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Who Do I Outsource Software Development To?

Pratham MittalPratham Mittal

After deciding that outsourcing is the way forward for your company, you are faced with yet another decision – who to outsource to? When do you involve freelancers and what kind of projects require a development firm?

There is no easy answer to that and each company will probably think differently. But here are some of our thoughts.

A freelancer can do smaller projects  – low risk MVPs or CMS-based projects that are small, straightforward, and can be clearly defined. Remember, freelancers need management and, by the very nature of this association, there is a high risk of failure involved. However, the fact that freelancers are cheap, easily available, and considerably more flexible than any company makes them suitable to handle simple projects like building a static mobile app or slicing PSDs.

At the other end of the spectrum are development companies that are undeniably more expensive than freelancers. Having said that, their proven track record makes them the best bet when it comes to strategically important, high risk projects involving, for example, ERP or mobile applications. Also, they are able to work with minimal supervision from your end. There is less oversight involved and it’s possible to scale the team easily, if the need arises.

In closing, I’d like to say that when choosing between freelancers and a development company, it’s important to weigh all the pros and cons against the requirements of the project. It’s like with your home. If you just need someone to build Ikea furniture or fix your plumbing you can get a handyman but if you need to remodel your kitchen, you’ll probably get a contractor firm.

Hope that bit of advice helped. If you’d like more tips and suggestions on this topic, download our free ebook Outsourcing 101. It’s the must have guide for every company that is considering to outsource software development. There’s a wealth of information and I am certain you will find it valuable.

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Pratham Mittal is a Co-Founder at VenturePact and an angel Investor to B2B tech start-ups. He is passionate about globalization, outsourcing, and technology.