Yes the title say all the things. Outsourcing to Freelancer or Offshoring to Software Development Companies

Here what it starts!

India is being 2nd most freelancer resources available after USA. There are many freelancer who are still working at cheap hourly rate at USD 2 per hour – USD 5 per hour. As compared to the software development companies, they are charging around USD 20 – USD 40 per hour. Working from home and without any time limitation is quite a good way to earn the money for freelancer.

Getting an experience for 2 year in the software development companies, developers finds a way to use their skills to contact direct to the client. With having this idea, freelancer make a lot of money with the help of offering a cheap hourly rate.

And here’s what client approved their hourly rate and work with them. This whole process is going on now a days. Due to this many development companies owner are felt to down to their profit margin and their company growth. Same things is happening with the eCommerce store as like Myntra, Amazon and many other online store are drawing down their local retailer business.

Here’s the question comes in “Outsourcing to Freelancer or Offshoring to Software Development Company – What is better option?”

Many clients faces this question and don’t know who to choose?

Suppose you are client and you have an idea to build a software product through which you can make a millions of profit.

When Outsourcing to Freelancer:


  • Price is very good point of constraint for the freelancer. Cost of development is cheaper if you choose Freelancer – Good for the Clients.
  • There is no infrastructure cost. They can work from anywhere part of the world.
  • They can ensure your project to be completed. They can start project immediately as per their availability.
  • Ready to do Addon Task and feature with bit low cost


  • They are not always dependable. This what it lets the project to the dispute level. Due to the family emergency they are not available and can come to level of dispute of the project.
  • There is no commitment with the delivery of the project/solutions.
  • With having an experience working on technologies, they miss with the communication with the client as per their proposed feature
  • Lack of understanding the requirement due to one man army. With having a complex requirement, they are unable to deliver the project.
  • Expertise only in one technologies can let the project to dispute level and get failed.
  • Priority to the work are not being set by the freelancer because they are not aware what the client vision is and how much they have put their efforts and funds to their project. This what it lets project to the failure and get into the client loses.
  • High Data Risk of your project files

When Offshoring to Software Development Companies:

  • With the help of teamwork, they delivered your project on time and with quality of solutions
  • Understand your requirement in proper way and provide you wire-frame of your solutions to get approval.
  • Communicating with Project manager and understanding the downfall of the projects
  • High Response Rate for your project co-ordination
  • High Chances of project success up to 99%.
  • Ability to work on multiple projects
  • Available for working hour and provide you proper solutions and supports for your requirement. Many companies now offering 24*7 for your delivered projects for 3 month free maintenance.
  • Less Data Security Risk of your project files.
  • You can access to use genuine licences software’s and tools with updated technologies
  • Offering a legal protection with NDA and SLA compliance.

If you are a small and medium sized business company and having less number of task then you can outsource to the freelancer. They will be cost effective. But for the large scale enterprise based application, we highly recommend to go with the software development companies.

Before choosing a software development companies or freelancer, you need to understand their profile and their online presence. With the help of their social media profiles and reviews over there, you can choose them and can have a multiple option to choose it. This what it let you to get protected to get project to the failure stage and loses with time and money.

Hope you understand which better option for you is to choose.

Share me your comments over this post. I love to reply and give you step to choose proper outsourcing partner for your project.