According to new research from the REC (Recruitment and Employment Confederation), published in CIPD (Chartered Institute of Personnel and Development) the use of digital talent platforms, which connect freelance workers with companies and individuals who require their skills, is growing rapidly in the UK.

Nearly a third, or 31%, of employers surveyed by the REC said they had used freelancing platforms such as Upwork and TaskRabbit in the past 12 months. And 29% of business decision-makers predicted that digital work platforms would play a more important role in their organisations in the next five years.

“They give SMEs access to the global skills market for the first time,” Kevin Green, REC’s chief executive, said. “Workers can work flexibility and are in charge of their own pricing mechanisms.”

Last week, Staffing Industry Analysts published an update on ‘The Human Cloud and Gig Economy’ which is available to research subscribers. According to this research, in 2015, 45 Human Cloud firms generated more than USD 25 million in revenue, the largest being Uber, Didi Chuxing, and Upwork.

“The biggest concern if you’re a freelancer is where the next contract is coming from. Platforms provide more avenues for freelancers to find work that suits them,” Chris Bryce, chief executive of the Association of Independent Professionals and the Self-Employed, said.

But critics warned that the platforms, which offer employers the choice of setting a fixed price for a project or inviting people to pitch for the work and set their own price, make it easier for organisations to pay less for work. Intense competition for jobs – especially from overseas workers – is also bringing down market rates.

“Anyone putting work out for tender on these sites has a responsibility to make sure individuals are paid a decent hourly rate,” Green said. “If these sites end up undermining some of the fundamental regulation and legislation we have in place, we’d certainly demand action from government.”