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Description: Understanding the Development Implications of Online Outsourcing (OO) Fareesa Malik Brian Nicholson Richard Heeks Agenda OO and development Conceptual frame DFID livelihoods Methodology Analysis Conclusion OO development policy

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slide1. Understanding the Development Implications of Online Outsourcing (OO) Fareesa Malik
Brian Nicholson
Richard Heeks<br>
slide2. Agenda OO and development
Conceptual frame – DFID livelihoods
Methodology
Analysis
Conclusion<br>
slide4. OO development policy interventions NaijaCloud initiative in Nigeria
Malaysia: eRezeki Started in 2011 as Microwork for the B40
Free market vs. “Walled Gardens”
Philippines Rural Impact Sourcing initiative<br>
slide5. Streams in the OO literature “Human cloud” management literature
Critical research pessimistically views OO as a “digital sweatshop”

Development?<br>
slide6. Research questions What drives those in marginalised groups to engage in OO?
What are infrastructural and institutional ecosystems required, particularly addressing barriers to OO for marginalised groups?
What are the short- and longer-term impacts of OO?<br>
slide7. DFID Sustainable Livelihoods Framework Policies
Institutions
Processes Vulnerability
Context Livelihood
Strategies<br>
slide9. Pakistan: KP Youth Employment Program: Khyber Pakhtunkhwa province. Target 40,000 unemployed and under-employed youth with freelancing.<br>
slide12. Vulnerability context – human capital “…..the problem here is that our job market is very poor. We do not have industries here” (RE – Project Coordinator, KADO)

“The problem is that we live in GB; which is itself a conflicted area. That is why the government is not doing much investment for prosperity here”( EJ-Project Manager KADO)

“The reason is it’s the front line of extremism. The next biggest issue is unemployment. Both of these issues are interrelated because when there is unemployment the chances of frustrated youth to be involved in terrorist activities would be higher.”(SK–Project Manager, EP)<br>
slide13. Vulnerability Context – physical capital “We don’t have high speed Internet and full time electricity in this area. So we don’t have basic things for freelancing.” (SA – Trainer, KADO);<br>
slide14. Mediation Effect Social relations
“My parents are uneducated. So, they won’t understand freelancing. They just want that their son to go to the office, use a big car and work on some important government position, and people can praise them how successful is their son.” (HU – Trainee, KADO)<br>
slide15. Mediation Effect Institutions
“I think the system of Freelancer and Upwork is very tough. ... I cannot work on that level. I made an account on Upwork but we have some difficulties there. We had some problem in creating a profile there. I cannot do work in English correctly. Sometimes, they cancel the jobs. We do not understand what they are talking about. Sometimes, they give us poor rating. That is also a dead block.” (WA – Trainee, KADO)
Upwork has changed its policy of minimum work wage. Previously, they had allowed working for US$1 per hour. Later they fixed it to minimum US$3 per hour.” (RE – Project Coordinator, KADO)
Organisations
“I completed my first online outsourcing project with the help of one or two of my friends.” (MU – Trainee, KADO)and “I have recently guided my cousin about freelancing.” (NU – Trainee, KADO)<br>
slide16. Capital Assets and Livelihood Outcomes Financial capital
Sinking, Struggling, Surviving and Swimming
“I applied for around three to four hundred jobs, and then I got one job. It is not an easy task. On Upwork, there are millions of freelancers. We have to compete with them.” (NU – Trainee, KADO)<br>
slide17. “I am earning twenty five thousand to thirty thousand per month ($250 to $300). When I will become Level 2 seller and would get more orders in freelancing projects. The one which I did in the morning, it was of $30 and I did it in three hours. Now, one of $60 and two of $90 are left to deliver.” (MK – Trainee, EP)<br>
slide18. Capital assets - outcomes Human capital
“the technical skills for freelancing such as e-marketing, blogging, search engine optimization, graphic and web-designing” (EJ – Project Manager, KADO)
“They even teach us how to write cover letters. Also, they taught about proposal writing, means they told us everything about how to deal with the clients. I am getting a new skill, which I have not learnt before. There is growth on personal level as well. I won’t be able to talk to you had I not been doing a job. I had very less confident.” (MK – Trainee, EP)
“The one-week freelancing training is sufficient for the people in cities who are experts and highly qualified with MCS, MBA, MBBS Degrees. …. However here, we have to engage the trainees with us for six months so that they can learn how to communicate with the clients.” (EJ – Project Manager, KADO)<br>
slide19. Conclusions What drives those in marginalised groups to engage in OO?
What are infrastructural and institutional ecosystems required, particularly addressing barriers to OO for marginalised groups?
What are the short- and longer-term impacts of OO?<br>
slide20. Malik F., Nicholson B., Heeks R. (2017) Understanding the Development Implications of Online Outsourcing. In: Choudrie J., Islam M., Wahid F., Bass J., Priyatma J. (eds) Information and Communication Technologies for Development. IFIP Advances in Information and Communication Technology, vol 504. Springer
http://www.springer.com/gb/book/9783319591100<br>