Explanations from Answers.com
Obtaining information for the general public instead of hiring professional people to do it.
For example, if a natural disaster strikes an area, locals can capture and upload images before a professional news crew arrives.
"Let the people do the work"
Amazon.com's Mechanical Turk (http://www.mturk.com/) enables people to enter a task description and an amount they will pay for its completion. A body of workers (the Turks; the crowd) peruse the job list and fulfill the task.
InnoCentive (http://www.innocentive.com/) enlists scientists worldwide to do research for pharmaceutical, biotech, agribusiness and other companies. Awards are issued for solutions that best meet requirements.
The internet is often the chief tool used in crowdsourcing.
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