Why millenials are choosing freelancing over well paying corporate jobs

A survey of the american workforce conducted by Freelancer Union reflects that 53 million americans are currently self employed. This represents approx. 34% of american workforce. This number is expected to grow to 63 million which is half of the american workforce by 2020. This means around half of the american workforce would not be in a full time position in a company. Similar statistics exist for european countries. A survey conducted by European Forum of Independent Professionals reflects that freelancing is rapidly increasing in all european union countries and show an average increase of 45% from year 2004 to 2013. Of these, Netherlands, Poland, France and UK have experienced highest growth rates ranging between 60% and 90%.

I believe this phenomenon is here to stay. It will change not only the work culture and corporate structures but also definition of work, lifestyles, incentives, social structure and social interaction. To really understand the scale of its impact, it is important to understand the reasons that influence a person to choose freelancing over a well paying job. One such important reason, I believe, is change of the environment / ecosystem in which the next generation has been brought up. 

The life experiences and the ecosystem in which a generation lives defines its values, perception of life and what it takes for granted and what not. Between the period 1800 to 1950s, world was experiencing a period of turmoil. More than half of the world was colonised by a few countries, there were world wars, epidemics, renaissance, revolutions, breakdown of kingdoms, holocaust etc. The period saw extreme uncertainty and political and economic instability. Life expectancies were short and generations were occupied in the struggle for daily survival and economic security. When businesses emerged and provided job opportunities, the generation welcomed it as it provided economic stability, retirement benefits, job security and opportunity to move up the corporate ladder promising more income. This cycle of routine life and climbing up the corporate ladder provided meaning to the generation at that time which was brought up in insecure environment lacking basic comforts.

However, the situation has changed now. Millennials have been brought up in a relatively much friendlier environment which is economically and politically more stable and socially secure. They presume the routineness of life, physical safety and job security. A routine 9-5 job feels rigid to them. A report published by Elance-oDesk says that 85% of Australians believe that the traditional 9-5 working model does not suit workers in 2015. They aspire for freedom from routine and structured life. They are less concerned with traditional metrics of success, like savings, owning big houses, expensive cars and are unimpressed by corporate defined designations. Flexibility of work hours, entertainment, leisure activities, spending time with family are whats more important to them. They demand more control over their lives. They have an apetite for higher risk and adventure.

Freelancing fits well in this role. Infact, this could be the reason that people higher up in the corporate ladder are the first ones to leave and opt for freelancing. They are the ones with more job and social security and can thus, afford to take higher risks.

 

Where are we headed? (Part III)

Originally posted in November 2006.


I finished my last post with an observation that the chaotic changes taking place around us are in fact, driven by three distinct forces – our ability to move information quickly over vast distances (networking), our ability to process tremendous amounts of information quickly (computing) and our ability to store tremendous amounts of information (storage). It is in the interplay of these potent forces that we can understand the bewildering changes taking place around us and where they are leading us. It is also important to understand that the development in these areas is not necessarily pointing in the same direction. We will discuss this as we go along.

Having said that, we must begin naturally from an examination of the state of the art in these areas. Lets start with storage.

In the desktop drives market, Seagate released a 750 GB model based on perpendicular storage technology in April of 2006. Perpendicular storage technology allows much higher amounts of information to be stored on the same disk area thus allowing much higher capacity disks. While these disks will still take some time to become mainstream, 160 GB disks are extremely common these days with 80 GB disks being the entry level across most segments. For recent entrants into the computer-user world, this might not seem like a lot. However, at a time not long ago (a time which even I can remember distinctly even though I’m only 22), 4 GB disks sounded like overkill to most people. Today, 4+ GB DVD disks are available for as low as Rs. 15 – and DVDs are old technology. The latest entrants fighting for supremacy are the Blu-Ray and High-Density DVD disks offering, at the higher end, storage capacities of 50 GBs. And even as these technologies struggle to get to the retail market, scientists around the world are trying to fit more and more data into disks of similar sizes. On the flash memory drive side, the latest entrant is a 16GB pen drive that you can carry around your neck – and this was in March of 2006. These are all products available in the retail end-user segment.

On the server side, the story is even more mind-boggling. Companies like SGI are offering storage capacities in excess of 400 terabytes (a terabyte is 1000 gigabytes) in a single system with access speeds of 2.5GB/s and higher. The internet archive is on its way to creating a machine capable of storing and managing 1 petabyte (which is a thousand thousand gigabytes). To put this in perspective, the entire text within the Library of Congress takes up only about 20 TB of space. However, several organisations around the world have space requirements running into several petabytes. And this requirement will only grow. We’ll come back to this point again later.

Moving to networking. Again, several things are happening in the area of networking. A very visible effort taking place is the process of covering entire cities with wireless network access (for example, this is planned for the city of Pune). The idea is that wherever you are in the city, you should have access to the internet. Ubiquitous networking. And the hope is that this will spread to more and more cities until most populated places on the earth are network enabled. The other process is, of course, the increasing availability of wired broadband access in more and more cities. Broadband penetration is increasing rapidly and more and more people are getting on to the internet. In parallel, optical bandwidths have gone through the roof. In a recent breakthrough, researchers at NTT were able to pump 14 terabits of data in a second over a distance of 160 kilometers. With a still-in-research technology called “All Optical Networks”, these speeds are set to be dwarfed. We’ll discuss the possibilities opened up by such speeds in another post.

The story on the computing side is also very exciting. 4 GHz processors are common on desktop PCs today. This is almost 400 times faster than an average PC only 12 years ago (when I got my first one). 3D gaming freaks are pushing even this to its limits and it is almost necessary to have high-performance graphics cards to play the more and more closer-to-life 3D simulation games. The sheer computing power available to an ordinary user today is mind-boggling by even very recent standards. As if PCs were not enough, mobile devices are pushing the computing envelope very rapidly. The Nokia N-Gage phone sports a 104 MHz processor in a package weighing a total of 5 ounces (140 grams) and the Palm Treo 700p flaunts 312 MHz of processing power in a 111x58x23 mm package. Many of us reading this probably remember owning and using PCs (the famed Intel MMX 200 MHz machine) with less computing power. At the higher end of the spectrum, companies around the world are trying to smash through the 1 petaflop barrier. With brains like that of Dr. Narendra Karmarkar (creator of the famous Karmarkar’s algorithm for optimization problems) at work on this problem at Computational Research Laboratories (CRL), such a machine may be available sooner than we expect, opening up tremendous opprotunities for research into biotechnology, cosmology, defence and a plethora of other fields. Even companies like Google, Microsoft, etc are building up huge computational capabilities to support the paradigm of software as a service. In this way, compute power is increasing at all ends – the mobile and embedded devices, PCs as well as compute-clusters available with corporates.

This increase in capabilities at both ends of the spectrum seem counter-intuitive to many. On the one hand, SaaS (software as a service) is gaining currency and it seems that all heavy-duty data processing will take place on centralized servers, thus obviating the need for high-performance systems at the user-end. On the other hand, more and more applications are being pushed onto mobile devices raising the requirements of low-power high-performance computing in small packages. In this tussle, what is the fate of software and the end-user? What will happen to the PC? Will my refrigerator actually speak to the supermarket? I’ll try to examine these questions in posts to come.

Where are we headed? (Part II)

This post originally appeared in October, 2006


In the last post, I seem to have given all the credit to wireless communication, saying that it led to the ultimate speedup. Yet I contend that computers are a key ingredient to what we are observing today. And here I will explain why I think so.

Wile the invention of wireless communication (and indeed, electronic communication in general) was indeed a quantum leap, it speeded up only part of the process of change. Change is the result of two very distinct activities. One is, of course, the dissemination of ideas/information. Clearly, however, there is the creation of ideas/information that is a critical activity. Speed-of-light communication allowed the quick transportation of information. However, now the bottleneck in the process of change shifted from transport of information to the generation of information. Initially, this is where computers created the greatest impact.

Computers were mammoth machines crunching numbers at phenomenal speed. Suddenly it became possible to make sense of a much larger amount of information. This naturally led to a greater speed of generating ideas. These ideas could be related to particle physics or national demographics. Calculations which would take days could now be done in a matter of hours, allowing new ideas to be tested much more quickly. Printing presses and electronic communication allowed data and research papers to be sent around the world at tremendous speeds while computers allowed the validation and generation of new ideas. Part of this research fed back into developing better and faster computers, better storage technologies and reliable communication technologies. Now both components of change were operating at superhuman speeds. The plan was set. What we are observing today is this result of an interplay of this tremendous computing power and communication speed developed by man over the millennia in a series of steps that would seem only natural.

At this point I would like to reiterate something that is oft forgotten in any discussion of technology. It is the fact that communication speed-up is a phenomenon quite distinct from the increase in raw computing power, which are in turn quite distinct from the increase in our capacity to store information. It is true that these three forces affect each other dramatically and often depend on each other for their own growth. However, keeping this fact in mind can help us understand much of this apparently chaotic change around us much more easily.

Where are we headed? (Part I)

The following was posted on my personal blog back in October, 2006. I’m re-posting this here as a sort of baseline from which we will build upon, going forward. This was the first of three blog posts, each of which I will post here.


I have this habit of giving “gyaan” to people… to the extent of being called a “Compulsive Gyaan Giver” even by some rather tolerant people. Usually this gyaan can be about any of the numerous aspects of life or the world. One of my favorite subjects is technology. I sometimes end up spending hours talking about the kind of things happening in networking, computer hardware, storage, the web, etc. Recently, I got asked a very pointed question – “You keep talking about all the things that are happening. But do you really know what this will result in eventually?”. There are two problems with this question. One, that there is hardly a notion of an “eventually” in this matter; and second, to really make a guess as to where this will lead to in the next 8-10 years is anybody’s guess. If I were to hazard a guess today and I happen to become an eminent person someday, I will be jibed at for being either very outlandish in my expectations or being too conservative. I’ll take that risk nonetheless; if for nothing else than to make nature want me to be an eminent person. To explain where we are headed today, I’ll start from distant history, borrowing ideas freely from several sources (not all of which I might remember), but especially from two people I consider to be real visionaries, Alvin Toffler and Bill Gates.

People often attribute the rapid change they are witnessing today to some inventions that took place a couple of decades ago. They are partly right. They are right to an extent that computers (and communication networks) helped accelerate the process of change to a speed where it is noticeable by a single generation. This speed-up has led people to pay attention to the process of change and makes them attribute the change itself to computers. (I will write about why computers are not the only method by which this speedup would be possible, but more on that later). The speed-up in change that has occurred in the past few decades has also caused uneasiness resulting in the kind of questions I was asked – “where is all this leading?”.

Toffler explains that the uneasiness because of change in society today is not because of the change itself but the pace of change. He says that the pace of change has effects on people irrespective of the change itself. The kind of change that in earlier ages took place over several generations, with the situation not changing significantly within one lifetime, now happens in 20 years or less. The amount of change that people had to cope with in previous ages was negligible compared to the changes an average individual copes with today. Computer systems become obsolete days after they are purchased, telephone tariffs plummet by the day, airplane fares fluctuate by the minute and new ticket booking mechanisms spring up every few months. However, what Toffler fails to explain is why these changes take place at an increasing pace. I will first make my case for why this change is necessarily going to be accelerated.

All change is driven by information/knowledge. In that sense, the first seeds of change were sown when man developed language. As soon as man found a mechanism for communicating ideas, he had stepped over the first hurdle. Now it was not necessary for every individual to discover a better way of doing things. Once an idea came into being, it was not lost with the individual. It was preserved by being passed on to others of the next generation. This was the foundation stone of the huge edifice of knowledge we stand in awe of today. With only a spoken language, however, which could not overcome the barriers of time and distance effectively, the diffusion of ideas was slow. Of the many ideas that were built on top of the initial ideas passed down by word of mouth was the idea of writing. Writing added a new force to ideas, a new permanence. It added speed to the dispersal of knowledge.

Somewhere in this stream, the wheel was invented. Not only did the wheel provide mobility to men, it added, more importantly, mobility to knowledge. Thus, the wheel, which was a knowledge product helped in the propagation of knowledge itself. With the wheel to cover distance and writing to carry knowledge over time, the basic requirements were established. The first river valley civilizations were born. Ships, a much later invention, allowed man and his ideas, to travel all over the globe. Now, an idea born anywhere on the planet did not need to be confined to that part of the planet. It still took months or years for an idea to travel to other continents, but suddenly the world was one, for the first time in history.

The printing press, as is widely accepted, was the next stepping stone. Now more people had access to knowledge than ever before imagined possible. Knowledge started slipping out of the hands of the few elite in society and started trickling to all its members. Now even more minds were available to build on previous knowledge. The renaissance was a direct result of this access to knowledge. Where there were once 10 minds creating ideas, there were now 10000. The speed of generation of ideas increased and so did the speed of change. At this point, change came up to a pace which was visible to people. And it led to the first revolution (the industrial revolution), when man invented the steam engine and railways. Faster dispersal of ideas resulted, accelerating change. Next came a quantum leap – wireless communication. This single invention speeded up the flow of ideas/information by a factor of several millions. Messages that took days or weeks aboard a ship or a steam engine were now transmitted instantaneously.

An examination of this growth from the invention of a language to the invention of wireless communication will show that the acceleration in the creation of ideas (synonymous with change) is the result of the creation of ideas themselves. Writing, ships, the printing press and wireless communication were creations of the very ideas which they then helped propagate at higher and higher speeds with greater and greater reliability.