional and talented freelancers in the job market.

    Vora, M. (2010). Best practices in business process outsourcing. Financial Executive, 26(5), 44-47.

  18. Global perspective is an advantage of freelance jobs. You can take up assignments from around the World. Most work at home jobs enable you to earn money in a stronger currency and more than what you would earn working for a local company. In order to set yourself in a globall market one must learn these basic advantages to freelance work:
    The pressure and stress levels in freelance work is comparatively lesser than normal work. With no bosses and subordinates and targets at work, freelance jobs are much easier to handle than office work.
    Most Companies will pay you for referring others to the company. This means your networking skills also could earn you money apart from your own efforts in work.
    Finally, Like desk jobs you do not have to bother about the bond with the Company or working your notice period in a freelance job when you want to leave a less paid work or a job which does not give you any job satisfaction or sense of accomplishment. There is no long term commitment one needs to fulfill in a freelance job.Nobody would call you a ‘rolling stone’ if you did 10 freelance jobs in a year, rather that adds to your credit. But if you submit a resume for Office work showing ten jobs in a year then i am sure nobody would want to hire you.

    Freelancing a Global Perspective

  19. Freelancers will allow companies to easily outsource executive level, higher skilled job tasks decreasing the need for traditional employees on all skill levels. The old model for traditional companies was that employees gave loyalty and companies gave security, but with the growth of outsourcing and freelancing along with hiring temporary help through temp services employees no longer feel secure and therefore are not loyal. If traditional companies want to start using freelance services than they need to find ways to still generate employee security so that they in-turn have employee loyalty and longevity. It is beneficial for companies to use freelancers because they then do not need to pay employee taxes or provide benefits. However, companies must be careful in how they choose to operate using freelance workers. If they classify workers as contractors or freelancers but have them function as employees, the IRS might seek unpaid taxes for those so-called freelancers.

    Reference: http://www.usatoday.com/money/economy/employment/2010-10-13-1Acontractworkers13_CV_N.htm

  20. Freelancers are contributing to the increasing of outsourcing market due to its many benefits. Many young professionals are looking for some freelancing jobs because of its flexibility and its privileges of working to your own schedule. By choosing a freelancing job one can work from anywhere they want and at anytime they want. If one has the working facilities at their home, they can easily conduct the entire work from the comfort of one’s home. The economy recession and globalization has contributed to the increase of people looking for freelancing jobs due to unemployment, salaries being slashed or are tired of going to the office every morning with a limited salary. Freelancing helps to earn more than what you get working as a salaried professional. On the other hand outsourcing companies get to reduce their costs by hiring these freelancers as we see today in the increase of IT professionals from India.

    Harmision, Steve. (2010) Advantages of freelance jobs

    • I agree with Susan that young professionals are looking for freelancing jobs because of the flexibility and the privileges of working around your own personal schedule. I personally know several friends who are young professional who have recently become mothers and have found that freelancing offers them good pay with a schedule they can work with in regards with their children.

      I would like to dig a little deeper in regards of the IT community that Susan pointed out. The IT community is one of the largest areas that are currently being outsourced. However, when we look at the lessons of the past, we do have to question companies which decide to sharpen their knives once more when they address their IT costs. “Companies need to offset the cost of every layoff with the cost of replacing that talent when the economy improves. It is not so much who is left standing, but rather who is in position to grasp the brass ring of prosperity when it returns.”

      (2009) Think Before you fire: The cost of replacing IT talent: The outsourcing blog horses for sources. Retrieved from http://fersht.typepad.com/the_outsourcing_bloghorse/2009/02/think-before-you-fire-the-cost-of-replacing-it-talent.html

  21. Freelancers might realize gains over the next several years; however, once the economy turns for the better, I believe this trend will begin to see a recession. Those who provide these services might retain smaller, less important, roles but the larger ones will undoubtedly be reabsorbed by organizations. The risks associated with freelancing far outweigh the loss of revenue when funding is abundant. Before the downturn of the economy, freelancing was reserved for political favors or for those with very specific skills sets. Oursourcing and offshoring, to the contrary, will continue to remain an intricate part of business’ strategic plans, as it allows them to tremendously curb costs at various levels.

    During the deployment of these individuals, though, organizations must have fail safe systems in place to ensure the reception of the intended services. This can be done through the creation of a balancing mechanism, where the services are measured and graded by related personnel. Thereafter, if the rendered services are acceptable then they should be retained but, if they are not, a reallocation should immediately occur. Notably, as well, these safe guards should also protect proprietary information.

    Rowell, L. (2005). Making Your Move into Freelancing. Intercom, 52(2), 9-12.

  22. During the recent economic downturn, more companies started outsourcing their work to reduce costs. Most companies, such as my old employer, decided to outsource overseas and lay off employees in America. Other companies however have decided to use freelancers to reduce their costs.

    Freelancers come in all different abilities and cost desires, which allows the hiring companies to choose which employee they need at that time based on their need and money available. Freelancers usually bid on contracts like general contractors compete on government contracts.

    New operation systems need to be put in place to cooperate with the new freelancers allowing them to access the computer systems/databases. Also human resources needs to be able to give them access and revoke access quickly as well as getting them integrated into the culture.

  23. During the recent economic downturn, more companies started outsourcing their work to reduce costs. Most companies, such as my old employer, decided to outsource overseas and lay off employees in America. Other companies however have decided to use freelancers to reduce their costs.

    Freelancers come in all different abilities and cost desires, which allows the hiring companies to choose which employee they need at that time based on their need and money available. Freelancers usually bid on contracts like general contractors compete on government contracts.

    New operation systems need to be put in place to cooperate with the new freelancers allowing them to access the computer systems/databases. Also human resources needs to be able to give them access and revoke access quickly as well as getting them integrated into the culture.

  24. Freelancers, they can be a pain to work with. But employers increasingly have little choice but to do so. According to the Bureau of Labor Statistics, more than 10% of the U.S (Brewster, Mike). I think the trend of using freelancer will gain popularity in the next few years. The benefits of outsourcing task to freelancers are lower overhead cost. Companies don’t have to pay taxes on freelancers’ pay, insurance, 401K, paid time off, and many other fringe benefits that come with hiring an employee to fill a position. However, if a company is going to use freelancers over hiring employees that will be to be prepared to a lower level of loyalty from a freelancer compared to an actual employee.


  25. “An overwhelming 90 percent of U.S. companies outsource at least some of their work, according to a survey by the Human Capital Institute, a global association of talent management groups. Some outsource almost all of it, and more are heading in that direction: The average portion of work outsourced has grown from 6 percent to more than 27 percent since 1990.”(1) Freelancers will greatly contribute to the outsourcing market. These freelancers can remove certain risks and requirement of skilled labor from their company. These freelancers can also offer lower cost solutions for small companies. Companies with traditional process will need to redraft company’s processes in order to successfully outsource labor.
    (1) Lister, K. (2010). Freelance Nation. Entrepreneur Magazine.

  26. As the contemporary workplace transforms in the light of technological improvements and changes in geocommerce, the role of workers in the workplace has become more dynamic. The limitless freedoms within the internet combined with entrepreneurial drive have lead to many serious alternatives to traditional workplace employees. Some of the alternatives have emerged as internet freelance talent. These freelance entities provide talent from across the globe to meet the needs of local firms. A Boston Globe article presented highlighted this new phenomenon from the prospective of the modern worker. The traditional worker identified to a “standard bundle of responsibilities, roles, and benefits (2010).” The Modern worker has begun to transform the package. Instead of considering themselves bound to one firm, workers are increasingly considering themselves as workers to many firms simultaneously (2010). Employers also find themselves taking advantage of outsourcing opportunities. The result is a maturing marketplace.

    The End of the Office and the Future of Work. Janurary 17, 2010. Retrieved November 27, 2010 from The Boston Globe: http://www.boston.com/bostonglobe/ideas/articles/2010/01/17/the_end_of_the_office_and_the_future_of_work/?page=full

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