Freelancing and outsourcing are both common practices companies use in order to increase efficiency and reduce employment costs. However, they have many core differentiators. The goal of this article is to help you understand the difference between those two ideas and choose the most suitable practice for your company or business.
The basics are in the symmetrical meaning of the words, freelancer stands for “freedom”/ independent work. Typically freelancers choose to commit to projects that will provide them the highest economical value and it might create a challenge in loyalty and commitment. On the other hand, outsourcing is the act of getting work done from outside sources. Most of the time, there is a level of supervision which increases the commitment of outsourced employees. The level of commitment will be determined by your outsourcing strategy and the ability to choose a suitable partner.
Collaboration with freelancers is determined by projects with specific deadlines. A freelancer doesn’t have the commitment, however, if he or she won’t submit the defined job at the defined time, they are risking not getting the agreed payment. Outsource contractors take over the responsibility to deliver projects and in order to maintain their reputation. Of course, it is not promised that they won’t use freelancers or junior employees but this will depend on your screening at the first stage.
Payment wise, freelancers normally are getting paid directly by the company hiring them for the specific project and it means that as the company you will have to facilitate those logistics Ibn outsourcing model, the payment is done by the contractor.
By outsourcing, you can get the result by spending a minimum amount of resources. There is no need for additional offices or costs that come aside with employer-employee relations. Freelancing is not far behind in this aspect. However, in freelancing everything is flexible and no one can guarantee the results.
To conclude, you might refer to outsourcing as renting. It is long-term indirect employment through a third party. The idea is to create a dedicated team without getting into employer commitments. This type of strategy is miles away from “getting work done” by hiring freelancers and many times also more economical.
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