Outsourcing in the age of gig workers

How does outsourcing work in the gig economy?

Outsourcing gig workers means hiring a managed provider to tap the gig economy for you, so you get flexible, on-demand talent without sourcing each person one by one.

• You reach a global pool of skilled gig workers fast.
• You scale your team up or down as demand shifts.
• You save on the overhead of full-time hires.

Traditional employment models keep changing as technology reshapes work. The rise of gig workers has played a big part. These are people who take on short-term contracts or freelance jobs. As a result, they have changed how businesses run.

Even outsourcing has adjusted to this flexible model. In fact, Omni Interactions uses it to drive agility and fresh ideas. In the 455th episode of the Outsource Accelerator podcast, Omni Interactions co-CEO Courtney Meyers explains how their solutions tap the gig worker market.

“[We’re] the middle ground between an Upwork, where you find people one or two at a time, and outsourcing, [which] is traditionally about employment largely on a big scale.”

“I feel Omni really bridges the gap between those two. We offer a managed service for our clients to leverage the gig economy so they don’t have to do it one by one.”

Overview of the gig economy

The gig economy is a labor market led by temporary and part-time roles. Gig workers fill these jobs. So it marks a clear shift from traditional employment. In this model, digital platforms match workers with clients.

The gig economy is booming. For example, McKinsey reports that 36% of employed Americans call themselves gig workers. It is a lucrative field too. In fact, Statista values the global gig market in the hundreds of billions of dollars, with steady growth ahead. For more context, these freelancing statistics show how fast the space is changing.

Courtney credits the pandemic with speeding up this rise. “People needed to move their contact centers to home, and we were ready and waiting.”

What do gig workers do?

Gig workers go by many names. For example, people call them freelancers, independent contractors, or contingent workers. They take on a wide range of tasks across many fields. If you are new to the space, it helps to first learn how freelancing works.

These roles can include:

• Creative services
• IT and technology
• Consulting and professional services
• Retail and merchandising
• Research and data analysis

For its part, Omni Interactions mostly works in the contact center back-office space. This overlaps with wider contact center outsourcing that many firms rely on.

Gig workers are known for their project-based, short-term nature. So they can take on specific assignments as needed. Courtney says this gives them plenty of flexibility. It lets them “turn up the dial as needed.”

Should a vendor fall short, she adds, it is easy to find people fast to fill the gap. “It’s that capacity from a part-time model [that] gives us the flexibility that allows us to deliver a lot of added value to our clients.”

This setup lets gig workers shape their own work arrangements. As a result, they can build a mix of income sources that fit their skills.

Benefits of outsourcing gig workers

Here are some clear benefits of outsourcing gig workers.

1. Access to a global talent pool

The gig economy crosses borders. So outsourcing gig workers lets you tap a global talent pool. As a result, you reach expertise from around the world. Since gig workers are easy to find on digital platforms, you can source niche skills that are hard to find nearby. This also helps you pick the best fit for each job.

2. Flexibility and scalability

Outsourcing gig workers lets you scale your team with demand. For example, you can hire for a single project instead of a long contract. So you adapt fast when the market shifts. This is a big win for startups, small firms, and teams with uneven workloads.

Courtney describes her ideal clients as those who need flexibility. “Whether that’s intraday, intra-week, month, or year, or a really big seasonal spike. It gives us the opportunity to really flex those gig muscles.”

3. Cost efficiency

Full-time hires bring costs like salaries, benefits, office space, and gear. Outsourcing gig workers can be a cost-effective alternative. So it cuts many of these overhead costs. By outsourcing set tasks, you use your budget better and save a lot. It also helps to weigh gig work compared with full-time hires.

4. Innovation and fresh perspectives

Gig workers often bring niche skills you may lack in-house. So you can hand them tasks that need special know-how. Their fresh views can spark creativity too. As a result, your projects stay ahead of the curve.

In her experience, Courtney has met gig workers from all walks of life. “We [even] see people that have never worked in customer service but have a long, storied career or background or education. [They’re] looking to add value to the world, [and this is] a new opportunity for them.”

5. Agility

The gig economy lets you react fast to market shifts. By using gig workers, you can quickly gain skills that match new trends. So this agility helps you stay competitive in fast-moving fields.

Challenges of outsourcing gig workers

There are many benefits. Still, you must handle a few challenges when you outsource gig workers.

1. Communication barriers

Clear communication is key to managing gig workers well. Without face-to-face contact, it can be hard to align on needs and quality. So set expectations early and often.

2. Quality and consistency

Consistent quality can be tricky since gig workers are remote and independent. As a result, it is harder to track work and rate performance. So you may need quality checks and tracking tools to keep results on target.

3. Data and IP security

Outsourcing means sharing private knowledge and data. So you must guard your intellectual property and sensitive files. Remote work also raises the odds of cybersecurity threats like data breaches and hacking.

4. Cultural differences

Working with gig workers from other countries can bring cultural gaps. So these may cause mix-ups and slow collaboration. As a result, you may need extra time to bridge them.

Future developments for outsourcing gig workers

The future of outsourcing looks bright as the gig economy grows. Here are some trends to watch.

1. AI and automation

The use of artificial intelligence (AI) and machine learning (ML) will grow as more projects add automation. So this could open new roles for gig workers, including managing those tools.

Omni Interactions has not yet added automation for clients. Still, Courtney describes what they call their “Omniverse.” “It’s a platform built around multiple cloud technologies, connected through microservices with a lot of bots that run off of that. And that’s how we deliver our quality, consistency, [and] reliability.”

She expects more automation ahead. However, she still thinks clients will want the human touch. “Things will become more automated, [but will] also become more complex. And we still have a large population that enjoys human contact. There’s some amazing AI products out there, but nothing’s going to scratch that edge.”

2. Improved collaboration tools

Technology will keep supporting remote gig workers with improved collaboration tools. So this can improve teamwork between remote staff and in-house teams.

3. Regulation and protection

Many hope that authorities will add new rules and protections for gig workers. For example, these could cover minimum wage, benefits, and job classification.

Courtney hopes Omni Interactions can set a standard for safe gig work. “We really want Omni to be a place that’s great for gig workers. We want to do gig right, [not as] a mechanism to take advantage of someone. It should be a pathway for someone to build their own lifestyle on their terms.”

“We’re optimistic [that] those negative practices disappear as more people like us pop up in the industry and continue to make [it] a great place for gig workers.”

Courtney can be reached at [email protected].

Frequently asked questions about outsourcing gig workers

What is the difference between gig workers and outsourcing?

Gig workers are individuals who take short-term jobs. Outsourcing gig workers means a managed provider sources and runs that talent for you. So you get gig flexibility without hiring each person one by one.

Is outsourcing gig workers cost-effective?

Often, yes. You skip many costs of full-time hires, such as benefits and office space. So you pay for work as you need it. As a result, you use your budget more wisely.

What tasks are best for gig workers?

Project-based and specialized tasks fit well. For example, gig workers handle creative work, IT, research, and contact center support. So they suit uneven workloads and seasonal spikes.

How do you manage quality with remote gig workers?

Set clear briefs and expectations up front. Then use tracking tools and regular check-ins. In addition, quality reviews help keep results consistent.