arrow Back to blog

Hiring a Freelancer VS. A Software Development Company: make choice wisely

Nowadays, creating any startup without using technology is impossible. It became almost an axiom, which cannot be doubted: every business idea needs a competent developer to be implemented. But where to find such?

First, if you don't know how to code, be sure you wouldn't make it by yourself. That's where the question arises. One thing is obvious - you are looking for professionals. But who is better to hire freelance developers or a software development agency?

Let's figure it out!

Author: CodeLions
Date: 14 July, 2022
Time: 7 min read

The first thing you need to know

A freelancer is an independent worker with a set of specific, in-demand talents. At the same time, the majority of agencies offer full-cycle software development services, from initial consultancy to product delivery.

What is the difference between a freelancer and a software development company?


Freelance development is usually significantly cheaper than software agencies. Just remember, if you need a bunch of freelancers for different parts of your project, it сan cost you much more expensive.

Although a software development company is considered a more costly option, rates actually depend on the residence country of the company. For example, Asia or Eastern Europe can offer you quite pleasant prices. However, don't expect reasonable rates from the US or Western Europe agencies.

Work Flexibility

Extensive software development organizations have their own sets of guidelines and standards that you may need to follow. Working with a freelancer, though, may allow you to have more work freedom.


Freelancers are usually experts just in one specific area, as we have mentioned before. That is why it’s so important to review carefully their experience and portfolio. On the other side, software development companies can offer you a wide range of qualified in different fields professionals. At this point, it is necessary to remember that sometimes projects require a pretty rich set of skills, and there is a risk that freelancers will not have the ability to cover them all.


Agencies usually are credible, especially in light of the fact that they systematically tackle the complete work ecosystem.

On the other hand, freelancers frequently lack a methodical approach to project management. Also, the concentration is much less when you are a single head that may manage numerous projects.

Legal issues

Independent developers typically handle all legal matters, such as accounting and taxes, on their own. However, it's always preferable to sign an NDA to protect your private information.While working with software development companies, you don't need to stress about preparing contracts. They will take care of all relevant documentation and agreements required to start cooperating. Your duty is just to read carefully what you sign.


Agencies for software development already execute the talent hunt for you. Working with freelancers, on the other hand, would acquire you to look for the ideal match for your project's requirements. This process can be drawn-out and time-consuming.


You should always mention future maintenance when hiring a freelancer. You can find it challenging to get in touch with freelancers after the product launch to fix bugs or make additional changes to the finished product, as they usually switch fast from the project to the project.

With a software development company, you can be sure that you will have a chance to work again with the team who developed your product.

To Sum Up

Unfortunately, as you can see, there is no "one recipe for everyone" when it comes to choosing between an individual developer and an agency. But what can help you to make a decision is simply determining your needs.

For example, you can consider hiring a freelancer if you are searching for a low-budget option to complete a small one-and-done project.

However, when your idea is complicated, multiphase, and requires a broad area of expertise and fast-paced high-quality solutions, it might be a better decision to work with an experienced software development company. That’s where the CodeLions team can come in handy.

We are a team of friendly professionals dedicated to our customers' projects. Our services include drafting and analyzing new requirements, technical consulting, and implementing software solutions. Our mission is simple - CodeLions helps customers bring their products to market faster while reducing overall system development costs

You can book free consultation here.

Good luck with your project!

Get in touch


7 reviews

Thank you

Oops! Something went wrong while submitting the form