Software Development Companies vs. Freelancers

Intro option 1: The following article will explain the differences between software development companies / teams and freelancers.

Intro option 1: The following article will explain the differences between software development companies / teams and freelancers. If you’re looking for a remote developer, but don’t know which to pick, this blog will hopefully shed some light on the matter.


Intro option 2: Are you looking for a remote software developer, but are stuck between choosing a freelancer or a software development team / software development company? If you’re unsure which one would best serve your interests, here are a few facts you should know.


Software development companies normally work on a full time basis. Though they can handle small tasks as well, they prefer long term projects. They are picked and supervised by team leaders and project managers. A software company’s success depends on its highly skilled developers, so you can expect it to send quality, certified experts which solely focus on your project.

Freelancers normally engage in short term, specific projects. They typically work for more than one customer, splitting their time between multiple projects and seeking jobs. Selecting a capable one for your project can be time consuming, and you risk hiring scammers or low quality developers with inflated resumes.


Software developers tend to specialize in particular technologies, possessing a limited, specific skill set. Therefore, when hiring a freelancer, you must be very clear on the qualifications you want him/her to have.

Development companies avoid this problem by hiring a variety of experts, which together have all the experience, knowledge, qualifications and skills you may need for your project.

These days, software development companies hire designers, UX experts, as well as online marketing and SEO specialists, so their work also takes into consideration your company’s other necessities, such as marketing and sales.


Because freelancers tackle small projects, they rarely feel the need for a contract. Unfortunately, this leaves you vulnerable to scams. They are not obligated to respect your information’s security, and they can quit the project at any time with almost no repercussions.

Because they are large, established entities, software development teams must pay great attention to their reputation. Unlike freelancers, who can avoid the backlash of past clients by simply changing their online names, enough negative reviews can bankrupt a company. To avoid this, they aim for quality, respect protocol and work under a non disclosure agreement or a contract.

Further software development companies have set of standard operating procedures and audit teams to overview development process and quality of code which is generally not a case with freelancers


Freelancers engage in multiple tasks at a time, leaving little room for communication. They may juggle between several projects, job finding and their personal lives, perhaps even a day job.

On the other hand, software development companies may provide regular status updates on ongoing projects, bug and progress tracking, and even weekly conversations and meetings. By working in teams, the leader stays in touch to make sure they realize your vision, while others take care of the specifics.

Commitment and Quality

The chaotic nature of the freelancing profession leaves many unable to keep to their commitments. Some developers cannot earn enough, so they work in their spare time while holding a day job. They may cancel or postpone projects due to family or work related problems.

If you want to avoid delays and headaches, you may want to hire a developer who can give you his undivided attention. Only professional software development companies can guarantee such quality in their services. They have the manpower, expertise and experience to deal with every situation, so your projects are always delivered on time and as promised.

Business Continuity

Software development companies have teams in each technology field and can scale up resources when required on short notice to speed up development and also offer backup if any one core member working on the project is unavailable for any reason.

In case of the freelancer, if for any reason he gets tied up, the process of development gets hampered.

Cost or we can say Investment in Development

The general perception is hiring a software development company for a project is a costly affair, but this is not a case if you select the team or company from a country like India, due to the difference in currency exchange rate and the huge pool of technically skilled English speaking work force. Simply put, you’ll get your money's worth.

Maybe the freelancer's quote will initially be low, but if you put all the aspects together, it makes sense to hire a software development company from a Country like India.

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