Outsourcing Companies Vs Freelancers

Outsourcing companies and freelancers require totally different processes of work. To tell the long story short outsourcing better for long term partnership. Hire a freelancer better for short term tasks. Freelancers are more unpredictable,  you will depend on so many factors. Including household: internet speed, the location where the freelancer is working from,  freelancer’s health, etc. These examples may look funny, but in reality, they should be taken into account. 

The process of work with an outsourcing company 

— you will have a project manager the specialist seldom included to the conversation. A project manager is planning tasks,  describing tasks to the specialist, monitoring the progress answering all your questions 

— Time tracking is possible, but not required is the project manager provides detailed reports. Time tracking is not a panacea

— As a client, you have more leverage over the company. Because reputation is very important for them.

— If the specialist who did the work on the project got sick or quit the company will quickly provide a replacement with other employees 

— Usually, every company has principles. They strive to hire people who are at the same principles as the company is. That means that  to work with an outsourcing company you will have more possibilities to anticipate their behavior

— Communication. Often company managers are giving response much faster than freelance individuals. Because company managers are responsible just for the work with a client 

— Knowledge share.  Specialists are working with different projects which require different knowledge. But it is easier to share experience between the specialists who are working at the same company

The average portrait of an outsourcing IT company in Ukraine

— from 15 to 100 employee 

— hourly rate from 20 USD to 40 USD 

— the average web development team includes web developer, project manager, QA

— Project managers, business analysts, sales managers are English speaking; technical specialists have Intermediate level of English and are not communicative. Sometimes technical specialists are just present on call but do not say anything. Usually, managers are translating what technical specialists are saying that is why there are no communication issues

— all specialists are in-house 

— the average company age 6 years 

The process of work with a freelancer 

— You work directly to the specialist

— often easier to find a freelancer on Upwork and 99design 

— A freelancer is a one-band person.  To find new clients, communicate with clients, plan the work, do the work, etc all these should be done by the one person

— If  something happens the freelancer no one can replace a freelancer

— Freelancers are not so afraid to lose their reputation. If you find the freelancer on the platforms like upwork you have more leverage.  But you still have a lot of risks.  

— Often freelancers work on the weekend or can work in any other unusual schedule. That could be helpful if  you need  someone to work in some specific time

— To work with a freelancer not always cheaper. Usually, this is a myth

— It could be faster to start working with a  freelancer and end not a long term project 
(often you should  sign an agreement with a company and  send a prepayment before they start working, freelancers usually work without agreements and you pay just when the work is done) 

The average portrait of freelancer 

— Travelers (digital nomads); Young specialist without any experience; Family people with children

— from 22 to 37 years old

— working from home or coworkers

— 3 – 5 years of experience

— love to work with startups

— often they tell more than can  really do 

— hard for them to estimate the task 

Ukraine Outsourcing Guide