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Freelancer or contractor: how to cope with the pangs of choice

by alex

In the IT industry, freelancers are often involved in projects/The Payoneer Blog

Business or startup owners outsource software product development for many reasons. Read more in the exclusive blog for Channel 24 website.

How to choose a reliable project contractor

Experienced clients do not experience difficulties at this stage, but people who are considering hiring freelance specialists for the development of web and mobile applications for the first time face a dilemma: who to choose – a freelancer or a contracting company?

While partnering with a company to work on a project or product is usually an option for large companies and enterprises, the freelance freelance niche should not be neglected. Such specialists provide services to small and medium organizations, start-ups and can facilitate the work on the project.

Whether an organization is leaning towards hiring a freelancer or a company, it is always important to carefully examine the portfolio of both the former and the latter. This, of course, should be supported by feedback from other clients, taking into account both professional and soft skills.

To begin with, in order to minimize risks, we recommend signing an agreement. This will contribute to the timely and proper implementation of the agreed agreements on both sides within the terms specified by the agreement. When looking for a reliable and qualified software development service provider, whether freelancer or company, always analyze all the pros and cons, take into account potential risks and keep in focus the plans you have developed for your business.

Work with contractor company

Hiring a software development company is a more reliable choice in terms of professional performance, working relationships, end product quality and security. Such companies, as a rule, consist of various kinds of experts to provide a full cycle of services.

The advantages of working with a company include:

  • technological base and expertise, because companies offer a wider range of technologies and can perform several tasks at the same time, which does not affect the quality of the work performed.< /p>

  • The presence of contractual obligations ensures the timely implementation of the project.

  • With the company you get a team of professionals who already get along, minimizing communication difficulties.

  • Many companies have ongoing training programs for their team to help improve service delivery.

  • Companies and all team members sign contracts and NDAs confirming their responsibilities, roles, legal responsibilities and non-disclosure of any information related to the project. Offices are often protected and safe according to standards and regulations.

Cons of working with a company include:

  • higher cost – developers in the company cost more than freelancers, and if the project team consists of several developers who will work for several months, you need to be prepared for a higher price for the work.

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  • There are thousands of companies offering often the same set of services, and choosing the best option can be quite difficult, than to hire a freelancer.

  • Working with a freelancer

    Freelancers are often hired for a specific project with a simple agreement: do the work and get paid. Partial prepayment is also practiced, freezing the amount until the project is completed for additional guarantees, etc.

    The advantages of working with a freelancer:

    • usually freelance developers cost 20 to 30% less than software companies.

    • Easy to find, there are many platforms where you can find the right person and start working with them right away.

    • As a rule, freelancers are great experts in their field, as they have the opportunity to study this or that area.

    • Unlike full-time workers who have certain rights under the law, freelancers work under a contract. All that remains is to pay for the work done.

    Working with freelancers has its downsides:

    • Lower guarantees of client information confidentiality. In addition, it is difficult to determine the legislation that the parties adhere to. Permanent work from home does not provide the necessary level of information security.

    • Freelance developers often work independently on several projects at the same time, and there is also the risk of losing contact for days or weeks.

    • If in the middle of a project it turns out that you need to attract a specialist from another industry, you will have to look for and hire another freelancer.

    Choose a contractor based on your needs

    Companies tend to charge higher rates for their services due to the high costs and variety of activities they perform. Therefore, mostly large companies, small and medium-sized businesses, first of all, hire contractors, not freelancers.

    Small businesses or startups usually turn to freelancers for help with a specific task. If an organization is on a tight budget and doesn't have a finished product yet, then hiring a freelance specialist might be a good option.

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