Why To Choose Outsourcing Companies?

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Outsourcing to Companies vs Freelancers

Today, many small and large organizations are focusing on outsourcing their in-house work to outside companies. The main reason for this is to reduce the costs acquired by your organization and also to attain higher-quality product/service. Anyhow, there are various options for outsourcing, one big decision is whether to go with outsourcing companies or freelancers.

Let's take a glance at the advantages of outsourcing to a dedicated offshore company versus outsourcing to freelancers.

Offshoring to a Dedicated Company

While offshoring to a dedicated company, the main benefit you get is 24x7 availability and also no need to depend on a single person. Moreover, easily you can scale the work that you outsourced. By choosing a dedicated company, you eliminate the needs of managing multiple freelancers because here you get only one point of contact for all the details you want to know about your project and also you will get the advantages of quality control systems managed by the company.

In addition, you don't have to worry about your confidential project data & data security risk, if a problem occurred with your project then you can escalate quickly and get instant help. You can also get access to valid tools and genuine software that is updated regularly and upgraded with the latest technology this ensures faster development and product quality. Eventually, you can trust the company on the protection of your data, content and back up as they developed. Companies can provide legal safeguard with NDA and SLA policy.

Suppose, you are a small sized company or need only a few tasks to complete, then outsourcing to a freelancer is an economical solution. But, for big organizations or huge size projects, it is advisable to hire a reputed company that offers all the facilities mentioned above. In the debate of companies vs freelancers, often companies win as of their efforts & capability is more and they can satisfy your specific business requirements.

If you are willing to outsource any of your back office jobs to a reliable and professional offshore company then contact the experts of Move Offshore, today.

Outsourcing to Freelancers

If you outsource your tasks to freelancers, then you have to pay significantly less when compared with the dedicated company. Freelancers do not have any infrastructure costs, they can guarantee that your project is successfully completed in faster turnaround time, assuring that you have what you desire right away. If you get a freelancer for your project you can believe that does good work, they can save you a lot of money when compared with hiring a company.

The obstacle associated with the freelancer(s) is their availability because there is no guarantee that they available for 24x7. And also freelancers can work in other customers project also so that affect your project's quality, deadlines, etc. But offshore companies don't have these problems because they can measure the efforts based on the number of projects come in at once and available resource.

Freelancers vs Companies - The Pros and Cons

Nowadays, many companies are focusing to broaden their technical team by seeking outside of their local area, these scenarios play a vital role in the expansion of the outsourcing field. One who looks to take benefits of global talent, the question arise is whether to choose freelancers or to select an agency for your specific needs.

Many companies believe that working with agencies are more expensive when compared with individual freelancers, though an agency has function expense to consider. Genuinely, there are notable pros and cons associated with choosing freelancers over agencies, which this post address.

Raw Costs

If you are focusing meticulously the dollar figure you will spend to recruit an in-house staff then obviously freelancers will win out almost every time against agencies. The reason is operating expense! on the other hand, Freelancers do not have any huge functional expense that they need to think while mentioning you the project price.

Agencies have more overheads like pay for office space, managers, marketing expense, HR, accounting, employees, etc. These things cost money and the same is added to the overall price of your project when going with an agency. The individual freelancer will be almost cheaper than the developer from the agency.

Hidden Costs

When you consider the hidden costs involved in choosing freelancers, then it is important to consider the money, time and energy spent on the hiring process. The process of hiring skilled developers via the Internet is not simple and easy when compared with the hiring in-house employee. If your business project is huge and you expect to increase your team size, then you go via the recruitment process to add a new staff.

Freelancers will work for their salary they do not consider about workspace, accounting, and marketing. In case of your in-house developer, you are going to pay for that twice. There are also disadvantages associated with freelancers, when one of your freelancers tired or decided to work on some other project, then you need to employ your own recruitment or HR member to find an alternative resource. Here the question arises, is it worth to pay the outsourcing team to manage that for you?

Specific Requirements

Many organizations seeking for developers who are suitable for their specific requirements. If your business project needs a technical person with a strong knowledge of something non-technical, then you might be better suitable for a custom-made freelancer who has a background in that subject.

For example, you are searching for a developer who also has experience in musicals then that particular developer perfectly suits for your music recording app. But, anyone possesses core technical skills but no idea in music then that is not what you are interested.

By considering the above example, agencies do not have provision to find developers like that, they have employees with strong technical knowledge and good communication skills, but they will work hard to find a suitable resource for your project.

One more example - you need a native Russian speaker who is currently living in low-cost Eastern Europe, but he can be on call during Pacific Standard daytime. The Eastern European agencies will have a very hard time to advertise and find a person for that position and some agencies will not be interested in hiring one for that specific role, but there are a lot of chances for some individual freelancer who will work with your specific requirements.

Working Relationship

Freelancers and agencies are certainly differed a bit in their nature but you can have good working relationships with both of them. They are non-committal - generally, they are willing to work for a period of time and they are like to go in their own way when the contract ends. Some freelancers are work for part-time, they do not want to work on long-term projects. And some are open to a variety of projects and platforms to boost up their portfolio, build references, and increase their salary.

You can hire a freelancer as a full-time staff, but then you may experience the problem of offering all that commitment and overhead yourself, which may not be suitable for your business. Still, you can have a good relationship freelancer for short-term tasks.

Working with agencies are the very different scenario. They are always interested in working with your project whether it is a short-term or long-term project and they continue to collaborate. Even though developers in the agency may change but the company remains and try to employ alternative resource to keep continue business with their customers.

Accountability

The accountability is where the agency wins, ensure there is a third party between the developer and customer to en make sure the development team is upholding their side of the negotiating is one of the benefits of hiring an agency for your business project. Agencies have managers to keep track of the hours, quality, delivery and feedback from the customers.

For complex projects it is very important to have the accountability, or else you will waste more time in checking your freelancers to ensure everything is coming in the way you desire. But if you have a manager to manage projects, then it is very easy to achieve the accountability, here the manager checks the development team in offshore development center and also separately check with all the freelancers.

One more thing to think is that when a freelancer abandons the project in middle then it causes a huge turmoil among the remaining team but this is not the case with an agency because they can manage it in a better way. It is difficult to integrate new freelancers into a project this affect the quality of the product.

This is the reason why all the big sized project 20+ developers, whether work with in-house or agency. Freelancers are not equipped to manage the high level and it is inevitable to hire an agency to manage a project is the best idea.

A reliable and reputable company always have a clear communication with the clients and the development team and even allow clients to communicate directly with the development team so they can easily coordinate the work and get the product as the customer desires. If any staff is not enough the cope then the agency replace with alternative staff immediately. These type of advantages and security is one great reason why to consider to hire an offshore company as a freelancer.

Conclusion

Both agencies and freelancers can offer you the service which is needed based on the requirement, size, and scope of the project. Keep in mind the pros and cons of both and ensure which one suits your business model.

-If the job is small and it can be managed by a single developer and the risk is bearable then go with a freelancer.

-If the project is big and highly complex and needs a professional team then go with a company for the business project.

If you have any queries then contact us now, we are ready to help you.