Managing the Human Cloud

Companies have increasing opportunities to tap into a virtual, on-demand workforce. But the organizational challenges of this latest wave of outsourcing require new management models and skills.

BY EVGENY KAGANER, ERRAN CARMEL, RUDY HIRSCHHEIM AND TIMOTHY OLSEN

CHASE RIEF RUNS A small media company in Newport Beach, California — or, rather, from Newport Beach: Rief Media’s 14-person workforce is scattered around the world, all independent contractors he hired through an online service called oDesk. At the other end of the size spectrum, life insurance giant Aegon has an on-demand workforce of 300 licensed virtual agents managed through another online intermediary, LiveOps. They are not Aegon employees but are scheduled ...