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Agency vs Freelancer: What to Consider When Choosing

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    09.08.2023
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    5 minutes
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    Author: Artem Tykhonov
Illustration

Agency vs Freelancer: What to Consider When Choosing

    icon
    09.08.2023
    icon
    5 minutes
    icon
    Author: Artem Tykhonov

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.

Advantages of Working with an Agency

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.

Advantages of Working with Freelancers

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.

What is the difference between a 'simple' and a 'complex' project?

Simple project: 

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    Involves a small amount of work that can be easily estimated and understood.
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    Requires a limited number of resources and specialists. 
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    Has a simple structure and can be completed within a short timeframe.
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    Doesn't necessitate integration with numerous systems or processes.
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    Has clear technical requirements and defined goals. 

Examples of "Simple projects":

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    Development of a simple webpage or blog.
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    Creating a logo for a small business. 
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    Writing a short piece of content or article.

Complex project: 

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    Involves a substantial amount of work and detailed requirements, requiring careful planning.
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    Demands collaboration among multiple specialists from different fields and domains. 
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    Requires integration with multiple systems or applications.
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    Has high technical demands and intricate problem-solving requirements.
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    Takes an extended period to complete and requires continuous monitoring.

Examples of "Complex projects":

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    Development of a large web portal or e-commerce site with multiple functions and sections.
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    Organization and execution of complex marketing campaigns across various customer engagement channels.
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    Development of complex software solutions involving database integration and data security.

Simple project

    • 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

    • 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

Complex projects

    • 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

Complex projects

    • 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

Julia Andrusiak

Account Director

+38 050 700 75 72

latigid.ogeretla%40kaysurdna.y

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