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Freelancer or Software Agency: What is the Best Choice for Your Current Project?

As a company expands, its software needs will inevitably become more advanced and sophisticated. Moreso, if your company's service offerings are primarily centered on offering software products to users, you will need to be on your A-Game with software development. However, many companies, particularly small and mid-sized companies, do not have in-house software development teams. This often leaves such companies with two primary options: freelancers and software agencies.

It can be challenging to make a decision on whether to opt for a freelancer or software agency for your software development needs. This article will guide you on how to make a choice best suited for your project.

Freelancer and Software Agency: What is the Difference?

Freelancers are quite different from software agencies in terms of workflow, expertise, and commitment. Freelancers are generally software developers that work independently. Such developers often work on numerous projects at the same time. They also possess specific skill sets like frontend or backend capabilities.

On the flip side, software agencies are more consolidated. These agencies host an expansive development team comprising team members with varying capabilities. A typical software agency will incorporate designers, product managers, software developers, and project managers. For instance, You:Digital provides a wide array of full-stack developers and Salesforce developers with sound business knowledge. Essentially, software agencies function as a one-stop-shop for the talent needs of companies.

Pros of Hiring Freelance Software Developers

Reduced Costs

Many companies consider freelancers as the cheaper option. This is because freelancers often juggle numerous projects simultaneously. Thus, they can maintain relatively minimal rates across board. As a result, freelancers are ideal for startups seeking to cut costs and keep their expenses minimal. 


Freelancers do not operate within fixed company structures. Freelancers are also self-employed, which means that they are in total control of their workflow. This makes them flexible enough to adjust to your priorities and preferred working hours.

Highly Specialized Skills

Depending on your needs, freelancers often have highly specialized skill sets. For instance, a freelancer may only be skilled in frontend development. In this case, all the skills acquired by the freelancer will be targeted at strengthening their frontend capabilities. Hence, if you need a frontend developer for your project, such a freelancer could be a suitable fit. 

Cons of Hiring Freelance Software Developers

Less structure

As stated earlier, freelancers are self-employed and do not exist within fixed company structures. This means that their ability to deliver on expected tasks solely depends on their willingness or work ethic. There is rarely any external entity to ensure that the freelancer promptly provides deliverables. Also, since freelancers do not operate in structured environments, there are no quality assurance measures to ensure that deliverables adequately align with your requirements as a client. 

Limited Expertise

Freelancers have highly specialized skills. This means that their abilities are limited explicitly to their area of expertise. This can pose a challenge if your project requires more than the freelancer can provide. While it can be argued that you can hire more freelancers to fulfill your needs, this trend will only significantly increase your expenses. 

Additional Management Obligations

Depending on your freelancer's workflow, you might need to undertake constant management. Such management obligations will include monitoring the progress on deliverables and following up to ensure that the developer continues to work in line with your specifications. These obligations can be stressful, particularly if you have other pressing responsibilities. 

Pros of Hiring a Software Agency

Team Synergy

Many software houses have teams that have existed and served clients for years. Many of these teams have built enough synergy to ensure effective collaboration. Thus, you will rarely need to pull additional weight to cooperation and teamwork

Extensive Expertise

Software agencies comprise highly competent professionals in different areas. These professionals can easily fit into different aspects of your project. A case in point is our workforce at You:Digital. You:Digital is generally intentional about maintaining a diverse and competent workforce to provide the best service to our clients. 

Guaranteed Project Quality and Delivery:

Software houses have extensive quality assurance structures. The developers in software houses are mainly overseen by project managers who ensure that deliverables are in line with clients' specifications and projects are promptly concluded. 

Full-time Commitment:

Unlike freelancers, software agencies have enough manpower to fully commit to your project. The time and effort software agencies expend on your project will ensure consistent high-quality delivery. 

Cons of Hiring a Software Agency

The primary disadvantage often identified in relation to software agencies is high cost. However, this argument is based on a weak understanding of the services offered by software agencies. Software agencies fully undertake your project and utilize their in-house human capital to achieve quality. If the same services were to be replicated with freelancing, a company would need to hire multiple developers (alongside project managers) to accomplish the same level of quality. This would undoubtedly be more expensive than opting for software houses.

Freelance Software Developers or Software Agencies: Which is Suitable for Your Project?

There are pros and cons of hiring either a freelancer or a software agency. However, freelancers are generally a cost-effective option if your budget is constrained. In any other situation, a software agency is an ideal option. This is because it typically guarantees quality project delivery and extensive expertise.


As you have seen, software agencies are generally the more beneficial option. However, you must also conduct due diligence before hiring a software agency. Look through their portfolio and ask relevant questions to ensure that their service offerings align with the needs of your project.

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