Why Outsourcing to Software Companies Is Superior to Hiring Freelancers

Who do you hire for your next software project- an outsourcing software company or freelancer? When you want to grow your organization and offer more services without hiring more people, you have two choices: 

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Nitin Nijhawan, CDOicon

Who do you hire for your next software project- an outsourcing software company or freelancer? When you want to grow your organization and offer more services without hiring more people, you have two choices: you can hire a team of developers from an established software development outsourcing company or hire independent software development freelancers. Both are viable options – but which one is better?

What is Outsourcing?

The dictionary defines outsourcing as obtaining goods/services by contract from an outside supplier. In software development, it means handing over your entire software development process to a third-party vendor capable of managing all the tasks related to your project.

The advantages of outsourcing

The advantages of outsourcing are undeniable:

  • Get access to a vast pool of talent, knowledge, skills, and a complete supply chain under one roof.
  • Avoid wasting money on hiring/training, bonuses, salaries, software tools, and services.
  • Enjoy complete control over costs and predictable billing.
  • Avoid wasting time on finding the right resources, interviewing them, and negotiating salaries, only to lose them to better opportunities in a few years.
  • Focus only on core competencies, while the third-party outsourcing partner concentrates on everything related to your project.
  • The outsourcing company adheres to strict guidelines and takes full responsibility for the performance and quality of the products they develop.
  • The outsourcing company will willingly replace any specialist if they prove unreliable.


The risks involved in outsourcing

  • It takes time to find a reliable software outsourcing company.
  • Not all software development outsourcing companies provide you with a dedicated team.
  • As the project proceeds, there might be concerns like security issues and a communication breakdown.
  • If you don’t hire the right IT outsourcing company, you might feel there is a lack of communication and non-transparency.

What is freelancing?

 Software development freelancers are not employees; they work for a company on a short or medium term and are paid per-task basis. They are independent professionals who can be found through referrals, freelance marketplaces, vetted freelance networks, online tech forums, dev shops, and staffing agencies.

The advantages of hiring a software development freelancer

  • Most freelance developers are flexible and adaptable to a client’s needs.
  • The temporary nature of work allows you to hire freelancers for a specific period and pay them without incurring additional fees.
  • You can benefit from the services of a freelancer without a fixed-term contract.
  • Hiring freelancers only for the during of a project has massive cost-saving benefits.
  • Freelancers have flexible work hours and are willing to provide their time – day or night for a project.

The disadvantages of hiring a software development freelancer

  • Freelancers often take on several jobs at once and won’t work exclusively for you.
  • There is a greater risk of security breaches when you hire a freelancer than an outsourcing company.
  • Freelancers don’t follow specific regulations or codes of conduct.
  • You can never be sure about the results.

How to choose the right software outsourcing company for your next project

Finding the right software development partner offshore, onshore or nearshore, can help you avoid long-term issues and risks and ensure a smooth working relationship and better outcomes.

Here’s how to hone in on the best IT partner for your project:

Proven track records

Outsourcing partners often have experience in specific industries, and your business will benefit most from an outsourcing partner with experience and expertise in serving clients in your industry. They will understand your requirements and will be able to support your project’s unique needs.

Look for references

You can get firsthand information about a potential outsourcing partner’s abilities by talking about their past and present clients regarding the quality of their service, timely deliveries, customer service, and more. A reliable partner won’t hesitate to provide you with several references.

Check for the business objective of your outsourcing partner

An outsourcing partner is a fantastic fit for your business when their business objectives match yours. It helps them to better understand your requirements and serve you better.

Financial stability and credentials


Ensure your potential outsource partner is not a fly-by-night operator. A reliable company will be financially secure. It’s essential to know who that company’s directors and managers are. Find out their qualifications and experience and if they have what it takes to meet your project’s requirements.

Ask for prototypes

Software development outsourcing companies usually provide free samples to help you understand their capabilities, quality of work, and technical expertise. But if you want to find out if a potential software outsourcing company is genuinely right for your project, ask for a prototype. The prototype they create for you will help you decide if they can understand your project’s requirements and have the necessary technology, skills, talent, and processes to take on your project.

Enable seamless communication

If you partner with an outsourcing company based outside your country, ensure they speak and understand your language to avoid miscommunication. Another important aspect of communication is if they will provide you with 24×7 support via multiple communication channels (think email, phone, and instant messenger).

How to choose the right freelancer for your next project


Their ability to communicate

 Poor communication leads to a lack of clarity, misunderstandings, mistrust, missed deadlines, and worse – a product entirely different from what you wanted. So, as well as possessing technical proficiency, the freelancer you choose must possess excellent communication skills (verbal and written skills). They should be able to communicate succinctly and effectively and have good comprehension skills to understand your requirements.


Their expertise and track record

For an advanced position, choose freelancers with a proven track record and the required level of expertise. Check details like how long they have been in the industry, projects completed, and the number of clients they have worked for before choosing who to hire.


Their reliability

Choose available and reliable freelancers, so your project is not disrupted. Reliability also means they should be able to keep their promises regarding various deliverables, value your company’s privacy and code of ethics, and guarantee good quality output.


Timeline & bandwidth

Set timelines, deadlines, and milestones, and discuss the project’s scope in detail. Ensure the potential hire understands all your requirements and can commit to timelines and deliverables at an agreed rate.


 Their client reviews

Check online client reviews that have been posted on various platforms. That can be time-consuming, but it will give you an accurate idea of how skilled, well-respected, and excellent at developing software a freelancer is.


Final thoughts

If statistics are anything to go by, almost 80% of companies collaborate with the right software outsourcing company and have excellent outsourcing terms. Consider choosing a reliable offshore software development partner with a good track record, reputation, experience, skills, and abilities to take on your next software development project.

About VLink

VLink is one of the leading outsourcing software development companies today, with over 17 years of experience outsourcing software developers and dedicated teams for software development projects across industries. With access to hundreds of experienced developers, software engineers, QA specialists, and programmers, we ensure seamless software development for you. VLink’s dedicated teams use agile methodologies to deliver promised results – on time, and on budget.

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