The short answer
Use a freelancer for a small, clearly defined job that you can manage and check yourself. Use a software company when the software will run an important part of your business, needs several skills such as design, development and hosting, or must be supported for years whoever is on holiday. Either way, ask who will support it in three years.
Both routes can work well. Both can go badly. The difference is usually not the talent of the developer, it's whether the arrangement fits the job.
When a freelancer is the better choice
- The job is small and clearly defined, such as a single feature or a fix.
- You, or someone on your team, can manage the work and check the result.
- The software isn't critical to how your business runs day to day.
- You already have a trusted freelancer who knows your systems.
In these cases a good freelancer is often quicker and cheaper, and you'll get direct contact with the person doing the work.
When a software company is the better choice
- The software will run an important part of your business.
- You need more than one skill, such as design, development, hosting and security.
- You're not technical and need someone to shape the solution, not just build it.
- You need the software supported for years, whoever is on holiday.
Comparing the two
| Compared | Freelance developer | Software company |
|---|---|---|
| Cost per day | Usually lower | Usually higher |
| Cover when someone is away | Work stops | Another person who knows your system carries on |
| Skills | Usually one, such as development | Design, development, hosting and security |
| Advice | Builds what you ask for | Should question the brief and suggest simpler options |
| Support after launch | Depends on the person being available | Should be agreed and priced in writing |
| Best for | Small, clearly defined jobs you can manage yourself | Software that runs an important part of your business |
On support, check what happens after launch either way. It's the part of the relationship that lasts longest, and the part most often left out of the quote.
The question to ask either way
Whoever you choose, ask who will support this software in three years and what that will cost. A clear answer is a good sign. A vague one is a risk you'll carry.
Not sure which route suits your project? Book a free 30-minute call. If a freelancer would serve you better, we'll say so.
Book a free callQuick answers
Is it cheaper to hire a freelance developer?
Usually per day, yes. Over the life of the software it depends on how much management, rework and support are needed, which is often where the costs of the two routes even out.
When should I use a software agency instead of a freelancer?
When the software is important to how your business runs, when you need several skills such as design, development and hosting, or when it needs to be supported for years regardless of who is available.
What should I ask a freelancer or agency before hiring?
Ask for a written scope and fixed price, who will do the work, who owns the code and who will support the software after launch, at what cost.