Freelancers vs Custom Software Development Companies: Whom to Choose?

Sooner or later, any project reaches the point, when the idea is formed, and you need to decide whom you will confide to put this idea into action. You start thinking of hiring a development team. Also, you may have heard that cooperating with freelancers is a good option, but there are still some doubts. To some extent, your doubts are justified, but let us take a more profound look into this question.

In a nutshell, there are tasks that are more suitable to be performed by freelancers, while some tasks should better be entrusted to a large-scale contractor. So, whom to choose and when?

Pros and Cons of Cooperating with Freelancers

Pros:

• Cheaper rates. In most cases, you will save up to 30%, choosing a freelancer over a software development company, since you don’t need to cover operating costs.
• High skills in their branch. Freelancers often refine their skills in one specific area for years, so you may expect to find an excellent single-skilled expert for your task.
• Flexibility and availability. Freelancers are called so not for nothing: they prefer and are able to work in flexible conditions. Besides, they are easy to be found on various freelance platforms.

Cons:

• Issues with finding a right person. An abundance of players at freelance markets may be confusing. There is a good strategy to select people with a proven track record and successful past projects. A good freelancer is a good communicator. He/she pays attention to details, asks right questions and expresses interest not only in getting money from you but also in the success of your product.
• Availability issues. One freelancer can only work on one project at a time. Even if you hire several freelancers, they may be geographically dispersed, with all the consequences that come with it — they do not work as a team, and it is difficult to control them.
• Manageability and communication issues. Often it is hard to set up a workflow and maintain an efficient communication when you hire freelancers. They can disappear any time, fail to meet deadlines etc. You may hire separate remote specialists to handle your project, but it will inevitably entail manageability problems.
• Legal issues. If you care about your confidentiality, the least measure would be to sign a non-disclosure agreement with your freelance developers. But even in this case, you need to acknowledge all the risks.
• Maintenance and support issues. Let us not palter with the truth: many freelancers care more for their profit, but not for the profit of your business. It means they are interested only in the part they directly participate in. They want to finish their task and get the money the sooner the better. Further development of your business and post-launch support are not their priorities in most cases.

To cut it short, hiring a freelancer can be a good choice in cases when:

• Your project is small and you don’t need a profound post-launch support.
• It doesn’t require a very wide range of skills.
• You are on a budget and ready to receive a moderate quality for a moderate amount of money.
• You have enough time in case some unpredictable situations occur.

Pros and Cons of Hiring a Custom Software Development Company

Pros:

• A comprehensive vision of your project. While software development agencies gather various professionals under the same roof — programmers, designers, project managers, technical writers and quality assurance engineers– they offer a full cycle of development services with a fully-fledged support at all the stages. Besides, you may obtain a professional consulting, business analysis services, get advice regarding monetization strategy etc.
• A well-organized workflow and communication. You receive a timely feedback, and the risks of not meeting a deadline are minimal thanks to the well-tuned cooperation of project managers and other team members. You always know at which stage your project is at the moment.
• Wide experience. While a freelancer may be a superb professional in some area, in most cases he/she cannot compete with remote development teams when it comes to multiple functions and wide expertise in different areas. Usually, development companies have wider expertise.
• Better security. Companies usually care more about their reputation, and thus they care about the security of their clients. They are legal business entities, and this fact allows arranging the whole process without any potential legal issues involved.
• Support at all stages. Companies offer lasting relationships, which is profitable for both parties: companies gain and develop their reputation, and clients get a quality product and continuous updates and support.

Cons:

Probably, the only disadvantage here would be costs. Developing agencies indeed stick to the rates that are higher than the ones offered by freelancers. However, there are still some options here. The most expensive are the services offered by specialists from the United States and Western Europe. Not all the startuppers can afford it off the reel. However, there are some alternatives. For instance, involving a dedicated development team from Eastern Europe gives many profits to the entrepreneurs. Local specialists offer high-quality products at very competitive prices.

To sum up, hiring a custom software development company is preferable when:

• Your project is large.
• You need wide skills and experience from your team.
• You want to eliminate the risks, associated with legal issues and deadlines.
• You need superb manageability, communication, and support.
• You are ready to pay more for high quality.

All in all, collaboration with freelancers may be associated with a range of problems that very rarely happen when you hire a dedicated team from a development company. Besides, freelancer’s initial tempting offer of low rates may lead to dozens of re-doings, which finally can require even more money.

Working with a large contractor, you are indemnified from many unexpected surprises that may spoil your mood and the launch of your software product. Apart from the previously mentioned reasons, your confidential data and precious ideas are safe and sound, your project is handled in compliance with approved standards and methodology, and you get guarantees regarding your product’s development.

Anyways, any option has its justifications. Whichever option you choose, you care about your business in the first turn. Just like we care about our clients’ startups and our reputation. You may check what we may offer you right now. We have a substantial experience in many multi-sided projects.