E-lancing, commonly referred to as electronic lancing or electronic labour, ^[1] refers to the recent trend of commending and taking freelance work through e-lancing websites. E-lancing websites are databases where employers place tasks, such as website development, mobile application development, search engine optimization, graphic design, content writing, translation writing, and data entry. Freelancers are able to browse a variety of reports and choose which tasks they would like to bid on. The employers then select freelancers to complete assigned work for an agreed [[compensation], depending on qualifications and skills suitable for the task at hand. Additionally, some e-lancing websites act as intermediaries with regard to payments. Employers pay the e-lancing websites, giving these websites the ability to pay the freelancer directly after the work is completed. This spares the individual the risk of non-payment for the work that was submitted. ^[1]

Thomas Malone and Robert Laubacher coined the term e-lancer. ^[2] Malone and Laubacher define e-lancers as "electronically connected freelancers" and describes their activities as follows: ^[2]

"These electronically connected freelancers - e-lancers - join together into fluid and temporary networks to produce and sell goods and services. When the job is done - after a day, a month, a year - the networks dissolve and its members become independent agents again, circulating through the economy, seeking the next assignment." ^[3]

Malone and Laubacher propose that e-lancers may become the dominant type of work for the future, displacing large, centrally managed company organizations. ^[2] Other sources agree, claiming that e-lancing will indefinitely become the new dominant type of work organization in the not too distant future. ^[4] Some sources believe that the movement into e-lancing work will take longer than expected to happen, as was the case with e-commerce. ^[1]

Background

For commercial purposes, the Internet is a central medium for the exchange of information. ^[5] Information technology and telecommunications is changing the way companies do business, especially in the production process. As a result, the work process in all industries is increasingly taking place in digital modes and environments. The Internet provides companies with the opportunity to conduct business anytime and anywhere. ^[5] Buyers and sellers are able to conduct business transactions through business-to-business (B2B) networks and business-to-consumer (B2C) networks. These two networks facilitate e-commerce, which is the system of buying and selling products and services over the Internet and other computer networks. ^[6] While e-commerce allows the transference of information between organizations and consumers, it has not fully adopted an online system regarding the sale of labour. ^[5] Information technology and the Internet create a borderless electronic environment for efficient communication and collaboration in organizations. Individuals are able to communicate and work 24 hours a day, seven days a week, anywhere in the world. ^[5] Fax machines, email, voice mail, conference calling, file transfer protocol, video conferencing, and high speed Internet allow knowledge workers to quickly send and receive information needed to perform duties. ^[5]

While alternative forms of employment have emerged - such as employment contracts and outsourcing - every company will require a core group of workers to commit themselves in a company's long-term vision. ^[5] The Internet connects relationships between company's and employee's, although it has not adopted alternative, online work environments. A new Internet revolution for business has emerged in electronic employment: e-lancing. ^[5] The reason for failing to fully incorporate electronic labour systems in business is primarily because of the ideas concerning a unique organizational culture, creating value in employment surrounding intellectual capital, and maintaining successful business relationship management. Enterprises need commitment and dedication from individuals for the benefit of an organization's long-term vision. Organizations provide workers with online networks to communicate with others and complete tasks. Companies do not encourage creating an online only system to complete and submit work because workers may take advantage of such careers, leaving the physical workplace forever. Work offices need employees to be physically present during the work day to conduct business activities in many different departments, including sales and marketing. ^[5] In doing so, organizations may offer incentives for doing exceptional work at the office. On the other hand, e-lancing gives employees the ability to work for multiple companies and clients anywhere in the world. Workers are able to choose who they would like to work for without being tied up in long-term contracts and commitments. ^[7] Workers are free to create personal and unique schedules, operate at a pace that is suitable for their needs and desires, and work virtually from anywhere at anytime. As a result, e-lancing offers workers the advantages of flexibility: the ability to be in power and control of individual careers.

E-lancers are seen as the logical answer to the flexibility requirements in today's businesses: companies need access to a more flexible and diverse workforce to be able to adjust to growing organizational needs. ^[7]

Impacts of the Internet

The Internet impacts work processes and environments in the following ways: ^[7]

• The Internet allows workers to stay in continuous contact with employers and clients.
• The Internet gives workers an easy way to retrieve all kinds of information, including work assignments.
• E-lancers have the ability to market themselves easily with the help of the Internet.
• The Internet gives e-lance workers a large network of relationships between workers and employers.
• The condition of the open-market puts a large amount of demand on the ability for freelancers to market and promote their services.
• E-lance websites are improving the performance of work exchanges, making electronic freelance a viable option for many workers.
• E-lance websites are building up the reputation and quality of online labour. E-lance databases are focusing on improving team and trust-building practices online to increase the use of electronic team networks and collaborative assignments.

Components

E-lancing consists of several parts: ^[7]

• E-lancers are self-employed freelancers.
• E-lancers are able to take on work surrounding many time frames. They may take on work that requires as little as a few hours, to a couple of months, all the way to over a year.
• E-lancers may take on as much work as they want.
• E-lancers need to market individual skills, abilities, and preferences in the e-lance marketplace.
• E-lancers can collaborate with others to put skills together for assignments. These networks disband as soon as the required work has been completed.
• E-lancers rely heavily on many technologies, including computers, phones, and the Internet, for the application, completion, and submission of work assignments.
• E-lancers are free from time and space constraints, unlike traditional employees. They work their own hours in their own preferred locations.
• E-lancers need to care for work deadlines and they also need a constant connection with computer technologies in order to produce work reports.

Benefits

The e-lancing model gives labour a new approach to employment and careers. E-lancing challenges the traditional way of work, leaving many people pondering the thought of a more innovative and efficient career system.

The advantages of e-lancing are very clear and powerful, likely to persuade many people into the virtual workplace. E-lancing gives individuals the ability to use the skills and talents needed at the office in the online work environment. In other words, skills required for the office can be used for online freelance work and vice versa. There may be additional skills needed for specific projects, but the work office offers a wide range of skills that can be applied in electronic labour.

The primary advantage for e-lancers is flexibility. ^[8] Workers are their own boss, setting personal hours, and locations to produce work assignments. E-lancers do not have to report to the head of a department in a hierarchical and bureaucratic organization. Flexibility allows a sense of stress free work, making work more of a want than a need. Majority of the benefits surrounding e-lancing revolves around the notion of flexibility. It is important to understand that flexibility is the key reason as to why e-lancers choose this personal model of work. ^[8]

Another potential advantage for e-lancers is the ability to be creative, expressive, and passionate. Some organizations are considered to be a toxic workplace. ^[2] By leaving such an organization to become an e-lance workers, individuals can work a more stress free job and feel happiness and satisfaction in the work they create. ^[2] As a result, workers feel a higher standard in their quality of life.

E-lancers and virtual teams can also be very beneficial for companies needing labour to supply organizational needs. The two primary business advantages for e-lancing are as follows: increased flexibility in finding resources when they are needed and reduced costs due to less training expenses and outsourcing of markets providing cheaper labour. ^[8]

Businesses can benefit hugely from the electronic community: online sales offer an additional source of revenue, companies can utilize high web traffic to help market brands, traditional brick and mortar locations are eliminated so there are lower fixed costs, and business can perform transactions in a borderless global marketplace. ^[9] These highly recognized advantages of e-commerce works well in cooperation with e-lancing. There are also additional e-lancing benefits for organizations. E-lancing and virtual teams allow firms to lower the costs of employees, ultimately lowering additional expenses of fixed salaries and incentives. ^[9] Firms are able to hire freelancers online to accomplish specific tasks. They do not have to feel the commitment to pay employees numerous paycheques throughout the year, replacing expensive salaries with the relief of e-lancers. Along with reduced costs comes the ability to work quickly in times of need and take responsive action to fast changes in the economy. Other advantages include new and diverse perspectives through the online community, possibility of exploiting new markets and clients, and utilizing a broad range of skills in the marketplace for increased sales and success. ^[9]

Drawbacks

There are potential disadvantages of e-lancing depending on personal context, preferences, and perspectives. The possibility for disadvantage is looked at from the standpoint of both workers and organizations.

The disadvantages for workers mainly pertain to the loss of benefits from organizations. If an individual chooses to leave an organization to work as an e-lancer, the following organizational advantages may be taken away: ^[2]

(1) The timely salary that allows for a continuous source of income for many workers. Workers become dependent on the income to support themselves and their family. (2) The job security that an individual has while working for an organization. Workers need to become dependent on themselves to continually find electronic employment and find continuous sources of income. (3) Organizational incentives: this is potentially the most valuable characteristic of an organization. Health insurance, economic rewards and bonuses, and stock options will no longer be in effect for a worker. (4) Depending on the case, organizations may offer more money. Working for an organization may result in substantially more money and benefits than becoming an e-lance worker.

From a business organization perspective, there are severe disadvantages for a new e-lance economy. Businesses can use electronic freelancers as a source of labour to fulfill needs, but companies nowadays need commitment and dedication from their workers. In an organization's point of view, the largest drawback of e-lancing would have to be the loss of individual talent, commitment, and dedication essential for a businesses long-term success. If an organization loses too many workers to that of an e-lance economy, business goals and visions will be slowed down. Today's organization need long-term commitment and creation of value from employees. Allocating work to electronic freelancers is not always safe and flawless, so it is important for businesses to create and maintain employee positions in order to fulfill business activities for long-term growth and success.

In the e-lance economy, another disadvantage for business organizations is the loss of employee to employee and employee to consumer relationship management. The ability to have employees physically in the workplace adds tremendous value for an organization. Employees can create and maintain social ties and interpersonal relationships with people throughout the work office. Along with positive relationships in the office comes successful relationships with consumers. By creating and maintaining positive social relationships, productivity and sales will be able to increase tremendously.

E-lancing job categories

Today's current and available e-lance categories are as follows:

• Information technology, and programming = application development, mobile application development, software development, and website development
• Design, multimedia, and architecture
• Writing, and translation
• Data entry, and administration
• Engineering, and science
• Business management = accounting, finance, human resources, manufacturing, marketing, product outsourcing, and sales
• Legal

E-lancing websites

The following list contains e-lancing websites that are currently in service:

• ELance
• Freelancer.com
• Guru.com
• oDesk
• vWorker (owned by Freelancer)
• iFreelance

References

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