Pros & Cons of Hiring a Freelancer vs. an Agency.pdf

Pros & Cons of Hiring a
Freelancer vs. an Agency
Published on: May 6, 2024
The escalating trend of outsourcing work to freelancers and agencies
underscores the evolving dynamics of the contemporary business
landscape. This shift is fueled by the demand for specialized skills, cost
efficiencies, and the flexibility to adapt to fluctuating workloads.
However, the key to maximizing the benefits of outsourcing lies in carefully
selecting the right option for each project. Whether opting for freelancers
to address specific niche tasks or agencies to tackle comprehensive
projects, aligning the choice with the project's distinct requirements is
paramount.
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In this MarsDevs article, let’s discuss the advantages and disadvantages
of outsourcing work to freelancers versus agencies, aiming to provide
insights into which option may be better suited for different projects and
organizational goals. So, let’s get started!
Content Highlights
Freelancers in App Development: Yes or No?
Are Agencies Better Options?
Assess Your Priorities
Considerations for Choosing the Right Option
Why Choosing Freelancers Might Be A Better Option?
Why Choosing Agencies Might Be A Better Option?
In Conclusion
Marsdevs · Pros & Cons of Hiring a Freelancer & Hiring an Agency
Freelancers in App Development:
Yes or No?
Freelancers are independent professionals who offer their services on a
project basis, often remotely. They typically specialize in specific skills or
industries and work with multiple clients simultaneously. Freelancers
manage their schedules, rates, and work environments, providing flexibility
for themselves and their clients.
This personalized approach coupled with their specific skills and relevant
past experiences, allows freelancers to develop a good understanding of
client needs and objectives, resulting in laser-focused solutions.

These solutions are just what the client requested, and are built out how
they requested it. With lower overhead costs compared to agencies,
freelancers offer cost-effective solutions, making them particularly
appealing for smaller projects or those with limited budgets and simple
scope.
Working as independent contractors, freelancers complete projects for
customers on time and within budget. Freelancers are hired by clients to
finish certain jobs or projects, and these relationships are frequently
transient or brief.
Since they often control their prices, and timetables, and operate from
home, freelancers provide flexibility to both sides depending on their
revenue projections and availability. Digital platforms and collaboration
tools are used to promote communication and project coordination.
Payment arrangements are negotiated in advance, and freelancers are
frequently paid at the end of the project or certain checkpoints. According
to Upwork, 36% of the US population, or 59 million people, worked as
independent contractors in 2015. By 2027, there will be 86.5 million
freelancers in the United States, accounting for 50.9% of all workers.
As research explains, “Freelancers hold 34% of the workforce globally at
the moment & in the next 6 years, there might surge 14% more projects
including freelance job opportunity.”
Also, based on recent studies, 12 of the 20 most sought-after skills for
freelancers are development-related. Now, let’s look at some of the pros
and cons of freelancers:

Pros:
Agility: Freelancers can quickly adapt to changing project
requirements and timelines, offering agility and responsiveness that
may be lacking in larger agencies.
Access to Talent: With freelancers, businesses can tap into a global
talent pool, accessing diverse expertise and perspectives that may
not be available locally.
Lower Overhead: Freelancers typically have lower overhead costs
than agencies, resulting in potentially more cost-effective solutions
for clients.
Personalized Attention: Freelancers provide dedicated focus and
personalized service, ensuring a deep understanding of client needs
and objectives.
Direct Communication: Working directly with freelancers facilitates
clear communication, fostering a collaborative environment and
enabling quick decision-making.

Cons:
Lack of Accountability: Freelancers may not always be held to the
same level of accountability as agencies, making it harder to enforce
deadlines or quality standards.
Lack of Consistency: Freelancers are known to lack consistency in
work delivery daily, a shortcoming they are commonly known to
cover by working extra hours and charging some less-vigilant clients
for it.
Limited Skill Sets: While freelancers excel in their specialized areas,
they may lack the breadth of skills and resources offered by
agencies, potentially limiting the scope of services they can provide.
Cognitive Load: The cognitive load of managing multiple freelancers
for various aspects of the app development (SDLC) is passed on to
the client hiring the freelancers.
Dependency Risks: Relying heavily on freelancers for ongoing
projects may create dependency risks if they discontinue their
services or pursue other opportunities.
Security Concerns: Sharing sensitive information or intellectual
property with freelancers could pose security risks, especially if
proper confidentiality agreements and data protection measures are
not in place.
Single Point of Failure: Relying on a single freelancer for critical tasks
may pose a risk if they become unavailable or unable to complete
the project.
Are Agencies Better Options?
As businesses exclaim, “An agency plays a vital role in linking businesses
with qualified workers, facilitating effective workforce solutions.”

Agencies put their reputation on the line when they take on a project. They
understand intuitively that in their line of work, word of mouth can make or
break them & they lay heavy focus on quality, on-time delivery, future-
proofing, and consulting as part of their services on the architecture layer
for the long-term sustainability of the products and solutions they build.
With their knowledge and experience, they offer a holistic approach and
usually offer a buy-and-forget model of services. Agencies initiate client
engagements by conducting comprehensive needs assessments and
devising project plans, meticulously outlining milestones and resource
allocations under the guidance of project managers.
They are slow to start but once they build momentum, they keep it going.
Leveraging multidisciplinary teams built painstakingly to ensure high-
quality standards that justify the cost overheads, agencies execute sprints
with precision.
It also implements intuitive and practiced communication protocols and
rigorous quality assurance frameworks to deliver reputation-forming
products and solutions.
Through strategic resource utilization and rigorous oversight to maintain
quality & their reputation, agencies navigate complex project landscapes,
ultimately delivering solutions that usually exceed client specifications
and pre-defined results.
It offers robust after-sales support, often at 50% of the development cost.
The following are some of the pros and cons of agencies:

Pros:
Diverse Expertise: Agencies naturally offer multidisciplinary teams
with specialized expertise in areas, like strategy, design, development,
project management, quality assurance/deployment & marketing,
providing clients with multiple skills under one roof.
Long-term Partnership Opportunities: Agencies prioritize building
long-term client relationships, offering ongoing support, strategic
guidance, and continuous improvement over time.
Access to Established Networks: Agencies often have extensive
networks of contacts and partners, providing clients with access to
additional resources, such as media outlets, influencers, or industry
connections.
Accountability: Agencies typically have clear lines of accountability
and responsibility, making it easier for clients to be accountable for
project outcomes & performance.
Holistic Approach: Agencies can provide integrated services across
multiple disciplines, ranging from branding to development and
post-launch, resulting in cohesive and synchronized work sorties.

Cons:
Higher Costs: Working with agencies can be more expensive
compared to hiring freelancers, as agencies have higher overhead
costs, including salaries, office space, and administrative expenses.
Communication Hurdles: Communication with agencies may involve
navigating multiple points of contact, project managers, and team
members, potentially leading to communication bottlenecks, delays,
or misunderstandings.
Rigidity: Agencies may adhere strictly to standardized processes and
workflows, limiting flexibility in accommodating unique client
requirements or changes in project scope.
Complexity in Decision-Making: With multiple stakeholders and
decision-makers involved, reaching consensus within agencies can
sometimes be challenging, potentially leading to delays or
compromises in project execution.
Lack of Personalization: Due to their size and structure, agencies may
struggle to provide the same level of personalized attention and
customization as individual freelancers, resulting in less tailored
solutions.
Assess Your Priorities
Evaluating your priorities and preferences is vital in selecting the right
option between freelancers and agencies for your project. Firstly, consider
the specific requirements of your project, including its complexity, scope,
timeline, and budget constraints.
Monitoring these factors can determine whether freelancers or agencies
are better suited to meet your needs. For instance, if you have a small-

scale project with a tight deadline and limited budget, freelancers may
offer a more cost-effective and flexible solution.
On the other hand, if your project is large-scale or requires diverse
expertise, agencies may provide the comprehensive services & resources
that must deliver optimal results. Furthermore, consider the skills and
expertise for your project.
Identify the specific skills needed, like graphic design, web development, or
marketing, and assess the proficiency and experience level of potential
freelancers/agencies in these areas. This evaluation will ensure a provider
with the right capabilities to execute your project.
Also, factor in your communication and collaboration preferences.
Evaluate the communication channels and responsiveness of
freelancers/agencies, and determine compatibility in work styles and
cultural fit. Effective communication and collaboration are essential for
project success, so choosing a provider that aligns with your preferences
in these areas is paramount.
Considerations for Choosing the
Right Option

So, what to consider before you make the final decision? Let’s take a look.
Project Requirements
Assess the scope, timeline, and complexity of the project to determine
whether it requires the comprehensive services and resources offered by
agencies or the specialized focus and flexibility provided by freelancers.
Skills and Expertise Needed:
Evaluate the specific skills and expertise required to execute the project
successfully. Determine whether freelancers possess the necessary skills
for niche tasks or if agencies can provide a broader range of capabilities
across multiple disciplines.
Communication and Collaboration:
Consider the communication preferences and collaboration styles of both
freelancers & agencies. Assess how effectively each option

communicates, collaborates, and integrates feedback into the project
workflow.
Portfolio and Reputation:
Review the past work and track record of freelancers and agencies to
gauge their capabilities, quality of work, and reliability. Look for
testimonials, case studies, or client reviews to assess their reputation and
credibility in delivering successful projects.
Why Choosing Freelancers Might Be
A Better Option?
Statista's research shows a trend that predicts 86.5 million independent
contractors in the US by 2027, accounting for more than half of the
workforce.
So, what should you do?
Choosing freelancers offers tailored expertise and cost-effectiveness for
projects. With specialized skills, freelancers deliver high-quality work suited
to project needs while maintaining competitive rates due to lower
overhead costs.
Their flexibility allows for scalable solutions without long-term
commitments, ideal for dynamic workloads. Direct communication fosters
collaboration, ensuring prompt feedback and resolution of concerns.
Also, freelancers provide personalized attention, knowing client objectives
deeply and delivering customized solutions. Combining specialized
expertise, cost-effectiveness, flexibility, direct communication &
personalized attention makes freelancers a reliable choice for various
projects.

Why Choosing Agencies Might Be A
Better Option?
Choosing agencies can benefit projects requiring diverse expertise,
scalability, and streamlined management. With multidisciplinary teams,
agencies offer comprehensive solutions to complex challenges, ensuring
efficient handling of different project sizes.
Also, agencies have reputations which is significant in scaling businesses.
Customer recall of a brand typically takes five to seven impressions,
according to research.
Ninety percent of customers say they avoid doing business with
companies of poor reputations.
Established processes and quality assurance measures ensure
consistency and reliability in project delivery. Clients benefit from
centralized management and accountability, as agencies provide a single
point of contact for seamless coordination.
Moreover, agencies offer integrated solutions across multiple disciplines,
ensuring coherence in branding and messaging. The combination of
diverse expertise, scalability, established processes, centralized
management, and integrated solutions makes agencies a compelling
option for various projects.
In Conclusion

In conclusion, freelancers and agencies offer unique advantages
depending on a project's specific needs and requirements. Freelancers
provide specialized expertise, cost-effectiveness, flexibility, direct
communication, and personalized attention, making them ideal for niche
tasks or projects with limited budgets.
On the other hand, agencies offer diverse expertise, scalability, established
processes, centralized management, and integrated solutions, making
them suitable for complex projects requiring comprehensive solutions and
streamlined coordination.
Ultimately, the choice between freelancers and agencies should be made
based on carefully considering project requirements, desired outcomes,
and available resources, ensuring the best fit for successful project
execution.
Confused? Contact MarsDevs & we would be happy to help you make the
ultimate decision!
MarsDevs:

MarsDevs has spent 75,000+ hours in the last 5 years in code writing,
maintenance, and upgradation for 63 clients in the Early and Growth stage
startup space hailing from 10 different industry verticals and 12 different
countries.
We have successfully combined the pros of both Freelancers and
Agencies to create a model through which we offer on-time, low-cost,
high-flexibility solutions, and services to our clients and partners globally.
We do not compromise on quality, code health, your IP rights, and the
security of your solutions & can offer entire offshore teams or individuals
that can work under your tutelage, or ours if you need someone to
manage your project.
Working with us is like working with Freelancers, only better, faster, and
safer.
FAQ
1. Are freelancers a wise choice for big businesses?
These days, most businesses—including huge corporations and SMEs—hire
independent contractors to help with growth.
2. Should I hire a freelancer or an agency?
Independent contractors deal directly and independently with their clients.
Agencies are accounts for independent contractors that enable their
clients to add team members to projects. If more than one person is
needed to do your job, you might imagine employing an agency or many
independent contractors.
3. Why agencies are better than freelancers?

Smaller tasks are typically taken up by solo freelancers. Because agencies
are teams, they can handle more work. A freelance business is harder to
sell than an agency. The fact that you will be working with clients and the
services you may offer remain the same regardless of the strategy.
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