We are a Melbourne-based nearshore software outsourcing company providing world-class dedicated tech talent and development expertise to companies listed in the Australian Share Market to innovative startups who are shaping the future.

Contacts Us

Suite 37/11, Wilson St,
South Yarra,
VIC 3141.

19, Katukurunduwatta Road, Ratmalana,


1300 320 487

+94 769 360 433


Hiring a Freelance Developer vs. Hiring a Software Development Company: What’s Best for Your Startup?

Hiring a Freelance Developer vs. Hiring a Software Development
Company: What’s Best for Your Startup?”

When faced with the difficult process of bringing a fantastic new software idea to life, the initial euphoria might quickly fade away. Everything depends on the details which are the developer’s effort, regardless of the scope or ease of your concept. While having a unique concept is important, the real test is in how it is carried out.

That being said, here comes the most difficult question: Who should you trust with creating your software? Should you work with a software firm to develop websites and mobile apps, or should you hire a freelance software developer? Well, the choice is ultimately yours, but we’re here to remind you that you should think about the consequences before finalizing your decision.

In this article, we will discuss the advantages and disadvantages of working with a freelancer versus an agency to develop software for startups. By the end of the article, you will have a better understanding of which choice best meets the software development needs of your
business. So, let’s get started!”

01. Software Development: Freelancers Vs Companies

So, first of all, you must know that it’s you who pays for the whole thing when deciding between a freelancer and a software firm for your startup’s software development needs. Freelancers frequently provide greater flexibility and lower rates with a tailored approach to your project. Because of those qualities, they make the best service providers for smaller, clearly defined projects or when you need a certain skill set. But they might not be the best solution for complicated or large-scale projects where an agency’s knowledge and resources are necessary.

Yes, agencies are more expensive, but they provide stability and scalability. Those are some very valuable qualities for startups with big goals. Numerous software engineering companies provide full system development life cycle (SDLC) services, which cover the entire project
lifecycle from idea to market launch. Everything is accounted for with the great service of experienced individuals like project managers, developers, business analysts, designers, and quality assurance specialists who represent the team. Here we have listed a few aspects that
you should pay attention to, when selecting the best option for you.

  • Cost – Freelancers usually go for cheaper rates while agencies have higher rates in general.
  • Flexibility – Freelancers have greater hours of freedom while an agency would have a more systematic approach.
  • Communication – Once you’ve hired a freelancer, personal and direct contact would not be a problem but with an agency, there might be possibilities of communication problems.
  • Expertise – Freelancers are specialized knowledge in a certain field while agencies have a wide range of resources and abilities.
  • Scalability – With freelancers, it’s limited but agencies allow adaptable team scaling.
  • Quality Control – Agencies have a more structured QA process and with freelancers, it may depend on the person.
  • Maintenance – Freelancers usually don’t offer maintenance, agencies do.
  • Commitment – Freelancers are ideal for more compact, focused projects while agencies are there for difficult, multi-phase projects.

There is no one-size-fits-all answer, as both freelancers and agencies have advantages and
disadvantages. Let’s take a closer look!

02. Advantages of hiring Freelancers

Freelance software developers have the freedom to balance multiple projects according to their preferences. They sign up for brief contracts, sometimes work part-time as freelancers, or even start working full-time.

You need to keep in mind that this independence comes with possible risks. Since freelancers are prone to multitasking, it might make it difficult for them to focus on your assignment.

2.1 Easy to Find

Finding the best freelancers is now simpler than ever thanks to the digital era. You can hire qualified freelancers easily and conveniently thanks to the various online job boards and platforms such as Upwork, Freelancer, Guru, etc.

2.2 Cost-efficient Prices

Compared to agencies, freelancers often have lesser operating expenses and can charge lower prices. There are additional advantages as well. Since freelancers are not yet considered employees, you won’t need to worry about benefits, team dynamics, payroll taxes, or office
supplies. That makes them a desirable option for new firms and those operating on a limited budget.

2.3 Direct Interaction

You will be having more direct and in-depth conversations with the freelancer, and it will speed up decision-making and help you comprehend the specifics of your project’s requirements.

2.4 Commitment

You can use their services as needed without being obligated to long-term contracts. That might be a wonderful fit for initiatives with constrained scopes or short durations. This gives you the flexibility to restructure your crew as your project develops.

2.5 Specialized Knowledge

Freelancers are a great option when you need specialized knowledge for a certain area of your project because many of them have what you are searching for. They can contribute insightful observations and specific knowledge.

03. Disadvantages of hiring Freelancers

As much as hiring freelancers is a good idea, there are some successful startups and established companies that are occasionally hesitant to hire software developers from a freelance firm. You should know “why?”.

3.1 Unreliable Quality

Yes, we agree that many independent contractors produce excellent work. But there can be differences in the level of commitment to quality. The inconsistency may be caused by disparate degrees of expertise, or maybe because of lack of supervision, or the absence of a formal quality assurance procedure.

3.2 Scalability Issues

Scaling up quickly and effectively when your project expands or needs more resources may be difficult if you solely rely on freelancers because their skill sets and availability are the things that establish each freelancer’s boundaries.

3.3 Dependability

Problems As we mentioned earlier, freelancers may work on several projects at once, which may interfere with their ability to fulfill deadlines or consistently be available. Sometimes they are unavailable for personal reasons, which could cause delays in your project.

3.4 Security and Privacy Concerns

Working with a freelance software engineer might raise issues of security and privacy. The danger of data breaches or intellectual property theft may be higher because they do not have strict security procedures in place.

3.5 No Upkeep and Support

After finishing a project, freelancers might not always provide continuing maintenance and support. This will raise issues in addressing upcoming updates, bugs, or other potential post deployment activities.

04. Advantages of hiring a Software Development Company

An agency is an all-encompassing center for all development requirements. They can assist you with every step of the app production process with the expertise they have.

You will initially run into some additional bureaucracy, and you will have to negotiate NDAs, SLAs, and other contracts. There is nothing to be concerned about once the paperwork is signed. The workflow will become easy to predict, you can let go of overseeing specific contractors and only will have to rely on your project manager. You can focus entirely on the commercial aspects of your product.

4.1 Scalability of a Smooth

Team Agencies can quickly scale their teams to match your demands with the growth of your project. They have more talent at their disposal, which makes it simpler to grow and change as your project progresses.

4.2 Professional Knowledge

Teams of experienced individuals who specialize in different facets of product development can provide comprehensive abilities while guaranteeing that your project will be managed by competent and knowledgeable people. From conception through launch, a software
development organization can support your product or service.

4.3 Devoted Engagement

Software development firms frequently commit to full-time projects. Faster development times and more concentrated project management are frequently the results of this full time involvement.

4.4 Preservation and Assistance

After a project is finished, software companies offer continuing maintenance and support. They help you with upgrades, bug patches, and other issues that may emerge after deployment.

4.5 Quality Assurance

The quality assurance procedures used by software development companies ensure that your software will go through extensive testing and meet high requirements. That makes the software more reliable.

05. Disadvantages of hiring a Software Development Company

5.1 Higher Price

The higher expense of working with an agency is a major drawback. Agencies often demand greater prices than freelancers do due to their operational costs and the many services they offer. That wouldn’t be a problem as long as you’re not on a tight budget.

5.2 Restricted Adaptability

It’s possible and a well-known fact that software development firms don’t always offer as much flexibility as independent contractors. You need to understand that it can be challenging for them to quickly react to changing project requirements, given their organized processes, larger staff, and numerous active projects.

5.3 Communication Difficulties

There might be communication breakdowns when working with an agency. If your agency is an offshore software development company, it might be more challenging to provide clear, efficient communication due to the several layers of management and various team members involved.
So, it’s critical to recognize that every project is different and necessitates careful consideration of vendor selection. The final choice should be in line with corporate objectives and project requirements.

06. Taking the Best Decision

Considering everything, we may state categorically the following.

You can go for Freelancers when; Choose an Agency when;
● Tackling unique assignments that demand specialist knowledge ● Handling complicated, multi-phase projects
● Looking for economical answers for limited resources ● Requiring a diverse range of resources and skills
● Wishing for direct, one-on-one communication ● Putting a focus on structured processes and quality control
● Navigating a flexible timeline or a strict deadline ● Requesting ongoing support and maintenance
● Collaborating in short-term, targeted partnerships ● Valuing ongoing participation and long-term relationships

07. Summary

To sum up, choosing a software development business over independent contractors offers a ton of advantages that can have a significant positive impact on the outcome of your project.

On a side note, if you decide to go for an agency like ours here at UNIBENCH, you will get the benefits of comprehensive knowledge, smooth teamwork, high-quality projects, scalability, and adaptability with long-term support. You could decide between having a dedicated team where you assemble a full team to work on your application from start to finish or staff augmentation where you can employ a single developer to assist with your development work.

Get in touch with us! We will make your creative dream, a reality

Author: Teshina

Leave a comment

Your email address will not be published. Required fields are marked *