TopCoder
Developing software through crowdsourcing
How TopCoder came about? Jack Hughes
Tallan Inc. (Business Data Services) Sold for $920M
Lessons learnt from Tallan?
Not happy with the operations of Tallan
Expensive and time consuming recruitment process Evolving technologies results in high employee turnover rate More can be done to save clients time and money
Crowdsourcing was the solution!
TopCoder v1.0 Consulting Business Model
Host competitions with monetary rewards from sponsors
Build community strength Gain popularity
Winner gets a job with the sponsor
HR firm
Looking to hire
TopCoder
Held Competitions
Winner got hired
Client
Crowd
TopCoder v2.0 Competition Based Model
Crowd sourcing Software Development Tasks of Software Development Process
Task
v.2.0 Conceptual Specificatio ization n PM PM Architec ture PM Component Production COM Application Assembly PM Certific ation PM Deploy ment PM
Looking for software application
TopCoder
Held Competitions
Winner got rewarded
Client
Crowd
TopCoder v2.1 Competition Based Model
Dissatisfied with $20 mil in revenue Platform Managers costs too high Tasks of Software Development Process
Task v.2.0 Conceptual Specificatio ization n PM
PM & COM
Architec ture
Component Production COM
Application Assembly PM TopCoder
Certific ation
Deploy ment
v2.1
PM Looking for PM & COM software COM application
PM
COM Held COM Competitions
PM PM Winner got PM & rewarded PM COM
Client
Crowd
No. of Clients vs. No. of PMs
60 50 40
30
20 10 0 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
No. Clients No. PM
Total Revenue vs. PM Cost
7 6 5 4 3 2 1 0 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Revenue PM Cost
Why was there a decrease in revenue?
Switched from hourly based consultation to monthly fee
Distributed revenue over months instead of concentrated billing
Increase of prize money
Because of more contests
0.3 0.25 0.2 0.15 0.1 0.05
Revenue/PM vs. Revenue/client
Revenue/PM Revenue/client
Types of Competition
Algorithm Competition
Attract new members Retain existing members
Software Development Competition
Provide clients with specific solutions Expand TopCoders catalog
Algorithm Competitions
Timed competitions Available in Java, C#, C++ & [Link] Single Round Match consists:
Coding Phase Challenging Phase System Testing Phase
Example of an Algorithm Competition
Example of Algorithm Competition
Input - 123210122 Output - 011100011 Encrypt by adding to each digit to the sum of the adjacent digits
[0+1], [0+1+1], [1+1+1] etc.
How does it attract & retain the TopCoder Community
Think about your lab practices/tests
Challenging Prove your worth Self improvement
Motivating members
Money is the most attractive thing TopCoder ratings Peer reviews
Community
TopCoder Community Activeness & Earning Distribution
Active Pool Latent Pool Other Earners Top Earners
82.5% 17.5%
95% 5%
How to motivate the latent pool?
Monetary Award
$50 for successful compilation of code by latent pool (for 5 rounds) 1.5 times prize money if they are the winner
Prospective Jobs
Advantages
TopCoder
Increase Profit Higher Product Quality Happier Customers Increased Catalogue Size
Community(Crowd)
Better Feedback for their work Enrichment Flexible time Flexible Income
Advantages contd
Clients
Reduced cost Increase efficiency More ideas Better quality
Economy
Cost savings of the client will be passed on to the consumers
Disadvantages
TopCoder
Higher cost incurred for evaluation Possibility of lost of community Higher cost incurred to manage projects
Community(Crowd)
Reduced prize money Possible little or no credit
Disadvantages contd
Clients
Possible lost of IP Possible lost of security Possible lost of control of project
Economies
What happens to companies using the conventional model of sourcing?
Examples
Future Of Crowdsourcing
The increasing complexity of problems has caused a rise in mass collaboration
Big problem broken into small problems for a huge group of participants to solve
Supplying a way for companies to engage with and harness the crowd for help
More ideas More efficient More creative
De facto standard for prospective employee evaluation
Musician Pete Seeger: Participation is the only thing that is going to save us from global warming
