We are always into a dilemma when it comes to the decision of outsourcing. The dilemma is whether to hire a freelancer or an agency contractor. After all, in today’s competitive marketplace companies are focusing best services in minimum cost. In this article we have explained some points which will help you to take outsourcing decision.

While outsourcing the projects many factors has to be consider like Quality, Infrastructure, Confidentiality, Clear Communication, Timely Deliverance and most importantly the Cost.

Before going to distinguishing the points let us understand basic differences between a freelancer and an agency contractor. A freelancer is self employed but an agency contractor can be a business entity, organization that provides services to another company.

Both have their own Advantages & Disadvantages, here are some of the key differences that will serve the decision of outsourcing and will help the all round development.

About the Freelancer:

  • Freelancer is one man army, so they may specialize in one or more areas. Very few have all the qualities that are necessary to complete the project. So the client will have to hire multiple freelancers for different aspects of the project, this will increase the cost
  • Some projects require extensive equipment and back – up database systems, technology infrastructure, network security, security measures based on specific project. Freelancers may not have resources to implement the best infrastructure; hence they are unable to meet the deadline
  • Freelancer deals with multiple clients at the same time, so it may possible they share confidential details with another clients. Also Security measures are not considered by freelancer
  • Freelancers are their own boss, more like a one man business. As the development is not viewed and analyzed properly so the chances of errors and failure of the project is high. Hence communication can be time consuming
  • Many times companies outsource projects to freelancer to save money, but it’s extremely important to ensure that the quality of the work is not compromised. It is true that a freelancer can be economical as compared to the agency contractor but there are many facts that are ignored while taking the decision
  • Freelancers are dealing with many projects, so they hardly focus on long term relation with clients

About the Agency Contractor:

  • Agency contractors specialize in multiple areas because there are dedicated teams for each department/skills/technology. Project manager on board who ensures that every aspect of the project is making progress. Expert & experienced workforce will enhance the quality of the project.
  • Smooth running of the business requires technology infrastructure to avoid unexpected failures. Proper & well maintain infrastructure needs huge investment, which only agency contractor can afford.
  • Agency Contractor takes all the precautions to protect data of the clients. They have Information Security Policies and Standards Business practices in place. Teams of experts understand the importance of confidentiality.
  • Communication plays a vital role in outsourcing contracts. Communication means not only understanding the requirement but convey it to your team of programmers for efficient output. Agency has dedicated POC and project managers to take care of timely deliverance.
  • Agency Contractor cost can be at higher side than freelancer, but you can expect good ROI from them. Before outsourcing project to company or a freelancer, analyze that they justified your fees.
  • Getting new client is one part of business, but building meaningful relationship takes time. It’s a need of hour to focus on returning customers. Agency contractor often invests in long-term relations.

The decision of hiring a freelance or an agency contractor depends on the client. To gain the desired results we should think on all the aspects and requirements of the projects to be outsourced…!