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Quite often, companies face a situation where the existing experience and skills of their in-house team are insufficient to complete a certain task. In such cases, there are several alternatives: hiring one or more additional employees for the team or opting for outsourcing.
Outsourcing is the delegation of a company's tasks or processes to external contractors on subcontracting terms. The key advantage of outsourcing is the potential cost reduction. The subcontractor (outsourcer) can be an individual (freelancer) or a company (agency). In our article, we will discuss when and for which projects it is advisable to choose an agency, and when it might be more beneficial to opt for a freelancer.
An agency is a company that assembles a team of specialists from various fields. One of the main advantages of agencies is their structured organization and efficient management. Agencies usually have a specific protocol for client communication and service.
Agencies also appoint a project manager for each client, ensuring structured communication and control over the progress of work. This organizational approach allows the client to spend less time communicating with experts and overseeing the project, as they provide regular reports within defined timelines. By asking the right questions, agencies ensure a thorough understanding of all requirements, control, and effective team management, ultimately achieving project goals within the agreed-upon timeframe.
Thanks to a team of specialists with diverse expertise, agencies are better equipped to handle large and complex projects that require various skills and knowledge. Additionally, a backup team is available for projects, allowing agencies to involve another specialist in case of unforeseen circumstances with the necessary skills, ensuring seamless project continuation.
A freelancer is an independent professional who offers their services on the market. One of the main advantages of working with a freelancer is flexibility. They can adapt more easily to your schedule and needs, which is particularly important when projects need to be completed within tight deadlines.
Furthermore, freelancers often offer lower prices due to the absence of extensive infrastructure, as seen with agencies. This cost-saving aspect can be especially valuable for small projects or tasks with limited budgets.
However, it's worth noting that collaborating with freelancers has its drawbacks. To successfully execute a project, you, as the client, need to understand the technical aspects of the project, possess managerial skills, and establish effective communication among freelancers, if there are multiple. Unmanaged freelancers could lead to delays and budget overruns.
Issues might also arise with freelancers disappearing or unexpected changes in their personal circumstances, which could negatively impact project execution.
So, let's define what constitutes a "simple" and "complex" project and compare agencies and freelancers accordingly.
Simple project:
Examples of "Simple projects":
Complex project:
Examples of "Complex projects":
Parameter
Agency
Freelancer
Parameter
Parameter
Agency
Agency
Freelancer
Freelancer
Cost
Can be higher in certain individual cases
Usually not high prices
Parameter
Cost
Agency
Can be higher in certain individual cases
Freelancer
Usually not high prices
Management
Professional project manager, task distribution
Depends on the freelancer and client
Parameter
Management
Agency
Professional project manager, task distribution
Freelancer
Depends on the freelancer and client
Communication
Quality and structured
Depends on the freelancer and client
Parameter
Communication
Agency
Quality and structured
Freelancer
Depends on the freelancer and client
Team
Professional team with backup staff
One or several specialized freelancers with varying skill levels
Parameter
Team
Agency
Professional team with backup staff
Freelancer
One or several specialized freelancers with varying skill levels
Flexibility
Limited
High
Parameter
Flexibility
Agency
Limited
Freelancer
High
Execution Time
Completed within agreed-upon terms
Depends on the freelancer and client's project oversight
Parameter
Execution Time
Agency
Completed within agreed-upon terms
Freelancer
Depends on the freelancer and client's project oversight
Investment Security
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
Parameter
Investment Security
Agency
High. Holds legal responsibility towards the client
Freelancer
Low. Freelancers typically don't emphasize contracts
Simple project
Can be higher in certain individual cases
Usually not high prices
Can be higher in certain individual cases
Usually not high prices
Professional project manager, task distribution
Depends on the freelancer and client
Professional project manager, task distribution
Depends on the freelancer and client
Quality and structured
Depends on the freelancer and client
Quality and structured
Depends on the freelancer and client
Professional team with backup staff
One or several specialized freelancers with varying skill levels
Professional team with backup staff
One or several specialized freelancers with varying skill levels
Limited
High
Limited
High
Completed within agreed-upon terms
Depends on the freelancer and client's project oversight
Completed within agreed-upon terms
Depends on the freelancer and client's project oversight
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
Complex projects
Typically competitive
Depends on freelancers and client's managerial qualities
Typically competitive
Depends on freelancers and client's managerial qualities
Professional project manager, task distribution based on skill levels
Depends on freelancers and client's managerial qualities
Professional project manager, task distribution based on skill levels
Depends on freelancers and client's managerial qualities
Quality and structured
Depends on freelancers and client's managerial qualities
Quality and structured
Depends on freelancers and client's managerial qualities
Professional team with established communication and backup staff
Multiple freelancers (if needed)
Professional team with established communication and backup staff
Multiple freelancers (if needed)
Limited
High
Limited
High
Completed within agreed-upon terms
Depends on freelancers and client's project oversight
Completed within agreed-upon terms
Depends on freelancers and client's project oversight
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
Parameter
Agency
Freelancer
Parameter
Parameter
Agency
Agency
Freelancer
Freelancer
Cost
Typically competitive
Depends on freelancers and client's managerial qualities
Parameter
Cost
Agency
Typically competitive
Freelancer
Depends on freelancers and client's managerial qualities
Management
Professional project manager, task distribution based on skill levels
Depends on freelancers and client's managerial qualities
Parameter
Management
Agency
Professional project manager, task distribution based on skill levels
Freelancer
Depends on freelancers and client's managerial qualities
Communication
Quality and structured
Depends on freelancers and client's managerial qualities
Parameter
Communication
Agency
Quality and structured
Freelancer
Depends on freelancers and client's managerial qualities
Team
Professional team with established communication and backup staff
Multiple freelancers (if needed)
Parameter
Team
Agency
Professional team with established communication and backup staff
Freelancer
Multiple freelancers (if needed)
Flexibility
Limited
High
Parameter
Flexibility
Agency
Limited
Freelancer
High
Execution Time
Completed within agreed-upon terms
Depends on freelancers and client's project oversight
Parameter
Execution Time
Agency
Completed within agreed-upon terms
Freelancer
Depends on freelancers and client's project oversight
Investment Security
High. Holds legal responsibility towards the client
Low. Freelancers typically don't emphasize contracts
Parameter
Investment Security
Agency
High. Holds legal responsibility towards the client
Freelancer
Low. Freelancers typically don't emphasize contracts
Conclusion: When choosing between an agency and a freelancer, consider the nature and scope of the project, as well as your own needs and requirements. Agencies are advantageous for managing large and complex projects where effective communication and team management are crucial. Freelancers, on the other hand, are a better option for smaller projects or those where flexibility is essential.
Julia Andrusiak
Account Director
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