Did you know that more than 36% of the US workforce is part of the gig economy? And what about Singapore? Before we get there, what is the gig economy that everyone has been talking?
Here's what it actually means: Gig economy is a short-term flexible work arrangement that allows freelance professionals with specialised skill sets workers to assist multiple clients who are in need of their services.
In short, gig economy is outsourcing your work to a third party. It has been around since the 18th century when people worked on multiple jobs to make a living.
Has it been affecting Asia, Singapore in particular? To answer your question, YAASSSS!
From the latest Ministry Of Manpower report, freelancers make up approximately 8.5% of Singapore's workforce (over 220,000 workers) and predicted to keep growing. How?
Let me start by asking you, what is your daily commute? If you answer Grab, or Uber (until early May 2018), then you have tapped on the gig economy and contributed to its growth!
Outsourcing has become an increasingly popular solution to business needs, and we see it become a common practice in the business world. Small to big businesses outsource to keep their operations efficient and cost-effective. Instead of hiring a bunch of employees, you can set an arrangement with freelancers to work on your projects as you see it fit.
Outsourcing is the process of delegating business functions and activities to third-party service providers that were previously handled by internal employees or in-house professionals.
For companies that plan to expand, outsourcing is a cost-effective method to acquire business knowledge from professionals. Say if you need a web developer for your product, you can contract these on-demand skilful and experienced professionals to advise and work on the best ways to get it done. Big companies, like Google, WhatsApp, Slack, grow their companies by outsourcing.
You know what makes outsourcing better? You can easily outsource based on the project for a one-off or irregularly, as what we call it 'project-based outsourcing,' which is a trending model among businesses, especially for SMEs and startup in Singapore.
By having your secondary or peripheral projects handled by freelancers or other third parties allows companies to fill skill gaps within the company, scale fast and focus on developing and growing their core business.
For instance, in the early stages of a startup or small business where resources are limited especially cashflow, one may not be able to hire a full-time highly skilled professional eg. UI/UX Designers. Using project-based outsourcing, you can hire them for a short-term basis instead of forking out the full headcount cost. You also save cost and time in terms of finding the professional with the culture fit so you can focus on getting work done and growing your business.
Voilà! You got yourself a business strategy in place!
Is it a boon or bane for businesses in Singapore? Boon, of course!
With the rise of the gig economy, this solution is made almost hassle-free with online platforms like ZomWork that seamlessly connect clients to freelancers and service providers. Outsourcing has evolved once more, changing models of work for the future. Are you ready to be part of the future? Talk to our gig experts to get you started!