Will Crowdsourcing Cost Some Folks Their Jobs?

Ann All

In an economic downturn, mass layoffs like those just announced by Intuit, which intends to slice 7 percent of its workforce in a reorganization, aren't too surprising.


But there is a somewhat surprising element to the Intuit announcement, highlighted earlier this week by ZDNet's Tom Foremski. During a presentation at Fortune magazine's Brainstorm conference, Intuit CEO Brad Smith spoke about the company's efforts to tap into the power of the Internet to better serve customers. In the video included with Foremski's post, Smith mentions that as part of that effort, the company has recognized that in many cases, customers can deliver higher value to other customers than Intuit employees can. He says:

... Are we paying employees today to do the work that our customers would volunteer to do, and actually do better than us?

He notes that after Intuit put a Turbo Tax Live Community feature into its popular Turbo Tax software, 40 percent of customers' questions were answered by other customers, with a higher degree of accuracy than ever before, and at no added cost to Intuit.


I remembered mentioning Intuit when I wrote about companies using social networking for business advantage. I tracked down the post from September of 2006 and found a similar reference to what Smith calls "innovation in an age of customer empowerment." It said that some 70 percent of inquiries on Intuit's Quicken forum were being answered by customers rather than Intuit staffers. It also mentioned Intuit planned to beef up the forums with blogging and podcasting tools.


So will crowdsourcing cost some folks their jobs, as Foremski implies? It's possible, though not all that likely in the near term. I suspect only a tiny portion -- if any -- of the 575 jobs Intuit plans to cut are related in any way to its crowdsourcing efforts.


Still, companies are moving toward using more outsiders to accomplish all kinds of tasks, from Facebook's enlistment of users to translate its visible framework into two dozen languages to Microsoft's offering development tools to gamers in hopes some of them will create new games for the Xbox. To its credit, Microsoft does plan to share some revenue with game creators, reports ZDNet.


If crowdsourcing continues to gain in popularity, might there be a parallel with self-service technologies? After all, most of us have probably contributed to job losses by performing tasks such as booking our own travel online, scanning our own purchases at retail stores, or heck, pumping our own gas. These were all tasks once more commonly performed by third parties, until many of us decided it was quicker, easier and more convenient to do them ourselves.

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Add Comment      Leave a comment on this blog post
Jul 29, 2008 8:36 AM Bill Mackey Bill Mackey  says:
Didn't I just read a few weeks ago in a computer publication (Computerworld? eWeek?) that Intuit was one of the Top 100 IT places to work at in the US? I remember it because it was highly ranked. Reply
Jul 29, 2008 4:44 PM ha ha  says:
If Intuit thinks they are going to harness the crowd to their advantage they are smoking something. You can't replace quality service. This kind of thing works with open source projects, but will not work with a closed sourced platform. What incentive do people have to generate quality information? Whats going to stop people from exploiting it? Why would a customer volunteer to help another customer for Intuit's profit? my advice: sell INTU, the management has been getting progressively worse for years. Reply
Aug 7, 2008 12:18 PM Susan Susan  says:
As companies that provide their users with online communities have long known, if you give them a forum, customers will jump at the chance to help their peers. They will spend hours of their own time, sometimes on a daily basis, just to answer questions posed by other customers. Their only reward is recognition and the thanks of other community members. I can't speak to @ha's comments on the performance of Intuit's stock, but in harnessing the power of an online community, Intuit is minding their own business and doing it well. Reply

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