The time has come, and you’re excited about moving forward with your custom software project but should you hire a freelance developer or a software agency?

With this blog we’ll try to expose the pros and cons of each so you can make better informed decision.

Freelance Developer

Pros:

1. Cost-effective - Given that freelancers work on their own, they usually have little overhead costs, which is ultimately reflected in their rate.

2. Specialized skills - Freelancers often specialize in a particular field, so they may offer the skills you need.

3. Direct contact - Since you communicate directly with your freelancer, you are able to clarify anything right away.

Cons:

1. Project management - Freelancers are not project managers, therefore your involvement is much higher when it comes to track, test, and plan the development.

2. Availability - Freelancers do take time off, and when that happens chances are that your project will stop. Also common among freelancers is managing more than one client at the same time, therefore affecting your deadlines which translate in missed opportunities.

3. Replacement - A common issue with freelancers is that they tend to completely disappear, and when it happens, it’s hard to find a new freelancer who would want to continue where the other left.

Software Agency

Pros:

1. Skillset - Agencies normally count with experts that specialize in a wide variety of skills that could be beneficial to the success of your product - UI/UX designers, front/back-end developers, testers, project managers, and more.

2. Speed - Agencies can work on multiple tasks simultaneously, therefore the time to deliver are reasonably good.

3. Accountability - Agencies do take responsibility on the overall project success. It’s in their own interest to have a portfolio of successful projects.

4. Long-term relationship - When the relationship between you and the agency is good, chances are that they will stay with you for the long term. Future work can be managed by an agency who already knows your business model and software products.

Cons:

1. Costs - Agencies rates can be much higher than freelancers’ rate. The reason is that agencies incur in costs that are necessary to keep their operations, for example hiring costs, salaries, office space.

Wrapping It Up

A freelance developer can be a good option the project is small, when the budget is limited, and when you are able to manage the project yourself. They are way cheaper than an agency, although cheaper doesn’t mean better. The fact that you need to spend valuable hours or your time doing project management work, means that the savings from hiring a freelance developer diminishes.

Agencies are much better when the project is complex, when you need a variety of skills, and when you look for long-term success. The money you spend with an agency is clearly reflected in the service and the product you get.