Startups with limited budgets face the choice between an IT outsourcing provider and freelance developers, regardless of their country of origin. Both approaches have shown promising results for established enterprises and aspiring businesses. However, there are certain aspects of hiring an outsourcing team you should know to make the right choice for your business. Let's consider each approach.
If you hire software developers through freelance marketplaces and put them together to work on your project, you can expect certain advantages:
- You can snatch a real expert, if you are lucky, though they are often overwhelmed with orders.
- You can enjoy a lower rate compared to hiring a dedicated team, therefore, save your project's budget.
- You can replace any of the developers without risking the project.
- The team can start working on the project immediately.
On the downside, you can't expect:
- Any guarantees as to the work's quality and timeframe.
- A chance to raise a claim in case of any problems with the project after it's done.
- Ongoing maintenance of the project after launch.
- Any backups in case one of the freelance developers becomes unavailable.
- Any legal leverage to influence freelancers in case they divulge proprietary information or leave the project without notice.
- Developers to perform project management tasks, so they will fall on you.
If you hire an IT software outsourcing company, you may count on:
- A full range of IT services, from business analysis to a finished product development and its ongoing maintenance.
- A pool of middle and senior-level developers from which you can choose specialists with the skill set and experience to suit your project.
- Legal arrangements with the company taking full responsibility for the quality of the product and proprietary information confidentiality.
- A fast replacement for the developers who become unavailable.
- Reliable advice from the web application development company's specialists ranging from UI/UX design to code architecture.
- A project manager to coordinate the work of the team and establish transparent and efficient communication.
The disadvantages of working with an established outsourcing company are:
- The rate is 10% to 15% higher compared to freelance developers.
- Some companies establish a minimum budget for their projects.
- A longer preparation period between the query and the start of the development.
- Sometimes companies can be booked solid and refuse your project.
- Some companies have corporate policies clients have to follow.
These are the critical advantages and disadvantages of working with independent freelancers and an offshore software development company. Experienced business owners are sure to have more pros and cons for both approaches. I would appreciate it if you would share your thoughts on the matter via Facebook or email.
Startups outsource web development depending on their technical and financial resources. However, if you are working on your first or second project, if you are not a technical specialist, and if you don't have project management experience, I recommend you go with IT outsourcing companies. It will make your life so much easier every step of the way and protect you from common pitfalls. Besides, the full stack development company will provide you with a Tech Lead (an experienced developer with a firm grasp of current technologies) to support the development. Moreover, if you need to update or improve the project in the future, the company can provide maintenance according to your requirements.
So answer honestly: Are the 10-15% of budget savings worth the time and effort you will have to spare to create and manage the team of freelancers?
If you choose to handpick and hire an outsourcing team one by one, and manage the project personally, take a look at our useful step-by-step guide