Topcoder: Developing Software Through Crowdsourcing

TopCoder: Developing Software through Crowdsourcing

This paper will analyze the traditional software development process compared to the methods used by TopCoder as described in the case “TopCoder: Developing Software through Crowdsourcing” by Karim Lakhani, David Garvin, and Eric Lonstein. After presenting the characteristics of each process, I will give reasons why one option might be preferable.

When CIOs are faced with launching a software development initiative, they can choose one of two ways of managing the project. The project can be managed internally if the company has capable programmers, however most projects require some degree of outsourcing to an IT consulting firm or independent programming contractors. Consulting firms assign teams of programmers to work with the IT project managers in every step from conceptualizing the design to implementation.

Working with IT consulting firms or hiring programmers is a very expensive undertaking for an IT department. If programmers are hired internally, their salaries are over $100,000 per year and are often replaced every three years because their expertise becomes outdated. Depending on the size of the project, consulting firms charge hundreds of thousands of dollars. Projects typically take much longer than projected, have a multitude of bugs needing to be fixed, and clients may not end up with the functionality their business needed.

Using crowdsourcing for software development presents a unique third option to the CIO. In this model, utilized by TopCoder, top programmers from around the world design the software through online communities managed and regulated by TopCoder. Competitions based on the client’s software design specifications are released to the community of programmers who work on the best solutions within the given time frame. Cash prizes and programming prowess lures some of the best programmers in the world to develop solutions for the client’s software. Based on the complexity of...