Managed Team Vs. Freelancer

Whether you are a veteran in IT development or a fresh start-uper, you want your software development needs be met by the best specialists.
Whether you are a veteran in IT development or a fresh start-uper, you want your software development needs be met by the best specialists. Who to hire: an in-house team of specialists or freelancers? It all depends on the goals, budget and timespan of your project. The key to success in any business is a good team with relevant level of skills and shared understanding of objectives, so never underestimate this step in your way to the stars.

Every approach has its pros and cons, and before you do the actual software development you have to think carefully how your dream team will look like. So let’s dig in features of each work system.


Managed team of developers is interested in long-term success of your company, so they would invest more of their time and skills. They also see a bigger picture and have a better understanding of company’s goals in general. Their work performance is more stable and reliable as people know each other for a long time and become better coordinated. But a dedicated team suffers from groupthink in decision-making.
When hiring a freelancer, you are not limited to the local talents, and you can find a person with micro specialization you have never ever dreamed of. Moreover, freelancers can come from different cultures, so that broadens possible solutions and views on a certain challenge. By definition, freelancers work with different clients and entities, so they can embrace new opinions based on their previous work experience.


Pluses of a dedicated team are pretty obvious. People see each other every day, so they get to know each other’s strengths and weaknesses. That allows spending less time to discuss problems and delegate responsibilities efficiently. Sound logical, right?
It may sound counter-intuitive, but at the same time physical presence does not necessarily lead to work dedication and high operating speeds in software development. Office environment is also a huge distractor for developers. Whatercooler chats, common lunches and tea breaks create more space for procrastination. When you work with a freelancer, the responsibility lies on them and if they fail a deadline or a task, there is no one to put blame on but themselves. While working with a team distributes responsibility and lowers once engagement.


In-house team already has assigned the manager who ensures its working efficiency and can improve the engagement if needed. Organizational processes once regulated will not steal time from the actual work.
From one side, having hired freelancers you will have to explain the rules of the game to every new person. It can lead to past the deadline execution, uncertainty in responsibilities taken and needed effort. From the other side, there are thousands of special web services and mobile apps that resolve that problem. Usually, freelancers depend on their reputation and survive on flawless communication with employers. So failing the task is not in their behalf.


Flexibility:- Freedom with a flexible schedule, hours and location
Ownership:- Ownership you call the shots
Control of Workload:- The ability to choose your workload. You can work as much or as little as you want, and you can choose projects that are meaningful to you.
Income:- Unlimited earning potential


Lack of Benefits:- Whereas an employee is eligible for benefits, freelancers rarely receive benefits. Since freelancers are self-employed, they are typically responsible for finding and funding their own insurance.
Contractors are not always available:- It is not always possible to use the same freelancer or contractor, even if the skills and expertise required are the same.
Communication and control can be difficult:- Communication is not always as easy with contractors as it is with employees.
Taxes:- Freelancers, though, have the responsibility of paying self-employment taxes and making sure to pay them quarterly. However, freelancers also have deductions that employees don’t qualify for. Taxes can be a disadvantage of freelancing, so be sure to carefully consider regulations and laws when setting your rates.


Team can divide large projects into equal parts:- A long list of steps and deadlines is best suited to a team.
Employees can recognize their own strengths and weaknesses:- Team work can lead to self-reflection and self-awareness. It can help someone discover their own leadership qualities, for example, or learn valuable problem-solving or communication skills.
Employees can hold each other accountable:- Having a process for employees to keep each other on task can allow a supervisor to focus on their own work. Teams can establish methods for accountability, such as shared spreadsheets or regular meetings for reporting progress.


People may feel undervalued:- Some participants may feel like their team doesn’t value their suggestions as much as others’ if their ideas aren’t used as frequently. They may participate less in the group and experience decreased creativity and passion for their work.
There may be more competition:- Natural competitiveness can improve motivation, but if the competition becomes the focus of the group, the work quality may decline. If the competitiveness of a group increases to an unhealthy level, it may be better to try independent work instead.
Some personalities strongly influence others:-While leadership is a valuable career skill, strong personalities can make it challenging for others to contribute feedback and can affect the cohesiveness of the team.


All in all, a managed team of developers is generally better for long-time projects. It is more stable and ensuring high quality of the work, but in-house team is cost prohibitive. Whatever you decide, make sure to foster positivity and satisfaction of every person in your team.
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