Sourced with compliments from http://www.ebizq.net/blogs/enterprise/2009/09/crowdsourcing_5_reasons_its_no.php
Next-generation enterprises looking to drive efficiency and innovation have recently been able to tap into online communities to offload work. For the first time since outsourcing became prevalent in the 90s — making it easier to move tasks out to partners that could do something better or more cheaply than you could — businesses now have a new, potent, and often far cheaper option thanks to the Web.
Frequently referred to as crowdsourcing, and a darling of the Web 2.0 industry, it has recently come of age as the tools and marketplaces for on-demand work capacity on the network have expanded far beyond the early volunteer communities that originally proved out the concepts. These pioneers, which include the world of open source software and online services such as YouTube and Threadless, get most of their value from a large group of people or community through the simple use of an open invitation.