Online outsourcing (OO) has become apromising alternative to traditional employment in today’sdigital era. It has transformed where, when, and how work isperformed. For workers, this form of outsourcing has creatednew opportunities to access and compete in global jobmarkets, from anywhere at any time, as long as they havecomputer and Internet access. This study focuses on OO’spotential as a new and innovative channel for socioeconomicdevelopment for developing country governments anddevelopment practitioners, particularly in terms of youthemployment, services exports, and participation in thedigital economy. OO firms report that the private sector iscurrently driving most of the demand, but public sectordemand for OO is a potential source of future growth. Inorder to understand the opportunity for developingcountries, this study estimated the current size of themarket and projected its growth, and profiled OO workthrough a combination of desk research and structuredinterviews with academics, online workers, firms, andindustry analysts to better understand OO’s potential impacton human capital and employment. The study also conductedfocus group interviews with online workers in Kenya togather additional insight into the socioeconomic impacts ofOO, and carried out case studies in Kenya and Nigeria.
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